Energy Bill Special Interest Provisions

The Energy bill reported out of conference is filled with giveaways for special interests, and could cost the taxpayers billions of dollars to subsidize more oil, gas, coal and nuclear development, while doing very little for renewable energy.

The Energy bill will cost at least $95 billion.

• This includes almost $20 billion dollars in tax subsidies for more oil, gas, coal and nuclear development.
• Reduces funding for hydrogen research, development and demonstration by $1 billion per year and deleting broadly-supported goals for introduction of hydrogen fuel cell vehicles. 
• Would give nuclear power companies a first-ever electricity production tax credit.  The nuclear power industry is estimated to receive $6 billion in tax benefits.
• Reduces the percentage of funds required to be spent on the cleanest coal gasification technologies by 20 percent, in favor of more polluting coal-based technologies. 
• Mandates increased ethanol production for gasoline to 5 billion gallons a year by 2012.  This provision could increase gas prices for Vermonters.

The Energy bill abandons clean energy and efficiency programs.

• Drops Senate provision to require utilities to generate power from renewable energy sources. 
• No standards requiring cars to get more miles per gallon.
• The energy bill provides more than $23 billion in tax incentives for the energy sector.  Of this total, more than 70 percent of the tax breaks go to coal, oil, gas and nuclear power.  Less than one third of the incentives are allocated for renewable energy and energy efficiency programs.

The Energy bill will dirty our air.

• Alters the Clean Air Act to postpone ozone attainment standards across the country.  This provision was not included in the House or Senate bill.
• Cuts funding for clean coal technology in favor of conventional coal-fired power plants that dump mercury and other pollutants on the Northeast.

The Energy bill will harm our water.

• Exempts oil and gas construction activities from Clean Water Act requirements to manage runoff pollution that can damage lakes, rivers and streams.
• Exempts oil and gas construction from requirements of the Safe Drinking Water Act.  This will allow more toxic pollutants will get dumped into our drinking water supplies.

The Energy bill will provide liability protection for MTBE producers.

• Provides immunity to MTBE producers from defective product liability arising from the contamination of groundwater supplies by MTBE across the country.
• Vermont and other states face multi-million dollar bills for cleaning up MTBE.
• Terminates a lawsuit filed by New Hampshire against the industry for groundwater pollution by reaching back to provide immunity as of September 5, 2003.

The Energy bill does not prohibit the price-gouging schemes used by Enron.

• Excludes the provision passed in the Senate Energy bill to include a broad and effective prohibition against market electricity market manipulation.

• Repeals limits on utility industry mergers that could lead to the concentration of utility ownership in a few hands.

• Allows for utilities to increase transmission rates for customers.

 

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