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"Dirty fuels" profit by bailout bill's tax breaks for renewable energy

  1. JanforGore
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The renewable-energy tax incentives tucked into the financial bailout package passed by the House on Friday include billions of dollars in breaks for old-fashioned fossil-fuel processes such as liquefying coal and squeezing petroleum out of sand and rock.

These "dirty fuels" are making a tentative comeback among policymakers. Such ventures are aimed at "unconventional" deposits once deemed too expensive or technologically difficult to tap. Backers of the tax breaks believe the substantial incentives might boost these technologies and spur invention of new ones.

"We feel good about the outcome here, in terms of the government supporting our requirements," said Larry Winter, vice president of Oil Shale Producing Exploration Co., which operates an experimental project in Utah's Uintah Basin. "As we start to expand our project, we will be looking to build our own refinery. That requires a very large capital investment that requires long-term paybacks. Without government support, they are potentially a nonstarter."

Critics of the measures note that the breaks run counter to the carbon-reduction message Congress intended when it vowed to bankroll clean, renewable technology. And a substantial portion of the tax breaks go to energy companies already flush with record oil profits.

"This is deeply offensive that they would attach this massive lobby goodie bag to a bill," said Tyson Slocum of Public Citizen, a Washington-based public interest organization.


"This is a gravy train. The American people are suffering here, and oil companies are getting a tax break. Not even clean energy. This is not a way to make laws. This is not even a way to make sausage."

The provisions are found in the complicated tax-extenders legislation tacked on by the Senate after the House rejected the original bailout package. Although House members were adamant that the overall tax provisions remain revenue-neutral, the add-ons will cost taxpayers more than $100 billion, according to the Congressional Budget Office.

Managers in the Senate said the energy provisions were needed to make the bailout more palatable to some Western members.

Energy companies say oil prices that exceed $100 a barrel make extracting some of these nonconventional fossil fuels profitable.

A recent report by the Air Force put the cost of building a coal gasification plant at $6 billion or more.

"They are not going to build those because of the massive capital costs," Slocum said. "This will encourage an industry where no one wants to invest -- for a reason. The question is, should taxpayers' money be used to shovel subsidies for coal?"

Converting solid coal into a liquid transportation fuel, an industry that does not exist in the United States, could nearly double the global warming effects of the fuel and increase air and water pollution associated with coal mining, according to some scientific estimates. The bill extends production credits for coal gasification plants and includes the end product, aviation fuel, in the alternative fuel category.

The coal investment credit will cost $389 million next year, the CBO said.
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It is obvious Congress is not really concerned about climate change. They will continue to spend our money on subsidies for coal, oil, shale, and nuclear, even though we are calling for them to look to renewable (REAL renewable) energies such as solar, wind, geothermal. They will throw a crumb once in a while, but not enough to give solar the boost it needs to be truly competitive with their cash cows. It's time to go over their heads. And this is the bill Obama and McCain voted for. They claim to want to tackle climate change and then vote for this? No wonder Bush was so quick to sign it!
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JanforGore

20 responses // "Dirty fuels" profit by bailout bill's tax breaks for renewable energy

  •  

    Why would they be concerned about climate control when "dirty fuels" are just so darn profitable.

    The fact that Obama and McCain both voted for this bill highlights much more serious problem, no matter who gets in office they will still be controlled by the same people.

    I am curious as to what you are suggesting when you mention its time to go over their heads.

    ChristmasAsen
  •  

    Good catch Jan! Because of a bug in this Current Page I am not able to recommend you. The recommend button has been cut out!

    stopnoise
  •  

    What solution?

    F7
    • F7
    • 1 month ago
  •  

    just another example of how both candidates don't care about you

    they are selfish and power hungry

    rainbowryan420
  •  

    Was there ever any doubt? This is how the game is played.....only WE are paying for it under the threat of loss of our livelyhood! Just like WMD...only probably actually worse once we find out everything....
    both candidates don't care? None of the lot cares. Both candidates voted in support of this, they are BOTH part of the problem.

    recommended by stopnoise
    anjela3
  •  

    Make sure you watch this new release. Contains a section on energy. (2.03:07)

    recommended by Vierotchka
    futuregen
  •  

    They don't listen... Here is a senate response regarding the oil shale development in Colorado for instance!

    Thank you for contacting me regarding the prospect of developing oil shale on a commercial scale in Colorado. I appreciate hearing from you.

    Colorado is fortunate to be home to tremendous deposits of oil shale, a type of hydro-carbon bearing rock that is abundant in Western Colorado, as well as Utah and Wyoming. Estimates place the potential recoverable amount of this type of oil as high as one trillion barrels. To put that in perspective, consider that Saudi Arabia’s proven conventional oil reserves are said to be around 261 billion barrels. I am optimistic about the possibilities for development of our extensive oil shale resources because, if it is done properly, it will help move our country toward energy independence.

    However, as energy companies, western governors, local communities, energy experts, and the Bureau of Land Management (BLM) itself have all testified, the barriers to oil shale development are economic, technological, and environmental, not legal or regulatory. It is estimated that technology to develop oil shale will not be ready until 2015 at the very earliest. As the BLM has testified, a fire-sale on commercial oil shale leases will not accelerate this process, nor will it have any impact on gas prices. If we are to succeed in developing oil shale on a commercial scale, we must have an orderly process for development, whereby we conduct the necessary research and development before any widespread commercial leasing begins.

    Unfortunately, the White House recently succeeded in upending the orderly process for oil shale development by overturning a legislative provision that was preventing them from putting the cart before the horse. The White House seems intent on rushing ahead with the issuance of final regulations for the development of oil shale, despite having no idea how much water would be required to develop oil shale, how much power would be needed, or whether the technologies are even commercially viable. The White House’s approach to oil shale risks the very development that we hope to achieve by heightening the prospect of an oil shale bust.

    Western communities have nearly a century of experience trying to develop oil shale. It is our wisdom that should guide this process, not the political rush at the end of an Administration. Despite the White House’s concerted effort to run roughshod over Western communities, I will continue to fight to ensure that Colorado’s land and water are protected, and I will do all I can to restore an orderly process for oil shale development. An orderly process gives us the best prospect of successfully and safely developing oil shale on a commercial scale.

    Again, thank you for contacting me.

    Sincerely,

    Ken Salazar
    United States Senator

    jjmaster
  •  

    I know , they don't listen... my Senator sent me a letter back still pushing the 80% by 2050 emission reduction line as if it is now some sort of slogan. These people on both sides of the aisle are so damn far removed from the real world. All they know is their own. I think it's time we introduce them to ours, and remind them that we are their employers and if they do not do the right thing we have the option to fire them, and will. However, I truly get disappointed in realizing that spirit is simply not part of many in this country anymore. They have wound up successfully to this point corporatizing our food, our water, our military, our prisons, our hospitals, right down to our voting process, and they are after our schools as well as our energy...and people sit and watch Dancing With The Stars, Survivor, and a multitude of other brainless vapid junk to distract them from the fact that this government that claims to care doesn't care one whit about them. However, I have to also admit there are a few in Congress like Dennis Kucinich who do care, and there are organizations out here trying to be heard. Unfortunately, those in Congress like that are the very slim minority. So it will have to be the people out here who do care who start making more noise.

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    JanforGore
  •  

    It doesn't look like there is a party cares very much about the environment. Even the green party is more focused on re-electing Ralph Nader and the environmental platform takes a backseat

    Frier_peppino
  •  

    This is what I meant by the dualpoly that is mentioned extensively by Nader. What's happened is energy and the tax breaks or subsidies by government have made it a social state for industry. So with tax credits and subsidies they can drill squeeze or whatever resources they wish with the blessings of government. It is business as usual and no bailouts for the common man. It will continue to cost America for the bad habits of big business corporations, and the status quo, Big Government. It's a message worth repeating where a country with so much wealth can have paupers as citizens while the bulk of the wealth is only for those within the circles of power. If we are to have any say so in the way our country is run, our Congressmen and women must stop this incessant catering to these folks. They must use their own resources to do their work, just as the rest of us common folk. As the result of the doings of our government, we are in debt to our ears, there is no relief from human sufferings and no end in sight to the deluge! Yes it would help our environment as well if we discourage these practices of big government!

    rasting
  •  

    I did watch this movie and many of its principals in regards to the monetary system I found to be true and valid;

    http://video.google.com/videoplay?docid=7065205277695921912

    However it presents some cultural challenges. It also over extended itself into a dangerous spiritual, philosophical and intellectual terrain.

    Yes, I do agree that money is one of the roots of all evil in society and a new system it is desirable. On the other hand I will give a scenery of events to all of you and a question in the end for you to exercise your philosophical thinking. It is not a secret that I deal on the daily basis with social behavior. If you watch some of my movies, unpolished and raw as it is, it shows real local events happening in the City of San Francisco; both Government and Public; that totally represents a failure of humans to use technology for the benefit of society in a way that it is clean, respectable and safe for all. All these people have jobs. They also have money and some education and many have lots of money. Even with all the money, their behavior still erratically offensive to others around them and they are presently using technology to heavily pollute the environment.

    How do you address this types of real barbaric events if you are to take out or suggest to eliminate a spiritual culture that maps the origin of human behavior?

    Anybody?

    stopnoise
  •  

    Big surprise there. It's so obvious. It's that same old shit, different day.

    onechance
  •  

    TWATS.

    onechance

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