http://biodieselmagazine.com/articles/2516926/udall-grassley-introduce-bill-targeting-big-oil-subsidies
[Whoops! Has Moscow Mitch lost control? A Republican Senator is going
after Big Oil subsidies in the U.S.? Even this tiny, little bit seems
out of character for the Republican-controlled U.S. Senate.]
Sens. Udall, Grassley introduce bill targeting Big Oil subsidies
By Erin Voegele | February 26, 2020
Sens. Tom Udall, D-New Mexico, and Chuck Grassley, R-Iowa, introduced
legislation Feb. 25 that aims to update the nation’s antiquated public
lands royalty system and ensure that taxpayers get fair returns on
leases of public lands for oil and gas production.
The bill, titled “The Fair Returns for Public Lands Act of 2020,”
modernizes the public lands leasing system, which currently uses royalty
rates that were set in 1920. The legislation increases both the share of
royalties that taxpayers receive from public lands leasing as well as
rental rates. The federal royalty rate would increase to 18.75 percent,
up from 12.5 percent currently.
According to Udall and Grassley, the new rate reflects the current fair
market value. They also noted the bill establishes minimum bidding
standards to lease public lands.
The Renewable Fuels Association has spoken out in support of the bill,
noting it takes a step toward ending subsidies for oil and gas companies.
“We applaud Sens. Grassley and Udall for introducing bipartisan
legislation today that closes a century-old tax loophole exploited by
oil companies and takes a step toward leveling the playing field for all
transportation fuel producers,” said Geoff Cooper, RFA president and
CEO. “Study after study show that the oil and gas industry benefits each
year from billions of dollars in hidden subsidies, write-offs,
incentives and other giveaways. If oil producers and refiners truly want
a ‘free market’ in the energy sector, they should start by giving up the
subsidies and tax preferences that have robbed state and federal coffers
for 100 years or more. We hope this bill sets lawmakers on a path toward
comprehensive energy tax policy reform, and that the end result is a
fair and open market that offers true competition and consumer choice.”
Monte Shaw, executive director of the Iowa Renewable Fuels Association,
said, “Oil companies have been fleecing the taxpayers for 100 years by
paying pennies on the dollar for resources extracted from public lands.
We should all remember this the next time we hear Big Oil talk about
just wanting a level playing field. The playing field can never be level
when petroleum companies have secret advantages. This is just one of
many hidden Big Oil tax subsidies and we thank Sen. Grassley for shining
a light on it.”
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