Environment

This bill nullifies a specific decision made by the Endangered Species Committee regarding oil and gas operations in the Gulf of America. It immediately cancels any exemptions previously granted to these activities under the Endangered Species Act and bars federal agencies from using funds to enforce the canceled order. For a three-year period starting when the bill is enacted, the committee is prohibited from issuing any new exemptions for Gulf oil and gas projects. Consequently, all standard environmental protections required by the Endangered Species Act will continue to apply fully to these activities.

This bill, titled the "End Polluter Welfare for Enhanced Oil Recovery Act of 2026," eliminates federal tax credits related to enhanced oil recovery (EOR). It directly affects oil and gas companies that utilize or plan to utilize EOR methods. Specifically, the bill strikes Section 43 of the Internal Revenue Code, thereby ending the existing Enhanced Oil Recovery Credit. Furthermore, for new facilities constructed after the bill's enactment, it removes eligibility for the carbon capture tax credit (Section 45Q) when captured carbon oxide is used for enhanced oil recovery. These changes discontinue tax incentives that support specific oil extraction techniques.