![]() On Wednesday, environmental groups sent a legal petition calling on the administration to cease oil and gas production on public lands by 2035. The Department of Interior did not immediately respond to a request for comment. Vehicle emissions have also emerged as a source of contention. The EPA under Biden recently proposed the most aggressive limits on pollution from cars and light trucks in history, mandating higher fuel efficiency standards for vehicles starting in 2023. Experts welcomed the measure and took stock of its significance. "The Biden administration has clear authority to take back the Line 3 permit," said Dillen. "The real difference between these two pipelines appears to be a political calculus. #FUEL DRILLING PLANS UNDERMINE CLIMATE PLEDGES SERIES#.The American Petroleum Institute, the country’s biggest oil and gas lobby group, will “advocate for a tax code that supports a level playing field for all companies regardless of economic sector,” said Frank Macchiarola, a senior vice president at the industry group.ĪPI will push for “pro-development policies that sustain and grow the billions of dollars in government revenue our industry generates at the state and federal level,” he said. But wider tax reforms will also take up debate such as corporate tax rates and boosting taxes on the biggest earners, some of which might take priority.Īny bill to alter the tax provisions for the fossil fuel sector will also face heavy resistance from lobbyists, some of whom may point out that solar, wind and other non-fossil energy sources also receive substantial taxpayer support. The Joint Committee on Taxation, a nonpartisan panel of Congress, has estimated that ditching it could generate $13 billion for the public coffers over 10 years.Īnother, the percentage depletion tax break which allows independent producers to recover development costs of declining oil gas and coal reserves, could generate about $12.9 billion in revenue over 10 years, according to the panel.īiden and Congress will be under pressure to reduce the federal deficit by cutting such tax breaks. ![]() tax break, called intangible drilling costs, allows producers to deduct a majority of their costs from drilling new wells. “It’s dead on arrival in the Senate,” said Gilbert Metcalf, a former deputy assistant secretary for environment and energy at the Treasury Department under former President Barack Obama, referring to any standalone legislation ditching the tax breaks if Republicans maintain control of the chamber. While Biden can take executive action to reverse President Donald Trump’s rollbacks of rules meant to reduce greenhouse gas emissions, reforming tax breaks that allow companies to produce oil, gas and coal more cheaply will require Congress to pass legislation.ĭoing so could be hard, even though Biden spent 36 years in the Senate where he is known as a dealmaker. Biden has said axing fossil fuel subsidies will generate money to help pay for his broader $2 trillion climate plan. The challenge reflects just one of the obstacles that Biden will need to overcome as he seeks to usher in sweeping measures to combat climate change and transform the nation’s economy to net-zero emissions within three decades. fossil fuel subsidies worth billions of dollars a year for drillers and miners could be hard to keep due to resistance from lawmakers in a narrowly divided Congress, including from within his own party. WASHINGTON, Dec 1 (Reuters) - President-elect Joe Biden’s promise to end U.S.
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