Tax Rollbacks: A Drop in the Bucket for Big Oil

A key Big Oil talking point against increasing their taxes is that it would affect average Americans.

The Washington Post reports:

Rep. Kevin Brady (R-Tex.) said that “politicians are shooting at Big Oil but hitting Americans” in their wallets.

But supporters of the House tax bill pushed back strongly against this argument yesterday after passing the bill. First, they correctly argued that these tax rollbacks would hardly affect Big Oil bottom lines:

But hours after crude oil hit a new high of $102 a barrel on the New York Mercantile Exchange, most lawmakers said they saw no reason why the oil industry couldn’t pay an additional $1.8 billion a year in taxes over the next 10 years.

“We don’t think it’s asking too much to ask them to assist in a partnership to help find out whether there’s a better way to meet our energy needs,” said Charles B. Rangel (D-N.Y.), chairman of the House Ways and Means Committee. He called the money raised from the oil giants “grains of sand on the beach.”

Second, they pointed out how little these tax changes would affect the average consumer–by a maximum one cent per gallon:

Supporters of the measure noted that rescinded tax breaks would amount to less than 2 percent of the profits of the five biggest oil companies. Even if the companies were to pass along that entire cost to gasoline consumers, it would amount to about a penny a gallon.

In contrast with companies like Exxon and Shell, emerging renewable energy companies–especially those within the wind and solar industries–desperately need tax breaks to survive.

According to a report done by the solar and wind lobby, letting the renewable energy tax credits expire would mean the loss of 116,000 jobs and $19 billion worth of investment. Learn more from the full report here.

Renewable Energy Tax Breaks Pass House (It’s About Time)

 Finally!:

The House approved $18 billion in new taxes on the largest oil companies Wednesday as Democrats cited record oil prices and rising gasoline costs in a time of economic troubles.

The money collected over 10 years would provide tax breaks for wind, solar and other alternative energy sources and for energy conservation. The legislation, approved 236-182, would cost the five largest oil companies an average of $1.8 billion a year over that period, according an analysis by the House Ways and Means Committee. Those companies earned $123 billion last year.

The final vote was essentially along party lines, with the final tally at 236-182. See how each Representative voted here.

Unfortunately, the bill has a ways to go before it becomes law:

Senate Democratic leaders said they would put the bill on a fast track and try to avoid a Republican filibuster. The White House said the bill unfairly takes aim at the oil industry. President Bush is expected to veto the legislation if it passes Congress.

Ah, Republican obstruction in the name of obscene Big Oil profits. Hopefully, Reid can muster the political skills to drink their milkshake…

‘Duh’ Headline of the Day: ‘Veto threat looms over oil taxes bill’

We could all see this one coming:

If Congress passes legislation to roll back nearly $18 billion in tax breaks for large oil companies, advisers to President Bush will recommend a veto, the White House said Tuesday.

The tax legislation is scheduled to come up for a vote in the House on Wednesday.

I guess it’s obvious by now who holds sway over this administration and Republican members of Congress:

While the oil companies have lobbied vigorously against the legislation, other energy companies, including the solar and wind energy industries, have campaigned for it on Capitol Hill.

As I’ve reported before, renewable energy companies need these tax breaks to survive. Meanwhile, the oil companies continue to make record-breaking profits.

Wind Energy’s REALLY Blowing Up These Days

Video of the day, via TreeHugger:

TreeHugger eases our minds:

There’s a safety mechanism that usually slows down the blades during high winds. It was obviously defective on this one.

Wind Power Growing Deep in the Heart of Texas

Look who’s taken a liking to wind power:

Texas, once the oil capital of North America, is rapidly turning into the capital of wind power. After breakneck growth the last three years, Texas has reached the point that more than 3 percent of its electricity, enough to supply power to one million homes, comes from wind turbines.

Texas surpassed California as the top wind farm state in 2006. In January alone, new wind farms representing $700 million of investment went into operation in Texas, supplying power sufficient for 100,000 homes.

“I have the same feelings about wind,” oilman Boone Pickens told the New York Times, “as I had about the best oil field I ever found.”

But a few obstacles remain to wind power’s continued growth across the U.S. One is the temporary nature of the renewable energy tax credits:

A short-term threat to the growth of wind power is the looming expiration of federal clean-energy tax credits, which Congress has allowed to lapse several times over the years.

The other issue:

A longer-term problem is potential bottlenecks in getting wind power from the places best equipped to produce it to the populous areas that need electricity. The part of the United States with the highest wind potential is a corridor stretching north from Texas through the middle of the country, including sparsely populated states like Montana and the Dakotas. Power is needed most in the dense cities of the coasts, but building new transmission lines over such long distances is certain to be expensive and controversial.

“We need a national vision for transmission like we have with the national highway system,” said Robert Gramlich, policy director for the American Wind Energy Association. “We have to get over the hump of having a patchwork of electric utility fiefdoms.”

That’ll take a whole lot of investment and planning from the federal government.  But for now, it’s good to see the state so closely linked to the oil industry doing so well with wind energy.

Pythons to Flourish in U.S.

The Daily Green reports:

Python habitat will grow dramatically as the U.S. warms up over the next century, according to a new U.S. Geological Survey and National Parks Service study.

“Burmese pythons — an invasive species in south Florida — could find comfortable climatic conditions in roughly a third of the United States according to new ‘climate maps’ developed by the USGS,” the agencies reported. “Although other factors such as type of food available and suitable shelter also play a role, Burmese pythons and other giant constrictor snakes have shown themselves to be highly adaptable to new environments.”

Will we also start seeing the northward spread of pipes and gun shows? (Editorial comment: pythons, pipes and gun shows are all slang terms for huge biceps. Get it??!!)

House Tax Credit Vote Set for Next Week

Ok, the House will FINALLY take up the renewable energy tax package next week:

The House of Representatives will vote next week on legislation that would levy $18 billion in taxes on big oil companies to help pay for extending renewable energy tax credits, Democratic leaders said on Thursday.

The statement from Nancy Pelosi and Charlie Rangel sums it all up nicely:

The bill extends and expands tax incentives for renewable electricity, energy and fuel, as well as for hybrid cars, and energy efficient homes, buildings, and appliances. It does not add to our deficit, but rather repeals $18 billion in tax subsidies for Big Oil companies. By strengthening our renewable energy sector, the bill will help create the next generation of good-paying, green collar jobs and bring down energy prices in the long term.

And for you hard-core wonks out there, read the entire bill–the Renewable Energy and Energy Conservation Tax Act–here.

Why Congress Must Renew Renewable Energy Tax Credits

The story of the planned Solana solar-thermal plant in Arizona shows how critical it is for Congress to extend tax credits for renewable energy industries:

Arizona’s solar-power supply is about to get a lot bigger.

A solar-energy plant planned near Gila Bend will be among the world’s largest when it opens in 2011, Arizona Public Service Co. said Wednesday. […]

At 280 megawatts, enough to power at least 70,000 households, the plant will make even more energy than a similar facility announced in December.

The project would create an estimated 1,500 construction jobs, and 85 permanent employees would be needed to run the plant once it’s finished.

There’s one problem—Solana’s future relies on those pesky tax credits:

If the Arizona Corporation Commission approves the project, the next hurdle appears to be the U.S. incentive program. If a tax credit for solar-power plants is not renewed, Solana will not happen, Seage said.

Projects like Solana can’t go anywhere without Congress’ help.

That’s why a group of 500 companies and groups wrote to congressional leaders to to tell them these tax breaks “are crucial to the long-term planning and growth of renewable energy use”:

Renewable-energy companies, including several in Silicon Valley, and their allies on Capitol Hill are stepping up efforts this month to secure an extension of tax credits to boost greater use of solar, wind and other alternative-energy sources. […]

“Lead time and certainty are essential when a business is investing in a renewable system that might not be operating for three years,” said Michael Eckhart, president of the American Council on Renewable Energy, a non-partisan umbrella group of companies, non-profits and financiers.

Next week, House Speaker Nancy Pelosi plans to bring legislation to the floor extending the tax breaks. The bill includes a 30 percent investment tax credit through 2016 for solar energy.

Let’s hope enough members of Congress see the light, so to speak, on renewable energy.

Majority Leader Reid Leads on Energy

Senate Majority Leader Harry Reid spoke at a renewable energy conference in Nevada, and he had some interesting things to say:

“Every time our country has faced a daunting challenge, we have risen to the occasion. That’s who we are. That’s what we do best,” said Reid. “And that’s what we must do today: return to the endless well of American ingenuity – and turn to the endless sources of renewable energy all around us – to set a new course that will keep us safe, create good jobs, and protect our planet for generations yet to come.”

Good boilerplate. But what about specifics?

He had those too:

He urged Congress to pass a national Renewable Electricity Standard, a minimum requirement of renewable fuels as a percentage of all energy consumption.

And Reid described how the clean energy business will create the jobs of the future:

On the other hand, Reid cited a University of Nevada-Las Vegas study found that solar, wind, geothermal and biomass projects would create more than $20 billion in business for Nevada over the next 25 years.

“Each new megawatt of geothermal power creates up to 10 new jobs. Each new megawatt of solar-thermal and wind power create at least six new jobs,” he said.

Reid said, “If just half of Nevada’s potential clean energy resources were developed, 22,000 new jobs in the next decade would be created.”

This argument is exactly the one that needs to be made. Former climate deniers are starting to fall back on the “doing something about climate will destroy the economy” line. These sorts of studies help refute that claim.

The Night the Lights Went Out in (Atlanta) Georgia

Looks like Chicago isn’t the only American city joining the “Earth Hour” blackout:

Twenty-four cities around the world will fall into shadow next month as homes and businesses turn off the lights to raise awareness about global warming, organisers said Tuesday.

The “Earth Hour” initiative started in Australia’s biggest city Sydney last year when an estimated 2.2 million people flicked the switch — leaving the Sydney Opera House bathed in moonlight and the Harbour Bridge blacked out.

Organiser Andy Ridley said Sydney’s 60-minutes of darkness generated huge interest around the world and 23 other cities from the Asia Pacific, North America, Europe and the Middle East had now signed up to be part of the 2008 event.

The eight latest cities to join “Earth Hour” are Atlanta, San Francisco and Phoenix in the US…

It’s good to see driving cities like Atlanta and Phoenix at least participating in actions like this to raise climate change awareness.