I 
109TH CONGRESS 
1ST SESSION H. R. 4449 
To amend the Internal Revenue Code of 1986 to impose a temporary windfall 
profit tax on crude oil, to allow a credit against tax for qualified fuel- 
efficient vehicles placed in service during the taxable year, to establish 
the Energy Assistance Trust Fund, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
DECEMBER 6, 2005 
Mr. PALLONE introduced the following bill; which was referred to the Com-
mittee on Ways and Means, and in addition to the Committees on Energy 
and Commerce and Education and the Workforce, for a period to be sub-
sequently determined by the Speaker, in each case for consideration of 
such provisions as fall within the jurisdiction of the committee concerned 
A BILL 
To amend the Internal Revenue Code of 1986 to impose 
a temporary windfall profit tax on crude oil, to allow 
a credit against tax for qualified fuel-efficient vehicles 
placed in service during the taxable year, to establish 
the Energy Assistance Trust Fund, and for other pur-
poses. 
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 Consumer Energy As-
sistance and Fairness Act of 2005.
SEC. 2. WINDFALL PROFITS TAX. 
(a) IN GENERAL.—Subtitle E of the Internal Rev-
enue Code of 1986 (relating to alcohol, tobacco, and cer-
tain other excise taxes) is amended by adding at the end 
the following new chapter: 
‘‘CHAPTER 56—WINDFALL PROFIT ON 
CRUDE OIL 
‘‘Sec. 5896. Imposition of tax. 
‘‘Sec. 5897. Windfall profit; removal price; adjusted base price; qualified invest-
ment. 
‘‘Sec. 5898. Special rules and definitions. 
‘‘SEC. 5896. IMPOSITION OF TAX. 
‘‘(a) IN GENERAL.—In addition to any other tax im-
posed under this title, there is hereby imposed on any inte-
grated oil company (as defined in section 291(b)(4)) an 
excise tax equal to the excess of— 
‘‘(1) the amount equal to 50 percent of the 
windfall profit from all barrels of taxable crude oil 
removed from the property during each taxable year, 
over 
‘‘(2) the amount of qualified investment by such 
company during such taxable year. 
‘‘(b) FRACTIONAL PART OF BARREL.—In the case of 
a fraction of a barrel, the tax imposed by subsection (a) 
shall be the same fraction of the amount of such tax im-
posed on the whole barrel.
‘‘(c) TAX PAID BY PRODUCER.—The tax imposed by 
this section shall be paid by the producer of the taxable 
crude oil. 
‘‘SEC. 5897. WINDFALL PROFIT; REMOVAL PRICE; AD-
JUSTED BASE PRICE; QUALIFIED INVEST-
MENT. 
‘‘(a) GENERAL RULE.—For purposes of this chapter, 
the term ‘windfall profit’ means the excess of the removal 
price of the barrel of taxable crude oil over the adjusted 
base price of such barrel. 
‘‘(b) REMOVAL PRICE.—For purposes of this chap-
ter— 
‘‘(1) IN GENERAL.—Except as otherwise pro-
vided in this subsection, the term ‘removal price’ 
means the amount for which the barrel of taxable 
crude oil is sold. 
‘‘(2) SALES BETWEEN RELATED PERSONS.—In 
the case of a sale between related persons, the re-
moval price shall not be less than the constructive 
sales price for purposes of determining gross income 
from the property under section 613. 
‘‘(3) OIL REMOVED FROM PROPERTY BEFORE 
SALE.—If crude oil is removed from the property be-
fore it is sold, the removal price shall be the con-
structive sales price for purposes of determining 
gross income from the property under section 613. 
‘‘(4) REFINING BEGUN ON PROPERTY.—If the 
manufacture or conversion of crude oil into refined 
products begins before such oil is removed from the 
property— 
‘‘(A) such oil shall be treated as removed 
on the day such manufacture or conversion be-
gins, and 
‘‘(B) the removal price shall be the con-
structive sales price for purposes of determining 
gross income from the property under section 
613. 
‘‘(5) PROPERTY.—The term ‘property’ has the 
meaning given such term by section 614. 
‘‘(c) ADJUSTED BASE PRICE DEFINED.— 
‘‘(1) IN GENERAL.—For purposes of this chap-
ter, the term ‘adjusted base price’ means $40 for 
each barrel of taxable crude oil plus an amount 
equal to— 
‘‘(A) such base price, multiplied by 
‘‘(B) the inflation adjustment for the cal-
endar year in which the taxable crude oil is re-
moved from the property.
The amount determined under the preceding sen-
tence shall be rounded to the nearest cent. 
‘‘(2) INFLATION ADJUSTMENT.— 
‘‘(A) IN GENERAL.—For purposes of para-
graph (1), the inflation adjustment for any cal-
endar year after 2006 is the percentage by 
which— 
‘‘(i) the implicit price deflator for the 
gross national product for the preceding 
calendar year, exceeds 
‘‘(ii) such deflator for the calendar 
year ending December 31, 2005. 
‘‘(B) FIRST REVISION OF PRICE DEFLATOR 
USED.—For purposes of subparagraph (A), the 
first revision of the price deflator shall be used. 
‘‘(d) QUALIFIED INVESTMENT.—For purposes of this 
chapter— 
‘‘(1) IN GENERAL.—The term ‘qualified invest-
ment’ means any amount paid or incurred with re-
spect to— 
‘‘(A) section 263(c) costs, 
‘‘(B) qualified refinery property (as defined 
in section 179C(c) and determined without re-
gard to any termination date),
‘‘(C) any qualified facility described in 
paragraph (1), (2), (3), or (4) of section 45(d) 
(determined without regard to any placed in 
service date), or 
‘‘(D) any facility for the production of al-
cohol used as a fuel (within the meaning of sec-
tion 40) or biodiesel or agri-biodiesel used as a 
fuel (within the meaning of section 40A). 
‘‘(2) SECTION 263(c) COSTS.—For purposes of 
this subsection, the term ‘section 263(c) costs’ 
means intangible drilling and development costs in-
curred by the taxpayer which (by reason of an elec-
tion under section 263(c)) may be deducted as ex-
penses for purposes of this title (other than this 
paragraph). Such term shall not include costs in-
curred in drilling a nonproductive well. 
‘‘SEC. 5898. SPECIAL RULES AND DEFINITIONS. 
‘‘(a) WITHHOLDING AND DEPOSIT OF TAX.—The 
Secretary shall provide such rules as are necessary for the 
withholding and deposit of the tax imposed under section 
5896 on any taxable crude oil. 
‘‘(b) RECORDS AND INFORMATION.—Each taxpayer 
liable for tax under section 5896 shall keep such records, 
make such returns, and furnish such information (to the 
Secretary and to other persons having an interest in the
taxable crude oil) with respect to such oil as the Secretary 
may by regulations prescribe. 
‘‘(c) RETURN OF WINDFALL PROFIT TAX.—The Sec-
retary shall provide for the filing and the time of such 
filing of the return of the tax imposed under section 5896. 
‘‘(d) DEFINITIONS.—For purposes of this chapter— 
‘‘(1) PRODUCER.—The term ‘producer’ means 
the holder of the economic interest with respect to 
the crude oil. 
‘‘(2) CRUDE OIL.— 
‘‘(A) IN GENERAL.—The term ‘crude oil’ 
includes crude oil condensates and natural gas-
oline. 
‘‘(B) EXCLUSION OF NEWLY DISCOVERED 
OIL.—Such term shall not include any oil pro-
duced from a well drilled after the date of the 
enactment of the Windfall Profits Rebate Act of 
2005, except with respect to any oil produced 
from a well drilled after such date on any prov-
en oil or gas property (within the meaning of 
section 613A(c)(9)(A)). 
‘‘(3) BARREL.—The term ‘barrel’ means 42 
United States gallons. 
‘‘(e) ADJUSTMENT OF REMOVAL PRICE.—In deter-
mining the removal price of oil from a property in the case
of any transaction, the Secretary may adjust the removal 
price to reflect clearly the fair market value of oil removed. 
‘‘(f) REGULATIONS.—The Secretary shall prescribe 
such regulations as may be necessary or appropriate to 
carry out the purposes of this chapter. 
‘‘(g) TERMINATION.—This section shall not apply to 
taxable crude oil removed after the date which is 3 years 
after the date of the enactment of this section.’’. 
(b) CLERICAL AMENDMENT.—The table of chapters 
for subtitle E of the Internal Revenue Code of 1986 is 
amended by adding at the end the following new item: 
‘‘CHAPTER 56. WINDFALL PROFIT ON CRUDE OIL’’. 
(c) DEDUCTIBILITY OF WINDFALL PROFIT TAX.— 
The first sentence of section 164(a) of the Internal Rev-
enue Code of 1986 (relating to deduction for taxes) is 
amended by inserting after paragraph (5) the following 
new paragraph: 
‘‘(6) The windfall profit tax imposed by section 
5896.’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to crude oil removed after Decem-
ber 31, 2005, in taxable years beginning after such date. 
SEC. 3. FUEL-EFFICIENT VEHICLE CREDIT. 
(a) IN GENERAL.—Subpart B of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of
1986 (relating to other credits) is amended by inserting 
after section 30C the following new section: 
‘‘SEC. 30D. FUEL-EFFICIENT VEHICLE CREDIT. 
‘‘(a) ALLOWANCE OF CREDIT.—At the election of the 
taxpayer, there shall be allowed as a credit against the 
tax imposed by this chapter for the taxable year an 
amount equal to $1,000 for any qualified fuel-efficient ve-
hicle placed in service by the taxpayer during the taxable 
year. 
‘‘(b) QUALIFIED FUEL-EFFICIENT VEHICLE.—For 
purposes of this section, the term ‘qualified fuel-efficient 
vehicle’ means a motor vehicle (as defined in section 
30(c)(2))— 
‘‘(1) in which the fuel economy (determined in 
accordance with section 4064) of such vehicle is 
rated at not less than 30 miles per gallon, and 
‘‘(2) which is— 
‘‘(A) an automobile (as defined in section 
4064(b)), or 
‘‘(B) a truck or van with an unloaded 
gross vehicle weight rating not greater than 
7,500 pounds. 
‘‘(c) SPECIAL RULES.— 
‘‘(1) BASIS
REDUCTION.—The basis of any 
property for which a credit is allowable under sub-
section (a) shall be reduced by the amount of such 
credit. 
‘‘(2) RECAPTURE.—The Secretary shall, by reg-
ulations, provide for recapturing the benefit of any 
credit allowable under subsection (a) with respect to 
any property which ceases to be property eligible for 
such credit. 
‘‘(3) 
PROPERTY
USED
OUTSIDE
UNITED 
STATES, ETC. NOT QUALIFIED.—No credit shall be 
allowed under subsection (a) with respect to any 
property referred to in section 50(b) or with respect 
to the portion of the cost of any property taken into 
account under section 30, 179, or 179A. 
‘‘(d) CARRYFORWARD OF UNUSED CREDITS.—If the 
credit allowable under subsection (a) for any taxable year 
exceeds— 
‘‘(1) the regular tax for the taxable year re-
duced by the sum of the credits allowable under sub-
part A and this part (other than this section), over 
‘‘(2) the tentative minimum tax for the taxable 
year, 
such excess shall be carried to the succeeding taxable year 
and added to the credit allowable under subsection (a) for 
such taxable year.
‘‘(e) TERMINATION.—This section shall not apply to 
taxable years beginning after December 31, 2008.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
for such subpart B is amended by inserting after the item 
relating to section 30C the following new item: 
‘‘Sec. 30D. Fuel-efficient vehicle credit.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2005. 
SEC. 4. ENERGY ASSISTANCE TRUST FUND. 
(a) CREATION OF TRUST FUND.—Subchapter A of 
chapter 98 of such Code is amended by inserting at the 
end the following new section: 
‘‘SEC. 9511. ENERGY ASSISTANCE TRUST FUND. 
‘‘(a) CREATION OF TRUST FUND.—There is estab-
lished in the Treasury of the United States a trust fund 
to be known as the ‘Energy Assistance Trust Fund’, con-
sisting of such amounts as may be appropriated or cred-
ited to the Energy Assistance Trust Fund. 
‘‘(b) TRANSFER
OF CERTAIN TAXES.—There are 
hereby appropriated to the Energy Assistance Trust Fund 
amounts equivalent to the taxes received in the Treasury 
under chapter 56. 
‘‘(c) EXPENDITURES FROM ENERGY ASSISTANCE 
TRUST
FUND.—As provided by appropriation Acts,
amounts in the Energy Assistance Trust Fund shall be 
available— 
‘‘(1) to make grants under the Low-Income 
Gasoline Assistance Program Act, and 
‘‘(2) to carry out the Low-Income Home En-
ergy Assistance Act of 1981.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
for subchapter A of chapter 98 of such Code is amended 
by inserting at the end the following new item: 
‘‘Sec. 9511. Energy assistance trust fund.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2005. 
SEC. 5. LOW-INCOME GASOLINE ASSISTANCE PROGRAM. 
(a) SHORT TITLE.—This section may be cited as the 
‘‘Low-Income Gasoline Assistance Program Act’’. 
(b) DEFINITIONS.—For purposes of this section— 
(1) COVERED ACTIVITIES.—The term ‘‘covered 
activities’’ means— 
(A) work activities; 
(B) education directly related to employ-
ment; or 
(C) activities related to necessary sched-
uled medical treatment.
(2) GASOLINE.—The term ‘‘gasoline’’ has the 
meaning given the term in section 4082 of the Inter-
nal Revenue Code of 1986. 
(3) HOUSEHOLD.—The term ‘‘household’’ has 
the meaning given the term in section 2603 of the 
Low-Income Home Energy Assistance Act of 1981 
(42 U.S.C. 8622). 
(4) POVERTY
LEVEL; 
STATE
MEDIAN
IN-
COME.—The terms ‘‘poverty level’’ and ‘‘State me-
dian income’’ have the meanings given the terms in 
section 2603 of the Low-Income Home Energy As-
sistance Act of 1981. 
(5) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of Health and Human Services. 
(6) STATE.—The term ‘‘State’’ means each of 
the several States, the District of Columbia, and the 
Commonwealth of Puerto Rico. 
(7) WORK ACTIVITIES.—The term ‘‘work activi-
ties’’ has the meaning given the term in section 
407(d) of the Social Security Act (42 U.S.C. 
607(d)). 
(c) EMERGENCY ASSISTANCE PROGRAMS.—The Sec-
retary shall make grants to States, from allotments made 
under subsection (d), to enable the States to establish 
emergency assistance programs and to provide, through
the programs, payments to eligible households to enable 
the households to purchase gasoline. 
(d) STATE ALLOTMENTS.—From the funds appro-
priated under subsection (l) for a fiscal year and remain-
ing after the reservation made in subsection (k), the Sec-
retary shall allot to each State an amount that bears the 
same relation to such remainder as the amount the State 
receives under section 675B of the Community Services 
Block Grant Act (42 U.S.C. 9906) for that year bears to 
the amount all States receive under that section for that 
year. 
(e) STATE APPLICATIONS.— 
(1) IN GENERAL.—To be eligible to receive a 
grant under this section, a State shall submit an ap-
plication to the Secretary at such time, in such man-
ner, and containing such information as the Sec-
retary may require. 
(2) CONTENTS.—At a minimum, the applica-
tion shall contain— 
(A) information designating a State agency 
to carry out the emergency assistance program 
in the State, which shall be— 
(i) the State agency specified in the 
State plan submitted under section 402 of 
the Social Security Act (42 U.S.C. 602); or
(ii) the State agency designated under 
section 676(a) of the Community Services 
Block Grant Act (42 U.S.C. 9908(a)); and 
(B) information describing the emergency 
assistance program to be carried out in the 
State. 
(f) PARTICIPATION OF INDIAN TRIBES.— 
(1) RESERVATION.—If, with respect to a State, 
the Secretary— 
(A) receives a request from the governing 
body of an Indian tribe or tribal organization in 
the State that assistance under this section be 
made directly to the tribe or organization; and 
(B) determines that the members of the 
tribe or organization would be better served by 
means of grants made directly to provide bene-
fits under this section, 
the Secretary shall reserve from amounts that would 
otherwise be allotted to the State under subsection 
(d) for the fiscal year the amount determined under 
paragraph (2). 
(2) DETERMINATION OF RESERVED AMOUNT.— 
The Secretary shall reserve from amounts that 
would otherwise be allotted to the State not less 
than 100 percent of an amount that bears the same
ratio to the State allotment for the fiscal year in-
volved as the population of all eligible Indians for 
whom a determination has been made under para-
graph (1) bears to the population of all individuals 
in the State who are eligible for assistance through 
a grant made under this section. 
(3) AWARDS.—The sums reserved by the Sec-
retary on the basis of a determination made under 
paragraph (1) shall be made available by grant to 
the Indian tribe or tribal organization serving the in-
dividuals for whom such a determination has been 
made. 
(4) PLAN.—In order for an Indian tribe or trib-
al organization to be eligible for a grant award for 
a fiscal year under this section, the tribe or organi-
zation shall submit to the Secretary a plan for the 
fiscal year that meets such criteria as the Secretary 
may prescribe by regulation. 
(5) DEFINITIONS.—For purposes of this sub-
section— 
(A) INDIAN
TRIBE; TRIBAL
ORGANIZA-
TION.—The terms ‘‘Indian tribe’’ and ‘‘tribal 
organization’’ mean a tribe, band, or other or-
ganized group recognized in the State in which 
the tribe, band, or group resides, or considered
by the Secretary of the Interior, to be an Indian 
tribe or an Indian organization for any purpose. 
(B) INDIAN.—The term ‘‘Indian’’ means a 
member of an Indian tribe or of a tribal organi-
zation. 
(g) ELIGIBLE HOUSEHOLDS.— 
(1) IN GENERAL.—To be eligible to receive a 
payment from a State under this section, a house-
hold shall submit an application to the State at such 
time, in such manner, and containing such informa-
tion as the State may require. 
(2) CONTENTS.—The applicant shall include in 
the application information demonstrating that— 
(A) in the case of a household that is not 
located in Hawaii, 1 or more individuals in the 
applicant’s household individually drive not less 
than 30 miles per day, or not less than 150 
miles per week, to or from covered activities; 
and 
(B)(i) the household meets the eligibility 
requirements of section 2605(b)(2)(A) of the 
Low-Income Home Energy Assistance Act of 
1981 (42 U.S.C. 8624(b)(2)(A)), other than 
clause (i) of that section; or
(ii) the household income for the household 
does not exceed the greater of— 
(I) an amount equal to 150 percent of 
the poverty level for the State involved; or 
(II) an amount equal to 60 percent of 
the State median income. 
(3) 
RULE.—For 
purposes 
of 
paragraph 
(2)(B)(ii), a State— 
(A) may not exclude a household from eli-
gibility for a fiscal year solely on the basis of 
household income if such income is less than 
110 percent of the poverty level for such State; 
but 
(B) may give priority to those households 
with the highest gasoline costs or needs in rela-
tion to household income. 
(h) PROGRAM REQUIREMENTS.— 
(1) DETERMINATION OF TRIGGER AMOUNT.— 
(A) DETERMINATION OF GASOLINE.—The 
Secretary of Health and Human Services, in 
consultation with the Secretary of Energy, shall 
determine a grade of gasoline for which price 
determinations will be made under this sub-
section, which shall be a type of gasoline that