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For Immediate Release:
2002-01-31
For More Information:
Contact Dan Kohler
(608) 251-1918

Polluters Poised To Reap $62 Billion In Tax Dollars

As the new home of WISPIRG's environmental work, Wisconsin Environment can be contacted with any questions regarding this report.  

Madison, WI — Government subsidies to oil, coal and nuclear power industries could double if the Senate passes H.R. 4, the House energy bill, according to a report released today by WISPIRG, Friends of the Earth, Taxpayers for Common Sense, Sierra Club and Republicans for Environmental Protection among others. "Running on Empty: How Environmentally Harmful Energy Subsidies Siphon Billions from Taxpayers" details new and existing subsidies to oil, coal, gas and nuclear industries that would total more than $62 billion over the next 10 years.

In "Running on Empty," WISPIRG estimates that existing handouts to polluting energy industries totaling $33 billion will be increased by nearly 100 percent, to $62 billion, if the House energy bill (H.R. 4) is signed into law. Industry allies in Congress are promoting these new subsidies, despite the erosion of a four year budget surplus into a potential $100 billion deficit.

"We're witnessing a doubling in handouts to polluters - a whopping $62 billion in taxpayer money to oil, coal, gas and nuclear industries in combined new and existing subsidies," said Kerry Schumann, WISPIRG Director. "With the tight budget situation we're in, there's a clear challenge here to the Senate to do the right thing and avoid the route the House has taken."

The Senate is poised to begin debate on its own energy bill (S. 1766) in early February. While the legislation is currently incomplete, some dirty energy subsidies are already emerging.

Among the dirty energy subsidies in the House and Senate bills, and the federal budget, targeted by "Running on Empty" are:

  • The "clean coal" program that found its way into both the House and Senate energy bills. The federal government has already spent $2 billion on this ineffective subsidy to coal companies and utilities - and the House and Senate bills would hand out at least $2 billion more.

So-called "clean coal" projects in Wisconsin include:

  • Alliant Energy Corporation of Wisconsin has a clean coal proposal pending for its subsidiary, Wisconsin Power and Light, to improve the performance of three plants in Sheboygan and Portage, Wisconsin.
  • The Babcock & Wilcox Company completed a $13,646,609 clean coal project in 1994 at Wisconsin Power and Light Company's Nelson Dewey Station in Cassville, Wisconsin. Partners included Wisconsin Power and Light Company, Sargent and Lundy, and Electric Power Research Institute, among others. This plant emitted 7,266 tons of sulfur dioxide in 2000, more than double that emitted in 1990. The plant also emitted 750,887 tons of carbon dioxide and 2,758 tons of nitrogen oxides in the same year.
  • Xcel Energy of Minnesota has a proposal pending to reduce emissions at the Bay Front Power Plant in Ashland, Wisconsin.
  • The Price-Anderson Act, which props up an ailing nuclear industry that produces deadly waste for which there is no safe disposal option. Price-Anderson represents a multi-billion dollar insurance subsidy that shields nuclear power plants from the full cost of a nuclear accident. Corporations like Alliant, the operator of the Kewaunee nuclear power plant, and Wisconsin Electric Power Company, operator of the Point Beach nuclear plants, would not be required to fully compensate the citizens of Wisconsin in the event of a serious nuclear accident.
  • The Department of Energy's oil and coal research and development programs, which are projected to cost taxpayers almost $2.5 billion over the next ten years. These programs subsidize mature, polluting industries and increase American reliance on energy supplies that represent the greatest source of smog, soot and global warming pollution. For example, in Wisconsin, oil and coal-fired power plants released almost 52 million tons of carbon dioxide in year 2000 alone.

Many of these programs, used by some of the nation's biggest corporations, have been subsidized by federal taxpayer dollars for decades. "Adding insult to injury, the companies are using taxpayer money in ways that pollute our water, our air, our land our health," added Gary Werner, Conservation Chair with the Wisconsin Sierra Cub. "For example, power plants caused an estimated 448 premature deaths in Wisconsin in 2000 from asthma and heart attacks."

"These handouts represent a reward to the energy polluters that have devastated our environment at taxpayer expense," said Schumann. "We urge the Senate to move us toward a cleaner, smarter energy future and to reject the type of thinking behind H.R. 4."

Over the last eight years, the Green Scissors Coalition has helped to cut or eliminate $26 billion in environmentally harmful spending programs from the federal budget.