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."
In less than one week, Interior Sec. Ryan Zinke will submit his final recommendations to President Trump on whether 27 national monuments around the country should be downsized, eliminated, transferred to state control or left alone.
But as Aaron Weiss, the media director of the conservation group Center for Western Priorities, pointed out: "Rather than spending his final week hearing from local communities who have worked tirelessly to protect their natural and cultural heritage as national monuments, Secretary Zinke is on vacation in the Mediterranean. His wife, Lola Zinke, tweeted a picture early this morning of herself and Secretary Zinke enjoying a sunrise on the Bosphorus Strait."
Energy Transfer Partners' controversial $4.3 billion Rover pipeline has more negative inspection reports than any other major interstate natural gas pipeline built in the last two years, according to a new Bloomberg analysis.
The 713-mile pipeline, which will carry fracked gas across Pennsylvania, West Virginia, Ohio and Michigan and Canada, has been stalled from numerous environmental violations, including a 2 million gallon drilling fluid spill into an Ohio wetland in April.
'A Major Win for New Yorkers': Court of Appeals Upholds State's Denial of Water Quality Certification for Constitution Pipeline
The U.S. Court of Appeals for the Second Circuit upheld New York State's denial of a water quality certification for the Constitution Pipeline Friday, a critical win for the Attorney General's office and the state's authority to take necessary action to protect its waters and natural resources. The appeals court noted that the state is entitled to "conduct its own review of the Constitution Project's likely effects on New York waterbodies and whether those effects would comply with the state's water quality standards."
New York must be able to do what's necessary to protect our environment—and we're glad that the court agreed.
By Anne Bolen
On Aug. 21, for the first time since 1918, a total solar eclipse will cross the U.S. from coast to coast. Along the path of totality, the moon will completely block out the sun, turning day to twilight for nearly three minutes. While a partial eclipse will be visible throughout the U.S., millions will be flocking to spots along the path of totality, which begins in Salem on Oregon's coast about 10:15 a.m. Pacific Daylight Time and exits the nation at Charleston, South Carolina, where maximum coverage will occur about 2:47 p.m. Eastern Daylight Time. Perhaps no other natural event will inspire so many people to go outdoors.
The Trump administration released an environmental review Thursday of Hilcorp Alaska's Arctic offshore drilling development. Hilcorp plans to build a 9-acre artificial island and 5.6-mile pipeline in the Beaufort Sea for its offshore drilling project. The Trump administration's draft environmental impact statement proposes to greenlight the dangerous drilling plan, which would be a first for federal waters in the Arctic.
The incident was detailed in several Facebook posts from Equinac, a Spanish marine wildlife conservation group.
The National Park Service (NPS) announced Wednesday that it has rescinded the 2011 "Water Bottle Ban" that allowed parks to prohibit the sale of disposable plastic water bottles. That same day, news emerged that the Trump administration removed a nine-slot Capital Bikeshare station at the White House that was requested and installed during the Obama years and used by staffers.
By Catherine Collentine
This week, a federal court ruled that the Obama administration over-penalized Exxon for dumping hundreds of thousands of gallons of a pollutant onto the streets of Mayflower and threw out a number of safety violations levied against Exxon on the basis that the company met its legal obligations to consider the risks associated with the pipeline.