Empower Energy Exporting Communities Act
- Sponsor
- Rep. Gonzalez, Vicente [D-TX-34]
- Committees
- Oversight and Government Reform Committee (primary)
- Last action
- Sep 16, 2026
Bottom line
This bill creates a new dedicated trust fund, financed by a portion of corporate income taxes from oil and gas companies, to support infrastructure and public services in communities near major oil and gas export ports.
What it actually does
This bill establishes the Oil and Gas Community Trust Fund in the U.S. Treasury, funded by 3% of net corporate income tax revenues from companies significantly involved in oil and gas. These funds are then made available to the Secretary of the Treasury to make payments to eligible oil and gas communities for infrastructure and public service investments, with distribution limited by each region's share of national oil and gas exports.
Proponents argue
Supporters would argue this bill provides a necessary and dedicated funding stream to communities that bear the brunt of oil and gas export infrastructure, such as increased traffic, environmental impacts, and strain on public services. It ensures these communities benefit directly from the economic activity they facilitate, enabling them to invest in vital infrastructure and public services, fostering economic resilience and improving quality of life.
Opponents contend
Opponents might argue that dedicating a portion of general corporate tax revenue to a specific industry's communities creates an unfair precedent, potentially diverting funds from other national priorities or communities in need. They might also question the definitions of 'specified oil or gas company' and 'eligible oil and gas community,' suggesting it could lead to an overly narrow or broad application of funds.
The bill is very short and straightforward, allowing for a quick and comprehensive understanding of its provisions.
Section 2(a), adding new section 9512(a) to the Internal Revenue Code of 1986.
Creation of the Oil and Gas Community Trust Fund
This provision formally establishes a new trust fund within the U.S. Treasury called the 'Oil and Gas Community Trust Fund.' This fund is designed to receive specific appropriations and will be used for investments in oil and gas communities, segregating certain revenues for this specific purpose.
Supporters argue
Supporters argue that a dedicated trust fund ensures a stable and predictable source of funding for communities impacted by energy exports, preventing these funds from being diverted to other federal priorities and providing long-term investment certainty.
Critics contend
Critics might contend that creating new, narrowly focused trust funds can complicate federal budgeting and reduce flexibility in responding to broader national needs, potentially leading to inefficient allocation of resources compared to general fund appropriations.
Tradeoffs
The tension lies between creating dedicated funding streams for specific purposes (ensuring consistent support for a particular sector) versus maintaining flexibility in general fund appropriations to address evolving national priorities.
Section 2(b), adding new section 9512(b) to the Internal Revenue Code of 1986.
Funding Mechanism for the Trust Fund
This section mandates that an amount equivalent to 3% of the net corporate income tax revenues (under section 11 of the IRC) collected from 'specified oil or gas companies' be appropriated to the Trust Fund. This funding mechanism applies to taxable years beginning after the bill's enactment. A 'specified oil or gas company' is defined as any corporation where a significant portion of its gross receipts comes from the production, refining, processing, transportation, or distribution of oil, gas, or their primary products.
Section 2(c), adding new section 9512(c) to the Internal Revenue Code of 1986.
Expenditures from the Trust Fund and Eligibility Criteria
This section specifies that funds from the Trust Fund will be available to the Secretary of the Treasury, without further appropriation or fiscal year limitation, for payments to 'eligible oil and gas communities' for infrastructure and public service investments. An 'eligible oil and gas community' is defined as any county, parish, municipality, or Tribal community located within 50 miles of a major port for oil, gas, or primary product export. Payments to communities within a 'port region' are limited to that region's share of total national oil and gas exports.
Defines 'specified oil or gas company' as any corporation if a 'significant portion' of its gross receipts are attributable to oil/gas production, refining, processing, transportation, or distribution.
Section 2(b)(2)
Why it matters:This ambiguity might be a standard legislative practice to allow for administrative flexibility in applying the law to a dynamic industry, or it could be a deliberate choice to avoid contentious debates over specific thresholds during the bill's drafting process.
Case for: Supporters would argue that leaving 'significant portion' flexible allows the Treasury to adapt to changing industry structures and economic conditions, ensuring the fund captures appropriate companies without being overly rigid or quickly outdated by market shifts.
Case against: Critics would contend that the lack of a clear definition creates uncertainty for businesses and could lead to inconsistent application or political influence in determining which companies qualify, potentially undermining the fund's intended revenue base and fairness.
Estimated impact: The scope of companies contributing to the fund, and thus the total revenue generated, will depend significantly on how 'significant portion' is ultimately defined and enforced by the Treasury Department.