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How Much Is Your Senator or Representative $upported By Oil and Coal? Here's a Way to Find Out.

Tor 'Solar Fred' Valenza
May 02, 2011  |  12 Comments

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The ending oil subsidy debate has begun in Congress. The debate is framed not around the environment or the fact that oil companies have received these subsidies for 100 years, but around the budget deficit and the mertis of giving $4 billion a year in tax breaks to oil companies. 

Politicians who support continuing oil subsidies claim that removing them will cost oil company jobs and not help to lower gas and heating oil prices. They hint that continuing subsidies and driil-baby-drill will lower gas prices today, but that's a fantasy. Of course, the oil subsidy supporters don’t mention how eliminating those subsidies could lead to solar jobs and make America energy independent while protecting, you know...breathing. But let’s let that go for now.

Regardless of party affiliation, the fact is that all candidates are supported by oil, coal, gas, and utilities to some extent. And yet...all things aren't really equal.

How can you tell? Easy. Go to www.dirtyenergymoney.com and find out how much $$$ your own representative or senators are $upported by oil and coal companies.

Here are a few examples from our political leaders who are calling for energy independence and slashing the budget, all the while demanding that we not be too hasty with oil subsidies:

  • Rep. Paul Ryan recently proposed a budget that doesn’t touch oil perks while completely eliminating solar and renewable energy subsidies. He has $261,000 little reasons why he may support oil subsidies, but think solar subsidies are a bad idea.
  • As for Speaker of the House, John Boehner? Since 1999, he has had $823,475 suggestions for why he might support oil and coal subsidies and want to make it more difficult for the solar industry to offer affordable solar options.
  • Senate Minority Leader, Mitch McConnell has a grand total of $1,190,708 tiny reasons, since 1999, that might show why he could be in favor of extending fossil fuel subsidies for the foreseeable future.

Of course, just because an oil or coal company donates money to your candidate’s campaign, it doesn’t necessarily mean that your elected representative is going to vote and propose (or oppose) legislation that’s in the oil company’s interests.

For example, let’s look at California Representative Henry Waxman, a strong proponent of solar and renewable energy. He’s received $52,750 from coal, oil, and gas companies since 1999. However, those donations have not stopped him from calling for the end of oil and coal subsidies and consistently supporting pro-solar legislation. Likewise, Senator Charlies Schumer of New York has received a total of $239,293 in oil and coal contributions since 1999, yet he still continues to pressure Speaker Boehner to get rid of oil subsidies now.

Does 2+2=4? Usually, but let's assume all that the above are 100% blind to these contributions. The fact is that oil companies have received subsidies from the U.S. taxpayers for over 100 years now. That short-sighted policy has resulted in America being more reliant on dirty fossil fuels and our economy and geopoltics being increasingly affected by foreign fuel. Even if we drilled, drilled, drilled, here, we'd still run out due to our own thirsty demands. If we're going to spend tax money, let's encourage investing in a solution for the future, like electric cars, wind, solar, geothermal, energy efficiency, wave energy, grid upgrades, and new energy storage technologies.

If your Senator or Representative is asking to continue oil subsidies, go to www.dirtyenergymoney.com and find out how much support they receive from these oil companies. Next, do some Internet searches on solar and their names, and judge for yourself whether he or she is serious about leading America towards energy independence and more clean energy jobs that will last far past these peak oil days.

And how does this knowledge make a difference? How can you help? First, you can join and contribute to Oilchange International, the organization behind the above web site.

Second, take social media action: Share this post with your friends on Facebook and Twitter, and urge them to share it. That sharing affects opinons, which in turn, affects national polling in favor of ending subsidies. That poling cues the press, which leads to more news stories and blog posts and Sunday talk shows. Finally, that national discussion further puts pressure on these oil supporting politicians to reconsider their politically short sighted support for oil.

Of course, if you don't even do the above simple social media suggestions, certainly nothing will happen, and certainly, we will all continue to pay oil companies their annual $4 billion dole on our dime. 

You can make a difference. Start now, and as always, please UnThink Solar.

Tor Valenza a.k.a. “Solar Fred” advises solar companies on marketing, communications, and public relations. Contact him through UnThink Solar or follow him on Twitter @SolarFred.

Photo: Flickr/Napalm filled tires.

The information and views expressed in this blog post are solely those of the author and not necessarily those of RenewableEnergyWorld.com or the companies that advertise on this Web site and other publications. This blog was posted directly by the author and was not reviewed for accuracy, spelling or grammar.

12 Comments

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Ronald STEENBLIK
Ronald STEENBLIK
May 15, 2011
@ChrisSEM

"The entire point of a subsidy is to help get industries going and shorten the playing field."

I think you mean "level the playing field". In any case, the theoretical argument for subsidies may well be to jump-start an industry. But the reality is that subsidies that start off as temporary often end up becoming permanent fixtures. The federal tax credit for corn ethanol, first introduced in 1978, is still with us, despite a federal regulation mandating its use.

And subsidies aimed at helping infant industries are rarely well-designed.

But your claim that "oil and coal have been taking advantage of this 'startup' type money for decades" is one I have not heard before, even from the oil and gas industry. The argument they use in defense of the tax preferences they enjoy are usually more along the lines of "other countries do it too", or "we need the tax breaks to ensure that we squeeze as much out of domestic resources as possible."
Chris Cowperthwaite
Chris Cowperthwaite
May 6, 2011
The entire point of a subsidy is to help get industries going and shorten the playing field. Oil and coal have been taking advantage of this "startup" type money for decades -- and their cost per watt for NEW plants are nowhere close to the numbers you see thrown around most often.

We actually just had a blog post about this topic just a couple weeks ago: http://blog.southern-energy.com/index.php/sem-solar/lets-talk-about-solar-subsidies-in-context/

Once the Levelized Cost of Energy becomes part of the conversation, fossil fuels don't have much of an argument left.
Cliff Goudey
Cliff Goudey
May 4, 2011
davidcarl, What is honest about their actions? More to the point, your arguments are contradictory. First you complain that renewables are getting a boost and then you point out that dirty energy's subsidies have been around for nearly a 100 years.

Many industries can thank the government for their very existence (e.g. nuclear power, aircraft, automotive, ...) but coal & oil just can't seem to let go. They know that if they were left unsubsidized and couldn't externalize much of their costs to the environment and the rest of us that they couldn't compete with renewables.

The federal government has been picking fossil energy as a winner for over a century. I say enough is enough.
Russ Finley
Russ Finley
May 3, 2011
A recent and pertinent article on oil subsidies:

http://www.consumerenergyreport.com/2011/05/02/getting-even-with-exxonmobil/

"...But there is a way that every individual can stop feeding Exxon Mobil's enormous profits. Stop buying their product. The reason they are so profitable is simply that the public keeps buying their product even as the price has doubled over the past few years..."

Me, I'm going electric:

http://biodiversivist.blogspot.com/2011/04/leaf-or-miev-which-should-i-buy.html

Biodiversivist
Will Deliver
Will Deliver
May 3, 2011
Good article Tor! I will be checking the Idaho Senators & Representitives to see just how much money they get from Dirty Energy companies! Southern Idaho has very good solar insolation most of the year. Idaho has no coal & no oil deposits. We have lots of hydro power with a growing wind & solar industry. Biomass is another natural resource we enjoy. We don't need to subsidize oil or coal companies or support oil wars!
I encourage renewable energy to charge electric cars. I also think natural gas is a viable, interim first step toward full renewable energy.
David Carl
David Carl
May 3, 2011
At least they are being a little more honest about their intentions. It is not about a level playing field. Renewable energy receives about $3 billion a year in subsidies and they are talking about taking $4 billion a year from oil and gas and giving it to renewables. That does not level the playing field, it tilts it much more in favor of renewables.

Some of these breaks have been around for nearly a 100 years in the form of depletion allowances. Others, the foreign tax credit have not been around so long. But they would be singling out oil and gas as the only industry that no longer gets a foreign tax credit. If you do your research you will find that 60% of US production of oil and gas is by small independent producers. They do not have overseas offices to "hide" income.

Pure and simple, it is a matter of picking winners and losers.
Ronald STEENBLIK
Ronald STEENBLIK
May 3, 2011
Another interesting article on this topic:

http://seekingalpha.com/article/267072-busting-the-myth-about-oil-company-profits
Ronald STEENBLIK
Ronald STEENBLIK
May 3, 2011
"Another good set of sites for tracking corporate bought politicians is opensecrets.org ans projectcensored.org"

Wouldn't it be simpler to draw up a list of politicians who ARE NOT beholden to corporate donors? There's, for example, ... er ... um ... now don't rush me, I'm still thinking ... .
William Fitch
William Fitch
May 3, 2011
Hi Fred:

If you take those donation monies and divide them by the number of years received, it sheds a bit more light. As they say, you get what you pay for....

.....Bill
Paul Panza
Paul Panza
May 3, 2011
Another good set of sites for tracking corporate bought politicians is opensecrets.org ans projectcensored.org
Tor 'Solar Fred' Valenza
Tor 'Solar Fred' Valenza
May 2, 2011
Ron, thanks for comments. As for the numnber of years that oil companies have benefitted from US tax dollars, you got me. I don't have the inclination to go research exactly how many years, but I'll concede to your assessment of "many years." In addition, I recall that many avoid their fair share of taxes through making their HQ in foreign countries while conducting the majority of their businesses here. Many industries must stop this game and Congress needs to somehow close these loopholes for all, including oil.

As for the solar renaissance, that's already on its way. Obama has suggested that we put the current oil subsidy money towards solar and other RE companies to develop new technologies, the kind that don't run out and are not subject to the whims of foreign governments being stable...or not.

Thanks again for your thoughts and links.
Ronald STEENBLIK
Ronald STEENBLIK
May 2, 2011
Fred,

Oilchange International is doing yeoman work (i.e., the heavy lifting).

Could you enumerate which tax breaks have been in existence for 100 years? I know that a number of them that have been around for many years, but not a century.

Regarding some of your other statements:

'Politicians who support continuing oil subsidies claim that removing them will cost oil company jobs ...

Depends on which tax breaks are eliminated. But any industry can't have it both ways: on the one hand argue that the breaks are small but on the other that removing them would have big consequences. Mainly the removal of these subsidies would affect new projects.

'... and not help to lower gas and heating oil prices.'

Well, that's true. But neither would eliminating them have much of an effect in the other direction.

'They hint that continuing subsidies and driil-baby-drill will lower gas prices today, but that's a fantasy.'

Indeed, see this article by Ben Jervy

http://www.good.is/post/the-definitive-proof-that-even-massive-expansion-of-offshore-drilling-won-t-lower-gas-prices/

'Of course, the oil subsidy supporters don't mention how eliminating thos subsidies could lead to solar jobs and make America energy independent. ...'

Ah, now YOU want it both ways. If eliminating the tax breaks to oil and gas in fact won't affect domestic jobs in those industries very much, nor prices, how is it going to unleash a solar renaissance?

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Tor 'Solar Fred' Valenza

Tor 'Solar Fred' Valenza

Tor Valenza aka “Solar Fred” is the founder of UnThink Solar, a strategic communications firm dedicated to helping solar companies reach solar customers through innovative messaging, branding, and social media communications. Follow him...
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