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Monday, May 21, 2012

End oil & gas subsidies

Bill to End Fossil Fuel Subsidies Introduced In Congress
From: Gina-Marie Cheeseman, Triple Pundit, More from this Affiliate 

The End Polluter Welfare Act would end fossil fuel subsidies, and save over $10 billion a year and more than $110 billion over 10 years.

Senator Bernie Sanders (I-VT) and Rep. Keith Ellison announced they would introduce the bill to Congress during a press conference with The bill would specifically end tax breaks for fossil fuel companies, plus eliminate special financing, end taxpayer funded R&D, and set fair royalties policies.

Bernie Sanders describes the End Polluter Welfare Act in an op-ed piece for Reader Supported News as the "most comprehensive ever introduced on this subject." Sanders added that the Act "ends all the tax breaks, the special financing arrangements, and the federal research and development funding."

A fact sheet by lists the money that would be saved by eliminating fossil fuel subsidies:
- $14 billion saved by eliminating the intangible drilling deduction

- $12 billion saved by repealing a 2004 law that allows fossil fuel corporations to take deductions aimed at helping American manufacturers by claiming they are manufacturers

- $6.8 billion saved by closing the loophole that allows corporations like BP to deduct money they spend cleaning up their own oil spills and paying damages

- $2.4 billion saved by stopping fossil fuel companies from investing through Master Limited Partnerships, an option not available to clean energy businesses

- $3.7 billion saved by shutting the federal Office of Fossil Energy

- $10.6 billion saved by recouping lost royalties for offshore drilling in public waters

The fossil fuel sector definitely gets the proverbial lion's share of subsidies compared to the renewable industry. Fossil fuels are subsidized at almost six times the rate of renewable energy. From 2002 to 2008, the federal government gave the fossil fuel industry over $72 billion in subsidies while the renewable industry only received $12.2 billion.

Article continues at ENN affiliate, Triple Pundit