Blog posts : "offshore oil"
In the States
IL – Governor Pat Quinn said in his budget address that he would like to close a tax loophole that allows companies to avoid paying taxes on profits earned from selling oil and gas in Illinois that is extracted offshore in the Gulf of Mexico. Illinois’ current corporate tax law specifically excludes “exploration for or exploitation of natural resources” from anywhere outside the 50 states and the District of Columbia. Governor Quinn has stated that the loophole costs the State $75 million per year, though the oil industry disagrees with that estimate. The Governor raised this issue in 2009, but the State’s law was not changed; it still faces opposition today. Quinn wants to eliminate tax loophole that helps oil companies – Chicago Tribune
PA – Governor Tom Corbett has signed three energy-related bills into law. One would give counties the option of imposing an “impact fee” on wells producing natural gas from the Marcellus Shale. While the new law ensures that Pennsylvania is no longer the only natural gas-producing State without a tax on its production, the effective rate, if imposed by the county at all, would be far lower than any other State. Sixty percent of the revenues from the fees would go to participating local governments, while another portion would be used to purchase natural gas-powered vehicles for the State fleet. The other two laws signed by the Governor would allow utilities to raise rates to recover the costs of improvements prior to completion and provides tax incentives intended to help attract a new petrochemical refinery to western Pennsylvania that could create thousands of jobs and millions in new revenue to the State. Corbett signs 3 key energy-sector bills – Scranton Times-Tribune
President Barack Obama has released his annual budget request to Congress, which calls for $27.2 billion in funding for the Energy Department, a 3.2 percent increase. The President’s proposed budget for fiscal year 2013 would increase spending for energy efficiency, safety, conservation, renewable energy, and nuclear power, and would offset much of that expansion by ending $4 billion in tax breaks to oil and gas companies. Specifically, the budget would increase funding for a grant program to states for pipeline safety by 50 percent and the federal Pipeline and Hazardous Materials Safety Administration by 44 percent. The Office of Nuclear Energy would receive a total of $770 million, part of which would be used to research small modular nuclear reactors and nuclear waste research. Clean energy funding would increase by $580 million, or about 13 percent, and would include programs to make solar power more cost-competitive and research geothermal and offshore wind energy. Another research initiative, the Advanced Research Projects Agency – Efficiency (ARPA-E), would receive a 37 percent increase, bringing its funding up to $350 million. Funding for fossil fuels would increase as well, and would include research on methods of hydraulic fracturing that would be less harmful to the environment. A program to invest in energy efficiency in the Department of Defense would more than double, from $400 million to $1 billion. An agency-by-agency guide to Obama’s proposed budget for fiscal 2013 – Washington Post and Obama seeks clean energy, pipeline funds in budget – MSNBC