Declare Energy Independence
07/01/2006
by Jim DiPeso
Mother Earth News
We the people need to motivate Uncle Sam to create a rational and revolutionary energy strategy.
Fact: All forms of energy are subsidized. Oil. Gas. Coal. Nuclear. Renewables. No type of energy stands alone in the market, free of tax breaks, research grants or other forms of government help.
Fact: Subsidies are ultimately funded by the taxes we pay.
Americans pay a great deal to subsidize energy resources, but given the nation’s growing energy problems, which subsidies make sense and which don’t?
The question is timely because our current energy habits are not sustainable for the environment, our national security or our economic health. The United States must shift to clean, diverse, more secure sources of energy used more efficiently. Subsidies can be a major tool in this effort. Those that move us closer to that goal deserve support. Those that don’t should be terminated.
Unfortunately, Congress’ approach to energy policy has been to kowtow to special interests. The Energy Policy Act of 2005 was a wasted opportunity of historic proportions. The legislation was stuffed with handouts that will sustain our addiction to oil.
How much do energy handouts cost? While subsidies can be difficult to quantify, the National Commission on Energy Policy — a panel of business, government, science and environmental leaders — estimated that federal energy subsidies totaled between $37 billion and $64 billion in 2003.
Subsidies also can take many forms. Between 1998 and 2003, the federal government provided $11.8 billion in research and development grants, in roughly equal thirds going to nuclear, fossil fuels, and to efficiency and renewable resources. Between 1990 and 2002, oil and gas companies reaped nearly $12 billion as a result of improper reporting of royalties due.
Redirecting subsidies is an essential component of a strategy to address the energy problems on our nation’s doorstep. The strategy must include greater energy efficiency, lower carbon emissions, and replacing oil and other conventional fossil fuels with solar, wind, biofuels and other clean energy sources.
Time is short to change our energy course to a new, less risky path of lower costs, less danger and wise stewardship of the only atmosphere that we have. Congress can be prodded to act in the country’s best interests only if citizens demand that lawmakers enact a rational energy strategy equal to the difficulties ahead. Only we, the people, can supply the necessary will.
For more on this topic, see Declare Energy Independence in the June/July 2006 issue of Mother Earth News.
Jim DiPeso is the policy director of Republicans for Environmental Protection (REP America), a grass-roots organization that seeks to restore the Republican conservation tradition.