Alternative energy...who wants it?
Will Congress Take the Wind out of Our Sails? | Catalyst Fall 2012 | Union of Concerned Scientists
Misplaced Priorities
In early August, the Senate Finance Committee voted 19-5 to extend the PTC for one year; the extension had bipartisan support in the committee and is supported by Pat Roberts (R-KS) and Chuck Grassley (R-IA). A similar bill in the House has 80 co-sponsors, including 18 Republicans. The extension even has the support of organizations that have opposed federal action on climate change, including the National Association of Manufacturers and the U.S. Chamber of Commerce.
So what’s holding it up? Despite the fact that the wind industry has contributed at least $60 billion to the national economy since 2005, House leaders say they are concerned about the cost of $3 billion to $4 billion a year in tax credits. The most vocal opponents of the PTC, including several groups funded by the oil industry’s billionaire brothers
Charles and David Koch, argue that the government is playing favorites by granting the wind industry the tax credit. In early September, Koch-backed
Americans for Prosperity and other groups sent a letter to Congress opposing the extension, arguing that it “continues the deplorable practice of using the tax code to favor certain groups over others.”
Neither the House leadership nor the Koch-affiliated groups, however, question the fact that fossil fuels and nuclear power have been feasting on federal subsidies for decades while renewables have been living on scraps.
For example:
The
oil and gas industry has received an average of
$4.86 billion in subsidies (in today’s dollars) every year for nearly 100 years—from 1918 to 2009
The
nuclear industry—which would not be economically viable without government support—received an average of
$3.5 billion every year from 1947 to 1999, and continues to benefit from similar amounts of support today
Coal received between
$3.2 billion and $5.4 billion in 2008 alone, while
renewables averaged only $370 million a year between 1994 and 2009
Time to Level the Playing Field
The question is not whether energy production should be subsidized. The federal government clearly has a role to play in helping promising technologies compete in the marketplace.
The question is whether the government should continue to underwrite extremely profitable, mature industries—especially highly polluting ones—at the expense of cleaner, more efficient, low-carbon alternatives. The obvious answer is no.
Excluding hydropower, renewable energy currently accounts for only about 5 percent of U.S. electricity, but UCS research shows it has the potential to generate more than 40 percent by 2030, with as much as half coming from wind. That would replace the share currently generated by coal, which is responsible for more than 80 percent of the U.S. electricity sector’s carbon emissions.
Extending the PTC now, and enacting a national renewable electricity standard in the near future, would go a long way toward protecting us from the worst consequences of global warming and bolster the economy at the same time.
Continuing with business as usual, on the other hand, would waste taxpayer dollars while threatening our health and environment for generations to come.
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