Citizen G'kar: Musings on Earth

April 22, 2005

Bush Solution to the Price of Gas? Give Tax Breaks to Oil Companies

This country is in a war to try to secure future oil supplies. Current and future oil production will be eclipsed by demand over the next few years as China and India grow their economy. Meanwhile oil companies profits are already at record levels and very little new oil is being pulled out of the ground. The pool of oil in Alaska will have little or no effect on the price of oil.
Our country is one of the few industrialized countries that still is not spending significant money on renewable energy development.
Incredibly, Bush's solution to this growing oil crisis is millions in tax breaks to Big Oil, his "base". Isn't anyone paying attention?
Washington > House Votes to Approve Broad Energy Legislation" href="http://www.nytimes.com/2005/04/22/politics/22energy.html?th&emc=th">The New York Times > House Votes to Approve Broad Energy Legislation
Many Democrats and some Republicans said the measure, which provides $8 billion in tax breaks to energy producers and billions of dollars more in direct federal aid, was too friendly to industry and gave short shrift to energy efficiency and renewable fuels.
"Instead of helping the American people save money, the bill is loaded with tax breaks and royalty relief for oil and gas companies," said Representative Nancy Pelosi of California, the House Democratic leader.



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April 22, 2005
House Votes to Approve Broad Energy Legislation
By CARL HULSE
ASHINGTON, April 21 - The House approved broad energy legislation on Thursday that seeks to improve the reliability of the electrical grid, increase domestic energy production and save power by extending daylight saving time. Opponents say it is deeply flawed for its emphasis on traditional fossil fuels.
Republican authors of the measure, which was adopted on a 249-to-183 vote, first had to beat back a flurry of amendments, including a last-minute effort to eliminate liability protection for producers of MTBE, a gasoline additive blamed in groundwater pollution nationwide.
The narrow 219-to-213 vote to retain that provision virtually guarantees a clash with the Senate, where opposition to legal immunity for MTBE blocked the energy bill in 2003, sidelining a chief domestic initiative of the Bush presidency.
The White House and Congressional backers of the energy plan hope that high gasoline and fuel prices provide the momentum to achieve an agreement this year even though they acknowledge the measure will do little immediately to cut prices at the pump.
"People will say it won't do enough," said Representative Joe L. Barton, the Texas Republican who is chairman of the Energy and Commerce Committee, after the vote. "My question is, well, isn't something better than nothing?"
Many Democrats and some Republicans said the measure, which provides $8 billion in tax breaks to energy producers and billions of dollars more in direct federal aid, was too friendly to industry and gave short shrift to energy efficiency and renewable fuels.
"Instead of helping the American people save money, the bill is loaded with tax breaks and royalty relief for oil and gas companies," said Representative Nancy Pelosi of California, the House Democratic leader.
Democrats successfully maneuvered to force a vote directly on the proposal to strip MTBE product liability protection from the measure, putting lawmakers who backed the bill but represent communities that have contended with MTBE contamination on the spot.
Critics of the legal immunity, which has been championed by Mr. Barton and Representative Tom DeLay of Texas, the majority leader, say it will leave local communities bearing the costs of any MTBE cleanup when oil companies were aware of risks.
"MTBE contamination is a huge problem, and it is not going away," said Representative Lois Capps, Democrat of California and author of the plan to remove the protection.
Mr. Barton and others said that the additive was instrumental in cutting air pollution and that oil refiners used it with the consent of the federal government after being ordered to produce gasoline with reduced emissions under the Clean Air Act.
"If it's a defective product, we mandated it," Representative Gene Green, Democrat of Texas, said. "Now 10 years later, 15 years later, we are going to say you're responsible even though we told them do to it."
The House also rejected an effort to retain state and local control over where to put terminals for importing liquefied natural gas. Representative Michael N. Castle, Republican of Delaware, said that giving the federal government final authority was "trampling on the rights of states and individual communities."
Mr. Barton said the federal control was needed to accelerate the construction of such terminals because of increased imports.
The White House said it "strongly supports" the House bill though in its official critique of the measure it expressed reservations about the amount of the tax breaks, which exceed President Bush's budget request by about $1.3 billion. The White House also raised concerns over the diversion of up to $2 billion in oil and gas royalties to research into drilling in deeper waters of the Gulf of Mexico, another provision pushed by Mr. DeLay, and other spending that was not sought by the president.
Administration officials hope that the way is open to enact an energy initiative after years of fits and starts on measures driven by regional as much as political concerns.
"This bill largely meets the conditions that were laid out in the president's national energy policy three years ago," said Energy Secretary Samuel W. Bodman, who went to Capitol Hill to congratulate Mr. Barton on the legislation.
Senate energy leaders say that they seek a measure that could win a larger consensus than the bill the House adopted and that they are considering hearings next month. Mr. Barton said he would like a final measure sent to the president by August and indicated that he is willing to negotiate over the MTBE provision.
The House bill would allow drilling in the Arctic National Wildlife Refuge, another issue that has killed past energy legislation. In the Senate, Republicans are hoping to win approval for the Alaska drilling by advancing it in a budget measure that cannot be filibustered.
The legislation is more than 1,000 pages long and touches on almost every aspect of energy production and use. It gives a federal board new authority to force improvements in the power grid to avert blackouts. The House bill would also extend daylight saving time by two months, to reduce the need for electricity.
Copyright 2005 The New York Times Company

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