Rep. Steube Introduces Legislation to Lower Diesel Prices and Boost American Refining Capacity
WASHINGTON—U.S. Representative Greg Steube (R-Fla.) introduced the American Fuel Affordability Act, legislation to lower diesel prices immediately and expand American refining capacity to bring down fuel costs for the long term.
“Americans are paying far too much for diesel, and that cost gets passed down to families on just about everything they buy,” said Rep. Steube. “My bill gets rid of the federal diesel tax to bring prices down now and makes it easier to build new refineries here at home. We have the energy and the resources, and we should be producing and refining more of it.”
The American Fuel Affordability Act repeals the federal excise tax on diesel fuel that is currently 24.3 cents per gallon. This legislation keeps the Highway Trust Fund and Leaking Underground Storage Tank Trust Fund whole through general fund transfers.
To expand American refining capacity, the bill creates a 35 percent tax credit for investment in the construction of new U.S. refineries and a 5-cent-per-gallon production credit for gasoline and diesel produced at qualifying new facilities during their first 10 years of operation. Property used in qualifying new refinery construction would be 100 percent expensable under the American Fuel Affordability Act.
The American Fuel Affordability Act takes a supply-side approach to fuel affordability by incentivizing additional domestic refining capacity without imposing export restrictions that could discourage refinery utilization and production.
The full text of the American Fuel Affordability Act is available here.
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