Quantcast

Koch Industries Lobbies Against Electric Vehicle Tax Credit

Renewable Energy
Max Pixel

By Dana Drugmand

Koch Industries is calling for the elimination of tax credits for electric vehicles (EVs), all while claiming that it does not oppose plug-in cars and inviting the elimination of oil and gas subsidies that the petroleum conglomerate and its industry peers receive.

Outgoing Nevada Republican Senator Dean Heller introduced a bill in September that would lift the sales cap on electric vehicles eligible for a federal tax credit, and replace the cap with a deadline that would dictate when the credit would start being phased out.


Under the current tax credit for EVs, once a manufacturer sells 200,000 EVs in the U.S. the amount of the credit gets slashed in half, then halved again. The full credit amount is $7,500. Tesla has already hit the 200,000 cap and GM will soon reach it, so both companies would benefit from a tax credit extension via eliminating the sales cap. Heller's bill lifts the 200,000 vehicle limit and substitutes a phase-out period starting in 2022.

But the conservative senator's bill is facing opposition from the conservative billionaire Koch brothers.

In a letter to senators dated Oct. 24, Koch Industries lobbyist Philip Ellender urges opposition to the expansion of EV tax credits through 2022. Ellender claims that the tax credits primarily benefit wealthy consumers and that subsidization interferes with "innovation and consumer choice."

The letter cites two studies, each by a right-wing think tank. One study comes from the Pacific Research Institute, which has received fossil fuel funding—including more than $1.7 million from Koch-related foundations and $615,000 from ExxonMobil. The PRI study, "Costly Subsidies for the Rich: Quantifying the Subsidies Offered to Battery Electric Powered Cars," emphasizes that "the majority of the dollar benefits from energy and electric car subsidies are paid to tax filers in the higher income tax brackets."

The other study is from the Manhattan Institute, another "free market think tank" that takes in money from the Koch network and Exxon. The study paints a misleading picture of EVs and their subsidies.

In addition to citing biased studies by groups tied to Koch money, Ellender claims in the letter, "We do not oppose electric vehicles."

This sentiment echoes the company's 2016 advertorial, in which Koch Industries claimed to be "all for electric vehicles."

Ellender also claims that Koch Industries is against any and all energy subsidies, even ones that benefit the company. According to the letter:

Instead of expanding this subsidy for wealthy EV owners, Congress should eliminate it along with all other energy incentives—including eliminating any incentives given to us and our competitors where we may participate. We are focused on long-term value creation, not short-term windfalls.

In reality, while Koch Industries is claiming publicly to support ending fossil fuel subsidies (along with EV and clean energy incentives), Koch lobbyists have long worked to ensure that the petroleum industry continues to get subsidized.

As Koch vs. Clean previously pointed out, "In a detailed 2011 report on Koch Industries, the Center for Public Integrity wrote: 'Oil is the core of the Koch business empire, and the company's lobbyists and officials have successfully fought to preserve the industry's tax breaks and credits.' The report documented that Koch lobbyists have worked to preserve billions of dollars in oil industry subsidies, including the Section 199 manufacturing tax deduction and the 'last-in, first out' accounting rule."

In fact, according to the International Business Times, Koch Industries has itself directly secured subsidies totaling more than $195 million.

The Koch network also lobbied for the Trump tax cuts that became law late last year. The corporate tax cut is not specific to energy, but it benefits giant corporations including Big Oil and Koch Industries nonetheless. Americans for Tax Fairness estimated that the Kochs would save more than $1 billion just this year from the tax cut—a significant windfall for a corporate behemoth that claims, "We are focused on long-term value creation, not short-term windfalls."

Reposted with permission from our media associate DeSmogBlog.

EcoWatch Daily Newsletter

Protestors marched outside the Prudential Center in Newark, New Jersey on Monday, August 26, during the MTV Video and Music Awards to bring attention to the water crisis currently gripping the city. Karla Ann Cote / NurPhoto / Getty Images

By Will Sarni

It is far too easy to view scarcity and poor quality of water as issues solely affecting emerging economies. While the images of women and children fetching water in Africa and a lack of access to water in India are deeply disturbing, this is not the complete picture.

The city of Flint, Michigan, where dangerous levels of pollutants contaminated the municipal water supply, is a case in point — as is, more recently, the city of Newark, New Jersey.

The Past is No Longer a Guide to the Future

We get ever closer to "day zeros" — the point at when municipal water supplies are switched off — and tragedies such as Flint. These are not isolated stories. Instead they are becoming routine, and the public sector and civil society are scrambling to address them. We are seeing "day zeros" in South Africa, India, Australia and elsewhere, and we are now detecting lead contamination in drinking water in cities across the U.S.

"Day zero" is the result of water planning by looking in the rear-view mirror. The past is no longer a guide to the future; water demand has outstripped supplies because we are tied to business-as-usual planning practices and water prices, and this goes hand-in-hand with the inability of the public sector to factor the impacts of climate change into long-term water planning. Lead in drinking water is the result of lead pipe service lines that have not been replaced and in many cases only recently identified by utilities, governments and customers. An estimated 22 million people in the US are potentially using lead water service lines. This aging infrastructure won't repair or replace itself.

One of the most troubling aspects of the global water crisis is that those least able to afford access to water are also the ones who pay a disproportionately high percentage of their income for it. A report by WaterAid revealed that a standard water bill in developed countries is as little as 0.1 percent of the income of someone earning the minimum wage, while in a country like Madagascar a person reliant on a tanker truck for their water supply would spend as much as 45 percent of their daily income on water to get just the recommended daily minimum supply. In Mozambique, families relying on black-market vendors will spend up to 100 times as much on water as those reached by government-subsidized water supplies.

Finally, we need to understand that the discussion of a projected gap between supply and demand is misleading. There is no gap, only poor choices around allocation. The wealthy will have access to water, and the poor will pay more for water of questionable quality. From Flint residents using bottled water and paying high water utility rates, to the poor in South Africa waiting in line for their allocation of water — inequity is everywhere.

Water Inequity Requires Global Action — Now.

These troubling scenarios beg the obvious question: What to do? We do know that ongoing reports on the 'water crisis' are not going to catalyze action to address water scarcity, poor quality, access and affordability. Ensuring the human right to water feels distant at times.

We need to mobilize an ecosystem of stakeholders to be fully engaged in developing and scaling solutions. The public sector, private sector, NGOs, entrepreneurs, investors, academics and civil society must all be engaged in solving water scarcity and quality problems. Each stakeholder brings unique skills, scale and speed of impact (for example, entrepreneurs are fast but lack scale, while conversely the public sector is slow but has scale).

We also urgently need to change how we talk about water. We consistently talk about droughts happening across the globe — but what we are really dealing with is an overallocation of water due to business-as-usual practices and the impacts of climate change.

We need to democratize access to water data and actionable information. Imagine providing anyone with a smartphone the ability to know, on a real-time basis, the quality of their drinking water and actions to secure safe water. Putting this information in the hands of civil society instead or solely relying on centralized regulatory agencies and utilities will change public policies.

Will Sarni is the founder and CEO of Water Foundry.

Note: This post also appears on the World Economic Forum.

Reposted with permission from our media associate Circle of Blue.

Pexels
  • Mice exposed to nicotine-containing e-cigarette vapor developed lung cancer within a year.
  • More research is needed to know what this means for people who vape.
  • Other research has shown that vaping can cause damage to lung tissue.

A new study found that long-term exposure to nicotine-containing e-cigarette vapor increases the risk of cancer in mice.

Read More Show Less
Sponsored
Demonstrators with The Animal Welfare Institute hold a rally to save the vaquita, the world's smallest and most endangered porpoise, outside the Mexican Embassy in DC on July 5, 2018. SAUL LOEB / AFP / Getty Images

By John R. Platt

Six months: That's how much time Mexico now has to report on its progress to save the critically endangered vaquita porpoise (Phocoena sinus) from extinction.

Read More Show Less
Pexels

It may seem innocuous to flush a Q-tip down the toilet, but those bits of plastic have been washing up on beaches and pose a threat to the birds, turtles and marine life that call those beaches home. The scourge of plastic "nurdles," as they are called, has pushed Scotland to implement a complete ban on the sale and manufacture of plastic-stemmed cotton swabs, as the BBC reported.

Read More Show Less
Air conditioners, like these in a residential and restaurant area of Singapore city, could put a massive strain on electricity grids during more intense heatwaves. Taro Hama @ e-kamakura / Moment / Getty Images

By Tim Radford

Scientists in the U.S. have added a new dimension to the growing hazard of extreme heat. As global average temperatures rise, so do the frequency, duration and intensity of heatwaves.

Read More Show Less
Sponsored
Actress Jane Fonda is arrested on the East Front of the U.S. Capitol in Washington, DC on Oct. 11. Marvin Joseph / The Washington Post via Getty Images

Oscar-award winning actress and long-time political activist Jane Fonda was arrested on the steps of Capitol Hill in Washington, DC on Friday for peacefully protesting the U.S. government's inaction in combating the climate crisis, according to the AP.

Read More Show Less
sam thomas / iStock / Getty Images Plus

By Caroline Hickman

I'm up late at night worrying that my baby brothers may die from global warming and other threats to humanity – please can you put my mind at rest? – Sophie, aged 17, East Sussex, UK

Read More Show Less
Sheriff officials work the scene at Villa Calimesa Mobile Home Park in Calimesa on Oct. 13. Jennifer Cappuccio Maher / MediaNews Group / Inland Valley Daily Bulletin / Getty Images

Three people have died in incidents related to two major wildfires in Southern California, The Los Angeles Times Reported Sunday.

Read More Show Less