House Passes Energy Policy Act of 2005
Immediate Release. April 24, 2005 The House of Representatives on April 22, 2005, approved by a 249 to 183 vote a broad energy bill that would permit new drilling in the Alaska Arctic National Wildlife Reserve (ANWR) .
Unfortunately, the measure has too many ill-conceived subsides and corporate welfare programs. For example, $2.3 billion in tax incentives for production from renewable sources; $1.3 billion for an Idaho nuclear reactor that would produce hydrogen; $1.7 billion to help Methyl Tertiary Butyl Ether (MTBE) producers retool plants to make other gasoline products as this additive is phased out; $750 million for ethanol producers to construct production facilities; $8 million to study producing fuel from sugar cane; and $8 billion in tax breaks, mostly for energy producers.
“As Washington tries to meet this nation's energy needs to make it less dependent on foreign sources and protect the national security of this nation, its solutions are market-distorting and convoluted,” said Dr. Joel P. Rutkowski, president of the American Voice Institute of Public Policy. He added, “The higher energy costs that this nation has been experiencing encourage energy production and new technology development so there is no need to use taxpayers dollars to subsidies such efforts. From automakers to homebuilders, they are prompted to use energy-efficient products by the rising prices. And new production and experimentation with solar, wind power and other technology are stimulated by the higher prices as well. As a result, market principles much more efficiently than anything government could do will bring the cost of energy down as well as meet the energy demand of this nation. “
Joel P. Rutkowski, P.h.D.
President, The American Voice Institute Of Public Policy
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