119-s2444

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 2444 Introduced in Senate

    (IS) ]

<DOC>

119th CONGRESS
 1st Session
 S. 2444

 To eliminate certain subsidies for fossil-fuel production.

_______________________________________________________________________

 IN THE SENATE OF THE UNITED STATES

 July 24, 2025

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

_______________________________________________________________________

 A BILL

 To eliminate certain subsidies for fossil-fuel production.

 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 ``End Polluter Welfare Act of 2025''.

SEC. 2. TABLE OF CONTENTS.

 The table of contents for this Act is as follows:

Sec. 1. Short title.

Sec. 2. Table of contents.
 TITLE I--ELIMINATION OF FOSSIL FUEL SUBSIDIES

Sec. 101. Definition of fossil fuel.

Sec. 102. Royalty relief.

Sec. 103. Royalties under Mineral Leasing Act.

Sec. 104. Offshore oil and gas royalty rate.

Sec. 105. Elimination of interest payments for royalty overpayments.

Sec. 106. Removal of limits on liability for offshore facilities and 
 pipeline operators.

Sec. 107. Restrictions on use of appropriated funds by international 
 financial institutions for projects that 
 support fossil fuel.

Sec. 108. Office of Fossil Energy and Carbon Management.

Sec. 109. Loan Programs Office of the Department of Energy.

Sec. 110. USDA assistance for carbon capture and storage systems.

Sec. 111. Advanced Research Projects Agency--Energy.

Sec. 112. Incentives for innovative technologies.

Sec. 113. Rural Utility Service loan guarantees.

Sec. 114. Prohibition on use of funds by the United States 
 International Development Finance 
 Corporation or the Export-Import Bank of 
 the United States for financing projects, 
 transactions, or other activities that 
 support fossil fuel.

Sec. 115. Transportation funds for grants, loans, loan guarantees, and 
 other direct assistance.

Sec. 116. Elimination of exclusion of certain lenders as owners or 
 operators under CERCLA.
 TITLE II--AMENDMENTS TO INTERNAL REVENUE CODE OF 1986

Sec. 201. Termination of various tax expenditures relating to fossil 
 fuels.

Sec. 202. Termination of certain deductions and credits related to 
 fossil fuels.

Sec. 203. Uniform seven-year amortization for geological and 
 geophysical expenditures.

Sec. 204. Natural gas gathering lines treated as 15-year property.

Sec. 205. Termination of last-in, first-out method of inventory for 
 oil, natural gas, and coal companies.

Sec. 206. Repeal of percentage depletion for coal and hard mineral 
 fossil fuels.

Sec. 207. Termination of capital gains treatment for royalties from 
 coal.

Sec. 208. Modifications of foreign tax credit rules applicable to oil 
 and gas industry taxpayers receiving 
 specific economic benefits.

Sec. 209. Increase in oil spill liability trust fund financing rate.

Sec. 210. Application of certain environmental taxes to synthetic crude 
 oil.

Sec. 211. Denial of deduction for removal costs and damages for certain 
 oil spills.

Sec. 212. Tax on crude oil and natural gas produced from the outer 
 Continental Shelf in the Gulf of Mexico.

Sec. 213. Repeal of corporate income tax exemption for publicly traded 
 partnerships with qualifying income and 
 gains from activities relating to fossil 
 fuels.

Sec. 214. Amortization of qualified tertiary injectant expenses.

Sec. 215. Amortization of development expenditures.

Sec. 216. Amortization of certain mining exploration expenditures.

Sec. 217. Amortization of intangible drilling and development costs in 
 the case of oil and gas wells.

Sec. 218. Increase in excise tax rate for funding of Black Lung 
 Disability Trust Fund.

Sec. 219. Elimination of renewable electricity production credit 
 eligibility for refined coal.

Sec. 220. Treatment of foreign oil related income as subpart F income.

Sec. 221. Repeal of exclusion of foreign oil and gas extraction income 
 from the determination of tested income.

Sec. 222. Termination of credit for carbon oxide sequestration.

Sec. 223. Eliminate drawbacks on petroleum taxes.

Sec. 224. Modifying clean hydrogen production credit.
 TITLE III--REPEAL RECENT FOSSIL FUEL SUBSIDY LEGISLATION

Sec. 301. BUILDER Act.

Sec. 302. Inflation Reduction Act.

Sec. 303. One Big Beautiful Bill Act.

Sec. 304. Waste emissions charge rule.
 TITLE IV--ELIMINATION OF OTHER FOSSIL FUEL SUBSIDIES

Sec. 401. Study and elimination of additional fossil fuel subsidies.

 TITLE I--ELIMINATION OF FOSSIL FUEL SUBSIDIES

SEC. 101. DEFINITION OF FOSSIL FUEL.

 In this Act, the term ``fossil fuel'' means coal, petroleum, 
natural gas, or any derivative of coal, petroleum, or natural gas that 
is used for fuel.

SEC. 102. ROYALTY RELIEF.

    (a) In General.--

    (1) Outer continental shelf lands act.--

Section 8

    (a)

    (3) of 
 the Outer Continental Shelf Lands Act (43 U.S.C. 1337

    (a)

    (3) ) is 
 amended--
        (A) by striking subparagraph
        (B) ; and
        (B) by redesignating subparagraph
            (C) as 
 subparagraph
        (B) .

    (2) Energy policy act of 2005.--
        (A) Incentives for natural gas production from deep 
 wells in the shallow waters of the gulf of mexico.--
 

Section 344 of the Energy Policy Act of 2005 (42 U.S.C. 
 15904) is repealed.
        (B) Deep water production.--

Section 345 of the 
 Energy Policy Act of 2005 (42 U.S.C. 15905) is 
 repealed.

    (3) Clerical amendment.--The table of contents in 

section 1

    (b) of the Energy Policy Act of 2005 (Public Law 109-58; 119 
 Stat. 596) is amended by striking the items relating to 
 sections 344 and 345.

    (b) Future Provisions.--Notwithstanding any other provision of law, 
royalty relief shall not be permitted under a lease issued under 

section 8 of the Outer Continental Shelf Lands Act (43 U.S.C. 1337).

SEC. 103. ROYALTIES UNDER MINERAL LEASING ACT.

    (a) Coal Leases.--

Section 7

    (a) of the Mineral Leasing Act (30 
U.S.C. 207

    (a) ) is amended in the fourth sentence by striking ``12\1/2\ 
per centum'' and inserting ``18\3/4\ percent''.

    (b) Leases on Land on Which Oil or Natural Gas Is Discovered.--

Section 14 of the Mineral Leasing Act (30 U.S.C. 223) is amended in the 
fourth sentence by striking ``12\1/2\ per centum'' and inserting 
``18\3/4\ percent''.
            (c) Leases on Land Known or Believed To Contain Oil or Natural 
Gas.--

Section 17 of the Mineral Leasing Act (30 U.S.C. 226) is 
amended--

    (1) in subsection

    (b) --
        (A) in paragraph

    (1)
        (A) , in the fifth sentence, by 
 striking ``16\2/3\ percent'' each place it appears and 
 inserting ``18\3/4\ percent''; and
        (B) in paragraph

    (2)
        (A)
            (ii) , by striking ``16\2/3\ 
 per centum'' and inserting ``not less than 18\3/4\ 
 percent'';

    (2) in subsection
            (l) , by striking ``16\2/3\ per centum'' 
 each place it appears and inserting ``18\3/4\ percent''; and

    (3) in subsection

    (n)

    (1)
            (C) , by striking ``16\2/3\ per 
 centum'' and inserting ``not less than 18\3/4\ percent''.

SEC. 104. OFFSHORE OIL AND GAS ROYALTY RATE.

 

Section 8

    (a)

    (1) of the Outer Continental Shelf Lands Act (43 U.S.C. 
1337

    (a)

    (1) ) is amended by striking ``16\2/3\ percent, but not more than 
18\3/4\ percent, during the 10-year period beginning on the date of 
enactment of the Act titled `An Act to provide for reconciliation 
pursuant to title II of S. Con. Res. 14', and not less than 16\2/3\ 
percent thereafter,'' each place it appears and inserting ``18\3/4\ 
percent,''.

SEC. 105. ELIMINATION OF INTEREST PAYMENTS FOR ROYALTY OVERPAYMENTS.

 

Section 111 of the Federal Oil and Gas Royalty Management Act of 
1982 (30 U.S.C. 1721) is amended by adding at the end the following:
 ``

    (k) Payment of Interest.--Interest shall not be paid on any 
overpayment.''.

SEC. 106. REMOVAL OF LIMITS ON LIABILITY FOR OFFSHORE FACILITIES AND 
 PIPELINE OPERATORS.

 

Section 1004

    (a) of the Oil Pollution Act of 1990 (33 U.S.C. 
2704

    (a) ) is amended--

    (1) in paragraph

    (3) , by striking ``plus $75,000,000; and'' 
 and inserting ``and the liability of the responsible party 
 under 

section 1002;'';

    (2) in paragraph

    (4) --
        (A) by inserting ``(except an onshore pipeline 
 transporting diluted bitumen, bituminous mixtures, or 
 any oil manufactured from bitumen)'' after ``for any 
 onshore facility''; and
        (B) by striking the period at the end and inserting 
 ``; and''; and

    (3) by adding at the end the following:
 ``

    (5) for any onshore facility transporting diluted 
 bitumen, bituminous mixtures, or any oil manufactured from 
 bitumen, the liability of the responsible party under 

section 1002.''.

SEC. 107. RESTRICTIONS ON USE OF APPROPRIATED FUNDS BY INTERNATIONAL 
 FINANCIAL INSTITUTIONS FOR PROJECTS THAT SUPPORT FOSSIL 
 FUEL.

    (a) Definition of International Financial Institution.--In this 
section, the term ``international financial institution'' means--

    (1) each institution described in 

section 1701
            (c) of the 
 International Financial Institutions Act (22 U.S.C. 262r
            (c) ); 
 and

    (2) the North American Development Bank.

    (b) Rescission of Unobligated Funds.--

    (1) In general.--Of the unobligated balance of amounts 
 appropriated or otherwise made available for a contribution of 
 the United States to an international financial institution, an 
 amount specified in paragraph

    (2) shall be rescinded if the 
 institution provides support for a project that supports the 
 production or use of fossil fuels.

    (2) Amount specified.--The amount specified in this 
 paragraph is an amount the Secretary of the Treasury determines 
 to be equivalent to the amount of support provided by an 
 international financial institution described in paragraph

    (1) for a project that supports the production or use of fossil 
 fuels.
            (c) Prohibition on Use of Future Funds.--No amounts appropriated or 
otherwise made available for a contribution of the United States to an 
international financial institution may be provided to the institution 
unless the institution agrees to not use the amount to provide support 
for any project that supports the production or use of fossil fuels.

SEC. 108. OFFICE OF FOSSIL ENERGY AND CARBON MANAGEMENT.

    (a) Termination of Authority.--Notwithstanding any other provision 
of law, the authority of the Secretary of Energy to carry out the 
Office of Fossil Energy and Carbon Management of the Department of 
Energy is terminated.

    (b) Rescission.--Notwithstanding any other provision of law--

    (1) all amounts made available for the Office of Fossil 
 Energy and Carbon Management that remain unobligated as of the 
 date of enactment of this Act are rescinded; and

    (2) no amounts made available after the date of enactment 
 of this Act for the Office of Fossil Energy and Carbon 
 Management shall be expended, other than such amounts as are 
 necessary to cover costs incurred in terminating ongoing 
 research of the Office of Fossil Energy and Carbon Management, 
 as determined by the Secretary of Energy, in consultation with 
 other appropriate Federal agencies.

SEC. 109. LOAN PROGRAMS OFFICE OF THE DEPARTMENT OF ENERGY.

    (a) Prohibition.--Subject to subsection

    (b) , none of the funds made 
available to the Loan Programs Office of the Department of Energy shall 
be used to carry out any project that supports fossil fuel, carbon 
capture, or hydrogen.

    (b) Exception.--The prohibition on the use of funds for hydrogen 
projects under subsection

    (a) does not apply to projects that support 
qualified clean hydrogen (as defined in 

section 45V
            (c) of the Internal 
Revenue Code of 1986 (as amended by 

section 224

    (a)

    (3) )).

SEC. 110. USDA ASSISTANCE FOR CARBON CAPTURE AND STORAGE SYSTEMS.

 

Section 9003

    (j)

    (1) of the Farm Security and Rural Investment Act of 
2002 (7 U.S.C. 8103

    (j)

    (1) ) is amended--

    (1) by inserting ``and'' after ``renewable energy 
 systems,''; and

    (2) by striking ``and carbon capture and storage 
 systems,''.

SEC. 111. ADVANCED RESEARCH PROJECTS AGENCY--ENERGY.

 None of the funds made available to the Advanced Research Projects 
Agency--Energy shall be used to carry out any project that supports 
fossil fuel.

SEC. 112. INCENTIVES FOR INNOVATIVE TECHNOLOGIES.

    (a) In General.--

Section 1703 of the Energy Policy Act of 2005 (42 
U.S.C. 16513) is amended--

    (1) in subsection

    (b) --
        (A) by striking paragraphs

    (2) and

    (10) ; and
        (B) by redesignating paragraphs

    (3) ,

    (4) ,

    (5) ,

    (6) ,

    (7) ,

    (8) ,

    (9) ,

    (11) ,

    (12) , and

    (13) as paragraphs

    (2) ,

    (3) ,

    (4) ,

    (5) ,

    (6) ,

    (7) ,

    (8) ,

    (9) ,

    (10) , and

    (11) respectively;

    (2) by striking subsection
            (c) ; and

    (3) by redesignating subsections
            (d) through

    (f) as 
 subsections
            (c) through

    (e) , respectively.

    (b) Conforming Amendment.--

Section 1704 of the Energy Policy Act of 
2005 (42 U.S.C. 16514) is amended--

    (1) by striking subsection

    (b) ; and

    (2) by redesignating subsection
            (c) as subsection

    (b) .

SEC. 113. RURAL UTILITY SERVICE LOAN GUARANTEES.

 Notwithstanding any other provision of law, the Secretary of 
Agriculture may not make a loan under title III of the Rural 
Electrification Act of 1936 (7 U.S.C. 931 et seq.) to an applicant for 
the purpose of carrying out any project that will use fossil fuel.

SEC. 114. PROHIBITION ON USE OF FUNDS BY THE UNITED STATES 
 INTERNATIONAL DEVELOPMENT FINANCE CORPORATION OR THE 
 EXPORT-IMPORT BANK OF THE UNITED STATES FOR FINANCING 
 PROJECTS, TRANSACTIONS, OR OTHER ACTIVITIES THAT SUPPORT 
 FOSSIL FUEL.

 Notwithstanding any other provision of law, no amounts appropriated 
or otherwise made available for the United States International 
Development Finance Corporation, the Export-Import Bank of the United 
States, the United States Trade and Development Agency, the United 
States Agency for International Development, or the Millennium 
Challenge Corporation that are available for obligation on or after the 
date of enactment of this Act may be obligated or expended to support 
any project, transaction, or other activity that supports the 
production or use of fossil fuels.

SEC. 115. TRANSPORTATION FUNDS FOR GRANTS, LOANS, LOAN GUARANTEES, AND 
 OTHER DIRECT ASSISTANCE.

 Notwithstanding any other provision of law, any amounts made 
available to the Department of Transportation (including the Federal 
Railroad Administration) may not be used to award any grant, loan, loan 
guarantee, or provide any other direct assistance to any rail facility 
or port project that transports fossil fuel.

SEC. 116. ELIMINATION OF EXCLUSION OF CERTAIN LENDERS AS OWNERS OR 
 OPERATORS UNDER CERCLA.

 

Section 101

    (20)
        (F) of the Comprehensive Environmental Response, 
Compensation, and Liability Act of 1980 (42 U.S.C. 9601

    (20)
        (F) ) is 
amended by adding at the end the following:
 ``
            (iii) Ineligible lenders.--The exclusions 
 under clauses
            (i) and
            (ii) shall not apply to a 
 person that is a lender that is--
 ``
            (I) an investment company 
 registered under the Investment Company 
 Act of 1940 (15 U.S.C. 80a-1 et seq.), 
 an investment adviser (as defined in 
 

section 202

    (a) of the Investment 
 Advisers Act of 1940 (15 U.S.C. 80b-
 2

    (a) )), or a broker or dealer (as those 
 terms are defined in 

section 3

    (a) of 
 the Securities Exchange Act of 1934 (15 
 U.S.C. 78c

    (a) )) with $250,000,000,000 
 or more in assets under management; or
 ``
            (II) a bank holding company (as 
 defined in 

section 2 of the Bank 
 Holding Company Act of 1956 (12 U.S.C. 
 1841)) with $10,000,000,000 or more in 
 total consolidated assets.''.

 TITLE II--AMENDMENTS TO INTERNAL REVENUE CODE OF 1986

SEC. 201. TERMINATION OF VARIOUS TAX EXPENDITURES RELATING TO FOSSIL 
 FUELS.

    (a) In General.--Subchapter C of chapter 80 of the Internal Revenue 
Code of 1986 is amended by adding at the end the following new section:

``

SEC. 7875. TERMINATION OF CERTAIN PROVISIONS RELATING TO FOSSIL-FUEL 
 INCENTIVES.

 ``

    (a) In General.--The following provisions shall not apply to 
taxable years beginning after the date of the enactment of the End 
Polluter Welfare Act of 2025:
 ``

    (1) Section 43 (relating to enhanced oil recovery 
 credit).
 ``

    (2) Section 45I (relating to credit for producing oil and 
 natural gas from marginal wells).
 ``

    (3) Section 461
            (i) (2) (relating to special rule for 
 spudding of oil or natural gas wells).
 ``

    (4) Section 469
            (c) (3)
        (A) (relating to working interests 
 in oil and natural gas property).
 ``

    (5) Section 613A (relating to limitations on percentage 
 depletion in case of oil and natural gas wells).
 ``

    (b) Provisions Relating to Property.--The following provisions 
shall not apply to property placed in service after the date of the 
enactment of the End Polluter Welfare Act of 2025:
 ``

    (1) Section 168

    (e)

    (3)
            (C) 
            (iii) (relating to classification 
 of certain property).
 ``

    (2) Section 169 (relating to amortization of pollution 
 control facilities) with respect to any atmospheric pollution 
 control facility.
 ``
            (c) Provisions Relating to Costs and Expenses.--The following 
provisions shall not apply to costs or expenses paid or incurred after 
the date of the enactment of the End Polluter Welfare Act of 2025:
 ``

    (1) Section 179B (relating to deduction for capital costs 
 incurred in complying with Environmental Protection Agency 
 sulfur regulations).
 ``

    (2) Section 468 (relating to special rules for mining and 
 solid waste reclamation and closing costs).
 ``
            (d) Allocated Credits.--No new credits shall be certified under 

section 48A (relating to qualifying advanced coal project credit) after 
the date of the enactment of the End Polluter Welfare Act of 2025.
 ``

    (e) Arbitrage Bonds.--

Section 148

    (b)

    (4) (relating to safe harbor 
for prepaid natural gas) shall not apply to obligations issued after 
the date of the enactment of the End Polluter Welfare Act of 2025.''.

    (b) Conforming Amendments.--

    (1) Section 613
            (d) of the Internal Revenue Code of 1986 is 
 amended by striking ``Except as provided in 

section 613A, in 
 the case'' and inserting ``In the case''.

    (2) The table of sections for subchapter C of chapter 90 of 
 such Code is amended by adding at the end the following new 
 item:

``

Sec. 7875. Termination of certain provisions relating to fossil-fuel 
 incentives.''.

SEC. 202. TERMINATION OF CERTAIN DEDUCTIONS AND CREDITS RELATED TO 
 FOSSIL FUELS.

    (a) Special Allowance for Certain Property.--

Section 168

    (k) of the 
Internal Revenue Code of 1986 is amended by adding at the end the 
following:
 ``

    (11) Fossil fuel property.--
 ``
        (A) In general.--This subsection shall not apply 
 with respect to any property which is primarily used 
 for fossil fuel activities and is placed in service 
 during any taxable year beginning after the date of the 
 enactment of the End Polluter Welfare Act of 2025.
 ``
        (B) Fossil fuel activities.--For purposes of this 
 paragraph, the term `fossil fuel activities' means the 
 exploration, development, mining or production, 
 processing, refining, transportation (including 
 pipelines transporting gas, oil, or products thereof), 
 distribution, or marketing of coal, petroleum, natural 
 gas, or any derivative of coal, petroleum, or natural 
 gas that is used for fuel.
 ``
            (C) Exception.--The property described in 
 subparagraph
        (A) shall not include any motor vehicle 
 service station or convenience store which does not 
 qualify as a retail motor fuels outlet under subsection

    (e)

    (3)
        (E)
            (iii) .''.

    (b) Qualified Business Income.--

Section 199A
            (c) (3)
        (B) of the 
Internal Revenue Code of 1986 is amended by adding at the end the 
following:
 ``
            (viii) Any item of gain or loss derived 
 from fossil fuel activities (as defined in 
 

section 168

    (k)

    (11)
        (B) ) during any taxable year 
 beginning after the date of the enactment of 
 the End Polluter Welfare Act of 2025.''.
            (c) Credit for Increasing Research Activities.--

Section 41
            (d) (4) of 
the Internal Revenue Code of 1986 is amended by adding at the end the 
following:
 ``
            (I) Fossil fuel activities.--Any research related 
 to fossil fuel activities (as defined in 

section 168

    (k)

    (11)
        (B) ) which is conducted after the date of the 
 enactment of the End Polluter Welfare Act of 2025.''.
            (d) Foreign-Derived Intangible Income.--Subclause
            (V) of 

section 250

    (b)

    (3)
        (A)
            (i) of the Internal Revenue Code of 1986 is amended to read 
as follows:
 ``
            (V) any income derived from 
 fossil fuel activities (as defined in 
 

section 168

    (k)

    (11)
        (B) ) during any 
 taxable year beginning after the date 
 of the enactment of the End Polluter 
 Welfare Act of 2025, and''.

    (e) Exchange of Real Property Held for Productive Use or 
Investment.--

Section 1031

    (a)

    (2) of the Internal Revenue Code of 1986 is 
amended to read as follows:
 ``

    (2) Exceptions.--This subsection shall not apply to--
 ``
        (A) any exchange of real property held primarily 
 for sale, or
 ``
        (B) any exchange of real property which--
 ``
            (i) is used for fossil fuel activities 
 (as defined in 

section 168

    (k)

    (11)
        (B) ), and
 ``
            (ii) occurs after the date of the 
 enactment of the End Polluter Welfare Act of 
 2025.''.

SEC. 203. UNIFORM SEVEN-YEAR AMORTIZATION FOR GEOLOGICAL AND 
 GEOPHYSICAL EXPENDITURES.

    (a) In General.--

Section 167

    (h) of the Internal Revenue Code of 
1986 is amended--

    (1) by striking ``24-month period'' each place it appears 
 in paragraphs

    (1) and

    (4) and inserting ``84-month period'',

    (2) by striking paragraph

    (2) and inserting the following:
 ``

    (2) Mid-month convention.--For purposes of paragraph

    (1) , 
 any payment paid or incurred during any month shall be treated 
 as paid or incurred on the mid-point of such month.'', and

    (3) by striking paragraph

    (5) .

    (b) Effective Date.--The amendments made by this section shall 
apply to amounts paid or incurred after the date of the enactment of 
this Act.

SEC. 204. NATURAL GAS GATHERING LINES TREATED AS 15-YEAR PROPERTY.

    (a) In General.--

Section 168

    (e)

    (3)
        (E) of the Internal Revenue Code 
of 1986 is amended by striking ``and'' at the end of clause
            (vi) , by 
striking the period at the end of clause
            (vii) and inserting ``, and'', 
and by adding at the end the following new clause:
 ``
            (viii) any natural gas gathering line the 
 original use of which commences with the 
 taxpayer after the date of the enactment of 
 this clause.''.

    (b) Alternative System.--The table contained in 

section 168

    (g)

    (3)
        (B) of the Internal Revenue Code of 1986 is amended by 
inserting after the item relating to subparagraph
        (E)
            (vii) the 
following new item:

``
        (E)
            (viii) ................................................ 22''.
            (c) Conforming Amendment.--Clause
            (iv) of 

section 168

    (e)

    (3)
            (C) of 
the Internal Revenue Code of 1986 is amended by inserting ``and on or 
before the date of the enactment of the End Polluter Welfare Act of 
2025'' after ``April 11, 2005''.
            (d) Effective Date.--

    (1) In general.--The amendments made by this section shall 
 apply to property placed in service on and after the date of 
 the enactment of this Act.

    (2) Exception.--The amendments made by this section shall 
 not apply to any property with respect to which the taxpayer or 
 a related party has entered into a binding contract for the 
 construction thereof on or before the date of the introduction 
 of this Act, or, in the case of self-constructed property, has 
 started construction on or before such date.

SEC. 205. TERMINATION OF LAST-IN, FIRST-OUT METHOD OF INVENTORY FOR 
 OIL, NATURAL GAS, AND COAL COMPANIES.

    (a) In General.--

Section 472 of the Internal Revenue Code of 1986 
is amended by adding at the end the following new subsection:
 ``

    (h) Termination for Oil, Natural Gas, and Coal Companies.--
Subsection

    (a) shall not apply to any taxpayer that is in the trade or 
business of the production, refining, processing, transportation, or 
distribution of oil, natural gas, or coal for any taxable year 
beginning after the date of enactment of the End Polluter Welfare Act 
of 2025.''.

    (b) Additional Termination.--

Section 473 of the Internal Revenue 
Code of 1986 is amended by adding at the end the following new 
subsection:
 ``

    (h) Termination for Oil, Natural Gas, and Coal Companies.--This 
section shall not apply to any taxpayer that is in the trade or 
business of the production, refining, processing, transportation, or 
distribution of oil, natural gas, or coal for any taxable year 
beginning after the date of enactment of the End Polluter Welfare Act 
of 2025.''.
            (c) Change in Method of Accounting.--In the case of any taxpayer 
required by the amendments made by this section to change its method of 
accounting for its first taxable year beginning after the date of 
enactment of this Act--

    (1) such change shall be treated as initiated by the 
 taxpayer, and

    (2) such change shall be treated as made with the consent 
 of the Secretary of the Treasury.
            (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of enactment of this 
Act.

SEC. 206. REPEAL OF PERCENTAGE DEPLETION FOR COAL AND HARD MINERAL 
 FOSSIL FUELS.

    (a) In General.--

Section 613 of the Internal Revenue Code of 1986 
is amended by adding at the end the following new subsection:
 ``

    (f) Termination With Respect to Coal and Hard Mineral Fossil 
Fuels.--In the case of coal, lignite, and oil shale (other than oil 
shale described in subsection

    (b)

    (5) ), the allowance for depletion 
shall be computed without reference to this section for any taxable 
year beginning after the date of the enactment of the End Polluter 
Welfare Act of 2025.''.

    (b) Conforming Amendments.--

    (1) Coal and lignite.--

Section 613

    (b)

    (4) of the Internal 
 Revenue Code of 1986 is amended by striking ``coal, lignite,''.

    (2) Oil shale.--

Section 613

    (b)

    (2) of such Code is amended 
 to read as follows:
 ``

    (2) 15 percent.--If, from deposits in the United States, 
 gold, silver, copper, and iron ore.''.
            (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.

SEC. 207. TERMINATION OF CAPITAL GAINS TREATMENT FOR ROYALTIES FROM 
 COAL.

    (a) In General.--Subsection
            (c) of 

section 631 of the Internal 
Revenue Code of 1986 is amended--

    (1) by striking ``coal (including lignite), or iron ore'' 
 and inserting ``iron ore'',

    (2) by striking ``coal or iron ore'' each place it appears 
 and inserting ``iron ore'',

    (3) by striking ``iron ore or coal'' each place it appears 
 and inserting ``iron ore'', and

    (4) by striking ``Coal or'' in the heading.

    (b) Conforming Amendments.--

    (1) The heading of 

section 631 of the Internal Revenue Code 
 of 1986 is amended by striking ``, coal,''.

    (2) Section 1231

    (b)

    (2) of such Code is amended by striking 
 ``, coal,''.
            (c) Effective Date.--The amendments made by this section shall 
apply to dispositions after the date of the enactment of this Act.

SEC. 208. MODIFICATIONS OF FOREIGN TAX CREDIT RULES APPLICABLE TO OIL 
 AND GAS INDUSTRY TAXPAYERS RECEIVING SPECIFIC ECONOMIC 
 BENEFITS.

    (a) In General.--

Section 901 of the Internal Revenue Code of 1986 
is amended by redesignating subsection

    (n) as subsection

    (o) and by 
inserting after subsection
            (m) the following new subsection:
 ``

    (n) Special Rules Relating to Dual Capacity Taxpayers.--
 ``

    (1) General rule.--Notwithstanding any other provision of 
 this chapter, any amount paid or accrued to a foreign country 
 or possession of the United States for any period by a dual 
 capacity taxpayer which is in the trade or business of the 
 production, refining, processing, transportation, or 
 distribution of fossil fuel shall not be considered a tax--
 ``
        (A) if, for such period, the foreign country or 
 possession does not impose a generally applicable 
 income tax, or
 ``
        (B) to the extent such amount exceeds the amount 
 (determined in accordance with regulations) which--
 ``
            (i) is paid by such dual capacity 
 taxpayer pursuant to the generally applicable 
 income tax imposed by the country or 
 possession, or
 ``
            (ii) would be paid if no amount other 
 than the amount required to be paid by such 
 taxpayer under the generally applicable income 
 tax imposed by the country or possession were 
 paid or accrued by such dual capacity taxpayer.
 Nothing in this paragraph shall be construed to imply 
 the proper treatment of any such amount not in excess 
 of the amount determined under subparagraph
        (B) .
 ``

    (2) Dual capacity taxpayer.--For purposes of this 
 subsection, the term `dual capacity taxpayer' means, with 
 respect to any foreign country or possession of the United 
 States, a person who--
 ``
        (A) is subject to a levy of such country or 
 possession, and
 ``
        (B) receives (or will receive) directly or 
 indirectly a specific economic benefit (as determined 
 in accordance with regulations) from such country or 
 possession.
 ``

    (3) Generally applicable income tax.--For purposes of 
 this subsection--
 ``
        (A) In general.--The term `generally applicable 
 income tax' means an income tax (or a series of income 
 taxes) which is generally imposed under the laws of a 
 foreign country or possession on income derived from 
 the conduct of a trade or business within such country 
 or possession.
 ``
        (B) Exceptions.--Such term shall not include a 
 tax unless it has substantial application, by its terms 
 and in practice, to--
 ``
            (i) persons who are not dual capacity 
 taxpayers, and
 ``
            (ii) persons who are--
 ``
            (I) citizens or residents of the 
 foreign country or possession, or
 ``
            (II) organized or incorporated 
 under the laws of the foreign country 
 or possession.
 ``

    (4) Fossil fuel.--For purposes of this subsection, the 
 term `fossil fuel' means coal, petroleum, natural gas, or any 
 derivative of coal, petroleum, or natural gas that is used for 
 fuel.''.

    (b) Effective Date.--The amendments made by this section shall 
apply to taxes paid or accrued in taxable years beginning after the 
date of the enactment of this Act.
            (c) Special Rule for Treaties.--Notwithstanding sections 894 or 
7852
            (d) of the Internal Revenue Code of 1986, the amendments made by 
this section shall apply without regard to any treaty obligation of the 
United States.

SEC. 209. INCREASE IN OIL SPILL LIABILITY TRUST FUND FINANCING RATE.

    (a) In General.--

Section 4611 of the Internal Revenue Code of 1986 
is amended--

    (1) in subsection
            (c) (2)
        (B) --
        (A) in clause
            (i) , by striking ``and'' at the end,
        (B) in clause
            (ii) , by striking the period at the 
 end and inserting ``, and'', and
            (C) by adding at the end the following:
 ``
            (iii) in the case of crude oil received 
 or petroleum products entered after December 
 31, 2025, 10 cents a barrel.'', and

    (2) by striking subsection

    (f) and inserting the following:
 ``

    (f) Application of Oil Spill Liability Trust Fund Financing 
Rate.--The Oil Spill Liability Trust Fund financing rate under 
subsection
            (c) shall apply on and after April 1, 2006, or if later, the 
date which is 30 days after the last day of any calendar quarter for 
which the Secretary estimates that, as of the close of that quarter, 
the unobligated balance in the Oil Spill Liability Trust Fund is less 
than $2,000,000,000.''.

    (b) Effective Date.--The amendments made by this section shall 
apply to crude oil received and petroleum products entered after 
December 31, 2025.

SEC. 210. APPLICATION OF CERTAIN ENVIRONMENTAL TAXES TO SYNTHETIC CRUDE 
 OIL.

    (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.--
 ``
        (A) In general.--The term `crude oil' includes 
 crude oil condensates, natural gasoline, and synthetic 
 crude oil.
 ``
        (B) Synthetic crude oil.--For purposes of 
 subparagraph
        (A) , the term `synthetic crude oil' 
 means--
 ``
            (i) any bitumen and bituminous mixtures,
 ``
            (ii) any oil derived from bitumen and 
 bituminous mixtures (including oil derived from 
 tar sands),
 ``
            (iii) any liquid fuel derived from coal, 
 and
 ``
            (iv) 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 the Internal 
Revenue Code of 1986 is amended by adding at the end the following:
 ``

    (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 the 
Internal Revenue Code of 1986 is amended by striking ``from a well 
located''.
            (d) Effective Date.--The amendments made by this section shall 
apply to oil and petroleum products received or entered during calendar 
quarters beginning more than 60 days after the date of the enactment of 
this Act.

SEC. 211. DENIAL OF DEDUCTION FOR REMOVAL COSTS AND DAMAGES FOR CERTAIN 
 OIL SPILLS.

    (a) In General.--

Section 162

    (f) of the Internal Revenue Code of 
1986 is amended--

    (1) by redesignating paragraph

    (5) as paragraph

    (6) , and

    (2) by inserting after paragraph

    (4) the following:
 ``

    (5) Expenses for removal costs and damages relating to 
 certain oil spill liability.--Notwithstanding paragraphs

    (2) and

    (3) , no deduction shall be allowed under this chapter for 
 any costs or damages for which the taxpayer is liable under 
 

section 1002 of the Oil Pollution Act of 1990 (33 U.S.C. 
 2702)''.

    (b) Effective Date.--The amendments made by this section shall 
apply with respect to any liability arising in taxable years ending 
after the date of the enactment of this Act.

SEC. 212. TAX ON CRUDE OIL AND NATURAL GAS PRODUCED FROM THE OUTER 
 CONTINENTAL SHELF IN THE GULF OF MEXICO.

    (a) In General.--Subtitle E of the Internal Revenue Code of 1986 is 
amended by adding at the end the following new chapter:

 ``CHAPTER 56--TAX ON SEVERANCE OF CRUDE OIL AND NATURAL GAS FROM THE 
 OUTER CONTINENTAL SHELF IN THE GULF OF MEXICO

``

Sec. 5901. Imposition of tax.
``

Sec. 5902. Taxable crude oil or natural gas and removal price.
``

Sec. 5903. Special rules and definitions.

``

SEC. 5901. IMPOSITION OF TAX.

 ``

    (a) In General.--In addition to any other tax imposed under this 
title, there is hereby imposed a tax equal to 13 percent of the removal 
price of any taxable crude oil or natural gas removed from the premises 
during any taxable period.
 ``

    (b) Credit for Federal Royalties Paid.--
 ``

    (1) In general.--There shall be allowed as a credit 
 against the tax imposed by subsection

    (a) with respect to the 
 production of any taxable crude oil or natural gas an amount 
 equal to the aggregate amount of royalties paid under Federal 
 law with respect to such production.
 ``

    (2) Limitation.--The aggregate amount of credits allowed 
 under paragraph

    (1) to any taxpayer for any taxable period 
 shall not exceed the amount of tax imposed by subsection

    (a) for such taxable period.
 ``
            (c) Tax Paid by Producer.--The tax imposed by this section shall 
be paid by the producer of the taxable crude oil or natural gas.

``

SEC. 5902. TAXABLE CRUDE OIL OR NATURAL GAS AND REMOVAL PRICE.

 ``

    (a) Taxable Crude Oil or Natural Gas.--For purposes of this 
chapter, the term `taxable crude oil or natural gas' means crude oil or 
natural gas which is produced from Federal submerged lands on the outer 
Continental Shelf in the Gulf of Mexico pursuant to a lease entered 
into with the United States which authorizes the production.
 ``

    (b) Removal Price.--For purposes of this chapter--
 ``

    (1) In general.--Except as otherwise provided in this 
 subsection, the term `removal price' means--
 ``
        (A) in the case of taxable crude oil, the amount 
 for which a barrel of such crude oil is sold, and
 ``
        (B) in the case of taxable natural gas, the 
 amount per 1,000 cubic feet for which such natural gas 
 is sold.
 ``

    (2) Sales between related persons.--In the case of a sale 
 between related persons, the removal price shall not be less 
 than the constructive sales price for purposes of determining 
 gross income from the property under 

section 613.
 ``

    (3) Oil or natural gas removed from property before 
 sale.--If crude oil or natural gas is removed from the property 
 before it is sold, the removal price shall be the constructive 
 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 begins, and
 ``
        (B) the removal price shall be the constructive 
 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.

``

SEC. 5903. SPECIAL RULES AND DEFINITIONS.

 ``

    (a) Administrative Requirements.--
 ``

    (1) Withholding and deposit of tax.--The Secretary shall 
 provide for the withholding and deposit of the tax imposed 
 under 

section 5901 on a quarterly basis.
 ``

    (2) Records and information.--Each taxpayer liable for 
 tax under 

section 5901 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 or 
 natural gas) with respect to such oil as the Secretary may by 
 regulations prescribe.
 ``

    (3) Taxable periods; return of tax.--
 ``
        (A) Taxable period.--Except as provided by the 
 Secretary, each calendar year shall constitute a 
 taxable period.
 ``
        (B) Returns.--The Secretary shall provide for the 
 filing, and the time for filing, of the return of the 
 tax imposed under 

section 5901.
 ``

    (b) 

=== Definitions. ===
-For purposes of this chapter--
 ``

    (1) Producer.--The term `producer' means the holder of 
 the economic interest with respect to the crude oil or natural 
 gas.
 ``

    (2) Crude oil.--The term `crude oil' includes crude oil 
 condensates and natural gasoline.
 ``

    (3) Premises and crude oil product.--The terms `premises' 
 and `crude oil product' have the same meanings as when used for 
 purposes of determining gross income from the property under 
 

section 613.
 ``
            (c) Adjustment of Removal Price.--In determining the removal 
price of oil or natural gas 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 or natural gas removed.
 ``
            (d) Regulations.--The Secretary shall prescribe such regulations 
as may be necessary or appropriate to carry out the purposes of this 
chapter.''.

    (b) Deductibility of Tax.--The first sentence of 

section 164

    (a) of 
the Internal Revenue Code of 1986 is amended by inserting after 
paragraph

    (4) the following new paragraph:
 ``

    (5) The tax imposed by 

section 5901

    (a) (after application 
 of 

section 5901

    (b) ) on the severance of crude oil or natural 
 gas from the outer Continental Shelf in the Gulf of Mexico.''.
            (c) Clerical Amendment.--The table of chapters for subtitle E is 
amended by adding at the end the following new item:

 ``Chapter 56. Tax on severance of crude 
 oil and natural gas from the 
 outer Continental Shelf in the 
 Gulf of Mexico.''.
            (d) Effective Date.--The amendments made by this section shall 
apply to crude oil or natural gas removed after December 31, 2025.

SEC. 213. REPEAL OF CORPORATE INCOME TAX EXEMPTION FOR PUBLICLY TRADED 
 PARTNERSHIPS WITH QUALIFYING INCOME AND GAINS FROM 
 ACTIVITIES RELATING TO FOSSIL FUELS.

    (a) In General.--

Section 7704
            (d) (1) of the Internal Revenue Code of 
1986 is amended by inserting ``or any coal, petroleum, natural gas, or 
any derivative of coal, petroleum, or natural gas that is used for 
fuel'' after ``

section 613

    (b)

    (7) ''.

    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after the date of the enactment of this Act.

SEC. 214. AMORTIZATION OF QUALIFIED TERTIARY INJECTANT EXPENSES.

    (a) In General.--

Section 193 of the Internal Revenue Code of 1986 
is amended--

    (1) by striking subsection

    (a) and inserting the following:
 ``

    (a) Amortization of Qualified Tertiary Injectant Expenses.--
 ``

    (1) In general.--Any qualified tertiary injectant 
 expenses paid or incurred by the taxpayer shall be allowed as a 
 deduction ratably over the 84-month period beginning on the 
 date that such expense was paid or incurred.
 ``

    (2) Mid-month convention.--For purposes of paragraph

    (1) , 
 any expenses paid or incurred during any month shall be treated 
 as paid or incurred on the mid-point of such month.'', and

    (2) by striking subsection
            (c) and inserting the following:
 ``
            (c) Exclusive Method.--Except as provided in this section, no 
depreciation or amortization deduction shall be allowed with respect to 
qualified tertiary injectant expenses.''.

    (b) Effective Date.--The amendments made by this section shall 
apply to expenses paid or incurred in taxable years beginning after the 
date of the enactment of this Act.

SEC. 215. AMORTIZATION OF DEVELOPMENT EXPENDITURES.

    (a) In General.--

Section 616 of the Internal Revenue Code of 1986 
is amended to read as follows:

``

SEC. 616. AMORTIZATION OF DEVELOPMENT EXPENDITURES.

 ``

    (a) In General.--Any expenditures paid or incurred for the 
development of a mine or other natural deposit (other than an oil or 
gas well) if paid or incurred after the existence of ores or minerals 
in commercially marketable quantities has been disclosed shall be 
allowed as a deduction ratably over the 84-month period beginning on 
the date that such expenditure was paid or incurred.
 ``

    (b) Mid-Month Convention.--For purposes of subsection

    (a) , any 
expenditures paid or incurred during any month shall be treated as paid 
or incurred on the mid-point of such month.
 ``
            (c) Exclusive Method.--Except as provided in this section, no 
depreciation or amortization deduction shall be allowed with respect to 
expenditures described in subsection

    (a) .
 ``
            (d) Treatment Upon Abandonment.--If any property with respect to 
which expenditures described in subsection

    (a) are paid or incurred is 
retired or abandoned during the 84-month period described in such 
subsection, no deduction shall be allowed on account of such retirement 
or abandonment and the amortization deduction under this section shall 
continue with respect to such payment.''.

    (b) Conforming Amendments.--

    (1) The item relating to 

section 616 in the table of 
 sections for part I of subchapter I of chapter 1 of the 
 Internal Revenue Code of 1986 is amended to read as follows:

``

Sec. 616. Amortization of development expenditures.''.

    (2) Section 56

    (a)

    (2)
        (A) of such Code is amended by striking 
 ``616

    (a) or''.

    (3) Section 59

    (e) of such Code is amended--
        (A) in paragraph

    (2) --
            (i) in subparagraph
            (C) , by inserting 
 ``or'' at the end,
            (ii) by striking subparagraph
            (D) , and
            (iii) by redesignating subparagraph
        (E) as 
 subparagraph
            (D) , and
        (B) in paragraph

    (5)
        (A) , by striking ``, 616

    (a) ,''.

    (4) Section 263

    (a)

    (1) of such Code is amended by striking 
 subparagraph
        (A) .

    (5) Section 263A
            (c) (3) of such Code is amended by striking 
 ``616,''.

    (6) Section 291

    (b) of such Code is amended--
        (A) in paragraph

    (1)
        (B) , by striking ``616

    (a) or'',
        (B) in paragraph

    (2) , by striking ``, 616

    (a) ,'', 
 and
            (C) in paragraph

    (3) , by striking ``, 616

    (a) ,''.

    (7) Section 312

    (n)

    (2)
        (B) of such Code is amended by 
 striking ``616

    (a) or''.

    (8) Section 381
            (c) of such Code is amended by striking 
 paragraph

    (10) .

    (9) Section 1016

    (a) of such Code is amended by striking 
 paragraph

    (9) .

    (10) Section 1254

    (a)

    (1)
        (A)
            (i) of such Code is amended by 
 striking ``, 616,''.
            (c) Effective Date.--The amendments made by this section shall 
apply to expenditures paid or incurred in taxable years beginning after 
the date of the enactment of this Act.

SEC. 216. AMORTIZATION OF CERTAIN MINING EXPLORATION EXPENDITURES.

    (a) In General.--

Section 617 of the Internal Revenue Code of 1986 
is amended to read as follows:

``

SEC. 617. AMORTIZATION OF CERTAIN MINING EXPLORATION EXPENDITURES.

 ``

    (a) In General.--Any expenditures paid or incurred for the 
purpose of ascertaining the existence, location, extent, or quality of 
any deposit of ore or other mineral, and paid or incurred before the 
beginning of the development stage of the mine, shall be allowed as a 
deduction ratably over the 84-month period beginning on the date that 
such expense was paid or incurred.
 ``

    (b) Mid-Month Convention.--For purposes of subsection

    (a) , any 
expenditures paid or incurred during any month shall be treated as paid 
or incurred on the mid-point of such month.
 ``
            (c) Exclusive Method.--Except as provided in this section, no 
depreciation or amortization deduction shall be allowed with respect to 
expenditures described in subsection

    (a) .
 ``
            (d) Treatment Upon Abandonment.--If any property with respect to 
which expenditures described in subsection

    (a) are paid or incurred is 
retired or abandoned during the 84-month period described in such 
subsection, no deduction shall be allowed on account of such retirement 
or abandonment and the amortization deduction under this section shall 
continue with respect to such payment.''.

    (b) Conforming Amendments.--

    (1) The item relating to 

section 617 in the table of 
 sections for part I of subchapter I of chapter 1 of the 
 Internal Revenue Code of 1986 is amended to read as follows:

``

Sec. 617. Amortization of certain mining exploration expenditures.''.

    (2) Section 56

    (a) of such Code, as amended by 

section 215

    (b)

    (2) , is amended by striking paragraph

    (2) .

    (3) Section 59

    (e) of such Code, as amended by 

section 215

    (b)

    (3) , is amended--
        (A) in paragraph

    (2) --
            (i) in subparagraph
        (B) , by inserting 
 ``or'' at the end,
            (ii) in subparagraph
            (C) , by striking the 
 comma at the end and inserting a period, and
            (iii) by striking subparagraph
            (D) , and
        (B) by striking paragraph

    (5) and inserting the 
 following:
 ``

    (5) Dispositions.--In the case of any disposition of 
 property to which 

section 1254 applies (determined without 
 regard to this section), any deduction under paragraph

    (1) with 
 respect to amounts which are allocable to such property shall, 
 for purposes of 

section 1254, be treated as a deduction 
 allowable under 

section 263
            (c) .''.

    (4) Section 170

    (e) of such Code is amended--
        (A) in paragraph

    (1) , by striking ``617
            (d) (1) ,'', 
 and
        (B) in paragraph

    (3)
            (D) , by striking ``617,''.

    (5) Section 263A
            (c) (3) of such Code, as amended by 

section 215

    (b)

    (5) , is amended by striking ``291

    (b)

    (2) , or 617'' and 
 inserting ``or 291

    (b)

    (2) ''.

    (6) Section 291

    (b) of such Code, as amended by 

section 215

    (b)

    (6) , is amended--
        (A) in the heading, by striking ``and Mineral 
 Exploration and Development Costs'',
        (B) by striking paragraph

    (1) and inserting the 
 following:
 ``

    (1) In general.--In the case of an integrated oil 
 company, the amount allowable as a deduction for any taxable 
 year (determined without regard to this section) under 

section 263
            (c) shall be reduced by 30 percent.'',
            (C) in paragraph

    (2) , by striking ``or 617

    (a) (as 
 the case may be)'', and
            (D) in paragraph

    (3) , by striking ``or 617

    (a) (whichever is appropriate)''.

    (7) Section 312

    (n) , as amended by 

section 215

    (b)

    (7) , is 
 amended by striking paragraph

    (2) and inserting the following:
 ``

    (2) Intangible drilling costs.--Any amount allowable as a 
 deduction under 

section 263
            (c) in determining taxable income 
 (other than costs incurred in connection with a nonproductive 
 well)--
 ``
        (A) shall be capitalized, and
 ``
        (B) shall be allowed as a deduction ratably over 
 the 60-month period beginning with the month in which 
 such amount was paid or incurred.''.

    (8) Section 703

    (b) of such Code is amended--
        (A) in paragraph

    (1) , by adding ``or'' at the end,
        (B) by striking paragraph

    (2) , and
            (C) by redesignating paragraph

    (3) as paragraph

    (2) .

    (9) Section 751
            (c) of such Code is amended--
        (A) by inserting ``, as in effect on the day before 
 the date of the enactment of the End Polluter Welfare 
 Act of 2025'' after ``

section 617

    (f)

    (2) '', and
        (B) by striking ``617
            (d) (1) ,''.

    (10) Section 1254

    (a)

    (1)
        (A)
            (i) of such Code, as amended by 
 

section 215

    (b)

    (10) , is amended by striking ``or 617''.

    (11) Paragraph

    (2) of 

section 1363
            (c) of such Code is 
 amended to read as follows:
 ``

    (2) Exception.--In the case of an S corporation, 
 elections under 

section 901 (relating to taxes of foreign 
 countries and possessions of the United States) shall be made 
 by each shareholder separately.''.
            (c) Effective Date.--The amendments made by this section shall 
apply to expenditures paid or incurred in taxable years beginning after 
the date of the enactment of this Act.

SEC. 217. AMORTIZATION OF INTANGIBLE DRILLING AND DEVELOPMENT COSTS 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 to read as follows:
 ``
            (c) Intangible Drilling and Development Costs in the Case of Oil 
and Gas Wells and Geothermal Wells.--
 ``

    (1) Geothermal wells.--Notwithstanding subsection

    (a) , 
 and except as provided in subsection
            (i) , a taxpayer may elect 
 to deduct as expenses intangible drilling and development costs 
 in the case of wells drilled for any geothermal deposit (as 
 defined in 

section 613

    (e)

    (2) ) in such manner as the Secretary 
 provides. This subsection shall not apply with respect to any 
 costs to which any deduction is allowed under 

section 59

    (e) .
 ``

    (2) Oil and gas wells.--Notwithstanding subsection

    (a) , 
 and except as provided in subsection
            (i) , in the case of any 
 expenses paid or incurred in taxable years beginning after the 
 date of the enactment of End Polluter Welfare Act of 2025 in 
 connection with intangible drilling and development costs 
 related to oil and gas wells--
 ``
        (A) such expenses shall be allowed as a deduction 
 ratably over the 84-month period beginning on the date 
 that such expense was paid or incurred,
 ``
        (B) any such expenses paid or incurred during any 
 month shall be treated as paid or incurred on the mid-
 point of such month,
 ``
            (C) except as provided in this paragraph, no 
 depreciation or amortization deduction shall be allowed 
 with respect to such expenses, and
 ``
            (D) if any property with respect to which such 
 intangible drilling and development costs are paid or 
 incurred is retired or abandoned during such 84-month 
 period, no deduction shall be allowed on account of 
 such retirement or abandonment and the amortization 
 deduction under this paragraph shall continue with 
 respect to such payment.''.

    (b) Conforming Amendments.--

    (1) Paragraph

    (2) of 

section 57

    (a) of the Internal Revenue 
 Code of 1986 is amended to read as follows:
 ``

    (2) Intangible drilling costs.--
 ``
        (A) In general.--With respect to all geothermal 
 properties of the taxpayer, the amount (if any) by 
 which the amount of the excess intangible drilling 
 costs arising in the taxable year is greater than 65 
 percent of the net income of the taxpayer from 
 geothermal properties for the taxable year.
 ``
        (B) Excess intangible drilling costs.--For 
 purposes of subparagraph
        (A) , the amount of the excess 
 intangible drilling costs arising in the taxable year 
 is the excess of--
 ``
            (i) the intangible drilling and 
 development costs paid or incurred in 
 connection with geothermal wells (other than 
 costs incurred in drilling a nonproductive 
 well) allowable under 

section 263
            (c) (1) for the 
 taxable year, over
 ``
            (ii) the amount which would have been 
 allowable for the taxable year if such costs 
 had been capitalized and straight line recovery 
 of intangibles (as defined in subsection

    (b) ) 
 had been used with respect to such costs.
 ``
            (C) Net income from geothermal properties.--For 
 purposes of subparagraph
        (A) , the amount of the net 
 income of the taxpayer from geothermal properties for 
 the taxable year is the excess of--
 ``
            (i) the aggregate amount of gross income 
 (within the meaning of 

section 613

    (a) ) from all 
 geothermal properties of the taxpayer received 
 or accrued by the taxpayer during the taxable 
 year, over
 ``
            (ii) the amount of any deductions 
 allocable to such properties reduced by the 
 excess described in subparagraph
        (B) for such 
 taxable year.''.

    (2) Section 59

    (e) of such Code, as amended by sections 215 
 and 216, is amended--
        (A) in paragraph

    (2)
            (C) , by striking ``

section 263
            (c) '' and inserting ``

section 263
            (c) (1) '', and
        (B) in paragraph

    (5) , by striking ``

section 263
            (c) '' and inserting ``

section 263
            (c) (1) ''.

    (3) Section 263A
            (c) (3) of such Code, as amended by sections 
 215 and 216, is amended--
        (A) in the heading, by striking ``oil and gas'' and 
 inserting ``geothermal'', and
        (B) by striking ``263
            (c) ,'' and inserting 
 ``263
            (c) (1) ''.

    (4) Section 291 of such Code, as amended by sections 215 
 and 216, is amended by striking subsection

    (b) .

    (5) Section 312

    (n) of such Code, as amended by sections 215 
 and 216, is amended by striking ``

section 263
            (c) ,'' and 
 inserting ``

section 263
            (c) (1) ''.
            (c) Effective Date.--The amendments made by this section shall 
apply to expenditures paid or incurred in taxable years beginning after 
the date of the enactment of this Act.

SEC. 218. INCREASE IN EXCISE TAX RATE FOR FUNDING OF BLACK LUNG 
 DISABILITY TRUST FUND.

    (a) In General.--

Section 4121

    (b) of the Internal Revenue Code of 
1986 is amended--

    (1) in paragraph

    (1) , by striking ``$1.10'' and inserting 
 ``$1.38'', and

    (2) in paragraph

    (2) , by striking ``$.55'' and inserting 
 ``$0.69''.

    (b) Effective Date.--The amendments made by this section shall 
apply on and after the first day of the first calendar month beginning 
after the date of the enactment of this Act.

SEC. 219. ELIMINATION OF RENEWABLE ELECTRICITY PRODUCTION CREDIT 
 ELIGIBILITY FOR REFINED COAL.

    (a) In General.--

Section 45 of the Internal Revenue Code of 1986 is 
amended--

    (1) in subsection

    (b)

    (2) --
        (A) in the first sentence, by striking ``, the 8 
 cent amount'' and all that follows through ``in 2002'' 
 and inserting ``and the 8 cent amount in paragraph

    (1) '', and
        (B) in the third sentence, by striking ``In any 
 other case, if an amount'' and inserting ``If the 8 
 cent amount'',

    (2) in subsection
            (c) , by striking paragraph

    (7) ,

    (3) in subsection
            (d) , by striking paragraph

    (8) , and

    (4) in subsection

    (e) --
        (A) by striking paragraph

    (8) , and
        (B) by striking paragraph

    (9) and inserting the 
 following:
 ``

    (9) Coordination with credit for producing fuel from a 
 nonconventional source.--The term `qualified facility' shall 
 not include any facility which produces electricity from gas 
 derived from the biodegradation of municipal solid waste if 
 such biodegradation occurred in a facility (within the meaning 
 of 

section 45K) the production from which is allowed as a 
 credit under 

section 45K for the taxable year or any prior 
 taxable year.''.

    (b) Conforming Amendments.--

    (1) Section 38
            (c) (4)
        (B)
            (iv) of the Internal Revenue Code of 
 1986 is amended by striking ``or refined coal''.

    (2) Section 45K

    (g)

    (2) of such Code is amended by striking 
 subparagraph
        (E) .
            (c) Effective Date.--The amendments made by this section shall 
apply to coal produced after December 31, 2025.

SEC. 220. TREATMENT OF FOREIGN OIL RELATED INCOME AS SUBPART F INCOME.

    (a) In General.--

Section 954

    (a) of the Internal Revenue Code of 
1986 is amended by striking ``and'' at the end of paragraph

    (2) , by 
striking the period at the end of paragraph

    (3) and inserting ``, 
and'', and by adding at the end the following new paragraph:
 ``

    (4) the foreign base company oil related income for the 
 taxable year (determined under subsection

    (f) and reduced as 
 provided in subsection

    (b)

    (5) ).''.

    (b) Foreign Base Company Oil Related Income.--

Section 954 of the 
Internal Revenue Code of 1986 is amended by inserting after subsection

    (e) the following new subsection:
 ``

    (f) Foreign Base Company Oil Related Income.--For purposes of 
this section--
 ``

    (1) In general.--Except as otherwise provided in this 
 subsection, the term `foreign base company oil related income' 
 means foreign oil related income (within the meaning of 
 paragraphs

    (2) and

    (3) of 

section 907
            (c) ) other than income 
 derived from a source within a foreign country in connection 
 with--
 ``
        (A) oil or gas which was extracted from an oil or 
 gas well located in such foreign country, or
 ``
        (B) oil, gas, or a primary product of oil or gas 
 which is sold by the foreign corporation or a related 
 person for use or consumption within such country or is 
 loaded in such country on a vessel or aircraft as fuel 
 for such vessel or aircraft.
 Such term shall not include any foreign personal holding 
 company income (as defined in subsection
            (c) ).
 ``

    (2) Paragraph

    (1) applies only where corporation has 
 produced 1,000 barrels per day or more.--
 ``
        (A) In general.--The term `foreign base company 
 oil related income' shall not include any income of a 
 foreign corporation if such corporation is not a large 
 oil producer for the taxable year.
 ``
        (B) Large oil producer.--For purposes of 
 subparagraph
        (A) , the term `large oil producer' means 
 any corporation if, for the taxable year or for the 
 preceding taxable year, the average daily production of 
 foreign crude oil and natural gas of the related group 
 which includes such corporation equaled or exceeded 
 1,000 barrels.
 ``
            (C) Related group.--The term `related group' 
 means a group consisting of the foreign corporation and 
 any other person who is a related person with respect 
 to such corporation.
 ``
            (D) Average daily production of foreign crude oil 
 and natural gas.--For purposes of this paragraph, the 
 average daily production of foreign crude oil or 
 natural gas of any related group for any taxable year 
 (and the conversion of cubic feet of natural gas into 
 barrels) shall be determined under rules similar to the 
 rules of 

section 613A (as in effect on the day before 
 the date of enactment of the End Polluter Welfare Act 
 of 2025) except that only crude oil or natural gas from 
 a well located outside the United States shall be taken 
 into account.''.
            (c) Conforming Amendments.--

    (1) Section 952
            (c) (1)
        (B)
            (iii) of the Internal Revenue Code 
 of 1986 is amended by redesignating subclauses
            (I) through
            (IV) as subclauses
            (II) through
            (V) , respectively, and by inserting 
 before subclause
            (II) (as so redesignated) the following:
 ``
            (I) foreign base company oil 
 related income,''.

    (2) Section 954

    (b) of such Code is amended--
        (A) by inserting at the end of paragraph

    (4) the 
 following: ``The preceding sentence shall not apply to 
 foreign base company oil-related income described in 
 subsection

    (a)

    (4) .'',
        (B) by striking ``and the foreign base company 
 services income'' in paragraph

    (5) and inserting ``the 
 foreign base company services income, and the foreign 
 base company oil related income'', and
            (C) by adding at the end the following new 
 paragraph:
 ``

    (6) Foreign base company oil related income not treated 
 as another kind of base company income.--Income of a 
 corporation which is foreign base company oil related income 
 shall not be considered foreign base company income of such 
 corporation under paragraph

    (2) or

    (3) of subsection

    (a) .''.
            (d) Effective Date.--The amendments made by this section shall 
apply to taxable years of foreign corporations beginning after the date 
of the enactment of this Act and to taxable years of United States 
shareholders ending with or within which such taxable years of foreign 
corporations end.

SEC. 221. REPEAL OF EXCLUSION OF FOREIGN OIL AND GAS EXTRACTION INCOME 
 FROM THE DETERMINATION OF TESTED INCOME.

    (a) In General.--

Section 951A
            (c) (2)
        (A)
            (i) of the Internal Revenue 
Code of 1986 is amended--

    (1) by adding ``and'' at the end of subclause
            (III) ,

    (2) by striking ``and'' at the end of subclause
            (IV) and 
 inserting ``over'', and

    (3) by striking subclause
            (V) .

    (b) Effective Date.--The amendments made by this section shall 
apply to taxable years of foreign corporations beginning after the date 
of enactment of this Act, and to taxable years of United States 
shareholders in which or with which such taxable years of foreign 
corporations end.

SEC. 222. TERMINATION OF CREDIT FOR CARBON OXIDE SEQUESTRATION.

    (a) In General.--

Section 45Q of the Internal Revenue Code of 1986 
is amended by adding at the end the following:
 ``

    (j) Termination.--This section shall not apply with respect to 
any qualified carbon oxide captured after the date of enactment of the 
End Polluter Welfare Act of 2025.''.

    (b) Report.--

    (1) In general.--Not later than 6 months after the date of 
 enactment of this Act, the Secretary of the Treasury, or the 
 Secretary's delegate, shall submit a report to Congress, to be 
 made available to the public, which provides the following 
 information:
        (A) The taxpayer identity information of any 
 taxpayer for which the carbon oxide sequestration 
 credit under 

section 45Q of the Internal Revenue Code 
 of 1986 was allowed for any taxable year following the 
 enactment of such section.
        (B) The total amount of the credit allowed pursuant 
 to such section to each taxpayer described in 
 subparagraph
        (A) .
            (C) With respect to the amount described in 
 subparagraph
        (B) , the amount of such credit allowed 
 with respect to each of the following:
            (i) Qualified carbon oxide which was 
 captured and disposed of by the taxpayer in 
 secure geological storage and not used by the 
 taxpayer as described in clause
            (ii) or
            (iii) .
            (ii) Qualified carbon oxide which was 
 captured and used by the taxpayer as a tertiary 
 injectant in a qualified enhanced oil or 
 natural gas recovery project and disposed of by 
 the taxpayer in secure geological storage.
            (iii) Qualified carbon oxide which was 
 captured and utilized by the taxpayer in a 
 manner described in 

section 45Q

    (f)

    (5) of the 
 Internal Revenue Code of 1986.

    (2) Exception from rules regarding confidentiality and 
 disclosure of returns and return information.--

Section 6103
            (l) of the Internal Revenue Code of 1986 is amended by adding at 
 the end the following:
 ``

    (23) Disclosure of return information for public report 
 on carbon oxide sequestration credit.--The Secretary may 
 disclose taxpayer identity information and return information 
 to the extent the Secretary deems necessary for purposes of the 
 report issued pursuant to 

section 222 of the End Polluter 
 Welfare Act of 2025.''.

SEC. 223. ELIMINATE DRAWBACKS ON PETROLEUM TAXES.

    (a) In General.--

Section 313

    (j) of the Tariff Act of 1930 (19 
U.S.C. 1313

    (j) ) is amended by adding at the end the following new 
paragraph:
 ``

    (7) No amount of any tax imposed on any merchandise pursuant to 

section 4611 of the Internal Revenue Code of 1986 shall be eligible to 
be refunded as drawback under this subsection.''.

    (b) Effective Date.--The amendment made by this section shall apply 
with respect to articles entered, or withdrawn from warehouse for 
consumption, on or after January 1, 2026.

SEC. 224. MODIFYING CLEAN HYDROGEN PRODUCTION CREDIT.

    (a) In General.--

Section 45V of the Internal Revenue Code of 1986, 
as amended by 

section 70511 of Public Law 119-21, is amended--

    (1) in subsection

    (a) , by striking paragraph

    (2) and 
 inserting the following:
 ``

    (2) $0.60.'',

    (2) by striking subsection

    (b) and inserting the following:
 ``

    (b) Inflation Adjustment.--The $0.60 amount in subsection

    (a)

    (2) shall be adjusted by multiplying such amount by the inflation 
adjustment factor (as determined under 

section 45

    (e)

    (2) , determined by 
substituting `2024' for `1992' in subparagraph
        (B) thereof) for the 
calendar year in which the qualified clean hydrogen is produced. If any 
amount as increased under the preceding sentence is not a multiple of 
0.1 cent, such amount shall be rounded to the nearest multiple of 0.1 
cent.'',

    (3) in subsection
            (c) --
        (A) by striking paragraph

    (1) ,
        (B) in paragraph

    (2) --
            (i) by striking subparagraph
        (A) and 
 inserting the following:
 ``
        (A) === Definition. ===
-
 ``
            (i) In general.--The term `qualified 
 clean hydrogen' means hydrogen produced using 
 an electrolyzer for which the electricity used 
 is--
 ``
            (I) produced at a facility 
 which--
 ``

    (aa) uses qualified 
 renewable energy resources to 
 produce such electricity,
 ``

    (bb) was placed in 
 service not greater than 36 
 months prior to the date on 
 which the facility which 
 produces such hydrogen was 
 placed in service, and
 ``
            (cc) is in the same 
 region (as defined in the 
 National Transmission Needs 
 Study of the Department of 
 Energy, dated October 30, 2023) 
 as the facility which produces 
 such hydrogen, and
 ``
            (II) produced at the facility 
 described in subclause
            (I) not less 
 than 1 hour prior to use by the 
 electrolyzer.
 ``
            (ii) Qualified renewable energy 
 resources.--The term `qualified renewable 
 energy resources' means--
 ``
            (I) wind,
 ``
            (II) solar energy,
 ``
            (III) geothermal energy (as 
 defined in 

section 45
            (c) (4) ),
 ``
            (IV) marine and hydrokinetic 
 renewable energy (as defined in 

section 45
            (c) (10) ), and
 ``
            (V) hydropower.'', and
            (ii) by striking subparagraph
            (C) ,
            (C) in paragraph

    (3)
            (C) , by inserting ``, and which 
 is placed in service after December 31, 2025'' after 
 ``January 1, 2028'', and
            (D) by redesignating paragraphs

    (2) and

    (3) as 
 paragraphs

    (1) and

    (2) , respectively,

    (4) in subsection

    (e) --
        (A) in paragraph

    (1) , by striking ``described in 
 subsection

    (b)

    (2) '' and inserting ``produced by the 
 taxpayer'', and
        (B) in paragraph

    (3)
        (A)
            (ii) , by striking 
 ``subsection

    (a)

    (2) '' and inserting ``subsection

    (a)

    (1) '', and

    (5) in subsection

    (f) , by striking ``, including 
 regulations or other guidance for determining lifecycle 
 greenhouse gas emissions''.

    (b) Conforming Amendments.--

    (1) Section 45

    (e)

    (13) of the Internal Revenue Code of 1986 
 is amended by striking ``

section 45V
            (c) (3) ) to produce 
 qualified clean hydrogen (as defined in 

section 45V
            (c) (2) )'' 
 and inserting ``

section 45V
            (c) (2) ) to produce qualified clean 
 hydrogen (as defined in 

section 45V
            (c) (1) )''.

    (2) Section 48

    (a)

    (15) of such Code is amended--
        (A) in subparagraph
        (A) , by striking clause
            (ii) and inserting the following:
 ``
            (ii) the energy percentage with respect 
 to such property is 6 percent.'',
        (B) in subparagraph
            (C) --
            (i) by striking ``

section 45V
            (c) (3) '' and 
 inserting ``

section 45V
            (c) (2) '', and
            (ii) in clause
            (i) , by striking ``December 
 31, 2022'' and inserting ``December 31, 2025'', 
 and
            (C) in subparagraph
            (D) , by striking ``

section 45V
            (c) (2) '' and inserting ``

section 45V
            (c) (1) ''.

    (3) Section 6417 of such Code is amended--
        (A) in subsection

    (b)

    (5) , by striking ``December 
 31, 2012'' and inserting ``December 31, 2025'', and
        (B) in subsection
            (d) (1)
        (B) , by striking ``

section 45V
            (c) (3) '' and inserting ``

section 45V
            (c) (2) ''.
            (c) Effective Date.--The amendments made by this section shall 
apply to facilities placed in service after December 31, 2025.

 TITLE III--REPEAL RECENT FOSSIL FUEL SUBSIDY LEGISLATION

SEC. 301. BUILDER ACT.

    (a) General Repeal.--Sections 106, 107, 108, 109, 110, and 111 of 
the National Environmental Policy Act of 1969 (42 U.S.C. 4336, 4336a, 
4336b, 4336c, 4336d, 4336e) are repealed.

    (b) Repeal of Modifications.--

Section 102

    (2) of the National 
Environmental Policy Act of 1969 (42 U.S.C. 4332

    (2) ) is amended--

    (1) in subparagraph
            (C) --
        (A) in the matter preceding clause
            (i) , by striking 
 ``consistent with the provisions of this Act and except 
 where compliance would be inconsistent with other 
 statutory requirements,'';
        (B) by striking clauses
            (i) through
            (v) and 
 inserting the following:
 ``
            (i) the environmental impact of the 
 proposed action;
 ``
            (ii) any adverse environmental effects 
 that cannot be avoided if the proposed action 
 is implemented;
 ``
            (iii) alternatives to the proposed 
 action;
 ``
            (iv) the relationship between local 
 short-term uses of the human environment and 
 the maintenance and enhancement of long-term 
 productivity; and
 ``
            (v) any irreversible and irretrievable 
 commitments of resources that would be involved 
 in the proposed action if the proposed action 
 is implemented.''; and
            (C) in the undesignated matter following clause
            (v) (as so amended), in the first sentence, by striking 
 ``head of the lead agency'' and inserting ``responsible 
 Federal official'';

    (2) by striking subparagraphs
            (D) ,
        (E) , and
        (F) ;

    (3) by redesignating subparagraphs
        (G) through
            (L) as 
 subparagraphs
            (D) through
            (I) , respectively; and

    (4) in subparagraph
        (F) (as so redesignated), by striking 
 ``consistent with the provisions of this Act,''.
            (c) Conforming Amendment.--

Section 9909
            (c) (1) of the William M.

    (Mac) Thornberry National Defense Authorization Act for Fiscal Year 
2021 (15 U.S.C. 4659
            (c) (1) ) is amended by striking ``has the meaning 
given the term in 

section 111 of NEPA (42 U.S.C. 4336e)'' and inserting 
``, with respect to a covered activity, means the Federal agency that 
proposed the covered activity''.

SEC. 302. INFLATION REDUCTION ACT.

    (a) Lease Sales Under the 2017-2022 Outer Continental Shelf Leasing 
Program.--

Section 50264 of Public Law 117-169 (commonly known as the 
``Inflation Reduction Act of 2022'') (136 Stat. 2059) is repealed.

    (b) Ensuring Energy Security.--

Section 50265 of Public Law 117-169 
(commonly known as the ``Inflation Reduction Act of 2022'') (43 U.S.C. 
3006) is repealed.

SEC. 303. ONE BIG BEAUTIFUL BILL ACT.

    (a) Internal Revenue Code.--

    (1) Exclusion of metallurgical coal under advanced 
 manufacturing production credit.--

Section 45X of the Internal 
 Revenue Code of 1986, as amended by 

section 70514 of Public Law 
 119-21 (commonly known as the ``One Big Beautiful Bill Act''), 
 is amended--
        (A) in subsection

    (b)

    (1)
            (M) , by striking ``(2.5 
 percent in the case of metallurgical coal)'',
        (B) in subsection

    (b)

    (3) --
            (i) in subparagraph
            (C) --
            (I) in the heading, by striking 
 ``other than metallurgical coal'',
            (II) in clause
            (i) , by striking 
 ``(other than metallurgical coal)'', 
 and
            (III) in the heading of clause
            (ii) , by striking ``other than 
 metallurgical coal'', and
            (ii) by striking subparagraph
        (E) , and
            (C) in subsection
            (c) (6) , by striking subparagraph
        (R) .

    (2) Intangible drilling and development costs.--The 
 amendments made by 

section 70523 of Public Law 119-21 are 
 repealed and the Internal Revenue Code of 1986 shall be applied 
 as if such amendments had not been enacted.

    (3) Income from carbon capture and hydrogen.--

Section 7704
            (d) (1)
        (E) of the Internal Revenue Code of 1986, as amended 
 by 

section 70524 of Public Law 119-21, is amended--
        (A) in clause
            (ii) 
            (II) , by inserting ``provided 
 that such hydrogen is qualified clean hydrogen (as 
 defined in 

section 45V
            (c) (1)
        (A) ),'' after ``liquified 
 hydrogen or compressed hydrogen,'', and
        (B) by striking clause
            (iii) .

    (b) Oil and Gas, Mining, and Energy Repeals.--The provisions of, 
and the amendments made by, sections 50101, 50102, 50103, 50104, 50105, 
50201, 50202, 50203, 50204, and 50403 of Public Law 119-21 (commonly 
known as the ``One Big Beautiful Bill Act'') (139 Stat. 72) are 
repealed, and any provision of law amended or repealed by those 
sections shall be applied as if such amendments or repeals had not been 
enacted.
            (c) Methane Emissions and Waste Reduction Incentive Program.--

Section 136

    (g) of the Clean Air Act (42 U.S.C. 7436

    (g) ) (as amended by 

section 60012

    (b) of Public Law 119-21 (commonly known as the ``One Big 
Beautiful Bill Act'')) (139 Stat. 72) is amended by striking ``calendar 
year 2034'' and inserting ``calendar year 2024''.
            (d) Repeal of Project Sponsor Opt-In Fees for Environmental 
Reviews.--

Section 112 of the National Environmental Policy Act of 1969 
(as added by 

section 60026 of Public Law 119-21 (commonly known as the 
``One Big Beautiful Bill Act'')) (139 Stat. 72) is repealed.

SEC. 304. WASTE EMISSIONS CHARGE RULE.

    (a) Repeal.--Public Law 119-2 (139 Stat. 7) is repealed.

    (b) Implementation.--The Administrator of the Environmental 
Protection Agency shall implement the final rule of the Environmental 
Protection Agency entitled ``Waste Emissions Charge for Petroleum and 
Natural Gas Systems: Procedures for Facilitating Compliance, Including 
Netting and Exemptions'' (89 Fed. Reg. 91094 (November 18, 2024)) as if 
Public Law 119-2 (139 Stat. 7) had not been enacted into law.

 TITLE IV--ELIMINATION OF OTHER FOSSIL FUEL SUBSIDIES

SEC. 401. STUDY AND ELIMINATION OF ADDITIONAL FOSSIL FUEL SUBSIDIES.

    (a) Definition of Subsidy for Fossil-Fuel Production.--In this 
section, the term ``subsidy for fossil-fuel production'' means any 
direct funding, tax treatment or incentive, risk-reduction benefit, 
financing assistance or guarantee, royalty relief, or other provision 
that provides a financial benefit to a fossil-fuel company for the 
production of fossil fuels.

    (b) Report to Congress.--Not later than 1 year after the date of 
enactment of this Act, the Secretary of the Treasury or a delegate of 
the Secretary (referred to in this section as the ``Secretary''), in 
coordination with the Secretary of Energy, shall submit to Congress a 
report detailing each Federal law (including regulations), other than 
those amended by this Act, as in effect on the date on which the report 
is submitted, that includes a subsidy for fossil-fuel production.
            (c) Report on Modified Recovery Period.--

    (1) In general.--Not later than 1 year after the date of 
 enactment of this Act, the Secretary, in coordination with the 
 Commissioner of Internal Revenue, shall submit to Congress a 
 report on the applicable recovery period under the accelerated 
 cost recovery system provided in 

section 168 of the Internal 
 Revenue Code of 1986 for each type of property involved in 
 fossil-fuel production, including pipelines, power generation 
 property, refineries, and drilling equipment, to determine if 
 any assets are receiving a subsidy for fossil-fuel production.

    (2) Elimination of subsidy.--
        (A) In general.--In the case of any type of 
 property that the Secretary determines is receiving a 
 subsidy for fossil-fuel production under 

section 168 of 
 the Internal Revenue Code of 1986, for property placed 
 in service in taxable years beginning after the date of 
 such determination, 

section 168 of the Internal Revenue 
 Code of 1986 shall not apply.
        (B) Exception.--Subparagraph
        (A) shall not apply to 
 any property with respect to a taxable year unless such 
 determination is published before the first day of such 
 taxable year.
 <all>