The best of EcoWatch, right in your inbox. Sign up for our email newsletter!
Taxpayers Charged $7 Billion a Year to Subsidize Fossil Fuels on Public Lands
The federal government is providing extensive support for fossil fuel production on public lands and waters offshore, through a combination of direct subsidies, enforcement loopholes, lax royalty collection, stagnant lease rates and other advantages to the industry, a report released Wednesday found.
The government is contributing at least $7 billion per year in subsidies to support fossil fuel production on federally held lands and offshore waters alone, and is holding some $35 billion in public liabilities for drilling in public waters of the Gulf of Mexico. These subsidies support increased fossil fuel production on U.S. lands and waters out of step with efforts to meet international climate objectives.
The report, released by Oil Change International in partnership with 350.org, WildEarth Guardians, Center for Biological Diversity, Clean Water Action, Food & Water Watch and Public Citizen, for the first time outlines in detail the subsidies and other public support being provided in the U.S. to the fossil fuel industry for its activities on public lands.
The report, Unequal Exchange: How Taxpayers Shoulder the Burden of Fossil Fuel Development on Federal Lands, presents an accounting of the minimum amounts of direct taxpayer dollars going to support fossil fuels on public lands, not including externalities such as climate and health impacts, which would bring the totals even higher. If those factors are taken into account, for example, mining coal in the Powder River Basin alone would have a net cost to the U.S. public of some $17.8 billion per year as of 2015.
"Rex Tillerson and other members of the Trump administration deny that these subsidies even exist just like they deny climate change. The reason is clear—in both cases, if you admit the truth, the only answer is a managed decline of the fossil fuel industry," said Stephen Kretzmann, executive director of Oil Change International.
"The first step towards that is to stop supporting the industry with our public dollars. These subsidies are a raw deal for American taxpayers, and a disaster for our climate."
Particularly notable is a finding that some royalty and lease rates for fossil fuel development on public lands have remained unchanged since the 1920s.
"As if simply allowing the toxic, climate-killing extraction of fossil fuels on our sensitive public lands isn't shameful enough, that the federal government actually subsidizes this foolish activity with taxpayer money is downright absurd," said Wenonah Hauter, executive director at Food & Water Watch.
"For the sake of climate stability, the transition to a clean energy future must begin immediately. An ideal place to kick-start the transition is with a ban on fossil fuel extraction on our precious public lands, and most certainly, a halt to the underhanded propping-up of this antiquated industry with our precious public dollars."
The report makes a number of key recommendations, starting with a basic determination that the fossil fuel leasing program on public lands should be phased out in line with climate science. Until that become reality, the report finds immediate action to reduce large, unfunded liabilities for U.S. taxpayer money associated with fossil fuel production on public lands should be reduced and royalty and lease rates should be increased to better reflect the full costs to the public of these activities.
"This report makes it clear as day that the Trump agenda is the fossil fuel billionaire agenda," said Jason Kowalski, policy director at 350.org.
"The industry finances corrupt politicians, who in turn help them keep fossil fuels economically viable at a time when the science suggests most oil, gas and coal needs to be kept in the ground. They set out to rig the system and they succeeded. History will judge them harshly."
EcoWatch Daily Newsletter
Tuna auctions are a tourist spectacle in Tokyo. Outside the city's most famous fish market, long queues of visitors hoping for a glimpse of the action begin to form at 5 a.m. The attraction is so popular that last October the Tsukiji fish market, in operation since 1935, moved out from the city center to the district of Toyosu to cope with the crowds.
gmnicholas / E+ / Getty Images
Kristan Porter grew up in a fishing family in the fishing community of Cutler, Maine, where he says all roads lead to one career path: fishing. (Porter's father was the family's lone exception. He suffered from terrible seasickness, and so became a carpenter.) The 49-year-old, who has been working on boats since he was a kid and fishing on his own since 1991, says that the recent warming of Maine's cool coastal waters has yielded unprecedented lobster landings.
The climate crisis is getting costly. Some of the world's largest companies expect to take over one trillion in losses due to climate change. Insurers are increasingly jittery and the world's largest firm has warned that the cost of premiums may soon be unaffordable for most people. Historic flooding has wiped out farmers in the Midwest.
Hawaii's Kilauea volcano could be gearing up for an eruption after a pond of water was discovered inside its summit crater for the first time in recorded history, according to the AP.
'We Should Be Retreating Already From the Coastline,' Scientist Suggests After Finding Warm Waters Below Greenland
By Johnny Wood
The Ganges is a lifeline for the people of India, spiritually and economically. On its journey from the Himalayas to the Bay of Bengal, it supports fishermen, farmers and an abundance of wildlife.
The river and its tributaries touch the lives of roughly 500 million people. But having flowed for millennia, today it is reaching its capacity for human and industrial waste, while simultaneously being drained for agriculture and municipal use.
Here are some of the challenges the river faces.
By Jake Johnson
As a growing number of states move to pass laws that would criminalize pipeline protests and hit demonstrators with years in prison, an audio recording obtained by The Intercept showed a representative of a powerful oil and gas lobbying group bragging about the industry's success in crafting anti-protest legislation behind closed doors.
Speaking during a conference in Washington, DC in June, Derrick Morgan, senior vice president for federal and regulatory affairs at the American Fuel & Petrochemical Manufacturers (AFPM), touted "model legislation" that states across the nation have passed in recent months.
AFPM represents a number of major fossil fuel giants, including Chevron, Koch Industries and ExxonMobil.
"We've seen a lot of success at the state level, particularly starting with Oklahoma in 2017," said Morgan, citing Dakota Access Pipeline protests as the motivation behind the aggressive lobbying effort. "We're up to nine states that have passed laws that are substantially close to the model policy that you have in your packet."
Big Oil is now using its political power to try and criminalize protests of oil & gas infrastructure.— Friends of the Earth (@foe_us) August 19, 2019
"This legislation has potential to punish public participation and mischaracterize advocacy protected by the First Amendment."https://t.co/bmiHjONEhy
The audio recording comes just months after Texas Gov. Greg Abbott signed into law legislation that would punish anti-pipeline demonstrators with up to 10 years in prison, a move environmentalists condemned as a flagrant attack on free expression.
"Big Oil is hijacking our legislative system," Dallas Goldtooth of the Indigenous Environmental Network said after the Texas Senate passed the bill in May.
As The Intercept's Lee Fang reported Monday, the model legislation Morgan cited in his remarks "has been introduced in various forms in 22 states and passed in ... Texas, Louisiana, Oklahoma, Tennessee, Missouri, Indiana, Iowa, South Dakota, and North Dakota."
"The AFPM lobbyist also boasted that the template legislation has enjoyed bipartisan support," according to Fang. "In Louisiana, Democratic Gov. John Bel Edwards signed the version of the bill there, which is being challenged by the Center for Constitutional Rights. Even in Illinois, Morgan noted, 'We almost got that across the finish line in a very Democratic-dominated legislature.' The bill did not pass as it got pushed aside over time constraints at the end of the legislative session."
Many of the state bills restricting the right to protest have been "drafted by companies and passed through groups like ALEC, the secretive group of corporate lobbyists trying to rewrite state laws to benefit corporations over people." @greenpeaceusa https://t.co/ZxpTjWdrwT— Stand Up To ALEC (@StandUpToALEC) May 6, 2019
Reposted with permission from our media associate Common Dreams.