II
119THCONGRESS
1
STSESSION S. 1026
To amend the Internal Revenue Code of 1986 to clarify that products derived
from tar sands are crude oil for purposes of the Federal excise tax
on petroleum, and for other purposes.
IN THE SENATE OF THE UNITED STATES
MARCH13, 2025
Mr. M
ARKEY(for himself, Ms. WARREN, Mr. WHITEHOUSE, Mr. MERKLEY,
Mr. W
ELCH, Mr. SANDERS, and Mr. VANHOLLEN) introduced the fol-
lowing bill; which was read twice and referred to the Committee on Fi-
nance
A BILL
To amend the Internal Revenue Code of 1986 to clarify
that products derived from tar sands are crude oil for
purposes of the Federal excise tax on petroleum, and
for other purposes.
Be it enacted by the Senate and House of Representa-1
tives of the United States of America in Congress assembled, 2
SECTION 1. SHORT TITLE. 3
This Act may be cited as the ‘‘Tar Sands Tax Loop-4
hole Elimination Act’’. 5
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•S 1026 IS
SEC. 2. CLARIFICATION OF TAR SANDS AS CRUDE OIL FOR 1
EXCISE TAX PURPOSES. 2
(a) I
NGENERAL.—Paragraph (1) of section 4612(a) 3
of the Internal Revenue Code of 1986 is amended to read 4
as follows: 5
‘‘(1) C
RUDE OIL.—The term ‘crude oil’ includes 6
crude oil condensates, natural gasoline, any bitumen 7
or bituminous mixture, any oil derived from a bitu-8
men or bituminous mixture (including oil derived 9
from tar sands), and any oil derived from kerogen- 10
bearing sources (including oil derived from oil 11
shale).’’. 12
(b) R
EGULATORYAUTHORITYTOADDRESSOTHER 13
T
YPES OFCRUDEOIL ANDPETROLEUMPRODUCTS.— 14
Subsection (a) of section 4612 of such Code is amended 15
by adding at the end the following new paragraph: 16
‘‘(10) R
EGULATORY AUTHORITY TO ADDRESS 17
OTHER TYPES OF CRUDE OIL AND PETROLEUM 18
PRODUCTS.—Under such regulations as the Sec-19
retary may prescribe, the Secretary may include as 20
crude oil or as a petroleum product subject to tax 21
under section 4611, any fuel feedstock or finished 22
fuel product customarily transported by pipeline, 23
vessel, railcar, or tanker truck if the Secretary deter-24
mines that— 25
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•S 1026 IS
‘‘(A) the classification of such fuel feed-1
stock or finished fuel product is consistent with 2
the definition of oil under the Oil Pollution Act 3
of 1990, and 4
‘‘(B) such fuel feedstock or finished fuel 5
product is produced in sufficient commercial 6
quantities as to pose a significant risk of haz-7
ard in the event of a discharge.’’. 8
(c) T
ECHNICALAMENDMENT.—Paragraph (2) of sec-9
tion 4612(a) of such Code is amended by striking ‘‘from 10
a well located’’. 11
(d) E
FFECTIVEDATE.—The amendments made by 12
this section shall take effect on the date of the enactment 13
of this Act. 14
Æ
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