H.R. 5983 — National Resilience and Recovery Fund Act

This section establishes the National Resilience and Recovery Fund as a new trust fund in the Treasury of the United States, effective January 1, 2025. The fund receives transfers equivalent to revenues from (1) the excise tax on crude oil and natural gas produced from the outer Continental Shelf in the Gulf of Mexico under IRC §5901(a), (2) the environmental tax on crude oil and petroleum under IRC §4611 to the extent attributable to the fund's financing rate, and (3) the excise tax on crude oil windfall profits under IRC §5896(a); amounts in the fund are available, as provided in appropriation acts, to the FEMA Administrator for the Hazard Mitigation Grant Program (42 U.S.C. 5170c), the Building Resilient Infrastructure and Communities grant program (42 U.S.C. 5133), the Safeguarding Tomorrow Revolving Loan Fund Program (42 U.S.C. 5135), and the Flood Mitigation Assistance program (42 U.S.C. 4104c).

This section revises the definition of "crude oil" for purposes of the excise tax on crude oil and petroleum products received in the United States, which funds the Oil Spill Liability Trust Fund (i.e., imposed at 9 cents per barrel under IRC §4611). Specifically, it (1) expands the definition to explicitly include crude oil condensates, natural gasoline, any bitumen or bituminous mixture, oil derived from tar sands, and oil derived from oil shale; (2) authorizes the Secretary of the Treasury to classify additional fuel feedstocks or finished fuel products customarily transported by pipeline, vessel, railcar, or tanker truck as crude oil or petroleum products subject to tax if consistent with the Oil Pollution Act of 1990 definition of oil and produced in sufficient commercial quantities to pose spill risks; and (3) makes a conforming technical amendment to the definition of "United States." The changes apply to amounts received on or after the date of enactment.

This section establishes a new National Resilience and Recovery Fund financing rate of 10 cents per barrel as an additional component of the excise tax on crude oil received at U.S. refineries and imported petroleum products, effective for taxable years beginning after December 31, 2024. It also modifies the Leaking Underground Storage Tank Trust Fund rate to equal the sum of that rate under current law and the new 10-cent rate. (Thus, the total excise tax rate increases by 10 cents per barrel, with the additional revenue dedicated to the National Resilience and Recovery Fund.)

This section establishes an excise tax on windfall profits from taxable crude oil (i.e., crude oil, crude oil condensates, and natural gasoline) extracted in the United States and removed, or imported for consumption, use, or warehousing, by covered taxpayers (i.e., those averaging more than 300,000 barrels per day of extraction and imports in calendar year 2023 or in the applicable quarter, applying controlled group aggregation rules). The tax rate equals 50% of the excess (if any) of the average quarterly price of Brent crude oil over its average price from January 1, 2015, through December 31, 2019 (inflation-adjusted after 2025 using chained CPI referencing 2024), and applies to oil removed or entered after December 31, 2024, in quarters ending thereafter (with taxes for 2025 quarters not due before March 31, 2026).

This section establishes a new severance tax of 13% on the removal price (generally, the sales price or constructive sales price under IRC §613) of crude oil or natural gas produced from federal leases on the outer Continental Shelf in the Gulf of Mexico, effective for crude oil or natural gas removed after December 31, 2024. The tax, paid by the producer (i.e., holder of the economic interest), allows a credit for federal royalties paid (not to exceed the tax liability) and is deductible under IRC §164(a). The provision specifies administrative requirements (e.g., quarterly deposits, annual taxable periods, records and returns) and authorizes the Secretary of the Treasury to prescribe regulations, including adjustments to removal price to reflect fair market value.