This bill modifies tax code provisions to benefit energy producers. It allows oil and gas companies to deduct intangible drilling and development costs more favorably when calculating taxable income, by disregarding depreciation and depletion expenses already reflected on their financial statements. The change applies to taxable years beginning after December 31, 2025. This directly affects domestic energy producers who incur these specific drilling costs.
This bill amends the tax code to close a loophole that previously allowed certain tar sands oil to be taxed differently than conventional crude oil. It expands the definition of "crude oil" under federal excise tax rules to explicitly include oil derived from tar sands, bitumen, and oil shale. This change directly affects oil producers and refiners handling these specific unconventional oil sources, requiring them to pay the standard crude oil excise tax. The key mechanism is the updated tax code definition, which also grants the Secretary regulatory authority to include other pipeline-transported petroleum products meeting specific environmental risk criteria.
HR 2861, the Chaco Cultural Heritage Area Protection Act of 2025, blocks oil and gas development on federal lands surrounding Chaco Culture National Historical Park in New Mexico. The bill terminates non-producing oil and gas leases on these lands and withdraws them from future mineral leasing, protecting the area’s cultural resources and dark skies. It directly affects oil and gas companies holding leases in the designated area and aims to safeguard sacred sites, prehistoric roads, and the park’s status as an International Dark Sky Park. The law preserves the cultural landscape for Pueblo Tribes, Navajo Nation, and Hopi Tribe, who have ongoing ceremonial ties to the region.
HR 526, the Declaration of Energy Independence Act, reduces costs for oil and gas leaseholders on federal lands. It lowers royalty rates from 16.67% to 12.5%, cuts minimum bids from $10 to $2 per acre, and adjusts annual rental rates (from $3-$15 to $1.50-$2 per acre). The bill also creates new noncompetitive leasing options for existing leases meeting production thresholds (e.g., 15 barrels/day oil or 60,000 ft³/day gas), allowing continued operation without bidding. These changes directly affect companies holding federal oil/gas leases, particularly those with older leases or low-production sites.
This bill withdraws federal lands surrounding Chaco Culture National Historical Park (a UNESCO World Heritage Site) from oil and gas leasing and development. It automatically terminates non-producing oil and gas leases on these lands and prevents new mineral leasing within the designated area, protecting cultural resources and the park’s visitor experience. The withdrawal specifically applies to federal land within the mapped "Chaco Cultural Heritage Withdrawal Area" but does not affect tribal mineral rights on trust land. It aims to safeguard sacred sites, prehistoric roads, and the park’s dark sky status from potential impacts of energy development.
Federal Lands and Waters Leasing Transparency Act This bill directs the Department of the Interior to provide explanations to the highest bidders when it rejects their bids for certain offshore oil and gas leases. The bill also prohibits courts from invalidating or delaying certain onshore and offshore oil and gas leases. When Interior determines that the federal government will not receive the fair market value for offshore lease tracts on submerged lands of the Outer Continental Shelf from the highest bidder, then Interior must provide a report to the bidder that explains the basis for the determination. If the bid was subject to a resource and economic evaluation, the report must include information on how the bid compares to specified valuation metrics. These requirements apply to lease sales in which Interior received at least one bid and did not issue a lease to the highest bidder. Additionally, courts may not prevent Interior from issuing certain onshore oil and gas leases by a 60-day statutory deadline unless the lease would violate federal law. Further, the bill prohibits civil actions that challenge certain offshore oil and gas lease sales from (1) invalidating leases issued under such sales; and (2) delaying the consideration of plans, documents, or applications for a federal authorization or approval of activities for a lease. If a court finds that the sale was not carried out in compliance with federal law, the court must (1) remand the matter to Interior, and (2) direct Interior to correct the noncompliance.
This bill changes federal permitting rules for oil and gas drilling on land where the federal government owns less than half the mineral rights beneath non-federal surface land. It requires operators to use a state permit instead of a federal drilling permit, removes federal environmental review requirements under NEPA and the Endangered Species Act, and allows operations to start 30 days after submitting the state permit. It does not affect royalty payments to the federal government or apply to Indian lands. The policy directly affects oil and gas operators working on non-federal surface estates with partial federal mineral ownership.
HR 1341, the DRILL Now Act, prevents three regional river basin commissions (Susquehanna, Delaware, and Potomac) from creating or enforcing their own regulations on hydraulic fracturing. The bill amends existing law to require these commissions to rely solely on state-level regulations for fracking, overriding their previous authority under basin compacts. This directly affects the commissions and states within the Susquehanna, Delaware, and Potomac River basins by shifting regulatory control from regional bodies to individual states. The key provision prohibits the commissions from finalizing, implementing, or enforcing any fracking-related rules issued under their own authority.
HR 313, the Natural Gas Tax Repeal Act, repeals Section 136 of the Clean Air Act, which established a methane emissions reduction program for natural gas systems. The bill also rescinds unobligated funds previously allocated for this program. This directly affects the natural gas industry by removing a requirement to reduce methane emissions from their operations. The legislation makes no new policy changes but eliminates an existing regulatory program and its associated funding.
The Cutting LNG Bunkering Red Tape Act clarifies that refueling vessels with LNG as marine fuel in U.S. waters does not count as an export under the Natural Gas Act. This means LNG fuel suppliers and shipping companies operating in U.S. territorial seas or inland waters no longer need an export license for these transactions. The bill specifically states that such refueling is not an export unless the transfer occurs in foreign territorial waters, regardless of vessel flags or registry. This change directly reduces regulatory barriers for domestic LNG bunkering operations.
