• 2 minutes California to ban gasoline for lawn mowers, chain saws, leaf blowers, off road equipment, etc.
  • 6 minutes China and India are both needing more coal and prices are now extremely high. They need maximum fossil fuel.
  • 11 minutes Europeans and Americans are beginning to see the results of depending on renewables.
  • 19 hours Monday 9/13 - "High Natural Gas Prices Today Will Send U.S. Production Soaring Next Year" by Irina Slav
  • 15 mins GREEN NEW DEAL = BLIZZARD OF LIES
  • 1 hour Did China cherry-pick the factors that affected the economic slow-down?
  • 1 min Is China Rising or Falling? Has it Enraged the World and Lost its Way? How is their Economy Doing?
  • 24 hours "Here is The Hidden $150 Trillion Agenda Behind The "Crusade" Against Climate Change" - Zero Hedge re: Bank of America REPORT
  • 3 days U.S. : Employers Can Buy Retirement Security for $2.64 an Hour
  • 3 days Nord Stream - US/German consultations
  • 5 days "A Very Predictable Global Energy Crisis" by Irina Slav --- MUST READ
  • 409 days Class Act: Bet You've Never Seen A President Do This.
  • 5 days An Indian Opinion on What is Going on in China
  • 2 days Forecasts for Natural Gas
  • 2 days Australia sues Neoen for lack of power from its Tesla battery
  • 5 days Storage of gas cylinders
  • 5 days Can Technology Keep Coal Plants Alive and Well?
Hedge Funds Cut Bullish Bets On Oil Amid Profit-Taking

Hedge Funds Cut Bullish Bets On Oil Amid Profit-Taking

Portfolio managers reduced their bullish…

U.S. Oil Stocks Are Seriously Undervalued Right Now

U.S. Oil Stocks Are Seriously Undervalued Right Now

Oil prices have rallied more…

Oil Markets Unfazed By Falling Imports From China

Oil Markets Unfazed By Falling Imports From China

Oil prices continued to climb…

Environmental Finance

Environmental Finance

Environmental Finance is still the only independent global magazine offering comprehensive coverage of the financial impact of environmental issues on the business community.  Leading industry…

More Info

Premium Content

This Year it is Fossil Fuels Turn to Receive the Majority of DOE Funding

The renewable energy and energy efficiency sectors received most of the US federal government’s $24 billion in energy subsidies last year, but fossil fuels will win out this year as several key tax breaks for renewables have expired.

Preferential tax treatment accounted for $20.5 billion, or about 85%, of federal support for developing and producing fuel and energy technologies in 2011, while Department of Energy (DOE) spending programmes comprised nearly $3.5 billion, or 15%, according to a report by the non-partisan Congressional Budget Office.

In 2011, a total of $13.9 billion, or 68% of the energy-related tax preferences, was directed toward renewable energy, while $2.1 billion, or 10%, was spent on energy efficiency initiatives. This was broadly in line with the support granted in 2010.

But four major tax breaks for the renewable energy and energy efficiency sectors, accounting for 60% of the total cost of their preferential tax treatments, have already expired and the production tax credit for wind is scheduled to expire by the end of 2012, the report noted.

For example, the Section 1603 Treasury grant programme, which sunset on 31 December, had a total cost of about $3.9 billion last year, the report stated. A credit for energy-efficiency improvements to existing homes had a total cost of about $1.5 billion and also expired at the end of 2011.

Only four major energy tax breaks are permanent: three for fossil fuels and one for nuclear energy, and they were valued at $3.4 billion last year, according to the report. President Barack Obama has repeatedly asked Congress to eliminate billions of dollars in subsidies for the oil and gas sector.  

But preferential tax treatments are generally an inefficient way to reduce the environmental costs of producing and consuming energy because they may reward businesses for investments or actions they intended to take anyway, and they only target specific technologies that may not be the least expensive, according to the report.

“The most direct and cost-effective method for addressing that problem would be to levy a tax on energy sources that reflects the environmental and other costs associated with their production and use,” the report stated.

Of the $3.5 billion spent by the DOE in 2011, about $3.3 billion went to direct investments, with 54% of these funds divided equally between renewable energy and efficiency programmes. In comparison, 23% was spent on nuclear energy programmes and 10% was directed toward fossil fuel R&D. The rest of the DOE funds were spent on loan programmes.

By. Gloria Gonzalez

Source: Environmental-Finance


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News