Energy Conservation and Conversion Act

Energy Conservation and Conversion Act - Title I: Quotas and Tariffs on, and the Allocation and Purchase of, Imported Petroleum and Petroleum Products - Declares it the purpose of this title is to reduce the dependence of the United States on foreign oil by imposing restrictions on the importation of petroleum and petroleum products so as to reduce the imports of petroleum and petroleum products as rapidly as practicable, and, to the maximum extent practicable, without requiring a major rationing program or major price increases.

Directs the President to determine, review quarterly, and impose quantitative restrictions on imported petroleum and petroleum products as may be necessary to achieve the purposes stated above.

Imposes a duty of $1.20 per barrel of imported petroleum and petroleum products. Authorizees the President to impose a lesser duty after notifying the House Ways and Means Committee, and the Senate Finance Committee, of his reasons for so doing.

Directs the President to establish an import licensing system for determing entitlements to petroleum and petroleum products which are imported after December 31, 1975.

Establishes a Standby Petroleum Reserve to insure that the energy requirements of the United States will be met in the event of disruption of foreign supplies or a national economic or military emergency. Requires the Reserve to contain a quantity of petroleum and petroleum products not less than the amount authorized to be imported under the quantitative restrictions imposed pursuant to the Act.

Authorizes the President to implement a system for the Federal Government to purchase or sell imported petroleum and petroleum products whenever he determines that the goals of reducing United States dependency on imports of petroleum and petroleum products and the securing of adequate supplies of such imports at reasonable and stable prices will be promoted.

Establishes within the Federal Energy Administration an office of Petroleum Purchasing and Reserve. Makes it the duty of the Deputy Administrator for Petroleum Purchasing and Reserve to: (1) administer the import licensing system; (2) establish and administer the Standby Petroleum Reserve; and (3) administer the Federal purchase and sale of imported petroleum and petroleum products.

Title II: Gasoline Conservation Program - Imposes a tax on gasoline sold by the producer or importer, beginning January 1, 1976. Specifies the amount of such tax, permitting the President to revise such amount. Allows an individual a credit against such tax.

Imposes a tax in the same amounts as that imposed on gasoline upon special motor fuels, including benzol, benzene, naptha, liquified petroleum gas, and natural gasoline. Imposes an additional tax on noncommercial aviation fuel.

Provides for the repayment of gasoline and special fuels conservation taxes to purchasers of fuel used for farming purposes, common carrier public land transportation passenger service purposes, and commercial aviation purposes.

Title III: Other Energy Conservation Programs - Imposes an escalating automobile fuel mileage tax upon every automobile sold by the manufacturer after August 31, 1976 which exceeds specified fuel mileage rates. Specifies the amount of such tax. Exempts hearses and ambulances from such tax. Requires every manufacturer or importer of an automobile subject to such tax to affix a label to such automobile stating the amount of the tax and the fuel mileage rate on which such tax was based. Provides for a fine of not more than $1,000 for failure to do so.

Imposes a tax on every automobile air conditioner sold separately by the manufacturer. Specifies the rates of such tax,

Repeals the excise tax on radial tires.

Imposes a tax on taxable motors for motorboats, snowmobiles, and general aviation aircraft of 20 percent of the price for which such items are sold by the manufacturer. Exempts from such tax motors used for commercial fishing or shipping, aircraft brought for use in commerical aviation, and defense vehicles.

Allows an individual a tax credit for a specified percentage of the cost of installing insulation or solar energy equipment in his principal residence.

Title IV: Energy Conservation and Conversion Trust Fund - Creates within the Treasury of the United States an Energy Conservation and Converstion Trust Fund.

Authorizes an appropriation to the Trust Fund of amounts equivalent to the amounts received through the automobile fuel mileage tax, the windfall profits tax on domestic crude oil and natural gas, the gasoline and special motor fuels conservation tax, and to the extent provided by law, proceeds to the United States from oil and gas properties in which the United States has an interest. Directs the Secretary of the Treasury to manage the Trust Fund, and to invest such portion as is not required to meet current withdrawals in interest-bearing obligations of the United States, or by the United States.

Provides that amounts in the Trust Fund shall be available for purposes of conserving energy resources and expanding energy supplies through: (1) basic and applied research programs related to new energy technologies; (2) development and demonstration of new energy technologies; (3) programs relating to the development of energy resources from properties in which the United States has an interest; and (4) local and regional transportation projects.

Limits the unobligated amount in the Trust Fund to $10,000,000,000. Requires that any excess be transferred to the general fund of the Treasury. Establishes an Energy Conservation and Converstion Trust Fund Review Board to review and evaluate programs and projects supported from the Trust Fund.

Title V: Deregulation of Oil and Natural Gas; Windfall Profits Tax - Imposes on the windfall profits from taxable crude oil and natural gas an excise tax, to be paid by the person entitled to the oil or natural gas depletion deduction. Defines windfall profits and specifies the amount of such tax. Makes the willful failure to furnish specified information required to be furnished by this Act regarding the windfall profits tax a crime punishable by up to one year in prison, and up to a $10,000 fine.

Title VI: Revision of Capital Incentives for Extractive and Producing Industries - Repeals the percentage depletion allowance for oil and gas, except for small producers. Decreases by specified percentages over a period of five years the amount of such allowance for small producers. Defines small producer. Authorizes a percentage depletion allowance of 22 percent for producers of geothermal energy. Provides that the gain realized from the disposition of oil and gas property over the adjusted basis of such property shall be treated as ordinary income.

Reduces the amount of the tax credit allowable to producers of foreign oil and gas for foreign taxes paid. Specifies the method of calculating such reduction.

Limits the allowance of an investment tax credit for property used in underwater resource exploration and development to property used for such purposes in international waters, or territorial waters within the northern portion of the Western Hemisphere.

Title VII: Encouraging Industrial Conversion for Greater Energy Saving - Imposes a tax on the industrial use of petroleum and petroleum products as fuel. Exempts the fuel used by extractive industries and farms from such tax.

Entitles every person to a deduction with respect to the amortization of the adjusted basis of: (1) coal mining equipment; (2) coal-burning equipment; (3) solid waste burning equipment; (4) electric power generating facilities not fueled by petroleum or petroleum products; (5) railroad equipment; and (6) railroad grading and tunnel bores.

Allows an investment tax credit for the installation of any insulation or solar energy equipment in existing property used in a trade or business, or held for the production of income, installed between March 17, 1975 and January 1, 1977.

Disallows an investment tax credit for electical generating facilities fueled by petroleum or petroleum products placed in service after December 31, 1975.

Allows a recycling tax credit in a specified amount for the amount paid by the taxpayer to purchase postconsumer solid waste materials which were recycled by the taxpayer within one year.

Provides that the distribution of stock by a regulated public utility pursuant to a qualified dividend reinvestment plan will not be treated as gross income. Provides that the disposition of such stock by a taxpayer shall be treated as ordinary income.