NewEnergyNews: WHY TAX CREDITS ARE NEEDED, WHY OIL SUBSIDIES ARE NOT

NewEnergyNews

Gleanings from the web and the world, condensed for convenience, illustrated for enlightenment, arranged for impact...

The challenge now: To make every day Earth Day.

YESTERDAY

  • ORIGINAL REPORTING: "THE NEXT SHALE": HOW SOLAR IS POISED TO TRANSFORM AMERICA'S ENERGY MARKETS
  • QUICK NEWS, July 1: AVATAR DIRECTOR GOES SOLAR; U.S. KEEPS WIND TURBINE BUILDERS BUSY; VW ENTERS THE RACE FOR THE 200 MILE EV
  • THE DAY BEFORE

  • TODAY’S STUDY: THE STEADY BUILD-OUT OF OCEAN WIND IN EUROPE
  • QUICK NEWS, June 30: BILL GATES BRINGS $2BIL TO NEW ENERGY; THE INEVITABILITY OF U.S. OCEAN WIND; THE INEVITABILITY OF SOLAR
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    THE DAY BEFORE THE DAY BEFORE

  • TODAY’S STUDY: SMART MONEY GOES TO NEW ENERGY – BUT WILL IT BE ENOUGH?
  • QUICK NEWS, June 29: SCOTUS SLOWS EPA CLEAN AIR EFFORTS; SOLAR HIGHWAYS; JAPAN TURNS FROM NUKES TO WIND POWER
  • THE DAY BEFORE THAT

  • Weekend Video: Bll Maher And EPA Head Gina McCarthy Dish About The Pope
  • Weekend Video: The Grim Facts
  • Weekend Video: Climate Change And Human Health
  • AND THE DAY BEFORE THAT

  • ORIGINAL REPORTING, JUNE 26: HOW BASIN ELECTRIC IS HANDLING EXPLOSIVE NEW LOAD GROWTH IN NORTH DAKOTA
  • ORIGINAL REPORTING, JUNE 26: HOW THE WEST'S NEW ENERGY IMBALANCE MARKET IS BUILDING A SMARTER ENERGY SYSTEM
  • THE LAST DAY UP HERE

  • ORIGINAL REPORTING, JUNE 25: WHY DEPT OF ENERGY IS GOING BIG ON COMMUNITY SHARED SOLAR
  • ORIGINAL REPORTING, JUNE 25: INSIDE THE PG&E PROPOSAL TO BUILD 25,000 EV CHARGING STATIONS
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    Anne B. Butterfield of Daily Camera and Huffington Post, is an occasional contributor to NewEnergyNews

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    Some of Anne's contributions:

  • Another Tipping Point: US Coal Supply Decline So Real Even West Virginia Concurs (REPORT), November 26, 2013
  • SOLAR FOR ME BUT NOT FOR THEE ~ Xcel's Push to Undermine Rooftop Solar, September 20, 2013
  • NEW BILLS AND NEW BIRDS in Colorado's recent session, May 20, 2013
  • Lies, damned lies and politicians (October 8, 2012)
  • Colorado's Elegant Solution to Fracking (April 23, 2012)
  • Shale Gas: From Geologic Bubble to Economic Bubble (March 15, 2012)
  • Taken for granted no more (February 5, 2012)
  • The Republican clown car circus (January 6, 2012)
  • Twenty-Somethings of Colorado With Skin in the Game (November 22, 2011)
  • Occupy, Xcel, and the Mother of All Cliffs (October 31, 2011)
  • Boulder Can Own Its Power With Distributed Generation (June 7, 2011)
  • The Plunging Cost of Renewables and Boulder's Energy Future (April 19, 2011)
  • Paddling Down the River Denial (January 12, 2011)
  • The Fox (News) That Jumped the Shark (December 16, 2010)
  • Click here for an archive of Butterfield columns

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    Some details about NewEnergyNews and the man behind the curtain: Herman K. Trabish, Agua Dulce, CA., Doctor with my hands, Writer with my head, Student of New Energy and Human Experience with my heart

    email: herman@NewEnergyNews.net

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    Your intrepid reporter

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      A tip of the NewEnergyNews cap to Phillip Garcia for crucial assistance in the design implementation of this site. Thanks, Phillip.

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    Pay a visit to the HARRY BOYKOFF page at Basketball Reference, sponsored by NewEnergyNews and Oil In Their Blood.

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  • Wednesday, March 26, 2008

    WHY TAX CREDITS ARE NEEDED, WHY OIL SUBSIDIES ARE NOT

    With expertise in both economics and energy, Severin Borenstein, E.T. Grether Professor of Business Administration and Public Policy in the Economic Analysis and Policy Group of the Haas School of Business at the University of California at Berkeley AND director of the University of California Energy Institute AND a faculty member in several other UC Berkeley departments, is the ideal expert to address the oil and gas industry’s objection to the U.S. House of Representatives’ plan to fund vital New Energy Production Tax Credits (PTCs) and Investment Tax Credits (ITCs) by shifting money away from what the New York Times called “wholly unnecessary” subsidies to oil and gas.

    First, the oil and gas industry position, reasonably stated by Ray Connolly, spokesman for the American Petroleum Institute: "We need to produce as much domestic energy of all types as possible, and that includes renewable energy…But the way to encourage it is not to change the tax law in such a way that provides a disincentive for domestic oil and natural gas development."

    Now Borenstein: “Oil companies don't need exploration tax breaks because the U.S. will never produce enough oil to affect the world market…And as long as Americans remain unwilling to pay the true cost of fossil fuels -- taking into account pollution, traffic congestion and greenhouse emissions, for example -- shifting the money into renewable energy is a good idea…It won't make a huge difference in the overall energy supply, but it will make a huge difference in whether renewables continue to grow…If we cut them off, it will choke the market."

    A recent report indicted that if the tax credits are not extended it could cost the U.S. up to 116,000 jobs and $1.9 billion in investments in 2009. Not a great plan under any circumstances, it would be downright stupid of the Senate to let that happen to a booming industry in a sluggish economy.

    Congressman Jerry McNerney (D-Ca): "Oil companies are making record profits. This allows us to shift a subsidy from a highly developed, established business that is highly profitable that doesn't need the tax subsidy."


    A lot of this investment goes to Europe and China without those tax credits. (click to enlarge)

    Solar, wind tax credits may expire
    Lisa Vorderbrueggen, March 25, 2008 (Contra Costa Times)

    WHO
    Congressman Jerry McNerney (D-Ca); Mark Tholke, project manager, wind energy company enXco;

    They don't provide the jobs but the Inheritor-Investor class likes the fossil fuels industries anyway. (chart from the Union of Concerned Scientists - click to enlarge)

    WHAT
    McNerney and New Energy industry representatives held a pre4ss conference March 24 to talk about the serious blow to the local economy the Senate’s refusal to extend Production Tax Credits (PTCs) and Investment Tax Credits (ITCs) to the New Energies.

    WHEN
    The current tax credits expire at the end of 2008.

    WHERE
    The press conference was held at Walnut Grove Elementary School in Pleasanton, Ca., but it could have been any community in the U.S. and the implications of the Senate’s refusal to fund the ITCs and PTCs would be relevant.

    Given the proper incentives, the Renewable Energy (RE) industries will provide a lot of jobs to a lot of Americans over the next quarter century. (click to enlarge)

    WHY
    The U.S. House of Representatives sent a bill to the Senate funding the PTCs and ITCs by shifting $17.65 billion from unnecessary subsidies to the oil and gas industry. The Senate seems determined to reject the bill on the grounds that subsidies established in the past to buoy a struggling oil and gas industry remain vital to an industry rolling in hundreds of billions in profits over the last 2 to 3 years.

    (slide from Bree Raum at AWEA - click to enlarge)

    QUOTES
    - Congressman McNerney: "Inconsistent support from the government is allowing this technology to go overseas…We want to make sure we institute policies right here in the U.S. that encourage and help renewable industries become settled."
    - Tholke, enXco: "It's crucial that the federal government deliver an extension…I can see no other route than layoffs if we can't get a production tax credit extension. It's so tremendously valuable to wind energy production and viability, and without it, we can't compete."

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