By Maxine Shapiro, KERA 90.1 business commentator
Dallas, TX – Why is it when I hear about tax cuts for oil companies it's like nails on a chalkboard? We should get more details today about the 1,200-page bill finalized by GOP Congressional leaders on Saturday. I'm Maxine Shapiro with KERA Marketplace Midday.
It's the energy bill Bush has been pushing for since 2001. All kinds of nice incentives and goodies are included for producers of oil, natural gas, coal and nuclear energy. It's estimated there are over $20 billion worth of tax breaks for an industry whose net income rose 272 percent in the third quarter from just a year ago.
So let's start with the surprisingly positive points of the bill. Besides, it won't take that long. There will be no drilling for oil in the Arctic National Wildlife Refuge. That's good news for most everybody but the Teamsters union who was hoping for some high paying jobs in Alaska. Also, the oil reserves off the Atlantic and Pacific coasts will remain off-limits. The proposed bill keeps that ban intact, and it also promotes natural resources to generate electricity. We'll find out soon to what extent.
Now, one of the more blatantly political and more controversial measures protects producers of the fuel additive MTBE. Texas makes a lot of MTBE. The additive, a suspected carcinogen, has tainted groundwater supplies in many states. These states and other municipalities have filed lawsuits to recover costs for the cleanup. The bill wipes out these filings retroactive to September 5th.
Some cities will get away from having to comply with air pollution standards. The bill also stipulates the government will guarantee loan repayment and other assistance to build a pipeline shipping natural gas from Alaska to the Midwest. A $20 billion project. And this is just what I understand from what has been reported so far.
The Senate debate ought to be very interesting. For KERA Marketplace Midday, I'm Maxine Shapiro.
Marketplace Midday Reports air on KERA 90.1 Monday - Friday at 1:04 p.m.
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