[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4714 Introduced in House (IH)]
<DOC>
119th CONGRESS
1st Session
H. R. 4714
To eliminate certain subsidies for fossil-fuel production.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
July 23, 2025
Ms. Omar (for herself, Ms. Barragan, Mr. Khanna, Mr. Casar, Mr. Cohen,
Mr. Espaillat, Mrs. Foushee, Mr. Frost, Mr. Garcia of California, Ms.
Jayapal, Ms. McCollum, Ms. Norton, Ms. Ocasio-Cortez, Ms. Pingree, Mrs.
Ramirez, Ms. Scanlon, Ms. Schakowsky, Ms. Tlaib, Ms. Tokuda, Mr. Torres
of New York, and Mrs. Watson Coleman) introduced the following bill;
which was referred to the Committee on Ways and Means, and in addition
to the Committees on Transportation and Infrastructure, Natural
Resources, Science, Space, and Technology, Energy and Commerce,
Agriculture, Appropriations, Financial Services, and Foreign Affairs,
for a period to be subsequently determined by the Speaker, in each case
for consideration of such provisions as fall within the jurisdiction of
the committee concerned
_______________________________________________________________________
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. Repeal of disapproval of EPA rule relating to waste emissions
charge for petroleum and natural gas
systems.
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) Sect