By Ben Geman and Andrew Restuccia - 07/12/11 12:07 AM EDT
Industry study: Nixing oil tax breaks won’t help deficit
An industry-backed group will roll out a report Tuesday that concludes repealing certain oil-and-gas industry tax breaks will do nothing to help reduce the deficit and would instead result in lost revenues.
The report by Louisiana State University finance professor Joseph Mason arrives as the White House and Capitol Hill Democrats are pushing to repeal oil industry tax breaks as part of a wider deficit-reduction deal with Republicans.
The report, commissioned by the industry group American Energy Alliance, makes the case against repealing the industry’s ability to claim a lucrative domestic manufacturing deduction and altering tax treatment of foreign income.
The proposed revisions to Section 199 and Dual Capacity for the oil and gas industry are expected by the Treasury to raise approximately $30 billion in Federal tax revenue over the next ten years. But this comes at the expense of industry cutbacks that can reasonably be expected to cost the economy some $341 billion in economic output, 155,000 jobs, $68 billion in wages, and $83.5 billion in reduced tax revenues. The net fiscal effect, a loss of $53.5 billion in tax revenues, suggests that the policy proposals exacerbate, rather than alleviate, the Federal deficit.
Mason and Thomas Pyle, the president of the group, will discuss the study at a briefing on Capitol Hill Tuesday morning.
White House seeks reg review from energy-related agencies
The White House on Monday expanded its program to make regulations more business-friendly.
It’s pushing a host of independent agencies to review existing rules, and ensure that future policies provide needed protections while promoting growth and competitiveness.
Those agencies include the NRC, the Federal Energy Regulatory Commission, and others with energy-related matters in their portfolio, such as the Securities and Exchange Commission.
The SEC, for instance, is crafting regulations to implement provisions in the Dodd-Frank financial reform law that will force oil companies to disclose payments to foreign governments. The oil industry is pushing for various exemptions in the rule.
Green group welcomes new climate official
The Union of Concerned Scientists is welcoming Angela Ledford Anderson as its new climate and energy program director.
She joins the group after working as program director for the U.S. Climate Action Network. Before that, she worked on global warming for the Pew Environment Group.
ON TAP TUESDAY:
House plans vote on light bulb law repeal
The House is slated to vote Tuesday on GOP legislation that would repeal light bulb efficiency standards contained in a 2007 energy law.
The White House, Democrats and environmentalists don’t like the bill. Republicans and conservative pundits who call it a blow against big government do. Click here and here for some of E2’s earlier coverage.
The vote could slip, but the vote is currently planned for Tuesday.
Groups, lawmakers to launch enhanced oil recovery push
A bipartisan group of lawmakers – including Sen. Kent Conrad (D-N.D.), a senior Democrat – will join industry executives, state officials and others to launch a new initiative that promotes enhanced oil recovery (EOR) using carbon dioxide.
EOR can boost production from existing oil fields through CO2 injections that sequester the greenhouse gas underground. The Great Plains Institute and the Pew Center on Global Climate Change are facilitating the initiative.
Floor battle over Energy Department spending plan
The House will continue battling over fiscal 2012 Energy Department spending legislation that would make steep cuts to green energy R&D programs the White House calls a priority.
The amendment battle is already under way. Click here for more coverage.
Spending panel take up Interior, EPA funding bill
The House Appropriations Committee will vote on legislation that would cut Interior Department conservation programs and EPA spending, and thwart several EPA initiatives.
Electric vehicle company to tout Senate trucks plan
The CEO of Smith Electric Vehicles will hold a Capitol Hill event tomorrow to tout legislation that provides incentives for hybrid and electric trucks.
CEO Bryan Hansel will showcase the company’s all-electric delivery trucks and call for action on legislation sponsored by Sens. Roy Blunt (R-Mo.) and Herb Kohl (D-Wis.).
Blunt and perhaps Kohl are slated to attend the event, which begins
late morning at 1st and C Street NE near the Russell and Dirksen Senate
The various tax credits in the bill will “spark investment in the economy, create green manufacturing jobs, and promote energy independence and a cleaner environment,” according to the company. Smith is paying attention to the hot D.C. summer weather in planning the event: They’re serving ice cream.
House committee to vote on coal ash, EPA review bills
The committee will mark up bills that would block stringent EPA regulation of certain coal combustion wastes, and require new interagency reviews of the economic effects of several EPA rules.
Senate energy panel weighs renewable energy bills
The Senate Energy and Natural Resources Committee will hold a hearing on bills to boost solar power, geothermal power and other issues. More info here.
Murkowski, Hayes to talk Artic oil-and-gas
The Center for Strategic and International Studies (CSIS) hosts a forum on Arctic oil-and-gas development.
Sen. Lisa Murkowski (Alaska), the top Republican on the Senate’s Energy Committee, will appear, as will Interior Department Deputy Secretary David Hayes and a senior Shell Oil official.
Inhofe, conservative groups ramp up push against Commerce nominee
Sen. James Inhofe (R-Okla.) will join with advocates from conservative groups at a press conference to attack the nomination of John Bryson, who is President Obama's choice to run the Commerce Department.
Bryson's work in the environmental movement decades ago and more recent support for greenhouse gas limits have drawn GOP ire.
IN CASE YOU MISSED IT:
Check out E2's Monday coverage . . .
- The GOP's light bulb bill is heading for a likely defeat
- The House rejected a bid to mandate even steeper cuts in energy spending
- The White House weighs in against the GOP light bulb plan
- Oil companies snapped up oil from the SPR
- House Republicans want to slow down the expansion of offshore drilling rules
- Democrats and environmental groups accuse Republicans of cutting corners on their light bulb bill
- Former White House climate aide Carol Browner has another new job