US House Bill Could Generate $13 Billion For Clean Energy

[dirt mcgirt]

US House Bill Could Generate $13 Billion For Clean Energy



By Maya Jackson Randall, Of DOW JONES NEWSWIRES

WASHINGTON -(Dow Jones)- U.S. House Democrats' legislative plan to press oil and natural gas companies to pay new drilling fees would bring the federal government between $10 billion and $13 billion, key lawmakers said Friday.

Democrats aim to use those funds to boost clean, renewable energy programs and reduce the country's dependence on foreign oil.

Oil industry officials argue that the Democrats' legislative proposal would actually increase the country's dependence on foreign oil by snatching away key drilling incentives.

But renewable energy producers, like those in the solar industry, are pleased. They are hoping lawmakers will use the funds to extend crucial tax credits.

While the bill is expected to win approval in the House when it comes up for a vote Thursday, it is unclear if the Senate will follow suit.

"Energy companies may have been able to get away with ripping off the American public with their royalty free leases while Republicans were in control, but those days have come to an end with Democrats running the show," Rep. Maurice Hinchey, D-N.Y., said in the statement. "We will not allow Congress to continue lining the pockets of energy company executives at the expense of the American people."

A provision Hinchey crafted with Rep. Edward Markey, D-Mass., is included in the energy bill, which has been dubbed the "Creating Long-Term Energy Alternatives for the Nation," or CLEAN, Act.

Under one section of the bill, oil and gas companies that don't renegotiate flawed drilling contracts would be barred from winning future leases in the Gulf of Mexico.

Energy companies who currently hold royalty-free leases would either have to choose to renegotiate those leases to include royalty payments or they could opt to pay a $9-per-barrel conservation fee on oil and $1.25-per-million-Btu fee for gas on resources extracted under those leases.

The Government Accountability Office has estimated that the loophole allowing companies to escape paying royalties could cost the federal government as much as $60 billion if it is not fixed.

"The bill that we are introducing is the first step in charging a new direction for the nation's energy policy," Markey said in a statement.

Markey noted that the overall bill also includes provisions that would repeal regulations that allow energy companies to forgo paying royalties when producing energy in deep wells in shallow water, Alaska offshore areas and in the National Petroleum Reserve in Alaska.

"Next Thursday, the House will debate this legislation, and I predict, will pass it," Markey said.

The CLEAN Act would also disqualify oil and gas companies from receiving a reduced corporate tax rate provided in a 2004 tax bill. Repealing the tax break would raise between $5 billion and $6 billion in tax revenue over the next decade, a House Democratic aide said.

Additionally, Democrats plan to reduce the geological write-off for large energy companies by extending the write-off period to seven years from five years. This would raise about $1 billion in tax revenues over 10 years.

Still, the oil industry warns about negative consequences.

"If you take money from the oil industry, you lose the incentives to produce," Mark Kibbe, API's tax policy analyst, said in a recent briefing. "The more we take these things away...we're going to rely more and more on imported oil. They're not going to bankrupt any of the major oil companies, but they will impact where they produce."
http://www.nasdaq.com/aspxcontent/NewsStory.aspx?cpath=20070112%5cACQDJON20070112163 3DOWJONESDJONLINE000898.htm&

[Dilloduck]

US House Bill Could Generate $13 Billion For Clean Energy



By Maya Jackson Randall, Of DOW JONES NEWSWIRES

WASHINGTON -(Dow Jones)- U.S. House Democrats' legislative plan to press oil and natural gas companies to pay new drilling fees would bring the federal government between $10 billion and $13 billion, key lawmakers said Friday.

Democrats aim to use those funds to boost clean, renewable energy programs and reduce the country's dependence on foreign oil.

Oil industry officials argue that the Democrats' legislative proposal would actually increase the country's dependence on foreign oil by snatching away key drilling incentives.

But renewable energy producers, like those in the solar industry, are pleased. They are hoping lawmakers will use the funds to extend crucial tax credits.

While the bill is expected to win approval in the House when it comes up for a vote Thursday, it is unclear if the Senate will follow suit.

"Energy companies may have been able to get away with ripping off the American public with their royalty free leases while Republicans were in control, but those days have come to an end with Democrats running the show," Rep. Maurice Hinchey, D-N.Y., said in the statement. "We will not allow Congress to continue lining the pockets of energy company executives at the expense of the American people."

A provision Hinchey crafted with Rep. Edward Markey, D-Mass., is included in the energy bill, which has been dubbed the "Creating Long-Term Energy Alternatives for the Nation," or CLEAN, Act.

Under one section of the bill, oil and gas companies that don't renegotiate flawed drilling contracts would be barred from winning future leases in the Gulf of Mexico.

Energy companies who currently hold royalty-free leases would either have to choose to renegotiate those leases to include royalty payments or they could opt to pay a $9-per-barrel conservation fee on oil and $1.25-per-million-Btu fee for gas on resources extracted under those leases.

The Government Accountability Office has estimated that the loophole allowing companies to escape paying royalties could cost the federal government as much as $60 billion if it is not fixed.

"The bill that we are introducing is the first step in charging a new direction for the nation's energy policy," Markey said in a statement.

Markey noted that the overall bill also includes provisions that would repeal regulations that allow energy companies to forgo paying royalties when producing energy in deep wells in shallow water, Alaska offshore areas and in the National Petroleum Reserve in Alaska.

"Next Thursday, the House will debate this legislation, and I predict, will pass it," Markey said.

The CLEAN Act would also disqualify oil and gas companies from receiving a reduced corporate tax rate provided in a 2004 tax bill. Repealing the tax break would raise between $5 billion and $6 billion in tax revenue over the next decade, a House Democratic aide said.

Additionally, Democrats plan to reduce the geological write-off for large energy companies by extending the write-off period to seven years from five years. This would raise about $1 billion in tax revenues over 10 years.

Still, the oil industry warns about negative consequences.

"If you take money from the oil industry, you lose the incentives to produce," Mark Kibbe, API's tax policy analyst, said in a recent briefing. "The more we take these things away...we're going to rely more and more on imported oil. They're not going to bankrupt any of the major oil companies, but they will impact where they produce."
http://www.nasdaq.com/aspxcontent/NewsStory.aspx?cpath=20070112%5cACQDJON20070112163 3DOWJONESDJONLINE000898.htm&

Grab your wallets.

[Mr. P]

Grab your wallets.

Exactly! What is it about Democrats? They just don’t understand that if you make it more expensive for a business to operate, any business, that that cost is ALWAYS passed on to the end consumer.

[darin]

I HATE them. I honestly hate them.

[retiredman]

I HATE them. I honestly hate them.

it brings a yellowdog democrat like me SUCH joy to see the bile rise up in the now out of power republicans.

makes me wanna take my wife out dancing!

[dirt mcgirt]

It still has to pass in the Senate. I don't think it will. This bill could be a disaster because it could lead to foreign companies coming in and taking over offshore drilling or it could be the first step in changing our energy policy and get the ball rolling on an alternative energy policy. I can see the positives and negatives of both sides.

[darin]

it brings a yellowdog democrat like me SUCH joy to see the bile rise up in the now out of power republicans.

makes me wanna take my wife out dancing!

You really ENJOY Democrats running the economy into the shitter? Why do you love to see people HURTING our nation? That's just sad.

[Mr. P]

It still has to pass in the Senate. I don't think it will. This bill could be a disaster because it could lead to foreign companies coming in and taking over offshore drilling or it could be the first step in changing our energy policy and get the ball rolling on an alternative energy policy. I can see the positives and negatives of both sides.

Geeezzzzzz! What can be worse than buying foreign oil exclusively?

Allowing foreign oil companies to pump OUR oil and sell it back to us. maybe.:eek2:

[dirt mcgirt]

Geeezzzzzz! What can be worse than buying foreign oil exclusively?

Allowing foreign oil companies to pump OUR oil and sell it back to us. maybe.:eek2:
When an estimated 10-15% (http://http://www.gravmag.com/oil.html) of our oil comes from places like Venezuela, Nigeria, or Saudi Arabia, this bill would put pressure on lawmakers to change that. Since we can't ask our top oil trading partners (Canada and Mexico (http://http://www.eia.doe.gov/pub/oil_gas/petroleum/data_publications/company_level_imports/current/import.html)) to increase production, it would force us to use energy other than crude because the American people don't want to give money to countries that want to see us dead.

[darin]

When an estimated 10-15% (http://http://www.gravmag.com/oil.html) of our oil comes from places like Venezuela, Nigeria, or Saudi Arabia, this bill would put pressure on lawmakers to change that. Since we can't ask our top oil trading partners (Canada and Mexico (http://http://www.eia.doe.gov/pub/oil_gas/petroleum/data_publications/company_level_imports/current/import.html)) to increase production, it would force us to use energy other than crude because the American people don't want to give money to countries that want to see us dead.

You mean it'd raise 'our' costs by perhaps that much; so we'd buy MORE, less-expensive foreign oil?

[dirt mcgirt]

You mean it'd raise 'our' costs by perhaps that much; so we'd buy MORE, less-expensive foreign oil?
Depends on what the Legislative and Executive branches do with the energy policy if this bill gets passed. If they continue to stay the course, then yeah, it means just that.

[Gunny]

Exactly! What is it about Democrats? They just don’t understand that if you make it more expensive for a business to operate, any business, that that cost is ALWAYS passed on to the end consumer.

Exactly. Couldn't have said it any better.

[5stringJeff]

Depends on what the Legislative and Executive branches do with the energy policy if this bill gets passed. If they continue to stay the course, then yeah, it means just that.

Great. How about you pay the extra $1 per gallon for gas, and I'll continue to pay the already high $2.50 per gallon. That way, you'll be happy to be paying more, and I'll be happy to be paying less.

[dirt mcgirt]

Great. How about you pay the extra $1 per gallon for gas, and I'll continue to pay the already high $2.50 per gallon. That way, you'll be happy to be paying more, and I'll be happy to be paying less.
And if an alternative energy policy does emerge (to include solar, ethanol, methane, bio-diesels, etc.) you keep giving your $2.50 to OPEC and I'll pay whatever it is I'm paying for the alternative.

[Gunny]

It still has to pass in the Senate. I don't think it will. This bill could be a disaster because it could lead to foreign companies coming in and taking over offshore drilling or it could be the first step in changing our energy policy and get the ball rolling on an alternative energy policy. I can see the positives and negatives of both sides.

The oil companies won't screw themselves. They've proven that. The gov't slapped some environmental restrictions on them back in the late 70s and they haven't built a new refinery since. One of the biggest reasons gasoline production is so easily affected.

This bill is just going to make them go recount their pennies.

I'm not all that sympathetic to the oil companies either. I AM sypathetic to anything that will make us less dependent on foreign oil.

[5stringJeff]

And if an alternative energy policy does emerge (to include solar, ethanol, methane, bio-diesels, etc.) you keep giving your $2.50 to OPEC and I'll pay whatever it is I'm paying for the alternative.

If a cheaper alternative energy soucre arises, I'll opt for it. I'm not going to pay more to drive a solar-powered golf cart around town. When the market introduces an electric car that performs like a gas powered car (which at least one company (http://www.teslamotors.com/) is) and is affordable, I'll certainly consider it.

[darin]

And if an alternative energy policy does emerge (to include solar, ethanol, methane, bio-diesels, etc.) you keep giving your $2.50 to OPEC and I'll pay whatever it is I'm paying for the alternative.

Even $5/gallon/pound/whatever? What price is too high? When is an alternative too inefficient?

[dirt mcgirt]

Even $5/gallon/pound/whatever? What price is too high? When is an alternative too inefficient?
Gas has already hit $5 a gallon in the past. I'd say the status quo is already inefficient. I'm willing to move to a new energy policy based on alternative fuels rather than taking a chance that our relations with the OPEC cartel be stable in the future. I don't know about you guys but I'm pretty sick of having to pay $.25 more at the pump everytime some fundie bomber tries to blow up an oil well in the Middle East.

[dirt mcgirt]

The oil companies won't screw themselves. They've proven that. The gov't slapped some environmental restrictions on them back in the late 70s and they haven't built a new refinery since. One of the biggest reasons gasoline production is so easily affected.

This bill is just going to make them go recount their pennies.

I'm not all that sympathetic to the oil companies either. I AM sypathetic to anything that will make us less dependent on foreign oil.
Yeah it's one of the negative possibilities that could arise from the bill. But I'm willing to test the reach of the big oil lobbyists and giving a shot at change. Like everyone else, I'd love for the lawmakers to try and pass an-all-at once, loaded energy bill with instant gratification but unfortunately changes like this are gradual and take time.

[darin]

Gas has already hit $5 a gallon in the past. I'd say the status quo is already inefficient. I'm willing to move to a new energy policy based on alternative fuels rather than taking a chance that our relations with the OPEC cartel be stable in the future. I don't know about you guys but I'm pretty sick of having to pay $.25 more at the pump everytime some fundie bomber tries to blow up an oil well in the Middle East.

But how much are you willing to pay? E85 is HORRIBLY expensive to produce compared to regular gas, consumes more resources, AND is what 20%? less efficient in power-making?

[dirt mcgirt]

But how much are you willing to pay? E85 is HORRIBLY expensive to produce compared to regular gas, consumes more resources, AND is what 20%? less efficient in power-making?
Right now, I'm willing to pay around $3 a gallon before I start complaining. But I'd be open minded to a new policy if I'm going to have to pay $4-5 a gallon for some new shit and the money is going to American businesses rather than funding things like Chavez's communism.

[MtnBiker]

But how much are you willing to pay? E85 is HORRIBLY expensive to produce compared to regular gas, consumes more resources, AND is what 20%? less efficient in power-making?

As well as driving up the price in corn, which in turn is driving up the price in beef and chicken. Those animals have to eat something. We have oil in the USA, we just can't drill for it. :(

[CockySOB]

it brings a yellowdog democrat like me SUCH joy to see the bile rise up in the now out of power republicans.

makes me wanna take my wife out dancing!

Pardon me, but please try extracting your head from your arse for a bit.

The fact of the matter is that business DOES pass its costs (including taxes and fees) on to its customers. Remember how Democrats were arguing recently about how big business and oil companies in particular are gouging the average, working consumer? All this bill does is raise the prices that consumers will pay, period.

So again I say, pull your partisan head out of your partisan arse and try a fresh breath of reality. Who knows, you might find out that the Democrats really don't give a shit for the average, working consumer. This bill might make be a pandering point when the Democratic politicians start running their political ads, but in the real world it is only going to hurt the people that it supposedly is going to help.

Have a nice day.

[Gunny]

As well as driving up the price in corn, which in turn is driving up the price in beef and chicken. Those animals have to eat something. We have oil in the USA, we just can't drill for it. :(

We're on borrowed time where fossil fuels are concerned, besides being held hostage by hostile foreign nations over price.

The fact is, if OPEC and/or Venezuela cut us off right now, we would have no choice but go to war or watch this nation come to a virtual standstill. Our production can't keep up with our use. Anything we may have in the USA would just be a drop in the bucket, attempting to hold off the inevitable.

We need a viable alternative for energy not so much for our convenience but for our independence. nd I'd be willing to go the extra buck or two to pay for it if it meant that.

[avatar4321]

Exactly! What is it about Democrats? They just don’t understand that if you make it more expensive for a business to operate, any business, that that cost is ALWAYS passed on to the end consumer.

They don't care. They are trying to make us more dependent on foreign oil. Im starting to wonder if they even care at all about our security...

[avatar4321]

it brings a yellowdog democrat like me SUCH joy to see the bile rise up in the now out of power republicans.

makes me wanna take my wife out dancing!

What exactly are you so bitter about that youd cut off your own hand to see others suffer?

[avatar4321]

The oil companies won't screw themselves. They've proven that. The gov't slapped some environmental restrictions on them back in the late 70s and they haven't built a new refinery since. One of the biggest reasons gasoline production is so easily affected.

This bill is just going to make them go recount their pennies.

I'm not all that sympathetic to the oil companies either. I AM sypathetic to anything that will make us less dependent on foreign oil.

Communism. thats all thats important to these people. doesnt matter how many people have to be hurt to get there. its rather sad.

[avatar4321]

Gas has already hit $5 a gallon in the past. I'd say the status quo is already inefficient. I'm willing to move to a new energy policy based on alternative fuels rather than taking a chance that our relations with the OPEC cartel be stable in the future. I don't know about you guys but I'm pretty sick of having to pay $.25 more at the pump everytime some fundie bomber tries to blow up an oil well in the Middle East.

well we wouldnt have this problem if Democrats stopped creating regulation after regulation on our domestic supplies. When you cant build new refineries or cant easily go drilling of course we are going to be highly dependent on unstable regions.

[avatar4321]

Right now, I'm willing to pay around $3 a gallon before I start complaining. But I'd be open minded to a new policy if I'm going to have to pay $4-5 a gallon for some new shit and the money is going to American businesses rather than funding things like Chavez's communism.

Not everyone can afford what you can. But who cares about the little people.

[dirt mcgirt]

Not everyone can afford what you can. But who cares about the little people.
Right, cause I'm a multi-millionaire that just happens to complain whenever gas goes over $3 a gallon. :uhoh:

So what's your solution for the little people then? You think there's enough oil under the US to be self sufficient?

[dirt mcgirt]

well we wouldnt have this problem if Democrats stopped creating regulation after regulation on our domestic supplies. When you cant build new refineries or cant easily go drilling of course we are going to be highly dependent on unstable regions.
We just had 6 years of a Republican majority in the House, Senate, and White House. During that time gas went up to as high as $5 a gallon in some parts of the country. Explain how not building refineries or not drilling in the Gulf over the last 6 years is the Dems fault again.

[avatar4321]

We just had 6 years of a Republican majority in the House, Senate, and White House. During that time gas went up to as high as $5 a gallon in some parts of the country. Explain how not building refineries or not drilling in the Gulf over the last 6 years is the Dems fault again.

Um hello? Were you paying attention? Everytime Republicans tried to do something Democrats would Fillibuster.

[avatar4321]

Right, cause I'm a multi-millionaire that just happens to complain whenever gas goes over $3 a gallon. :uhoh:

So what's your solution for the little people then? You think there's enough oil under the US to be self sufficient?

Yes, more than enough.

[dirt mcgirt]

Um hello? Were you paying attention? Everytime Republicans tried to do something Democrats would Fillibuster.
Only with judicial nominees. The bill to build new refineries barely passed the House but never even made it past the committee to get to the Senate floor. R-Lincoln Chafee was the one that shot that down. Try again.

[Gunny]

Communism. thats all thats important to these people. doesnt matter how many people have to be hurt to get there. its rather sad.

I'm having a hard time making the connection to communism. Could you elaborate?

[Gunny]

Yes, more than enough.

For how long? And who's ecosystem do you propose to destroy in order to get to it? I'm not a tree-hugger by any means, but it doesn't take a Greenpeace member to see that this continual taking and not giving back to the Earth isn't going to result in anything good.

No matter how much oil there may or may not be in under the US, it's a finite supply. We would be far better served in the long-run to place that time, effort and money seeking viable alternative fuel sources. And when I say "viable," I mean something comparable in performance and price to what we have now.

[CockySOB]

Only with judicial nominees. The bill to build new refineries barely passed the House but never even made it past the committee to get to the Senate floor. R-Lincoln Chafee was the one that shot that down. Try again.

Got a link to the bill in the Congressional library, or either the HS or S number? I'd like to do some more research on this. TIA!

[dirt mcgirt]

Got a link to the bill in the Congressional library, or either the HS or S number? I'd like to do some more research on this. TIA!
I believe it's HR 3893 (http://http://www.theorator.com/bills109/hr3893.html)

Here's some background info about the legislation I'm referring to:
http://www.ens-newswire.com/ens/oct2005/2005-10-26-10.asp
http://www.cbsnews.com/stories/2005/10/09/ap/business/mainD8D48QJG1.shtml

[CockySOB]

I believe it's HR 3893 (http://http://www.theorator.com/bills109/hr3893.html)

Here's some background info about the legislation I'm referring to:
http://www.ens-newswire.com/ens/oct2005/2005-10-26-10.asp
http://www.cbsnews.com/stories/2005/10/09/ap/business/mainD8D48QJG1.shtml

Danka!

[Mr. P]

Got a link to the bill in the Congressional library, or either the HS or S number? I'd like to do some more research on this. TIA!

http://thomas.loc.gov/cgi-bin/query/D?c110:6:./temp/~c110tTimLd::

[Gaffer]

Right, cause I'm a multi-millionaire that just happens to complain whenever gas goes over $3 a gallon. :uhoh:

So what's your solution for the little people then? You think there's enough oil under the US to be self sufficient?

Yes, all they have to do is reopen all the wells in Texas and Oklahoma that they shut down in the 70's as a start. and drill in the gulf and Alaska. That would make us self sufficient while we research other forms of energy.

[Gunny]

Yes, all they have to do is reopen all the wells in Texas and Oklahoma that they shut down in the 70's as a start. and drill in the gulf and Alaska. That would make us self sufficient while we research other forms of energy.

Were those wells shut down due to economics, or because they went dry?

[Gaffer]

Were those wells shut down due to economics, or because they went dry?

Economics. A friend of mine use to drive a truck hauling oil around there. he got laid off because of the shut downs. It was some sort of conservation thing so all the wells are sitting idol now. It was a nixon thing to conserve the oil here and use oil from the middle east and other areas and if they stopped their supply we had the Texas oil as back up. I'm going from memory here as it was a long time ago.