The bill amends the Internal Revenue Code to stop applying the Hazardous Substance Superfund financing rate after December 31, 2025. It also revises the statutory authority governing advances to the Superfund by removing a fixed termination date and directing quarterly repayments from unobligated Fund amounts until advances are repaid.
This matters because it eliminates a statutory fee mechanism that currently generates receipts for hazardous substance cleanup financing and replaces a time‑limited advance authority with a repayment instruction. The change reduces a dedicated revenue stream for cleanup activities and shifts repayment mechanics and timing — with potential consequences for the EPA’s Superfund program funding and federal budget offsets.
At a Glance
What It Does
The bill inserts a new subsection into IRC section 4611 to make the Hazardous Substance Superfund financing rate inapplicable after December 31, 2025. It also amends section 9507(d)(3)(B) to remove the prior end date for advance authority and require quarterly repayments from unobligated Fund balances until repaid in full.
Who It Affects
Entities that pay or collect the section 4611 financing rate (entities currently subject to that IRC provision), the Environmental Protection Agency’s Superfund program, and federal budget and appropriation officials managing unobligated Fund balances and cash-flow for cleanup projects.
Why It Matters
Ending the statutory financing rate eliminates a predictable, dedicated revenue source for hazardous substance remediation and replaces a fixed statutory timeline for advances with an open-ended repayment mandate — shifting budgetary risk to the Fund’s unobligated balances and potentially to the general appropriations process.
More articles like this one.
A weekly email with all the latest developments on this topic.
What This Bill Actually Does
The core move in this bill is straightforward: stop charging the Hazardous Substance Superfund financing rate after December 31, 2025. That rate is a statutory mechanism in the Internal Revenue Code used to generate revenue tied to hazardous substance cleanup financing; the bill makes that rate inapplicable as of the start of 2026.
Practically, taxpayers and collectors who have been subject to that rate would no longer calculate or remit it after that date.
The bill also alters the statutory rules about advances to the Superfund. Current statutory language included a calendar cutoff for advance authority; the bill strikes that calendar cutoff and replaces the prior “on or before” repayment language with an instruction that repayments occur quarterly from unobligated amounts in the Fund until any advances are repaid in full.
In short, the authority to advance funds is narrowed in timing-language and repayment is tied explicitly to unobligated balances rather than to a single statutory deadline.Finally, the measure sets two effective dates: the suspension of the financing rate takes effect January 1, 2026, while the amendments about advances and repayment take effect on enactment. The bill does not include new appropriations or alternative revenue sources for the Superfund; it changes only the tax-fee applicability and the statutory repayment mechanics.
The Five Things You Need to Know
The bill inserts new subsection (e) into IRC section 4611 to provide that the Hazardous Substance Superfund financing rate "shall not apply after December 31, 2025.", It amends IRC section 9507(d)(3)(B) by replacing the statutory termination date "December 31, 2032" with "the date of the enactment of the Pay Less at the Pump Act of 2026.", The bill replaces the phrase "on or before such date" with a directive to repay advances "on a quarterly basis from unobligated amounts available in such Fund until repaid in full.", The suspension of the financing rate takes effect January 1, 2026; the changes to the authority for advances and repayment mechanics take effect on the date of enactment.
The bill does not include an explicit repeal or forgiveness of existing obligations; it changes the timing and source for repayments but leaves outstanding advance balances subject to repayment from unobligated Fund amounts under the new quarterly rule.
Section-by-Section Breakdown
Every bill we cover gets an analysis of its key sections.
Short title
Provides the Act’s short name: the "Pay Less at the Pump Act of 2026." This is purely caption language but signals the bill's policy framing and legislative intent to emphasize lower pump prices as the public rationale.
Terminate application of Superfund financing rate after 2025
Adds a new subsection (e) to IRC section 4611 specifying that the Hazardous Substance Superfund financing rate "shall not apply after December 31, 2025." Mechanically, the change removes the statutory basis for imposing the financing rate after that date; tax administrators and affected taxpayers will need IRS guidance and potentially regulatory updates to stop collection, reporting, and remittance tied to section 4611 for periods beginning January 1, 2026.
Alter termination and repayment language for advances to the Fund
Strikes the fixed statutory date (previously December 31, 2032) from section 9507(d)(3)(B) and replaces it with the bill’s enactment date, accelerating the statutory cut-off. It also replaces repayment timing language so that repayments occur "on a quarterly basis from unobligated amounts available in such Fund until repaid in full." Practically, this removes a single statutory deadline in favor of a rolling repayment requirement tied to unobligated Fund balances, which changes how EPA and Treasury will plan cash-flow and may require internal procedures to identify and certify unobligated amounts quarterly.
When each amendment takes effect
Specifies that the IRC section 4611 amendment is effective January 1, 2026, while the amendments to section 9507(d)(3)(B) are effective on the date of enactment. The split effective dates mean the financing rate stops at the start of the calendar year following enactment, but the repayment mechanics and authority language change immediately upon enactment, producing an immediate change in statutory repayment authority and timing.
This bill is one of many.
Codify tracks hundreds of bills on Finance across all five countries.
Explore Finance in Codify Search →Who Benefits and Who Bears the Cost
Every bill creates winners and losers. Here's who stands to gain and who bears the cost.
Who Benefits
- Fuel purchasers and motorists — they are the ultimate intended beneficiaries because the financing rate applies to petroleum-related transactions; eliminating it can lower per-unit price components that are passed through to consumers.
- Refiners, importers, and fuel distributors — these entities face reduced compliance and collection obligations tied to section 4611 and potentially lower per-unit cost burdens that affect margins and pricing decisions.
- Businesses that purchase large volumes of taxable petroleum products (transport, agriculture, manufacturers) — they will no longer incur the section 4611 charge after the effective date, improving short-term operating cash flow.
Who Bears the Cost
- EPA’s Superfund program and contaminated-site stakeholders — removing the financing rate reduces a dedicated revenue stream that supports assessment and remediation, creating funding pressure on ongoing and planned cleanup projects.
- Federal budget and taxpayers — absent a replacement revenue source, the shortfall could shift costs into the general appropriations process or require re-prioritization of EPA spending; taxpayers may ultimately absorb costs through appropriations rather than through a targeted fee.
- Cleanup contractors and local communities — reduced or delayed Superfund receipts can slow contract awards and project timelines, creating economic and environmental consequences for contractors and communities relying on timely remediation.
Key Issues
The Core Tension
The central tension is between reducing per-unit costs at the pump by eliminating a targeted financing rate and maintaining stable, dedicated funding for hazardous substance cleanup. Lowering consumer costs addresses short-term economic pressure, but doing so removes a predictable revenue stream for environmental remediation — forcing a choice between protecting cleanup funding or subsidizing lower fuel prices unless policymakers identify alternative funding.
The bill creates a clear trade: it eliminates a statutory fee revenue source while imposing a statutory repayment method that relies on unobligated Fund balances. That repayment rule does not create a new dedicated inflow to the Fund; it simply prescribes how existing unobligated balances should be used to retire advances.
If unobligated balances are insufficient, the statutory language does not supply an alternative revenue stream or guarantee timely repayment beyond the quarterly instruction, leaving operational questions about cash shortfalls and prioritization.
Implementation will require coordination among Treasury, EPA, and the IRS. The IRS must update collection and reporting rules for section 4611 and provide transition guidance for filings straddling the effective date.
EPA and Treasury will need procedures to identify "unobligated amounts" each quarter and determine repayment timing, potentially creating disputes about what funds qualify as unobligated. The bill also does not address whether previously collected receipts may be reallocated, whether existing liabilities tied to the financing rate survive, or how outstanding contractual obligations funded by that revenue are prioritized.
Try it yourself.
Ask a question in plain English, or pick a topic below. Results in seconds.