S4406-118

Introduced

To eliminate certain subsidies for fossil-fuel production.

118th Congress Introduced May 23, 2024

Analysis under review: This bill has generated analysis that may be too generic or incomplete. Clause-level evidence remains available below.

Summary

What This Bill Does

The End Polluter Welfare Act of 2024 systematically eliminates federal tax benefits, subsidies, and financial assistance for fossil fuel industries. It terminates tax credits for enhanced oil recovery, removes percentage depletion allowances for oil, gas, and coal, ends the LIFO accounting method for fossil fuel companies, and imposes new taxes on offshore oil and gas production.

Who Benefits and How

Environmental groups and renewable energy industries benefit as competitors face higher costs. Taxpayers potentially benefit from reduced subsidies and increased government revenue from new taxes on fossil fuel extraction. The Black Lung Disability Trust Fund receives increased funding through higher excise taxes on coal.

Who Bears the Burden and How

Oil and gas companies lose tax credits worth billions annually, including the enhanced oil recovery credit, percentage depletion, and intangible drilling cost deductions. Coal mining companies face higher excise taxes and lose depletion allowances. Fossil fuel companies operating on federal lands face a new 13% extraction tax. Investment companies and financial institutions lose liability protections under CERCLA for fossil fuel-related contamination.

Key Provisions

  • Terminates 15+ fossil fuel tax incentives including enhanced oil recovery credit, percentage depletion, and intangible drilling cost deductions
  • Imposes 13% tax on oil and gas extracted from Gulf of Mexico federal lands
  • Prohibits federal agencies from providing loans, grants, or guarantees for fossil fuel projects
  • Increases Black Lung excise tax from $1.10 to $1.38 per ton (surface) and $0.55 to $0.69 (underground)
  • Terminates carbon capture tax credit (Section 45Q) for fossil fuel applications

Evidence Chain:

This summary is generated from the full bill text using AI analysis. Expand "Detailed Analysis" below for identified beneficiaries/burden bearers.

At a Glance

What This Bill Does

Eliminates tax subsidies, deductions, credits, and federal financial support for fossil fuel production, refining, and transportation to reduce government incentives for oil, gas, and coal industries.

Key Policy Areas

Energy, Taxation, Environment, International Finance, Transportation

Primary Purpose

Eliminates tax subsidies, deductions, credits, and federal financial support for fossil fuel production, refining, and transportation to reduce government incentives for oil, gas, and coal industries.

Policy Domains

Energy Taxation Environment International Finance Transportation

Title I - Federal Spending Restrictions

Identified Gains
Contextual inference, no direct clause citation
  • Renewable energy industries
  • Environmental advocacy groups
  • Clean energy investors
Model: N/A | Version: bill_summary_v2 | Source: is

Contextual inference, no direct clause citation

Identified Costs
Contextual inference, no direct clause citation
  • Oil and gas companies
  • Coal mining companies
  • Fossil fuel transportation companies
  • Investment companies with fossil fuel exposure
Model: N/A | Version: bill_summary_v2 | Source: is

Contextual inference, no direct clause citation

Title II - Tax Code Amendments

Identified Gains
Contextual inference, no direct clause citation
  • Federal government (increased revenue)
  • Renewable energy industries
  • Black Lung Disability Trust Fund
  • Oil Spill Liability Trust Fund
Model: N/A | Version: bill_summary_v2 | Source: is

Contextual inference, no direct clause citation

Identified Costs
Contextual inference, no direct clause citation
  • Oil and gas exploration companies
  • Oil refineries
  • Coal mining companies
  • Natural gas distribution companies
  • Offshore drilling operators
  • Multinational oil companies
Model: N/A | Version: bill_summary_v2 | Source: is

Contextual inference, no direct clause citation

Title IV - Study and Future Subsidies

Identified Gains
Contextual inference, no direct clause citation
  • Taxpayers
  • Renewable energy industries
Model: N/A | Version: bill_summary_v2 | Source: is

Contextual inference, no direct clause citation

Identified Costs
Contextual inference, no direct clause citation
  • Fossil fuel companies
Model: N/A | Version: bill_summary_v2 | Source: is

Contextual inference, no direct clause citation

Title III - NEPA Amendments

Identified Gains
Contextual inference, no direct clause citation
  • Environmental groups
  • Federal regulatory agencies
Model: N/A | Version: bill_summary_v2 | Source: is

Contextual inference, no direct clause citation

Identified Costs
Contextual inference, no direct clause citation
  • Project developers
  • Energy infrastructure companies
Model: N/A | Version: bill_summary_v2 | Source: is

Contextual inference, no direct clause citation

Legislative Progress

Introduced
Introduced Committee Passed
May 23, 2024

Mr. Sanders (for himself, Mr. Merkley, Mr. Booker, Mr. Van …

Stakeholder Effects

cui bono?

How this legislation distributes effects. Mention counts reflect frequency, not effect magnitude.

Oil & Gas
57 mentions across 34 clauses
-57 negative

Coal-fired power plants using refined coal, Coal-fired power plants with carbon capture, Coal-to-liquids producers

Mining
16 mentions across 11 clauses
+1 positive -15 negative

Coal MLPs, Coal exploration companies, Coal mine developers

Positive-direction: Coal miners with black lung disease

Negative-direction: Coal MLPs, Coal exploration companies, Coal mine developers, Coal mining companies, Coal mining companies in Powder River Basin, Lignite mining operations, Metal ore mining companies, Mineral exploration companies, Nonmetallic mineral mining, Refined coal production facilities, Surface coal mining companies, Underground coal mining companies

Government
6 mentions across 6 clauses
+3 positive -3 negative

Bureau of Land Management, Department of Energy employees in FECM, Department of Treasury

Positive-direction: Federal government, Federal government (royalty revenue), Oil Spill Liability Trust Fund

Negative-direction: Bureau of Land Management, Department of Energy employees in FECM, Department of Treasury

Utilities
5 mentions across 5 clauses
+4 positive -1 negative

Geothermal energy producers, Green hydrogen project developers, Renewable energy exporters

Positive-direction: Geothermal energy producers, Renewable energy exporters, Renewable energy technology developers, Rural renewable energy developers

Negative-direction: Green hydrogen project developers

Transportation
3 mentions across 2 clauses
-3 negative

Coal transportation railroads, Oil tanker and shipping companies, Petroleum and coal port facilities

Waste Treatment And Disposal
2 mentions across 2 clauses
-2 negative

Carbon capture and sequestration project developers, Carbon capture project developers

International Affairs
2 mentions across 1 clause
-2 negative

Developing countries seeking fossil fuel infrastructure, World Bank and regional development banks

Research & Science
2 mentions across 1 clause
-2 negative

Carbon capture technology developers, Fossil fuel research and development contractors

40/52
sections analyzed
Full impact breakdown

Bill Structure & Actor Mappings

Who is "The Secretary" in each section?

Domains
Energy Environment International Finance Transportation
Actor Mappings
"the_director"
→ Director of the Bureau of Land Management
"the_secretary"
→ Secretary of Energy (for DOE provisions), Secretary of Agriculture (for RUS loans)
Domains
Taxation Energy
Actor Mappings
"the_secretary"
→ Secretary of the Treasury
Domains
Environment
Domains
Energy Taxation
Actor Mappings
"the_secretary"
→ Secretary of the Treasury

Note: The Secretary refers to different cabinet officials depending on context: Secretary of Energy for DOE provisions, Secretary of Agriculture for rural utility loans, Secretary of the Treasury for tax provisions, and Secretary of Interior (via BLM Director) for land management

Key Definitions

Terms defined in this bill

4 terms
"fossil fuel activities" §202

The exploration, development, mining or production, processing, refining, transportation (including pipelines), or distribution of oil, natural gas, or coal

"synthetic crude oil" §210

Any bitumen and bituminous mixtures, any oil derived from bitumen and bituminous mixtures (including oil derived from tar sands), any liquid fuel derived from coal, and any oil derived from kerogen-bearing sources (including oil derived from oil shale)

"subsidy for fossil-fuel production" §401

Any direct funding, tax treatment or incentive, risk-reduction benefit, financing assistance or guarantee, royalty relief, or other provision that provides a financial benefit to a fossil-fuel company for the production of fossil fuels

"taxable crude oil or natural gas" §5902

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

We use a combination of our own taxonomy and classification in addition to large language models to assess meaning and potential beneficiaries. High confidence means strong textual evidence. Always verify with the original bill text.

Learn more about our methodology