I 

111TH CONGRESS 

1ST SESSION H. R. 2631 

To reduce the price of gasoline by allowing for offshore drilling, eliminating 

Federal obstacles to constructing refineries and providing incentives for 

investment in refineries, suspending Federal fuel taxes when gasoline 

prices reach a benchmark amount, and promoting free trade. 

IN THE HOUSE OF REPRESENTATIVES 

MAY 21, 2009 

Mr. PAUL introduced the following bill; which was referred to the Committee 

on Ways and Means, and in addition to the Committees on Natural Resources and Financial Services, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions 

as fall within the jurisdiction of the committee concerned 

A BILL 

To reduce the price of gasoline by allowing for offshore 

drilling, eliminating Federal obstacles to constructing refineries and providing incentives for investment in refineries, suspending Federal fuel taxes when gasoline prices 

reach a benchmark amount, and promoting free trade. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘Affordable Gas Price Act’’. 

6 (b) TABLE OF CONTENTS.— 

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Sec. 1. Short title; table of contents. 

Sec. 2. Findings. 

Sec. 3. Termination of restrictions on oil and natural gas development on Federal lands. 

Sec. 4. Limitation of suits under National Environmental Policy Act of 1969. 

Sec. 5. Incentives for investment in oil refineries. 

Sec. 6. Suspension of fuel taxes on highway motor fuels when weekly United 

States retail gasoline prices exceed benchmark. 

Sec. 7. Increase in mileage reimbursement rates. 

Sec. 8. Termination of application of title IV of the Trade Act of 1974 to the 

Russian Federation and Kazakhstan. 

Sec. 9. Study on effects of oil prices on monetary policy. 

1 SEC. 2. FINDINGS. 

2 Congress finds the following: 

3 (1) High fuel costs retard economic growth and 

4 diminish the quality of life for all Americans. 

5 (2) The trucking industry is particularly hard 

6 hit by high fuel prices. 

7 (3) Attempts to address the issue of high gaso8 line costs by increasing government involvement in 

9 the market through measures such as price controls 

10 will only lead to shortages, rationing, and a return 

11 of gasoline lines. 

12 (4) The Federal regulations restricting drilling 

13 impose prohibitive costs on the development of new 

14 sources of energy, artificially inflating the price of 

15 gas. 

16 (5) Federal gas taxes increase the price of oil 

17 thus burdening American families, business, and 

18 truckers. 

19 (6) Allowing private parties to delay, or even 

20 halt, the construction of new refineries through litimstockstill@gpo.gov on PROD1PC66 with BILLS

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1 gation over the National Environmental Protection 

2 Act’s Environmental Impact Statement requirement 

3 reduces the supply of gas thus raising gas prices. 

4 (7) The so-called Jackson-Vanik (‘‘freedom-of5 emigration’’) amendment (section 402 of the Trade 

6 Act of 1974) was a United States reaction to the 

7 Soviet Union’s highly restrictive emigration policy of 

8 the time. 

9 (8) By 2005, some 15 years after the end of 

10 communist rule over the Soviet Union, successor 

11 states Russia and Kazakhstan allow their citizens 

12 the right and opportunity to emigrate, free of any 

13 heavy tax on the visas or other documents required 

14 for emigration and free of any other tax, levy, fine, 

15 fee, or other charge on any citizens as a consequence 

16 of the desire of such citizens to emigrate to the 

17 country of their choice. 

18 (9) Elimination of the Jackson-Vanik amend19 ment’s threat of trade-restricting provisions would 

20 increase the United States access to oil supplies 

21 from non-Arab countries, thus lowering gas prices. 

22 (10) The adoption of a monetary system of fiat 

23 currency unbacked by any ties to gold may have con24 tributed to the raise in gas prices. 

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1 SEC. 3. TERMINATION OF RESTRICTIONS ON OIL AND NAT2 URAL GAS DEVELOPMENT ON FEDERAL 

3 LANDS. 

4 (a) OUTER CONTINENTAL SHELF.— 

5 (1) TERMINATION OF LAWS PROHIBITING EX6 PENDITURES FOR NATURAL GAS LEASING AND

7 PRELEASING ACTIVITIES.—All provisions of existing 

8 Federal law prohibiting the spending of appropriated 

9 funds to conduct oil or natural gas leasing and 

10 preleasing activities for any area of the Outer Conti11 nental Shelf shall have no force or effect. 

12 (2) REVOCATION OF EXISTING PRESIDENTIAL

13 WITHDRAWALS.—All existing withdrawals by the 

14 President under the authority of section 12 of the 

15 Outer Continental Shelf Lands Act (43 U.S.C. 

16 1341) are hereby revoked and are no longer in effect 

17 with respect to the leasing of areas for exploration 

18 for, and development and production of, oil or nat19 ural gas. 

20 (b) COASTAL PLAIN OF ALASKA.—Sections 1002(i) 

21 and 1003 of the Alaska National Interest Lands Con22 servation Act (16 U.S.C. 3142(i) and 3143) are repealed. 

23 SEC. 4. LIMITATION OF SUITS UNDER NATIONAL ENVIRON24 MENTAL POLICY ACT OF 1969. 

25 Section 102 of the National Environmental Policy 

26 Act of 1969 (42 U.S.C. 4332) is amended by inserting 

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1 ‘‘(a) IN GENERAL.—’’ before the first sentence, and by 

2 adding at the end the following: 

3 ‘‘(b) LIMITATION ON SUITS.—A statement required 

4 under subsection (a)(2)(C) is not subject to judicial re5 view.’’. 

6 SEC. 5. INCENTIVES FOR INVESTMENT IN OIL REFINERIES. 

7 (a) INCREASE OF EXPENSING FOR REFINERIES.— 

8 (1) IN GENERAL.—Subsection (a) of section 

9 179C of the Internal Revenue Code of 1986 (relat10 ing to election to expense certain refineries) is 

11 amended by striking ‘‘50 percent’’ and inserting 

12 ‘‘100 percent’’. 

13 (2) EFFECTIVE DATE.—The amendments made 

14 by this subsection shall take effect as if included in 

15 section 1323 of the Energy Policy Act of 2005. 

16 (b) CLASS LIFE FOR REFINERIES.— 

17 (1) IN GENERAL.—Subparagraph (B) of section 

18 168(e)(3) of the Internal Revenue Code of 1986 (re19 lating to 5-year property) is amended by striking 

20 ‘‘and’’ at the end of clause (vi), by striking the pe21 riod at the end of clause (vii) and inserting ‘‘, and’’, 

22 and by inserting after clause (vii) the following new 

23 clause: 

24 ‘‘(viii) any petroleum refining prop25 erty.’’. 

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1 (2) PETROLEUM REFINING ASSET.—Section 

2 168(i) of such Code is amended by adding at the 

3 end the following new paragraph: 

4 ‘‘(20) PETROLEUM REFINING PROPERTY.— 

5 ‘‘(A) IN GENERAL.—The term ‘petroleum 

6 refining property’ means any asset for petro7 leum refining, including assets used for the dis8 tillation, fractionation, and catalytic cracking of 

9 crude petroleum into gasoline and its other 

10 components. 

11 ‘‘(B) ASSET MUST MEET ENVIRONMENTAL

12 LAWS.—Such term shall not include any asset 

13 which does not meet all applicable environ14 mental laws in effect on the date such asset was 

15 placed in service. For purposes of the preceding 

16 sentence, a waiver under the Clean Air Act 

17 shall not be taken into account in determining 

18 whether the applicable environmental laws have 

19 been met. 

20 ‘‘(C) SPECIAL RULE FOR MERGERS AND

21 ACQUISITIONS.—Such term shall not include 

22 any asset with respect to which a deduction was 

23 taken under subsection (e)(3)(B) by any other 

24 taxpayer in any preceding year.’’. 

25 (3) EFFECTIVE DATE.— 

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1 (A) IN GENERAL.—The amendments made 

2 by this subsection shall apply to refineries 

3 placed in service after the date of the enact4 ment of this Act. 

5 (B) EXCEPTION.—The amendments made 

6 by this section shall not apply to any refinery 

7 with respect to which the taxpayer has entered 

8 into a binding contract for the construction 

9 thereof on or before the date of the enactment 

10 of this Act. 

11 SEC. 6. SUSPENSION OF FUEL TAXES ON HIGHWAY MOTOR 

12 FUELS WHEN WEEKLY UNITED STATES RE13 TAIL GASOLINE PRICES EXCEED BENCH14 MARK. 

15 (a) IN GENERAL.—Section 4081 of the Internal Rev16 enue Code of 1986 (relating to imposition of tax on motor 

17 and aviation fuels) is amended by adding at the end the 

18 following new subsection: 

19 ‘‘(f) SUSPENSION OF HIGHWAY MOTOR FUEL TAXES

20 WHEN RETAIL GASOLINE EXCEEDS BENCHMARK.— 

21 ‘‘(1) IN GENERAL.—During any suspension pe22 riod, the tax imposed by this section or section 4041 

23 on highway motor fuel shall be suspended. 

24 ‘‘(2) DEFINITIONS AND SPECIAL RULE.—For 

25 purposes of this subsection— 

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1 ‘‘(A) SUSPENSION PERIOD.—The term 

2 ‘suspension period’ means the period— 

3 ‘‘(i) beginning on the date on which 

4 the weekly United States retail gasoline 

5 price, regular grade (as published by the 

6 Energy Information Administration, De7 partment of Energy), inclusive of such tax, 

8 is greater than $3.00 per gallon, and 

9 ‘‘(ii) ending on the date on which such 

10 price (as so published), without regard to 

11 this subsection, does not exceed $3.00 per 

12 gallon. 

13 ‘‘(B) HIGHWAY MOTOR FUEL.—The term 

14 ‘highway motor fuel’ means any fuel subject to 

15 tax under this section or section 4041 other 

16 than aviation gasoline and aviation-grade ker17 osene.’’. 

18 (b) MAINTENANCE OF TRUST FUNDS DEPOSITS; 

19 AMOUNTS APPROPRIATED TO TRUST FUNDS TREATED AS

20 TAXES.— 

21 (1) IN GENERAL.—There is hereby appro22 priated (out of any money in the Treasury not other23 wise appropriated) to each trust fund which would 

24 (but for this subsection) receive reduced revenues as 

25 a result of a suspension in a rate of tax by reason 

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1 of section 4081(f)(1) of the Internal Revenue Code 

2 of 1986 (as added by this section) an amount equal 

3 to such reduction in revenues. Amounts appropriated 

4 by the preceding sentence to any trust fund— 

5 (A) shall be transferred from the general 

6 fund at such times and in such manner as to 

7 replicate to the extent possible the transfers 

8 which would have occurred had such section 

9 4081(f)(1) not been enacted, and 

10 (B) shall be treated for all purposes of 

11 Federal law as taxes received under the appro12 priate section referred to in such section 

13 4081(f)(1). 

14 (c) EFFECTIVE DATE.—The amendment made by 

15 this section shall take effect on the date of the enactment 

16 of this Act. 

17 (d) FLOOR STOCK REFUNDS.— 

18 (1) IN GENERAL.—If— 

19 (A) before the tax suspension date, tax has 

20 been imposed under section 4081 of the Inter21 nal Revenue Code of 1986 on any highway 

22 motor fuel, and 

23 (B) on such date such fuel is held by a 

24 dealer and has not been used and is intended 

25 for sale, 

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1 there shall be credited or refunded (without interest) 

2 to the person who paid such tax (hereafter in this 

3 subsection referred to as the ‘‘taxpayer’’) an amount 

4 equal to the excess of the tax paid by the taxpayer 

5 over the tax which would be imposed on such fuel 

6 had the taxable event occurred on such date. 

7 (2) TIME FOR FILING CLAIMS.—No credit or re8 fund shall be allowed or made under this subsection 

9 unless— 

10 (A) claim therefor is filed with the Sec11 retary of the Treasury before the date which is 

12 6 months after the tax suspension date based 

13 on a request submitted to the taxpayer before 

14 the date which is 3 months after the tax sus15 pension date by the dealer who held the high16 way motor fuel on such date, and 

17 (B) the taxpayer has repaid or agreed to 

18 repay the amount so claimed to such dealer or 

19 has obtained the written consent of such dealer 

20 to the allowance of the credit or the making of 

21 the refund. 

22 (3) EXCEPTION FOR FUEL HELD IN RETAIL

23 STOCKS.—No credit or refund shall be allowed under 

24 this subsection with respect to any highway motor 

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1 fuel in retail stocks held at the place where intended 

2 to be sold at retail. 

3 (4) DEFINITIONS.—For purposes of this sub4 section— 

5 (A) TAX SUSPENSION DATE.—The term 

6 ‘‘tax suspension date’’ means the first day of 

7 any suspension period in effect under section 

8 4081(f) of the Internal Revenue Code of 1986 

9 (as added by subsection (a) of this section). 

10 (B) OTHER TERMS.—The terms ‘‘dealer’’ 

11 and ‘‘held by a dealer’’ have the respective 

12 meanings given to such terms by section 6412 

13 of such Code. 

14 (5) CERTAIN RULES TO APPLY.—Rules similar 

15 to the rules of subsections (b) and (c) of section 

16 6412 of such Code shall apply for purposes of this 

17 subsection. 

18 (e) FLOOR STOCKS TAX.— 

19 (1) IMPOSITION OF TAX.—In the case of any 

20 highway motor fuel which is held on the tax restora21 tion date by any person, there is hereby imposed a 

22 floor stocks tax equal to the excess of the tax which 

23 would be imposed on such fuel had the taxable event 

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1 viously paid (and not credited or refunded) on such 

2 fuel. 

3 (2) LIABILITY FOR TAX AND METHOD OF PAY4 MENT.— 

5 (A) LIABILITY FOR TAX.—The person 

6 holding highway motor fuel on the tax restora7 tion date to which the tax imposed by para8 graph (1) applies shall be liable for such tax. 

9 (B) METHOD OF PAYMENT.—The tax im10 posed by paragraph (1) shall be paid in such 

11 manner as the Secretary shall prescribe. 

12 (C) TIME FOR PAYMENT.—The tax im13 posed by paragraph (1) shall be paid on or be14 fore the 45th day after the tax restoration date. 

15 (3) DEFINITIONS.—For purposes of this sub16 section— 

17 (A) TAX RESTORATION DATE.—The term 

18 ‘‘tax restoration date’’ means the first day after 

19 the suspension period (as defined in section 

20 4081(f) of the Internal Revenue Code of 1986). 

21 (B) HIGHWAY MOTOR FUEL.—The term 

22 ‘‘highway motor fuel’’ has the meaning given to 

23 such term by section 4081(f) of such Code. 

24 (C) HELD BY A PERSON.—A highway 

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1 son if title thereto has passed to such person 

2 (whether or not delivery to the person has been 

3 made). 

4 (D) SECRETARY.—The term ‘‘Secretary’’ 

5 means the Secretary of the Treasury or the 

6 Secretary’s delegate. 

7 (4) EXCEPTION FOR EXEMPT USES.—The tax 

8 imposed by paragraph (1) shall not apply to any 

9 highway motor fuel held by any person exclusively 

10 for any use to the extent a credit or refund of the 

11 tax is allowable for such use. 

12 (5) EXCEPTION FOR CERTAIN AMOUNTS OF

13 FUEL.— 

14 (A) IN GENERAL.—No tax shall be im15 posed by paragraph (1) on any highway motor 

16 fuel held on the tax restoration date by any per17 son if the aggregate amount of such highway 

18 motor fuel held by such person on such date 

19 does not exceed 2,000 gallons. The preceding 

20 sentence shall apply only if such person submits 

21 to the Secretary (at the time and in the manner 

22 required by the Secretary) such information as 

23 the Secretary shall require for purposes of this 

24 subparagraph. 

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1 (B) EXEMPT FUEL.—For purposes of sub2 paragraph (A), there shall not be taken into ac3 count any highway motor fuel held by any per4 son which is exempt from the tax imposed by 

5 paragraph (1) by reason of paragraph (4). 

6 (C) CONTROLLED GROUPS.—For purposes 

7 of this subsection— 

8 (i) CORPORATIONS.— 

9 (I) IN GENERAL.—All persons 

10 treated as a controlled group shall be 

11 treated as 1 person. 

12 (II) CONTROLLED GROUP.—The 

13 term ‘‘controlled group’’ has the 

14 meaning given to such term by sub15 section (a) of section 1563 of such 

16 Code; except that for such purposes 

17 the phrase ‘‘more than 50 percent’’ 

18 shall be substituted for the phrase ‘‘at 

19 least 80 percent’’ each place it ap20 pears in such subsection. 

21 (ii) NONINCORPORATED PERSONS

22 UNDER COMMON CONTROL.—Under regula23 tions prescribed by the Secretary, prin24 ciples similar to the principles of subpara25 graph (A) shall apply to a group of permstockstill@gpo.gov on PROD1PC66 with BILLS

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1 sons under common control if 1 or more of 

2 such persons is not a corporation. 

3 (6) OTHER LAWS APPLICABLE.—All provisions 

4 of law, including penalties, applicable with respect to 

5 the taxes imposed by section 4081 of such Code 

6 shall, insofar as applicable and not inconsistent with 

7 the provisions of this subsection, apply with respect 

8 to the floor stock taxes imposed by paragraph (1) to 

9 the same extent as if such taxes were imposed by 

10 such section. 

11 SEC. 7. INCREASE IN MILEAGE REIMBURSEMENT RATES. 

12 (a) BUSINESS.—For purposes of the Internal Rev13 enue Code of 1986, after the date of the enactment of 

14 this Act, the optional standard mileage rates to be used 

15 for computing the deductible costs of operating an auto16 mobile for business purposes shall be not less than 70 

17 cents per mile. 

18 (b) MEDICAL, MOVING, AND CHARITABLE CON19 TRIBUTION RATES.—For any day during the period under 

20 which highway motor fuel taxes are suspended under sec21 tion 4081(f) of the Internal Revenue Code of 1986— 

22 (1) the optional standard mileage rates to be 

23 used for computing the deductible costs of operating 

24 an automobile for medical, moving, and charitable 

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1 purposes shall be the same rate which is in effect for 

2 such day for business purposes, and 

3 (2) the rate under section 170(i) shall not 

4 apply. 

5 SEC. 8. TERMINATION OF APPLICATION OF TITLE IV OF 

6 THE TRADE ACT OF 1974 TO THE RUSSIAN 

7 FEDERATION AND KAZAKHSTAN. 

8 (a) PRESIDENTIAL DETERMINATIONS AND EXTEN9 SIONS OF NONDISCRIMINATORY TREATMENT.—Notwith10 standing any provision of title IV of the Trade Act of 1974 

11 (19 U.S.C. 2431 et seq.), the President may— 

12 (1) determine that such title should no longer 

13 apply to both the Russian Federation and 

14 Kazakhstan; and 

15 (2) after making a determination under para16 graph (1) with respect to the Russian Federation 

17 and Kazakhstan, proclaim the extension of non18 discriminatory treatment (normal trade relations 

19 treatment) to the products of those countries. 

20 (b) TERMINATION OF APPLICATION OF TITLE IV.— 

21 On and after the effective date of the extension under sub22 section (a)(2) of nondiscriminatory treatment to the prod23 ucts of the Russian Federation and Kazakhstan, title IV 

24 of the Trade Act of 1974 shall cease to apply to those 

25 countries. 

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1 SEC. 9. STUDY ON EFFECTS OF OIL PRICES ON MONETARY 

2 POLICY. 

3 Not later than 6 months after the date of the enact4 ment of this Act, the Secretary of the Treasury and the 

5 Board of Governors of the Federal Reserve System shall 

6 produce a study on the relationship between the increase 

7 in the price of oil and the monetary system of fiat cur8 rency. The results of this study shall be submitted to the 

9 Chairman of the Committee on Financial Services of the 

10 House of Representatives and the Chairman of the Com11 mittee on Banking, Housing, and Urban Affairs of the 

12 Senate. 

Æ 

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