Title: Tar Sands Tax Loophole Elimination Act
Policy area: Taxation

Summary:
Tar Sands Tax Loophole Elimination Act
This bill expands the definition of crude oil for purposes of the excise tax on petroleum and petroleum products to include any bitumen or bituminous mixture, any oil derived from a bitumen or bituminous mixture (tar sands), and any oil derived from kerogen-bearing sources (oil shale).
The bill also authorizes the Department of the Treasury to classify as crude oil or as a petroleum product subject to such tax any fuel feedstock or finished fuel product transported by pipeline, vessel, railcar, or tanker truck if (1) such classification is consistent with the definition of oil under the Oil Pollution Act of 1990, and (2) such fuel feedstock or finished fuel product is produced in sufficient commercial quantities as to pose a significant risk of hazard in the event of a discharge.

[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[S. 683 Introduced in Senate (IS)]

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117th CONGRESS
  1st Session
                                 S. 683

  To amend the Internal Revenue Code of 1986 to clarify that products 
derived from tar sands are crude oil for purposes of the Federal excise 
               tax on petroleum, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             March 10, 2021

 Mr. Markey (for himself, Mr. Merkley, Ms. Warren, Mr. Whitehouse, and 
 Mr. Sanders) introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
  To amend the Internal Revenue Code of 1986 to clarify that products 
derived from tar sands are crude oil for purposes of the Federal excise 
               tax on petroleum, and for other purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Tar Sands Tax Loophole Elimination 
Act''.

SEC. 2. CLARIFICATION OF TAR SANDS AS CRUDE OIL FOR EXCISE TAX 
              PURPOSES.

    (a) In General.--Paragraph (1) of section 4612(a) of the Internal 
Revenue Code of 1986 is amended to read as follows:
            ``(1) Crude oil.--The term `crude oil' includes crude oil 
        condensates, natural gasoline, any bitumen or bituminous 
        mixture, any oil derived from a bitumen or bituminous mixture 
        (including oil derived from tar sands), and any oil derived 
        from kerogen-bearing sources (including oil derived from oil 
        shale).''.
    (b) Regulatory Authority To Address Other Types of Crude Oil and 
Petroleum Products.--Subsection (a) of section 4612 of such Code is 
amended by adding at the end the following new paragraph:
            ``(10) Regulatory authority to address other types of crude 
        oil and petroleum products.--Under such regulations as the 
        Secretary may prescribe, the Secretary may include as crude oil 
        or as a petroleum product subject to tax under section 4611, 
        any fuel feedstock or finished fuel product customarily 
        transported by pipeline, vessel, railcar, or tanker truck if 
        the Secretary determines that--
                    ``(A) the classification of such fuel feedstock or 
                finished fuel product is consistent with the definition 
                of oil under the Oil Pollution Act of 1990, and
                    ``(B) such fuel feedstock or finished fuel product 
                is produced in sufficient commercial quantities as to 
                pose a significant risk of hazard in the event of a 
                discharge.''.
    (c) Technical Amendment.--Paragraph (2) of section 4612(a) of such 
Code is amended by striking ``from a well located''.
    (d) Effective Date.--The amendments made by this section shall take 
effect on the date of the enactment of this Act.
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