I 
109TH CONGRESS 
1ST SESSION H. R. 3664 
To amend the Internal Revenue Code of 1986 to impose a windfall profit 
tax on oil and natural gas (and products thereof) and to appropriate 
the proceeds for the Low-Income Home Energy Assistance Program. 
IN THE HOUSE OF REPRESENTATIVES 
SEPTEMBER 7, 2005 
Mr. KANJORSKI introduced the following bill; which was referred to the Com-
mittee on Ways and Means, and in addition to the Committee on Appro-
priations, for a period to be subsequently determined by the Speaker, in 
each case for consideration of such provisions as fall within the jurisdic-
tion of the committee concerned 
A BILL 
To amend the Internal Revenue Code of 1986 to impose 
a windfall profit tax on oil and natural gas (and products 
thereof) and to appropriate the proceeds for the Low- 
Income Home Energy Assistance Program. 
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 Reasonable 
Energy Price Protection 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 
thereof the following new chapter: 
‘‘CHAPTER 
56—WINDFALL 
PROFIT 
ON 
CRUDE OIL, NATURAL GAS, AND PROD-
UCTS THEREOF 
‘‘Sec. 5896. Imposition of tax. 
‘‘SEC. 5896. IMPOSITION OF TAX. 
‘‘(a) IN GENERAL.—In addition to any other tax im-
posed under this title, there is hereby imposed an excise 
tax on the sale in the United States of any crude oil, nat-
ural gas, or other taxable product a tax equal to the appli-
cable percentage of the windfall profit on such sale. 
‘‘(b) DEFINITIONS.—For purposes of this section— 
‘‘(1) TAXABLE
PRODUCT.—The term ‘taxable 
product’ means any fuel which is a product of crude 
oil or natural gas. 
‘‘(2) WINDFALL PROFIT.—The term ‘windfall 
profit’ means, with respect to any sale, so much of 
the profit on such sale as exceeds a reasonable prof-
it. 
‘‘(3) APPLICABLE
PERCENTAGE.—The term 
‘applicable percentage’ means—
‘‘(A) 50 percent to the extent that the 
profit on the sale exceeds 100 percent of the 
reasonable profit on the sale but does not ex-
ceed 102 percent of the reasonable profit on the 
sale, 
‘‘(B) 75 percent to the extent that the 
profit on the sale exceeds 102 percent of the 
reasonable profit on the sale but does not ex-
ceed 105 percent of the reasonable profit on the 
sale, and 
‘‘(C) 100 percent to the extent that the 
profit on the sale exceeds 105 percent of the 
reasonable profit on the sale. 
‘‘(4) REASONABLE PROFIT.—The term ‘reason-
able profit’ means the amount determined by the 
Reasonable Profits Board to be a reasonable profit 
on the sale. 
‘‘(c) LIABILITY FOR PAYMENT OF TAX.—The taxes 
imposed by subsection (a) shall be paid by the seller.’’. 
(b) CLERICAL AMENDMENT.—The table of chapters 
for subtitle E of such Code is amended by adding at the 
end the following new item: 
‘‘CHAPTER 56. WINDFALL PROFIT ON CRUDE OIL AND REFINED PETROLEUM 
PRODUCTS’’.
(c) EFFECTIVE DATE.—The amendments made by 
this section shall take effect on the date of the enactment 
of this Act. 
SEC. 3. REASONABLE PROFITS BOARD. 
(a) ESTABLISHMENT.—There is established an inde-
pendent board to be known as the ‘‘Reasonable Profits 
Board’’ (hereafter in this section referred to as the 
‘‘Board’’). 
(b) DUTIES.—The Board shall make reasonable prof-
it determinations for purposes of applying section 5896 
of the Internal Revenue Code of 1986 (relating to windfall 
profit on crude oil, natural gas, and products thereof). 
(c) ADVISORY COMMITTEE.—The Board shall be con-
sidered an advisory committee within the meaning of the 
Federal Advisory Committee Act (5 U.S.C. App.). 
(d) APPOINTMENT.— 
(1) MEMBERS.—The Board shall be composed 
of 3 members appointed by the President of the 
United States. 
(2) TERM.—Members of the Board shall be ap-
pointed for a term of 3 years. 
(3) BACKGROUND.—The members shall have no 
financial interests in any of the businesses for which 
reasonable profits are determined by the Board. 
(e) PAY AND TRAVEL EXPENSES.—
(1) PAY.—Notwithstanding section 7 of the 
Federal Advisory Committee Act (5 U.S.C. App.), 
members of the Board shall be paid at a rate equal 
to the daily equivalent of the minimum annual rate 
of basic pay for level IV of the Executive Schedule 
under section 5315 of title 5, United States Code, 
for each day (including travel time) during which the 
member is engaged in the actual performance of du-
ties vested in the Board. 
(2) TRAVEL EXPENSES.—Members shall receive 
travel expenses, including per diem in lieu of subsist-
ence, in accordance with section 5702 and 5703 of 
title 5, United States Code. 
(f) DIRECTOR OF STAFF.— 
(1) QUALIFICATIONS.—The Board shall appoint 
a Director who has no financial interests in any of 
the businesses for which reasonable profits are de-
termined by the Board. 
(2) PAY.—Notwithstanding section 7 of the 
Federal Advisory Committee Act (5 U.S.C. App.), 
the Director shall be paid at the rate of basic pay 
payable for level IV of the Executive Schedule under 
section 5315 of title 5, United States Code. 
(g) STAFF.—
(1) ADDITIONAL
PERSONNEL.—The Director, 
with the approval of the Board, may appoint and fix 
the pay of additional personnel. 
(2) APPOINTMENTS.—The Director may make 
such appointments without regard to the provisions 
of title 5, United States Code, governing appoint-
ments in the competitive service, and any personnel 
so appointed may be paid without regard to the pro-
visions of chapter 51 and subchapter III of chapter 
53 of that title relating to classification and General 
Schedule pay rates. 
(3) DETAILEES.—Upon the request of the Di-
rector, the head of any Federal department or agen-
cy may detail any of the personnel of that depart-
ment or agency to the Board to assist the Board in 
accordance with an agreement entered into with the 
Board. 
(4) ASSISTANCE.—The Comptroller General of 
the United States may provide assistance, including 
the detailing of employees, to the Board in accord-
ance with an agreement entered into with the Board. 
(h) OTHER AUTHORITY.— 
(1) EXPERTS AND CONSULTANTS.—The Board 
may procure by contract, to the extent funds are 
available, the temporary or intermittent services of
experts or consultants pursuant to section 3109 of 
title 5, United States Code. 
(2) LEASING.—The Board may lease space and 
acquire personal property to the extent that funds 
are available. 
(i) FUNDING.—There are authorized to be appro-
priated such funds as are necessary to carry out this sec-
tion. 
SEC. 4. LOW-INCOME HOME ENERGY ASSISTANCE PRO-
GRAM. 
In addition to amounts appropriated pursuant to sec-
tion 2602 of the Low-Income Home Energy Assistance 
Act of 1981 (42 U.S.C. 8621), there are hereby appro-
priated to the Secretary of Health and Human Services 
amounts equivalent to the taxes received in the Treasury 
under section 5896 of the Internal Revenue Code of 1986. 
Amounts appropriated under the preceding sentence shall 
be available for allocation under section 2604(a)(1)(A) of 
such Act (42 U.S.C. 8623(a)(1)(A)). 
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