text: SECTION 1. SHORT TITLE.
  
      This Act may be cited as the ``Summer Relief for Motorists Act of 
  2006''.
  
  SEC. 2. SENSE OF CONGRESS.
  
      It is the sense of Congress that the States, with an average gas 
  tax of 20.8 cents per gallon, also possess the ability to provide 
  significant immediate relief to motorists by temporarily suspending 
  their own motor fuel excise taxes. While Congress believes such action 
  is appropriate, Congress also believes that the States should find 
  offsets for such temporary motor fuel excise tax suspensions in order 
  to maintain their commitment to transportation infrastructure 
  investment.
  
  SEC. 3. SUSPENSION OF HIGHWAY FUEL TAXES.
  
      (a) Suspension of Highway Fuel Taxes on Gasoline, Diesel Fuel, and 
  Kerosene.--
              (1) In general.--Section 4081 of the Internal Revenue Code 
          of 1986 (relating to imposition of tax on gasoline, diesel 
          fuel, and kerosene) is amended by adding at the end the 
          following new subsection:
      ``(f) Suspension of Taxes on Gasoline, Diesel Fuel, and Kerosene.--
              ``(1) In general.--During the suspension period, each rate 
          of tax referred to in paragraph (2) shall be reduced to zero 
          cents per gallon.
              ``(2) Rates of tax.--The rates of tax referred to in this 
          paragraph are the rates of tax otherwise applicable under--
                      ``(A) clauses (i) and (iii) of subsection (a)(2)(A) 
                  (relating to gasoline, diesel fuel, and kerosene), 
                  determined after application of subsection (a)(2)(B) 
                  and without regard to subsection (a)(2)(C), and
                      ``(B) paragraph (1) of section 4041(a) (relating to 
                  diesel fuel and kerosene) with respect to fuel sold for 
                  use or used in a diesel-powered highway vehicle.
              ``(3) Suspension period.--For purposes of this subsection, 
          the term `suspension period' means the period beginning on May 
          29, 2006 (or, if later, the date of the enactment of this 
          subsection) and ending on September 4, 2006.
              ``(4) Maintenance of trust fund deposits.--In determining 
          the amounts to be appropriated to the Highway Trust Fund under 
          section 9503 and to the Leaking Underground Storage Tank Trust 
          Fund under section 9508, an amount equal to the reduction in 
          revenues to the Treasury by reason of this subsection shall be 
          treated as taxes received in the Treasury under this section or 
          section 4041.''.
              (2) Effective date.--The amendment made by this subsection 
          shall take effect on the date of the enactment of this Act.
      (b) Floor Stock Refunds.--
              (1) In general.--If--
                      (A) before the tax suspension date, tax has been 
                  imposed under section 4081 of the Internal Revenue Code 
                  of 1986 on any highway motor fuel, and
                      (B) on such date such fuel is held by a dealer and 
                  has not been used and is intended for sale,
          there shall be credited or refunded (without interest) to the 
          person who paid such tax (hereafter in this subsection referred 
          to as the ``taxpayer'') an amount equal to the excess of the 
          tax paid by the taxpayer over the tax which would be imposed on 
          such fuel had the taxable event occurred on such date.
              (2) Time for filing claims.--No credit or refund shall be 
          allowed or made under this subsection unless--
                      (A) claim therefor is filed with the Secretary of 
                  the Treasury before the date which is 6 months after 
                  the tax suspension date based on a request submitted to 
                  the taxpayer before the date which is 3 months after 
                  the tax suspension date by the dealer who held the 
                  highway motor fuel on such date, and
                      (B) the taxpayer has repaid or agreed to repay the 
                  amount so claimed to such dealer or has obtained the 
                  written consent of such dealer to the allowance of the 
                  credit or the making of the refund.
              (3) Exception for fuel held in retail stocks.--No credit or 
          refund shall be allowed under this subsection with respect to 
          any highway motor fuel in retail stocks held at the place where 
          intended to be sold at retail.
              (4) Definitions.--For purposes of this subsection--
                      (A) Tax suspension date.--The term ``tax suspension 
                  date'' means the first day of the suspension period in 
                  effect under section 4081(f) of the Internal Revenue 
                  Code of 1986 (as added by subsection (a) of this 
                  section).
                      (B) Highway motor fuel.--The term ``highway motor 
                  fuel'' has the meaning given such term for purposes of 
                  subsection (c).
                      (C) Other terms.--The terms ``dealer'' and ``held 
                  by a dealer'' have the respective meanings given to 
                  such terms by section 6412 of such Code.
              (5) Certain rules to apply.--Rules similar to the rules of 
          subsections (b) and (c) of section 6412 of such Code shall 
          apply for purposes of this subsection.
      (c) Floor Stocks Tax.--
              (1) Imposition of tax.--In the case of any highway motor 
          fuel which is held on the tax restoration date by any person, 
          there is hereby imposed a floor stocks tax equal to the excess 
          of the tax which would be imposed on such fuel had the taxable 
          event occurred on such date over the tax (if any) previously 
          paid (and not credited or refunded) on such fuel.
              (2) Liability for tax and method of payment.--
                      (A) Liability for tax.--The person holding highway 
                  motor fuel on the tax restoration date to which the tax 
                  imposed by paragraph (1) applies shall be liable for 
                  such tax.
                      (B) Method of payment.--The tax imposed by 
                  paragraph (1) shall be paid in such manner as the 
                  Secretary shall prescribe.
                      (C) Time for payment.--The tax imposed by paragraph 
                  (1) shall be paid on or before the 45th day after the 
                  tax restoration date.
              (3) Definitions.--For purposes of this subsection--
                      (A) Tax restoration date.--The term ``tax 
                  restoration date'' means the first day after the 
                  suspension period (as defined in section 4081(f) of the 
                  Internal Revenue Code of 1986).
                      (B) Highway motor fuel.--The term ``highway motor 
                  fuel'' means any liquid on which tax would have been 
                  imposed under section 4081 of the Internal Revenue Code 
                  of 1986 during the suspension period in effect under 
                  section 4081(f) of such Code but for the amendments 
                  made by subsection (a).
                      (C) Held by a person.--A highway motor fuel shall 
                  be considered as held by a person if title thereto has 
                  passed to such person (whether or not delivery to the 
                  person has been made).
                      (D) Secretary.--The term ``Secretary'' means the 
                  Secretary of the Treasury or the Secretary's delegate.
              (4) Exception for exempt uses.--The tax imposed by 
          paragraph (1) shall not apply to any highway motor fuel held by 
          any person exclusively for any use to the extent a credit or 
          refund of the tax is allowable for such use.
              (5) Exception for certain amounts of fuel.--
                      (A) In general.--No tax shall be imposed by 
                  paragraph (1) on any highway motor fuel held on the tax 
                  restoration date by any person if the aggregate amount 
                  of such highway motor fuel held by such person on such 
                  date does not exceed 2,000 gallons. The preceding 
                  sentence shall apply only if such person submits to the 
                  Secretary (at the time and in the manner required by 
                  the Secretary) such information as the Secretary shall 
                  require for purposes of this subparagraph.
                      (B) Exempt fuel.--For purposes of subparagraph (A), 
                  there shall not be taken into account any highway motor 
                  fuel held by any person which is exempt from the tax 
                  imposed by paragraph (1) by reason of paragraph (4).
                      (C) Controlled groups.--For purposes of this 
                  subsection--
                              (i) Corporations.--
                                      (I) In general.--All persons 
                                  treated as a controlled group shall be 
                                  treated as 1 person.
                                      (II) Controlled group.--The term 
                                  ``controlled group'' has the meaning 
                                  given to such term by subsection (a) of 
                                  section 1563 of such Code; except that 
                                  for such purposes the phrase ``more 
                                  than 50 percent'' shall be substituted 
                                  for the phrase ``at least 80 percent'' 
                                  each place it appears in such 
                                  subsection.
                              (ii) Nonincorporated persons under common 
                          control.--Under regulations prescribed by the 
                          Secretary, principles similar to the principles 
                          of subparagraph (A) shall apply to a group of 
                          persons under common control if 1 or more of 
                          such persons is not a corporation.
              (6) Other laws applicable.--All provisions of law, 
          including penalties, applicable with respect to the taxes 
          imposed by section 4081 of such Code shall, insofar as 
          applicable and not inconsistent with the provisions of this 
          subsection, apply with respect to the floor stock taxes imposed 
          by paragraph (1) to the same extent as if such taxes were 
          imposed by such section.
  
  SEC. 4. SUSPENSION OF ROYALTY RELIEF.
  
      (a) New Leases.--
              (1) Requirement.--The Secretary of the Interior (referred 
          to in this title as the ``Secretary'') shall suspend the 
          application of any provision of Federal law under which a 
          person would otherwise be provided relief from a requirement to 
          pay a royalty for the production of oil or natural gas from 
          Federal land (including submerged land) occurring on or after 
          the date of enactment of this Act during a period in which--
                      (A) for the production of oil, the average price of 
                  crude oil in the United States during the 4-week period 
                  immediately preceding the suspension is greater than 
                  $35.86 per barrel; and
                      (B) for the production of natural gas, the average 
                  wellhead price of natural gas in the United States 
                  during the 4-week period immediately preceding the 
                  suspension is greater than $4.48 per 1,000 cubic feet.
              (2) Determination of average prices.--For purposes of 
          paragraph (1), the Secretary shall determine average prices, 
          taking into consideration the most recent data reported by the 
          Energy Information Administration.
      (b) Renegotiation of Existing Leases.--
              (1) Requirement.--The Secretary shall, to the maximum 
          extent practicable, renegotiate each lease authorizing 
          production of oil or natural gas on Federal land (including 
          submerged land) issued by the Secretary before the date of the 
          enactment of this Act as the Secretary determines to be 
          necessary to modify the terms of the lease to ensure that a 
          suspension of a requirement to pay royalties under the lease 
          does not apply to production described in subsection (a)(1).
              (2) Failure to renegotiate and modify.--
                      (A) In general.--Beginning on the date that is 1 
                  year after the date of enactment of this Act, a lessee 
                  that does not renegotiate a lease described in 
                  paragraph (1) in accordance with that paragraph shall 
                  not be eligible to enter into a new lease authorizing 
                  production of oil or natural gas on Federal land 
                  (including submerged land).
                      (B) Transfers.--A lessee shall not be eligible to 
                  obtain by sale or other transfer any lease described in 
                  paragraph (1) issued before the date of enactment of 
                  this Act, unless the lessee--
                              (i) renegotiates the lease; and
                              (ii) enters into an agreement with the 
                          Secretary to modify the terms of the lease in 
                          accordance with paragraph (1).
target: Summer Relief for Motorists Act of 2006 - Expresses the sense of Congress that states can assist motorists by temporarily suspending state gasoline taxes without jeopardizing their commitment to transportation infrastructure investment.
  
  Amends the Internal Revenue Code to suspend excise taxes on gasoline, diesel fuel, and kerosene from the enactment of this Act until September 4, 2006 (suspension period). Provides for reimbursement to the Highway Trust Fund and the Leaking Underground Storage Tank Trust Fund for tax revenues lost during the suspension period.
  
  Requires the Secretary of the Interior to suspend the application of any federal law exempting crude oil and natural gas producers from the payment of royalties for production activities on federal lands during periods when the average price of crude oil exceeds $35.86 per barrel and the average wellhead price of natural gas exceeds $4.48 per 1,000 cubic feet.
feat_title: To amend the Internal Revenue Code of 1986 to suspend the highway fuels taxes, to provide for suspension of royalty relief, and for other purposes.