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Reaction: Ways & Means draft legislation omits crucial fossil fuel subsidy removal provisions

“We urge Congress to end fossil fuel subsidies, and we expect Leader Schumer and Chairman Wyden to stand by their promises to end dirty subsidies to oil, gas, and coal,” said Collin Rees of Oil Change.

FOR IMMEDIATE RELEASE

September 13, 2021

Contact:
Collin Rees, collin@priceofoil.org

Oil Change International reaction: Ways & Means draft legislation omits crucial fossil fuel subsidy removal provisions
Today, the House Ways and Means Committee released an outline of proposed revenue-raising legislation for the Build Back Better Act. The draft text contains various tax reforms to fund President Joe Biden’s priorities and would end key international tax breaks for fossil fuel companies, but neglects crucial provisions to end fossil fuel subsidies in the domestic tax code. 

In response to today’s draft legislation, Collin Rees, U.S. Campaigns Manager at Oil Change International, released the following statement:

“This legislation represents our best chance in decades to end billions in deadly public giveaways to fossil fuel corporations, and Congress must act immediately to remove fossil fuel subsidies. Ending subsidies is an essential component of meaningful climate action and enormously popular with voters. 

“Big Oil and Gas has lied about climate science, driven the climate crisis with drilling and pollution, and blocked climate solutions for decades. Omitting provisions to end fossil fuel subsidies — some of which have been in place for over 100 years — is inexcusable. 

“The disappearance of subsidy removal in the draft bill is an egregious example of fossil fuel lobbyists meddling with our democracy. While millions suffer from climate impacts, our legislation is too often written to benefit a handful of special interests. We urge representatives to legislate for our future, not for the profits of Big Oil and Gas executives.

“Ending public subsidies to fossil fuel companies has been a top stated priority for President Biden and top Senate leadership. It’s tragically ironic that President Biden Tweeted today about making oil companies pay their fair share in taxes, when the draft bill fails to live up to that promise. We urge Congress to end fossil fuel subsidies, and we expect Leader Schumer and Chairman Wyden to stand by their promises to end dirty subsidies to oil, gas, and coal.”

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Notes for Editors:

  • Conservative estimates of direct U.S. federal subsidies to fossil fuel production total nearly $15 billion per year: http://oilchange.org/dirty-energy-dominance
  • President Biden’s budget calls for the removal of over $120 billion in subsidies over ten years: http://oilchange.org/2021/05/28/response-biden-budget-fossil-fuel-subsidies
  • Senator Ron Wyden’s Clean Energy for America Act, which has passed out of the Senate Finance Committee, would end billions in tax subsidies to fossil fuels: https://www.finance.senate.gov/chairmans-news/-wyden-colleagues-introduce-legislation-to-overhaul-energy-tax-code-create-jobs-combat-climate-crisis
  • Over 50 members of Congress recently called for the removal of fossil fuel subsidies in the reconciliation process: https://thehill.com/homenews/house/570046-democrats-call-on-house-leadership-to-repeal-fossil-fuel-subsidies-in-biden
  • Hundreds of groups from across the country have called on Congress to end fossil fuel subsidies through letters, petitions, calls, in-person demonstrations, and more: http://oilchange.org/2021/06/29/500-groups-urge-congress-eliminate-fossil-fuel-subsidies