This bill would repeal or limit subsidies for the energy extraction industry that come in the form of reduced or eliminated royalties, tax incentives, limitations on liability for accidents, and loans for projects using fossil fuels.
The ability of the Secretary of the Interior to reduce or eliminate royalty payments for oil and natural gas leases in the Outer Continental Shelf would be repealed. Minimum royalty payments under the Mineral Leasing Act would be increased for coal, oil and natural gas leases. If a company overpays its royalties to the federal government, it would no longer be able to receive interest on the overpaid portion.
The Internal Revenue Code would be amended to limit or repeal provisions allowing tax incentives for investment in fossil fuels and increase the Oil Spill Liability Trust Fund financing rate. It would also impose a 13 percent tax on the removal price of any taxable crude oil or natural gas from the Outer Continental Shelf in the Gulf of Mexico.
All unobligated balances made to the World Bank, the Export-Import Bank, the Advanced Research Projects Agency in the Department of Defense, the Overseas Private Investment Corporation would be rescinded for projects supporting fossil fuel power plants. Such a project could still continue to receive funds, but only if the project is in a Least Developed Country where no economically feasible alternative exists, and it uses the most efficient energy source available.
The Department of Transportation could not award a grant or other direct assistance to a rail or port project that transports fossil fuel. The Department of Agriculture would be prohibited from making loans under the Rural Electrification Act of 1936 to projects that will use fossil fuel.
The corporate income tax exemption for publicly traded partnerships with qualifying income and gains from activities relating to fossil fuels would be repealed. Accelerated depreciation for property that is receiving a subsidy for fossil fuel production would be eliminated.