| 1 | 1 | | II |
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| 2 | 2 | | 119THCONGRESS |
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| 3 | 3 | | 1 |
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| 4 | 4 | | STSESSION S. 1026 |
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| 5 | 5 | | To amend the Internal Revenue Code of 1986 to clarify that products derived |
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| 6 | 6 | | from tar sands are crude oil for purposes of the Federal excise tax |
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| 7 | 7 | | on petroleum, and for other purposes. |
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| 8 | 8 | | IN THE SENATE OF THE UNITED STATES |
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| 9 | 9 | | MARCH13, 2025 |
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| 10 | 10 | | Mr. M |
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| 11 | 11 | | ARKEY(for himself, Ms. WARREN, Mr. WHITEHOUSE, Mr. MERKLEY, |
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| 12 | 12 | | Mr. W |
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| 13 | 13 | | ELCH, Mr. SANDERS, and Mr. VANHOLLEN) introduced the fol- |
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| 14 | 14 | | lowing bill; which was read twice and referred to the Committee on Fi- |
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| 15 | 15 | | nance |
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| 16 | 16 | | A BILL |
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| 17 | 17 | | To amend the Internal Revenue Code of 1986 to clarify |
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| 18 | 18 | | that products derived from tar sands are crude oil for |
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| 19 | 19 | | purposes of the Federal excise tax on petroleum, and |
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| 20 | 20 | | for other purposes. |
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| 21 | 21 | | Be it enacted by the Senate and House of Representa-1 |
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| 22 | 22 | | tives of the United States of America in Congress assembled, 2 |
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| 23 | 23 | | SECTION 1. SHORT TITLE. 3 |
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| 24 | 24 | | This Act may be cited as the ‘‘Tar Sands Tax Loop-4 |
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| 25 | 25 | | hole Elimination Act’’. 5 |
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| 26 | 26 | | VerDate Sep 11 2014 02:09 Mar 25, 2025 Jkt 059200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S1026.IS S1026 |
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| 27 | 27 | | kjohnson on DSK7ZCZBW3PROD with $$_JOB 2 |
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| 28 | 28 | | •S 1026 IS |
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| 29 | 29 | | SEC. 2. CLARIFICATION OF TAR SANDS AS CRUDE OIL FOR 1 |
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| 30 | 30 | | EXCISE TAX PURPOSES. 2 |
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| 31 | 31 | | (a) I |
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| 32 | 32 | | NGENERAL.—Paragraph (1) of section 4612(a) 3 |
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| 33 | 33 | | of the Internal Revenue Code of 1986 is amended to read 4 |
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| 34 | 34 | | as follows: 5 |
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| 35 | 35 | | ‘‘(1) C |
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| 36 | 36 | | RUDE OIL.—The term ‘crude oil’ includes 6 |
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| 37 | 37 | | crude oil condensates, natural gasoline, any bitumen 7 |
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| 38 | 38 | | or bituminous mixture, any oil derived from a bitu-8 |
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| 39 | 39 | | men or bituminous mixture (including oil derived 9 |
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| 40 | 40 | | from tar sands), and any oil derived from kerogen- 10 |
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| 41 | 41 | | bearing sources (including oil derived from oil 11 |
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| 42 | 42 | | shale).’’. 12 |
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| 43 | 43 | | (b) R |
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| 44 | 44 | | EGULATORYAUTHORITYTOADDRESSOTHER 13 |
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| 45 | 45 | | T |
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| 46 | 46 | | YPES OFCRUDEOIL ANDPETROLEUMPRODUCTS.— 14 |
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| 47 | 47 | | Subsection (a) of section 4612 of such Code is amended 15 |
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| 48 | 48 | | by adding at the end the following new paragraph: 16 |
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| 49 | 49 | | ‘‘(10) R |
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| 50 | 50 | | EGULATORY AUTHORITY TO ADDRESS 17 |
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| 51 | 51 | | OTHER TYPES OF CRUDE OIL AND PETROLEUM 18 |
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| 52 | 52 | | PRODUCTS.—Under such regulations as the Sec-19 |
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| 53 | 53 | | retary may prescribe, the Secretary may include as 20 |
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| 54 | 54 | | crude oil or as a petroleum product subject to tax 21 |
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| 55 | 55 | | under section 4611, any fuel feedstock or finished 22 |
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| 56 | 56 | | fuel product customarily transported by pipeline, 23 |
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| 57 | 57 | | vessel, railcar, or tanker truck if the Secretary deter-24 |
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| 58 | 58 | | mines that— 25 |
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| 59 | 59 | | VerDate Sep 11 2014 02:09 Mar 25, 2025 Jkt 059200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S1026.IS S1026 |
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| 60 | 60 | | kjohnson on DSK7ZCZBW3PROD with $$_JOB 3 |
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| 61 | 61 | | •S 1026 IS |
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| 62 | 62 | | ‘‘(A) the classification of such fuel feed-1 |
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| 63 | 63 | | stock or finished fuel product is consistent with 2 |
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| 64 | 64 | | the definition of oil under the Oil Pollution Act 3 |
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| 65 | 65 | | of 1990, and 4 |
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| 66 | 66 | | ‘‘(B) such fuel feedstock or finished fuel 5 |
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| 67 | 67 | | product is produced in sufficient commercial 6 |
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| 68 | 68 | | quantities as to pose a significant risk of haz-7 |
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| 69 | 69 | | ard in the event of a discharge.’’. 8 |
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| 70 | 70 | | (c) T |
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| 71 | 71 | | ECHNICALAMENDMENT.—Paragraph (2) of sec-9 |
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| 72 | 72 | | tion 4612(a) of such Code is amended by striking ‘‘from 10 |
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| 73 | 73 | | a well located’’. 11 |
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| 74 | 74 | | (d) E |
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| 75 | 75 | | FFECTIVEDATE.—The amendments made by 12 |
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| 76 | 76 | | this section shall take effect on the date of the enactment 13 |
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| 77 | 77 | | of this Act. 14 |
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| 78 | 78 | | Æ |
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| 79 | 79 | | VerDate Sep 11 2014 02:09 Mar 25, 2025 Jkt 059200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6301 E:\BILLS\S1026.IS S1026 |
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| 80 | 80 | | kjohnson on DSK7ZCZBW3PROD with $$_JOB |
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