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119-s-5530119th CongressWALLET

Consumer Fuel Costs Relief Act

Sponsored By: Senator Kelly, Mark [D-AZ]

Introduced

Summary

A temporary federal fuel tax holiday that would drop federal excise taxes on motor and aviation fuels to zero for fuel removed, entered, or sold through Sept. 30, 2027. It would also require general fund transfers to replace lost trust fund receipts and force suppliers to pass savings to consumers under penalty.

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  • Households and travelers: Drivers and airline passengers would see lower pump prices and fuel-related costs while the zero rate applies through Sept. 30, 2027.
  • Transportation and cleanup programs: The Airport and Airway Trust Fund, the Highway Trust Fund, and the Leaking Underground Storage Tank Trust Fund would receive transfers from the general fund equal to the reduced tax credits so their program accounting is preserved.
  • Producers, carriers, and dealers: Fuel producers, airlines, and other sellers must immediately lower prices to pass savings to consumers or face monetary penalties at least equal to the unpassed tax reduction, with the Treasury, the Federal Trade Commission, and the Commodity Futures Trading Commission empowered to enforce compliance.

*Would increase federal outlays by requiring general fund transfers equal to the lost fuel tax receipts.*

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Bill Overview

Analyzed Economic Effects

3 provisions identified: 3 benefits, 0 costs, 0 mixed.

Replace lost highway, aviation, and LUST funds

If enacted, the bill would direct the Treasury to transfer money from the general fund to three trust funds to make up for the lost excise receipts while the zero rate is in effect. Transfers would go to the Airport and Airway Trust Fund, the Highway Trust Fund, and the Leaking Underground Storage Tank Trust Fund. Each transfer would equal the reduction in amounts that would have been credited to that trust fund because of the zero rate. The bill would also require that those transferred amounts be treated like fuel tax receipts for certain trust-fund accounting and allocation rules.

Temporary zero federal fuel tax

If enacted, the bill would set the federal excise tax on taxable motor fuels and aviation gasoline to zero for fuel removed, entered, or sold on or after enactment and before October 1, 2027. The bill would also suspend the separate LUST financing rate for those same fuel sales while the zero rate applies. "Taxable fuel" would keep the same definition used in current law. Households that buy gasoline, diesel, or aviation fuel would see the federal tax component removed at the point of sale while the zero rate lasts.

Make fuel tax cut reach consumers

If enacted, the bill would require producers, dealers, and airline service providers to take steps so consumers and passengers immediately get the benefit of the tax reduction. The Secretary of the Treasury would be required to use available authorities to ensure pass-through. The Federal Trade Commission and the Commodity Futures Trading Commission would be asked to monitor oil, diesel, and gasoline markets to deter price gouging and manipulation. Producers, airline service providers, or dealers that fail to reduce prices could face monetary penalties at least equal to the amount of the tax reduction that should have been passed on.

Sponsors & CoSponsors

Sponsor

Kelly, Mark [D-AZ]

AZ • D

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

No roll call votes available for this bill.

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