Reason #78: No Support for Renewables at Oil’s Expense

Messing with oil companies’ tax gifts is like trying to wrest a T-bone steak from a pit bull. It just ain’t gonna happen with today’s powerful oil lobby controlling our politicians. Back in late 2007, though, somebody had the bright idea to fund tax breaks and subsidies for the renewable energy industry-think solar and wind power-by closing the loopholes for oil companies. Yeah, right. The oil lobby came out in force-even though they don’t need tax breaks, thanks to record profits-and Republican Congress members killed the bill, with Bush threatening a veto just in case.

Solar and wind companies, as well as individuals and businesses that invest in renewables, have received tax credits for years, which has helped the fledgling industry grow and create thousands of jobs and billions in revenue. The U.S. Department of Energy recently estimated that wind energy could supply 20 percent of the nation’s power supply over the next three decades. We should be massively funding these industries to innovate and grow-replacing dirty coal-fired electric plants and helping to power a fleet of clean electric and hybrid-electric cars.

But nobody’s making it happen because nobody’s thinking long-term. In response to high gasoline prices, Republicans and the White House are pressing to open up more U.S. land to oil drilling, including Alaska’s Arctic National Wildlife Refuge. New oil supplies might put a small dent in gas prices, but, more importantly, help their oil exec buddies make more short-term profits.

On the flip side, Democrats aren’t much better. In mid-2008, Senator Harry Reid championed the Consumer-First Energy Act, which would pay for renewable energy tax credits not only by taking them away from oil companies, but also by enacting a windfall tax on oil companies that don’t invest enough in renewables. The bill doesn’t have a prayer of passing, and Senator Reid knows it. The point of such proposed legislation is to vilify oil companies and appear heroic to voters so they re-elect him.

NEXT: Reason #79: Ethanol, Another Phony Solution