National Resilience and Recovery Fund Act

This Act may be cited as the National Resilience and Recovery Fund Act.

Subchapter A of chapter 98 of the Internal Revenue Code of 1986 (relating to establishment of trust funds) is amended by adding at the end the following new section:

There is established in the Treasury of the United States a trust fund to be known as the National Resilience and Recovery Fund, consisting of such amounts as may be appropriated or credited to such Fund as provided in this section or section 9602(b).

There are hereby appropriated to the National Resilience and Recovery Fund amounts equivalent to—

(1) taxes received in the Treasury under section 5901(a) (relating to the excise tax on crude oil and natural gas produced from the outer Continental Shelf in the Gulf of Mexico),

(2) taxes received in the Treasury under section 4611 (relating to environmental tax on crude oil and petroleum) to the extent attributable to the National Resilience and Recovery Fund financing rate under section 4611(c), and

(3) taxes received in the Treasury under section 5896(a) (relating to the excise tax on crude oil windfall profits).

Amounts in the Fund shall be available, as provided in appropriation Acts, to the Administrator of the Federal Emergency Management Agency to carry out the purposes of the following programs of such Agency:

(1) The Hazard Mitigation Grant Program established pursuant to section 404 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5170c).

(2) The Building Resilient Infrastructure and Communities grant program established pursuant to section 203 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5133).

(3) The Safeguarding Tomorrow Revolving Loan Fund Program established pursuant to section 205 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5135).

(4) The Flood Mitigation Assistance program established pursuant to section 1366 of the Excerpts from the Housing and Urban Development Act of 1968 (42 U.S.C. 4104c).

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The table of sections for subchapter A of chapter 98 of such Code is amended by adding after the item relating to section 9511 the following new item:

The amendments made by this section shall take effect on January 1, 2025.

Paragraph (1) of section 4612(a) of the Internal Revenue Code of 1986 is amended to read as follows:

The term crude oil includes crude oil condensates, natural gasoline, any bitumen or bituminous mixture, any oil derived from a bitumen or bituminous mixture (including oil derived from tar sands), and any oil derived from kerogen-bearing sources (including oil derived from oil shale).

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Subsection (a) of section 4612 of such Code is amended by adding at the end the following new paragraph:

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.

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Paragraph (2) of section 4612(a) of such Code is amended by striking from a well located.

The amendments made by this section shall take effect on the date of the enactment of this Act.

Section 4611(c) of the Internal Revenue Code of 1986 is amended—

(1) in paragraph (1), by striking and at the end of subparagraph (A), by striking the period at the end of subparagraph (B) and inserting, and, and by adding at the end the following new subparagraph:

(C) the National Resilience and Recovery Fund financing rate.

(1) ,

(2) in paragraph (2), by striking and at the end of subparagraph (A), by striking the period at the end of subparagraph (B) and inserting, and, and by adding at the end the following new subparagraph:

(C) the National Resilience and Recovery Fund financing rate is 10 cents a barrel.

(2) , and

(3) in paragraph (3), by striking the amount in paragraph (2)(A) and inserting the amounts in subparagraphs (A) and (C) of paragraph (2).

The amendments made by this section shall apply to taxable years beginning after December 31, 2024.

Subtitle E of the Internal Revenue Code of 1986 is amended by adding at the end thereof the following new chapter:

In addition to any other tax imposed under this title, in each calendar quarter there is hereby imposed on any covered taxpayer an excise tax at the rate determined under subsection (b) on—

(1) each barrel of taxable crude oil extracted by the taxpayer within the United States and removed from the property of such taxpayer during the calendar quarter, and

(2) each barrel of taxable crude oil entered into the United States during the calendar quarter by the taxpayer for consumption, use, or warehousing.

The rate of tax imposed by this section on any barrel of taxable crude oil for any calendar quarter is the product of—

(A) 50 percent, and

(B) the excess (if any) of—

(i) the average price of a barrel of Brent crude oil over the covered calendar quarter, over

(ii) the average price of a barrel of Brent crude oil over the period beginning on January 1, 2015, and ending on December 31, 2019.

In the case of a calendar quarter beginning in any taxable year beginning after 2025, the amount determined under paragraph (1)(B)(ii) shall be increased by an amount equal to—

(i) such dollar amount, multiplied by

(ii) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting 2024 for 2016 in subparagraph (A)(ii) thereof.

If any dollar amount, after being increased under subparagraph (A), is not a multiple of $0.50, such dollar amount shall be rounded to the next lowest multiple of $0.01.

In the case of a fraction of a barrel, the tax imposed by subsection (a) shall be the same fraction of the amount of such tax imposed on the whole barrel.

For purposes of this chapter—

The term covered taxpayer means, with respect to any calendar quarter, any taxpayer if—

(i) the average daily number of barrels of taxable crude oil extracted and imported by the taxpayer for calendar year 2023 exceeded 300,000 barrels, or

(ii) the average daily number of barrels of taxable crude oil extracted and imported by the taxpayer for the calendar quarter exceeds 300,000.

All persons treated as a single employer under subsection (a) or (b) of section 52 or subsection (m) or (o) of section 414 shall be treated as one person for purposes of paragraph (1).

The term taxable crude oil includes crude oil, crude oil condensates, and natural gasoline.

The term barrel means 42 United States gallons.

The term United States has the same meaning given such term under section 4612.

The Secretary shall provide such rules as are necessary for the withholding and deposit of the tax imposed under section 5896 on any taxable crude oil.

Each taxpayer liable for tax under section 5896 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) with respect to such oil as the Secretary may by regulations prescribe.

The Secretary shall provide for the filing and the time of such filing of the return of the tax imposed under section 5896.

The Secretary shall prescribe such regulations as may be necessary or appropriate to carry out the purposes of this chapter.

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The table of chapters for subtitle E of the Internal Revenue Code of 1986 is amended by adding at the end the following new item:

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The amendments made by this section shall apply to crude oil removed or entered after December 31, 2024, in calendar quarters ending after such date.

In the case of any calendar quarter ending in calendar year 2025, the tax imposed under section 5896 shall not be due before March 31, 2026.

Subtitle E of the Internal Revenue Code of 1986 is amended by adding at the end the following new chapter:

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.

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.

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.

The tax imposed by this section shall be paid by the producer of the 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.

For purposes of this chapter—

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.

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.

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.

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.

The term property has the meaning given such term by section 614.

The Secretary shall provide for the withholding and deposit of the tax imposed under section 5901 on a quarterly basis.

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.

Except as provided by the Secretary, each calendar year shall constitute a taxable period.

The Secretary shall provide for the filing, and the time for filing, of the return of the tax imposed under section 5901.

For purposes of this chapter—

The term producer means the holder of the economic interest with respect to the crude oil or natural gas.

The term crude oil includes crude oil condensates and natural gasoline.

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.

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.

The Secretary shall prescribe such regulations as may be necessary or appropriate to carry out the purposes of this chapter.

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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.

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The table of chapters for subtitle E is amended by adding at the end the following new item:

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The amendments made by this section shall apply to crude oil or natural gas removed after December 31, 2024.