I 
112TH CONGRESS 
1ST SESSION H. R. 1748 
To provide consumers relief from high gas prices, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MAY 5, 2011 
Mr. BISHOP of New York (for himself, Mr. MARKEY, Ms. CHU, and Mr. 
LARSON of Connecticut) introduced the following bill; which was referred 
to the Committee on Energy and Commerce, and in addition to the Com-
mittees on Ways and Means and Natural Resources, 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 con-
cerned 
A BILL 
To provide consumers relief from high gas prices, and for 
other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Taxpayer and Gas 
Price Relief Act of 2011’’. 
SEC. 2. TABLE OF CONTENTS. 
The table of contents for this Act is as follows: 
Sec. 1. Short title. 
Sec. 2. Table of contents. 
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TITLE I—DENIAL OF CERTAIN TAX BENEFITS TO MAJOR 
INTEGRATED OIL COMPANIES 
Sec. 101. Deduction for income attributable to domestic production activities 
not allowed with respect to oil and gas activities of major inte-
grated oil companies. 
Sec. 102. Major integrated oil companies ineligible for last-in, first-out method 
of inventory. 
Sec. 103. Limitation on deduction for intangible drilling and development costs 
of major integrated oil companies in the case of oil and gas 
wells. 
TITLE II—DEFICIT REDUCTION THROUGH FAIR OIL ROYALTIES 
Sec. 201. Short title. 
Sec. 202. Eligibility for new leases and the transfer of leases. 
Sec. 203. Price thresholds for royalty suspension provisions. 
TITLE III—PROTECTION FROM PRICE GOUGING 
Sec. 301. Short title. 
Sec. 302. Unconscionable pricing of gasoline and other petroleum distillates 
during emergencies. 
Sec. 303. Enforcement by the Federal Trade Commission. 
Sec. 304. Criminal penalties. 
Sec. 305. Enforcement at retail level by State attorneys general. 
Sec. 306. Effect on other laws. 
TITLE IV—STRATEGIC PETROLEUM RESERVE 
Sec. 401. Short title. 
Sec. 402. Definition. 
Sec. 403. Petroleum product reserve. 
Sec. 404. Sale of oil from the Strategic Petroleum Reserve and acquisition of 
refined petroleum product. 
Sec. 405. Report to Congress. 
Sec. 406. Strategic Petroleum Reserve drawdown and exchange in public inter-
est. 
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TITLE I—DENIAL OF CERTAIN 
TAX BENEFITS TO MAJOR IN-
TEGRATED OIL COMPANIES 
SEC. 101. DEDUCTION FOR INCOME ATTRIBUTABLE TO DO-
MESTIC PRODUCTION ACTIVITIES NOT AL-
LOWED WITH RESPECT TO OIL AND GAS AC-
TIVITIES OF MAJOR INTEGRATED OIL COM-
PANIES. 
(a) IN GENERAL.—Subparagraph (B) of section 
199(c)(4) of the Internal Revenue Code of 1986 is amend-
ed by striking ‘‘and’’ at the end of clause (ii), by striking 
the period at the end of clause (iii) and inserting ‘‘, and’’, 
and by inserting after clause (iii) the following new clause: 
‘‘(iv) in the case of a major integrated 
oil 
company 
(as 
defined 
in 
section 
167(h)(5)), the production, refining, proc-
essing, transportation, or distribution of 
oil, gas, or any primary product thereof.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
subsection (a) shall apply to taxable years beginning after 
the date of the enactment of this Act. 
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SEC. 102. MAJOR INTEGRATED OIL COMPANIES INELIGIBLE 
FOR LAST-IN, FIRST-OUT METHOD OF INVEN-
TORY. 
(a) IN GENERAL.—Section 471 of the Internal Rev-
enue Code of 1986 is amended by redesignating subsection 
(c) as subsection (d) and by inserting after subsection (b) 
the following new subsection: 
‘‘(c) MAJOR INTEGRATED OIL COMPANIES INELI-
GIBLE FOR LAST-IN, FIRST-OUT METHOD.—In the case 
of a major integrated oil company (as defined in section 
167(h)(5)(B))— 
‘‘(1) the last-in, first-out method of determining 
inventories shall in no event be treated as clearly re-
flecting income, and 
‘‘(2) sections 472 and 473 shall not apply.’’. 
(b) EFFECTIVE DATE.— 
(1) IN GENERAL.—The amendments made by 
this section shall apply to taxable years beginning 
after the date of the enactment of this Act. 
(2) CHANGE IN METHOD OF ACCOUNTING.—In 
the case of any taxpayer required by the amend-
ments made by this section to change its method of 
accounting for its first taxable year beginning after 
the date of the enactment of this Act— 
(A) such change shall be treated as initi-
ated by the taxpayer, 
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(B) such change shall be treated as made 
with the consent of the Secretary of the Treas-
ury, and 
(C) if the net amount of the adjustments 
required to be taken into account by the tax-
payer under section 481 of the Internal Rev-
enue Code of 1986 is positive, such amount 
shall be taken into account over a period of 8 
years beginning with such first taxable year. 
SEC. 103. LIMITATION ON DEDUCTION FOR INTANGIBLE 
DRILLING AND DEVELOPMENT COSTS OF 
MAJOR INTEGRATED OIL COMPANIES IN THE 
CASE OF OIL AND GAS WELLS. 
(a) IN GENERAL.—Subsection (c) of section 263 of 
the Internal Revenue Code of 1986 is amended by adding 
at the end the following new sentence: ‘‘This subsection 
shall not apply to intangible drilling and development costs 
paid or incurred by any major integrated oil company (as 
defined in section 167(h)(5)) in the case of oil and gas 
wells.’’. 
(b) CONFORMING AMENDMENT.—Subsection (c) of 
section 263 of such Code is amended by inserting ‘‘(deter-
mined without regard to the last sentence of this sub-
section)’’ after ‘‘in the same manner as such expenses are 
deductible in the case of oil and gas wells’’. 
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(c) EFFECTIVE DATE.—The amendment made by 
this section shall apply to amounts paid or incurred in tax-
able years beginning after the date of the enactment of 
this Act. 
TITLE II—DEFICIT REDUCTION 
THROUGH FAIR OIL ROYALTIES 
SEC. 201. SHORT TITLE. 
This title may be cited as the ‘‘Deficit Reduction 
Through Fair Oil Royalties Act’’. 
SEC. 202. ELIGIBILITY FOR NEW LEASES AND THE TRANS-
FER OF LEASES. 
(a) ISSUANCE OF NEW LEASES.— 
(1) IN
GENERAL.—The Secretary shall not 
issue any new lease that authorizes the production 
of oil or natural gas under the Outer Continental 
Shelf Lands Act (43 U.S.C. 1331 et seq.) to a per-
son described in paragraph (2) unless the person has 
renegotiated each covered lease with respect to which 
the person is a lessee, to modify the payment re-
sponsibilities of the person to require the payment of 
royalties if the price of oil and natural gas is greater 
than or equal to the price thresholds described in 
clauses (v) through (vii) of section 8(a)(3)(C) of the 
Outer Continental Shelf Lands Act (43 U.S.C. 
1337(a)(3)(C)). 
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(2) PERSONS DESCRIBED.—A person referred 
to in paragraph (1) is a person that— 
(A) is a lessee that— 
(i) holds a covered lease on the date 
on which the Secretary considers the 
issuance of the new lease; or 
(ii) was issued a covered lease before 
the date of enactment of this Act, but 
transferred the covered lease to another 
person or entity (including a subsidiary or 
affiliate of the lessee) after the date of en-
actment of this Act; or 
(B) any other person that has any direct 
or indirect interest in, or that derives any ben-
efit from, a covered lease. 
(3) MULTIPLE LESSEES.— 
(A) IN GENERAL.—For purposes of para-
graph (1), if there are multiple lessees that own 
a share of a covered lease, the Secretary may 
implement separate agreements with any lessee 
with a share of the covered lease that modifies 
the payment responsibilities with respect to the 
share of the lessee to include price thresholds 
that are equal to or less than the price thresh-
olds described in clauses (v) through (vii) of 
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section 8(a)(3)(C) of the Outer Continental 
Shelf Lands Act (43 U.S.C. 1337(a)(3)(C)). 
(B) TREATMENT OF SHARE AS COVERED 
LEASE.—Beginning on the effective date of an 
agreement under subparagraph (A), any share 
subject to the agreement shall not constitute a 
covered lease with respect to any lessees that 
entered into the agreement. 
(b) TRANSFERS.—A lessee or any other person who 
has any direct or indirect interest in, or who derives a 
benefit from, a lease shall not be eligible to obtain by sale 
or other transfer (including through a swap, spinoff, serv-
icing, or other agreement) any covered lease, the economic 
benefit of any covered lease, or any other lease for the 
production of oil or natural gas in the Gulf of Mexico 
under the Outer Continental Shelf Lands Act (43 U.S.C. 
1331 et seq.), unless the lessee or other person has— 
(1) renegotiated each covered lease with respect 
to which the lessee or person is a lessee, to modify 
the payment responsibilities of the lessee or person 
to include price thresholds that are equal to or less 
than the price thresholds described in clauses (v) 
through (vii) of section 8(a)(3)(C) of the Outer Con-
tinental Shelf Lands Act (43 U.S.C. 1337(a)(3)(C)); 
or 
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TITLE IV—STRATEGIC 
PETROLEUM RESERVE 
SEC. 401. SHORT TITLE. 
This title may be cited as the ‘‘Enhanced Supply and 
Price Reduction Act of 2011’’ or the ‘‘Enhanced SPR 
Act’’. 
SEC. 402. DEFINITION. 
In this title, the term ‘‘Secretary’’ means the Sec-
retary of Energy. 
SEC. 403. PETROLEUM PRODUCT RESERVE. 
Section 154(a) of the Energy Policy and Conserva-
tion Act (42 U.S.C. 6234(a)) is amended by striking ‘‘1 
billion barrels of petroleum products’’ and inserting 
‘‘1,000,000,000 barrels of petroleum products (including 
refined petroleum products)’’. 
SEC. 404. SALE OF OIL FROM THE STRATEGIC PETROLEUM 
RESERVE AND ACQUISITION OF REFINED PE-
TROLEUM PRODUCT. 
(a) INITIAL
PETROLEUM
SALE
AND
REPLACE-
MENT.— 
(1) AUTHORITY.—Notwithstanding section 161 
of the Energy Policy and Conservation Act (42 
U.S.C. 6241), the Secretary may sell, in the 
amounts and on the schedule described in subsection 
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