PennFuture Report Claims PA Has Shelled Out $2.9 Billion To Oil, Coal And Gas Companies

A new PennFuture study claims Pennsylvania has provided $2.9 billion in subsidies to what it calls “fossil fuel industries.” (That would be oil, coal, and natural gas.) The money has come largely in the form of tax exemptions.
This is relevant, says former Democratic State Representative Dave Levdansky, because of the debate over whether to revise Pennsylvania’s Alternative Energy Portfolio Standards Act  and other solar subsidies. “I’ve listened to critiques that government shouldn’t be involved [in boosting alternative energy efforts],” he said on a conference call. “If you’re making the argment that government shouldn’t be involved, well, there’s a couple billion dollars of exemptions you need to take a look at.”
Read the full PennFuture press release after the jump.

(Philadelphia, PA – December 6, 2011) – The PennFuture Energy Center for Enterprise and the Environment released a new study today detailing current subsidies for fossil fuels in Pennsylvania, which, including tax exemptions, tax credits, and grants, total $2.9 billion per year.
“Despite all the woe and consternation by some about incentives for new clean energy technology, like solar and wind power, the big dirty secret is that the highly profitable, fully mature fossil fuel industry is subsidized to the hilt,” said Christina Simeone, director of the PennFuture Energy Center. “Because of these subsidies, coal, oil, and natural gas have been chosen as the energy ‘winners’ in Pennsylvania. And the taxpayers are in many cases footing the bill.
“While pundits like to claim that all they want is for the free market to reign supreme, there is simply no free and unfettered market for energy in Pennsylvania,” continued Simeone. “Renewable energy and energy efficiency technologies, while still developing, are starting from behind and staying behind, as these subsidies continue. If there truly were a level playing field, Pennsylvania’s vibrant wind and solar industries would be even more successful than they have been.
“Use of these fuels also burdens taxpayers with additional costs such as air, land, and water pollution, which result in deteriorating public health and damage to property,” continued Simeone. “But it’s actually even worse than that. Taxpayers pay for the subsidies that promote fossil fuels that release pollution, and then the polluters are given even more subsidies to help pay for cleaning up that pollution.
“Yet, as the Pittsburgh Business Times reported today, Governor Corbett just pulled his name from a letter of support for the renewable energy production tax credit, a federal incentive for wind energy, claiming that Congress must sharpen its knives in cutting the federal budget. But he is silent on the plethora of subsidies our own state gives to the fossil fuel industry, even as education, transportation, and other vital state functions have been cut from the state budget.
“The legislature and Governor Corbett should rethink and ultimately end this gravy train for fossil fuels,” said Simeone. “These subsidies are bad for the health of our families and businesses, bad for the environment, and bad for Pennsylvania’s economy.”

 

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