Text 25276, 119 rader
Skriven 2006-11-19 10:48:00 av Jeff Binkley (1:226/600)
Ärende: Dems
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The Dems were either MIA or obstructionsts when Bush and Cheney tried to create
a national energy policy.  This is just typical democrat window dressing to
fool folks into thinking they are actually doing something...

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http://hosted.ap.org/dynamic/stories/C/CONGRESS_ENERGY?SITE=7219&SECTION=HOME&T
EMPLATE=DEFAULT&CTIME=2006-11-19-03-54-44

Nov 19, 3:54 AM EST

Dems Take Aim at Oil Company Tax Breaks

By H. JOSEF HEBERT
Associated Press Writer

WASHINGTON (AP) -- House Democrats are targeting billions of dollars in oil
company tax breaks for quick repeal next year. A broader energy proposal that
would boost alternative energy sources and conservation is expected to be put
off until later.

Hot-button issues such as a tax on the oil industry's windfall profits or sharp
increases in automobile fuel economy probably will not gain much ground given
the narrow Democratic majorities in the House and Senate.

Incoming House Speaker Nancy Pelosi, in an outline of priorities over the first
100 hours of the next Congress in January, promises to begin a move toward
greater energy independence "by rolling back the multibillion dollar subsidies
for Big Oil."

Yet the energy plan being assembled by Pelosi's aides for the initial round of
legislation is less ambitious than her pronouncement might suggest.




For the most part, the tax benefits are ones that lawmakers talked of repealing
this year when Congress struggled to respond to the public outcry over soaring
summer fuel prices and oil companies' huge profits.

Topping the list for repeal are:

-Tax breaks for refinery expansion and for geological studies to help oil
exploration.

-A measure passed two years ago primarily to promote domestic manufacturing. It
allows oil companies to take a tax credit if they chose to drill in this
country instead of going abroad.

Democrats say neither tax benefit should be needed for an industry reaping
large profits at today's high crude oil prices.

Over 10 years, the production tax credit saves oil companies $5 billion and the
refinery measure and exploration credit a total of about $1.4 billion,
according to Congressional Budget Office estimates.

Other oil tax breaks probably will go unchallenged. That includes some passed
by Congress only a year ago and others already targeted for repeal this year.

For example, House Democrats have no plans to change a provision that allows
oil companies to avoid billions of dollars in taxes by the way they calculate
inventories. The Senate this year agreed to a repeal; the effort was abandoned
amid House GOP opposition and an uproar from other industries that also benefit
from the tax language.

House Democrats also are shying away from tampering with more than $1 billion
worth of oil- and gas-related tax breaks, enacted last year. These breaks
largely benefit small companies or gas utilities rather than the major oil
companies now awash in cash.

Nevertheless, the House and Senate are expected to push legislation early to
force oil companies to renegotiate flawed offshore drilling leases that have
allowed the companies to avoid paying federal royalties. The loss eventually
could cost the government $10 billion, according to some congressional
estimates.

Other prime targets of House and Senate Democrats include:

-Alleged price gouging. Proposals to create a federal price gouging law for
gasoline and other fuels probably will move quickly.

-More incentives and mandates to expand the use of ethanol and biodiesel as a
substitute for gasoline. Requiring oil companies to phase in retail pumps that
deliver fuel that is 85 percent ethanol.

-Requiring power companies to produce a percentage of their electricity from
renewable energy sources such as wind and solar power. Such a measure is a
priority of Sen. Jeff Bingaman, D-N.M., incoming chairman of the Senate Energy
and Natural Resources Committee.

-Extending energy efficiency tax credits approved by Congress last year. Most
are scheduled to expire at the end of next year.

-Expanding a tax break for buyers of gas-electric hybrid cars and offering more
incentives for automakers to build greater numbers of the vehicles.

Rep. John Dingell, D-Mich., who will take over as chairman of the House Energy
and Commerce Committee, said he plans hearings on legislation to spur further
production and distribution of ethanol and biodiesel, and promote conservation.

But he suggested it will take time to produce legislation. "The process is a
long one. It takes hearings, it takes fact finding," said Dingell in a
telephone interview.

On the Senate side, Bingaman probably will avoid writing a single broad energy
bill, preferring to push through specific legislation. Among Bingaman's other
goals are new incentives to spur renewable energy development and more tax
breaks for conservation.

Last spring, Sen. Charles Schumer, D-N.Y., said if the country is to reduce its
addiction to oil and high energy prices it needs a "crash program" to develop
more alternative energy sources, dramatically increase conservation and examine
"whether or not we should break up the big oil companies."

Next year, Schumer assumes the No. 3 leadership position among Senate Democrats
and will be one of the party's top strategists.

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