Sunday, October 30, 2011

Republican congressman pushes for an end to all energy tax credits

Republican congressman pushes for an end to all energy tax credits Texas on the Potomac a Chron.com blog


A Republican congressman from Kansas plans to introduce a bill this week to end all tax credits for the energy sector, saying he believes it’s time for conventional and alternative sources alike to show their worth without government help.

Rep. Mike Pompeo, R-Kan., told lawmakers in a letter last week that his bill would save the U.S. government up to $90 billion over 10 years in what he says is spending that distorts the market. He pointed to the ongoing scandal over the Energy Department’s $535 million loan guarantee to the now-bankrupt Fremont, Calif., solar-panel maker Solyndra LLC.

“The Solyndra scandal has demonstrated the danger of government interference in energy markets,” he wrote, calling his bill “a reasonable approach to ending the decades-long practice of trying to pick winners and losers.”

Among the credits the bill would end are the renewable electricity production tax credit, which rewards companies for each kilowatt-hour of generating capacity they install from sources such as wind, biomass, geothermal, landfill-gas, municipal-waste or hydroelectric. Credits for plug-in electric and fuel-cell vehicles and alternative fuels would also end.

The bill would also end credits for enhanced oil recovery and technologies that reduce emissions from coal.

Pompeo wrote that his bill would preserve “general deductions available to multiple industries.”

But his legislation is sure to face resistance. Democrats, who control the Senate, have sought to target tax breaks for oil-and-gas companies but may be hesitant to end federal support for alternative sources, which they say can help address pollution and climate change.

The American Wind Energy Association, a wind-power trade group in Washington, has issued a statement blasting Pompeo’s bill.

“Representative Pompeo seems to misunderstand how a key federal tax incentive has built a thriving American wind manufacturing sector and tens of thousands of American jobs,” CEO Denise Bode said in a statement, referring to the production tax credit for wind electricity, which will expire after
Dec. 31, 2012, without action from Congress.
Bob Deans, associate director of communications for the environmental group Natural Resources Defense Council, has criticized Republicans for using the Solyndra scandal to target all clean energy: “We should learn the lessons of Solyndra, to be sure, but then move forward — because, as China and our other global competitors have grasped all too well, solar energy, wind, and other emerging technologies hold the promise and potential to help power the world into the 21st century.”

Pompeo also said his bill would be revenue-neutral by including a corporate tax rate reduction that corresponds to the money his bill saves.

The bill isn’t meant to raise money for the government, Pompeo said, “but rather to correct decades of taxpayer funded handouts to industries more than capable of thriving in the open market.”


A list of tax credits his bill will target, according to the letter:

•Plug-in electric and fuel cell vehicles
•Alternative fuel and alternative fuel mixtures
•Cellulosic Biofuel Producer Credit
•Alternative fuel infrastructure
•Production Tax Credit for electricity produced from renewable sources, including wind, biomass, and hydropower
•Investment Tax Credit for equipment powered by solar, fuel cells, geothermal or other specified renewable sources
•Enhanced oil recovery credit, and credit for producing oil and gas from marginal wells
•Advanced Nuclear Power Generation Credit
•Clean coal investment credits

4 comments:

Anonymous said...

"It's often claimed that the Solyndra loan guarantee was “rushed through” by the Obama Administration for political reasons. In fact, the Solyndra loan guarantee was a multi-year process that the Bush Administration launched in 2007.You’d never know from the media coverage " I agree that the Democrats have done pretty much everything wrong since bailing out the Bush administration's bumbling of the economy. Maybe that's why lobbyists pay off both sides. Kind of makes you wonder. I don't defend either side. All politicians are corrupt. "Vote for me" "I'll fix the problem" . Funny how it never gets fixed. Last I looked John Boehner was a republican. Even if wind power is defeated it won't get the money back. The town must get rid of the corruption that's there now. Why is republican corruption a non issue, however? We hear plenty about Democrats being corrupted. Corruption is a ball they keep passing around is all.

Anonymous said...

“ExxonMobil has a long and successful history of working in Libya, where we previously operated as Esso and Mobil.”
Exxon Mobil will commence drilling a deep water well now that control over Libya has been restored. Yeah, it was all about the people. The Libyan "rebels" can go home now. The WTO and the UN can handle it from here. This is what happens when oil puppets go bad. Of course, there are those who don't see the point to this story. But then, there are those who do. Like the man said, "stay focused".

Anonymous said...

MORE ABOUT OIL; WASHINGTON -" The cost of the air war in Libya for the U.S. military has reached $608 million, a U.S. defense official said April 11. The cost estimate covers the period from the start of international air strikes in Libya on March 19 to April 4, the official, who spoke on condition of anonymity, told reporters.
Middle East & Africa
U.S. officials previously had said the operation had cost $550 million through March 28. The Pentagon has estimated the air campaign will cost the United States about $40 million a month, even after NATO allies took the lead in the U.N.-mandated operation designed to protect civilians against Moammar Gadhafi's forces.
For the U.S. Air Force alone, the war costs about $4 million a day, the top civilian in the service told reporters last week. Air Force Secretary Michael Donley said he expected that figure to come down with European allies carrying out bombing raids while U.S. aircraft play a support role." Still don't get it? Don't worry. Someone will tell the people what to think.

Anonymous said...

BRUTALITY or OIL? "Libya enjoys large natural resources, which Gaddafi utilized to help develop the country. Under Gaddafi's Jamahiriya "direct democracy" state,the country's literacy rate rose from 10% to 90%, ( sound familiar?) life expectancy rose from 57 to 77 years, equal rights were established for women and black people, employment opportunities were established for migrant workers, and welfare systems were introduced that allowed access to free education, free healthcare, and financial assistance for housing. In addition, financial support was provided for university scholarships and employment programs. Gaddafi also initiated development of the Great Manmade River, in order to allow free access to fresh water across large parts of the country.The country was developed without taking any foreign loans, and, as a result, Libya was debt-free. " Still don't see the relevance?