The national conversation about wasteful welfare for highly profitable dirty energy corporations has gone from the dramatic statement by the Chief Economist of the International Energy Agency that fossil fuel subsidies are one of the biggest impediments to global economic recovery (“the appendicitis of the global energy system which needs to be removed for a healthy, sustainable development future”), to a speech by Solar Energy Industries Association President Rhone Resch (in which he called the fossil fuel industry “grotesquely oversubsidized”), to a call by President Obama to cut oil company welfare by $4 billion. Not to be outdone, House Democrats are now calling for a $40 billion cut.
Dirty energy welfare defenders have, predictably, responded with ridiculous, Palin-esque denials of reality, but the voter demands that wasteful spending be cut begs the question: just how much of our tax money is going to ExxonMobil, Massey, etc.? With the new deficit hawks in Congress going after insignificant items like bottled water expenses, you’d think they’d want to know the size of the really wasteful stuff, right?
In his State of the Union address, President Obama urged Congress to stop subsidizing oil companies and set a goal for 80% of electricity generated by 2035 to come from “clean” energy sources. While there is much dispute over some of the technologies included in the “clean” category, the President is proposing some wise investments in genuine cleantech. To pay for low-carbon energy alternatives, the President proposed $302 million for solar energy research and development (up 22 percent); $123 million for wind energy (a 53 percent increase); and $55 million for geothermal energy (up 25 percent).
But fossil fuels subsidies are holding back growth in burgeoning clean energy industries, which face a momumental challenge to compete with entrenched industries that receive far greater government subsidies.
And when it comes to oil subsidies, the President says enough is enough:
“…I’m asking Congress to eliminate the billions in taxpayer dollars we currently give to oil companies. I don’t know if you’ve noticed, but they’re doing just fine on their own. So instead of subsidizing yesterday’s energy, let’s invest in tomorrow’s.”