Tar Sands Tax Loophole Elimination Act

Bill: 116-s-3315
Sponsor: full_name: Sen. Markey, Edward J. [D-MA]
Introduced: 2020-02-13
Policy area: Taxation
Subjects: Administrative law and regulatory procedures

Department of the Treasury

Motor fuels

Oil and gas

Pipelines

Sales and excise taxes
Latest action: action_date: 2020-02-13
text: Read twice and referred to the Committee on Finance.

Summaries:
action_date: 2020-02-13
action_desc: Introduced in Senate
text: <p><strong>Tar Sands Tax Loophole Elimination Act </strong></p> <p>This bill amends the Internal Revenue Code to expand 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).</p> <p>The bill also authorizes the Department of the Treasury&nbsp;to&nbsp;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 such classification is consistent with the definition of oil under the Oil Pollution Act of 1990 and 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. </p>

tv_txt: II 116th CONGRESS 2d Session S. 3315 IN THE SENATE OF THE UNITED STATES February 13, 2020 Mr. Markey (for himself, Mr. Whitehouse , Ms. Warren , 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.

1. Short title This Act may be cited as the Tar Sands Tax Loophole Elimination Act . 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.