Letters to Congress  

TCS Action Letter to the House Energy and Commerce Committee Oppose the Energy Policy Act of 2003 March 18, 2003 Dear Energy and Commerce Committee Member, Taxpayers for Common Sense Action (TCS Action), a non-partisan, budget watchdog group, strongly opposes the "Energy Policy Act of 2003", being considered by the Energy and Air Quality Subcommittee of the Energy and Commerce Committee. This bill, drafted by Chairman Barton, amounts to a taxpayer-funded giveaway to the already heavily subsidized coal, nuclear, and other mature energy industries. Our concerns with this legislation include: The bill reauthorizes the Price-Anderson Act until 2017. Originally enacted in 1957 as a temporary measure to jump-start the young nuclear power industry, the Price-Anderson Act limits the public liability of nuclear power plant operators. This arrangement affords inadequate compensation to the public in the event of an accident or attack, while conferring a substantial annual subsidy to the mature nuclear industry in terms of foregone insurance premiums. Reauthorizing the Price-Anderson Act potentially leaves taxpayers on the hook for billions of dollars in the event of a nuclear catastrophe. The nuclear power industry, not taxpayers, should be responsible for liability resulting from nuclear incidents. The FreedomCAR Program revamps the Clinton administration's Partnership for a New Generation of Vehicles (PNGV). Despite a taxpayer investment in PNGV of over $1.25 billion from 1995-1999, the U.S. auto manufacturers did not reach their goal of an affordable 80-mpg car. With FreedomCAR, the Bush administration once again envisions joint research between the federal government and big auto manufacturers. The Hydrogen Fuel Program, so-called Freedom Fuel, is slated to research affordability and cost-competitiveness of hydrogen fuel. These programs equal corporate welfare, benefiting the major U.S. auto manufacturers and wasting taxpayer money with no clear benchmarks for success. These provisions amount to a subsidy of $1.799 billion from FY04 through FY08 and should be stripped from the bill. The bill provides over $2 billion from FY04 through FY07 to subsidize the nuclear industry. Particularly egregious is the $399 million provided over this time period to the Advanced Fuel Cycle Initiative Program, a program that would reprocess spent nuclear fuel. This program is incredibly expensive and would rewrite a U.S. policy against reprocessing of nuclear waste and use of plutonium for commercial purposes. This bill provides $200 million a year for FY03 through FY11 on new coal programs that are being sold under the oxymoron of "clean coal." Since 1984, the coal industry has been subsidized to the tune of $2.4 billion through the "Clean Coal" Technology Program (CCTP). Reports from the General Accounting Office (GAO) have documented waste and mismanagement in the use of CCTP funds. This program allegedly encourages private companies to develop cleaner burning coal by providing matching federal funds. By definition, the burning of coal will never be "clean." Coal is without question the dirtiest fossil fuel and burning it produces contaminates such as carbon dioxide, sulfur dioxide, nitrogen oxides and mercury. As a result, the goal of "clean coal" by its very nature is unattainable and has amounted to an egregious waste of money. The mature and very profitable coal industry does not need billions of dollars more in handouts from federal taxpayers. TCS Action has major concerns about a provision in the bill that sets the stage for massive subsidies for natural gas producers in Alaska and potentially disrupting the domestic natural gas market. The language in Chairman Barton's energy bill endorses the building of a natural gas pipeline system on the Alaskan North Slope and authorizes an appropriation of $20 million for a construction training program. Inclusion of these provisions in this bill is the first step to major subsidies for the construction of a natural gas pipeline in Alaska and shows an unfair bias towards certain natural gas producers in Alaska. TCS Action opposes language in the bill establishing a separate fund known as the "Ultra-Deepwater and Unconventional Natural Gas and Other Petroleum Products Fund." This language establishes a new research and development grant program for ultra-deepwater drilling, which occurs at water depths greater than 1,500 meters. While industry representatives claim that the federal government needs to provide $3 to $5 billion in funding to make ultra-deepwater development economically feasible, many oil companies are already doing such exploration without government subsidies. The legislation is unclear as to whether this program will be funded through a direct appropriation or other means. Regardless, taxpayers should not be forced to line the pockets of the oil industry when federal funding clearly is not needed to foster this kind of exploration. In short, the "Energy Policy Act of 2003" fails to advance the energy debate and wastes precious taxpayer dollars. The enactment of this "give-away" bill would be a costly mistake. We urge you to oppose this legislation. Sincerely, Aileen Roder Program Director

Taxpayers for Common Sense is a non-partisan budget watchdog that serves as an independent voice for American taxpayers.  Now in its second decade of service to the nation, TCS seeks to ensure that our government spends taxpayer money efficiently and responsibly by working to eliminate wasteful and harmful federal spending.