# Summary of S. 4406: End Polluter Welfare Act of 2024
This bill would systematically eliminate federal subsidies and tax breaks for fossil fuel companies. It affects oil, natural gas, and coal producers and companies that finance or support fossil fuel projects.
The legislation has four main components. First, it eliminates direct government programs supporting fossil fuels, including the Department of Energy's Office of Fossil Energy and Carbon Management, and prohibits federal agencies like the Export-Import Bank and international development institutions from financing fossil fuel projects. Second, it removes numerous tax advantages for fossil fuel companies—including deductions, credits, and special accounting methods—while increasing excise taxes on oil and coal production. Third, it repeals recent fossil fuel-friendly provisions from the Fiscal Responsibility Act and Inflation Reduction Act, including requirements for oil and gas lease sales. Fourth, it requires the Treasury Department to study and report on additional fossil fuel subsidies within one year, with authority to eliminate those subsidies afterward.
Key financial impacts include a new 13 percent severance tax on crude oil and natural gas from federal leases in the Gulf of Mexico, increased royalty rates for coal and onshore oil and gas leases, and higher taxes funding the Black Lung Disability Trust Fund. The bill applies most changes to property and transactions after December 31, 2024, or after the bill's enactment date, depending on the provision. No specific appropriated funding is included since the bill primarily eliminates spending and revenues rather than creating new programs.
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