ARRA News Service
ARRA News Service facebook page  
News for social, fiscal & national security conservatives who believe in God, family & the USA. Upholding the rights granted by God & guaranteed by the U.S. Constitution, traditional family values, "republican" principles / ideals, transparent & limited "smaller" government, free markets, lower taxes, due process of law, liberty & individual freedom. All content approval rests with the ARRA News Service Editor. Opinions are those of the authors. While varied positions are reported, beliefs & principles remain fixed. No revenue is generated for this site - no paid ads accepted - no payments for articles. Fair Use doctrine is posted & used.
Editor/Founder: Bill Smith, Ph.D. [aka: OzarkGuru & 2010 AFP National Blogger of the Year]
Contact: editor@arranewsservice.com (Pub. Since July, 2006)
    Home Page

One of the penalties for refusing to participate in politics is that you end up being governed by your inferiors. -- Plato (429-347 BC)

Monday, December 28, 2015

The Good, The Bad, And The Ugly In The Omnibus Spending Bill

by Marita Noon: The decades-old legislation that prevented American producers from exporting oil is officially overturned — despite previous presidential threats to veto a bill to lift the oil export ban. That’s good policy. However, to get the support of “reluctant Democrats,” The Economist reports: “an additional five years of tax credits for wind and solar power” was part of the package. That’s bad energy policy.

While it will likely be months before the first tanker of crude oil leaves U.S. shores, the benefits of lifting the ban are already being felt as the spread between the global benchmark price, known as Brent, and the U.S. benchmark, known as WTI (for West Texas Intermediate), has shriveled to the smallest in years. Because U.S. crude had limited markets — and the crude being produced by the shale revolution didn’t match what many American refineries needed — its price was forced down to make it more attractive to refineries. At one time the price differential between the two benchmarks was as high as $30 (September 2011). Between 2011 and 2013, the spread has been closer to $10 to $25 a barrel. Once some of the bottleneck of U.S. production was relieved when the southern leg of the Keystone pipeline was opened and limited amounts of light crude were approved for export or swap, the gap began to really shrink. On December 11, the spread was $2.31 per barrel. Once the export ban was lifted, it dropped to only a $1 difference—with a brief blip of WTI being above Brent.

This helps American oil producers as it gives them a wider market for their product and allows them to sell oil at essentially the same price as the international benchmark prices — WTI goes up, Brent comes down. The lower global price helps consumers as the price of gasoline is based on the international price, not WTI. The win/win makes for good policy — a win I have pushed for many times in the past year and predicted last year.

The bad policy comes as part of the bargain struck to get the Democrats on board: the Production Tax Credit for wind energy (which had already expired) has been revived, and the Investment Tax Credit for Solar power (which was scheduled to ramp down at the end of 2016) has been extended. Many Democrats wanted the taxpayer handouts made permanent. Instead the deal, part of the $1.1 trillion omnibus spending bill, gave only multi-year extensions to renewables.

Greentech Media explains the package: “the 30 percent Investment Tax Credit (ITC) for solar will be extended for another three years. It will then ramp down incrementally through 2021, and remain at 10 percent permanently beginning in 2022. The 2.3-cent Production Tax Credit (PTC) for wind will also be extended through next year. Projects that begin construction in 2017 will see a 20 percent reduction in the incentive. The PTC will then drop 20 percent each year through 2020.”

A reader of the Greentech report named “Chuck” responds: “Anyone know who [were] the key players who wrote and fought for the renewable credits?”

An answer is found in a letter Sunnova Energy Corporation CEO, William J. (John) Berger, sent to Senator Orrin Hatch, Chairman, Senate Committee on Finance, to discourage the ITC extension which states: “there has been an effort by many in the solar industry to convince legislators that the need for a five-year, or even permanent, extension of the ITC is necessary to the continued functioning of the industry.” While Sunnova is a residential solar company founded in 2012 that is active in 23 states, Berger concludes: “A policy such as the ITC that was implemented for a market that existed almost a decade ago is no longer the best option for meeting renewable energy goals in today’s world.”

One company that is in need of renewable energy subsidies, likely referenced in the Sunnova letter, would be the company that is the single largest recipient of taxpayer funds through Obama’s 2009 Stimulus Bill: Abengoa. Its stock prices have tumbled throughout 2015. On November 25, the company filed for insolvency protection in Spain. Figures released in the proceedings indicate that Abengoa’s largest creditor — $2.35 billion — is the U.S. Treasury.

Additionally, $280 million is owed to the Ex-Im Bank — the controversial U.S. export finance agency. Representative Mike Pompeo (R-Kan.), who serves on the House Energy and Commerce Committee and has an Abengoa project in his district, is concerned. In a press release he said: “Abengoa’s bankruptcy is a glaring example of how the president’s green loan program puts billions of taxpayer dollars at risk for no return. … We have been down this road before. Except this time, instead of losing millions, the American people could be on the hook for billions of dollars in loan guarantees.”

Abengoa — which has so many subsidiaries and projects it is difficult to keep all of them straight — is scrambling to find ways to restructure its debt and raise cash.

Just before Christmas, thousands of the company’s employees worldwide have been laid-off — many stranded in the countries in which they worked without a way to get back to their home countries. One of its solar farm projects, Palen, located in Southern California, is for sale. Plants have been shut down, suppliers are not being paid, dividend payments have not been made, and construction projects have been put on hold. All this, despite having received more than $2.7 billion from U.S. taxpayers — which obviously wasn’t enough to keep this green-energy company afloat.

Abengoa, reports the Washington Free Beacon: “is seeking additional federal backing.” Despite its financial woes — or, perhaps because of them — the company has spent $70,000 in the past three months “lobbying Congress for renewable energy subsidies.” It looks like the company may get a short-term reprieve as the lobbied-for credits have been extended. (No news is available at the time of writing as to how the extensions might directly impact Abengoa.)

When you hear about the tax credit extensions being such an important policy development, remember the Abengoa story, as it is companies like it — who hope to game the system and fleece the taxpayers — who spend big money on lobbyists to push for legislation that benefits them.One slight silver lining: removing the oil export ban is permanent; extending the renewable energy tax credits is temporary.

The Economist, concludes its coverage of the trade off this way: “Congress is freeing up one part of the energy industry while picking winners in another.
-----------
Marita Noon is the author of Energy Freedom and serves as the executive director for Energy Makes America Great Inc. and the companion educational organization, the Citizens’ Alliance for Responsible Energy (CARE). This article was shared by the Americans For Limited Government blog.

Tags: Marita Noon, Good, Bad, ugly, Omnibus Spending Bill, exporting oil, Americans for Limited Government To share or post to your site, click on "Post Link". Please mention / link to the ARRA News Service. and "Like" Facebook Page - Thanks!
Posted by Bill Smith at 5:30 PM - Post Link

0 Comments:

Post a Comment

<< Home



national debt
Don't miss anything!
Subscribe to the
ARRA News Service
It's FREE & No Ads!

You Receive One Email Each Morning
With Prior Days Articles / Toons / More


Also, Join us at:
Facebook.com/ARRANewsService


Recent Posts:
Personal Tweets by the editor:
Dr. Bill - OzarkGuru
Married 48yr #Conservative #Constitution #NRALife #GunRights #USAF 22yr #military #veteran #Christian #CCOT #ProLife #TEAParty #GOP #TCOT #SGP #schoolchoice



Action Links!
Arkansas State Senators
AR State Representatives
Arkansas Governor Office
Arkansas Attorney General
Bankrupting America
US House of Representatives
US Senators
Family Research Council
GrassFire
NumbersUSA
Ballotpedia
Judgepedia
Sunshine Review


Facebook Accts - Dr. Bill Smith
Pages:
ARRA News Service
Arkansans Against Big Government
Alley-White Am. Legion #52
Baxter County Republicans, AR
Catholics & Protestants United Against Discrimination
End Taxpayer Funding of NPR
Overturn Roe V. Wade
Prolife Soldiers
Project Wildfire
Republican Liberty Caucus of Arkansas
The Gold Standard
Twin Lakes Republican Women
US Atty Gen Loretta Lynch, aka Eric Holder, Must Go
Veterans for Sarah Palin
Why Vote for Hillary (Satire)
FB Groups:
Arkansas For Sarah Palin
Arkansas Conservative Caucus
Arkansas County Tea Party
Arkansans' Discussion Group on National Issues
Blogs for Borders
Conservative Solutions
Conservative Voices
Defend Marriage -- Arkansas
FairTax
FairTax Nation
Arkansas for FairTax
Friends of the TEA Party in Arkansas
Freedom Roundtable
Let's Mine AR Lignite NOW!
Personhood Initiative
Pro-Life Rocks - Arkansas
Republican Network
Republican Liberty Caucus of AR
Reject the U.N.

Patriots
Exchange
Links

Links to ARRA News
A Patriotic Nurse
Agora Associates
a12iggymom's Blog
America, You Asked For It!
Americans for a Free Republic
America's Best Choice
America's Whatchtower
An Ol’ Broad’s Ramblings
AR Republican Assembly
ARRA Twitter
As A Matter of Fact
As The Crackerhead Crumbles
Baaad Media!
Baxter Co. GOP Assembly
Baxter County Republicans
Benton Co. GOP Assembly
Black & Right
Blogs For Borders
Blogs for Palin
Blow the Trumpet Ministry
Boot Berryism
Cap'n Bob & the Damsel
Chicago Ray Report
Chuck Baldwin - links
Citizen Pamphleteer
Common Cents
Conservative Hideout
Conservative Observer AZ
Conservative Voices
Conway Real Deal
Defeat Obama's Agenda
Diana's Corner
eGOP News
Florida Pundit
Franklin Online Outreach
Freedom For US Now
Free Zone Media Center
For God and Liberty
Garland County Republicans
Greater Fitchburg For Life
Guns and Religion
Lasting Liberty Blog
Liberal Isn't Amy
Liberty's Lifeline
Maggie's Notebook
Marathon Pundit
Monkey in the Middle
NASA Satellites
No Runny Eggs
Okie Campaigns
Our Voices Arkansas
Patriot's Corner
ProLifeBlogs
Publius Forum
Randy's Roundtable
Real Debate Wisconsin
Religion and Morality
Right on Issues that Matter
Right Reason
Rocking on the Right Side
Saber Point
Saline Watchdog
Secure Arkansas
Sentry Journal
Teresamerica
Stop Obama Satire & Cartoons
The Arkansas Patriot
The Audacity of Logic
The Blue Eye View
The Bobo Files
The Born Again Americans
TEA Party Cartoons
The Conservative Citizen
The Foxhole | Unapologetic Patriot
The Liberty Republican
The Lid
The Looking Spoon
The Maritime Sentry
The O Word
The Path to Tyranny Blog
The Real Polichick
TOTUS
Truth About Obamacare
Twitter @ARRA
Warning Signs
Women's Prayer & Action
WyBlog

Editor's Managed Twitter Accounts
Twitter Dr. Bill Smith @arra
Twitter Arkansas @GOPNetwork
Twitter @BootBerryism
Twitter @SovereignAllies
Twitter @FairTaxNation


Editor's Recommended Orgs
Accuracy in Media (AIM)
American Committment
American Enterprise Institute
American Family Business Institute
Americans for Limited Government
Americans for Prosperity
Americans for Tax Reform
American Security Council Fdn
AR Faith & Ethics Council
Arkansas Policy Foundation
Ayn Rand Institute
Bill of Rights Institute
Campaign for Working Families
Center for Individual Freedom
Center for Immigration Studies
Center for Just Society
Center for Freedom & Prosperity
Citizens Against Gov't Waste
Citizens in Charge Foundstion
Coalition for the Future American Worker
Competitive Enterprise Institute
Concerned Veterans for America
Concerned Women for America
Curtis Coleman Institute for Constitutional Policy
Declaration of Am. Renewal
Eagle Forum
FairTax
Family Research Council
Family Security Matters
Franklin Center for Gov't & Public Integrity
Gingrich Productions
Global Incident Map
Great Americans
Gold Standard 2012 Project
Gun Owners of America (GOA)
David Horowitz Freedom Center
Institute For Justice
Institute for Truth in Accounting
Judicial Watch
Less Government
Media Reseach Center
National Center for Policy Analysis
National Right To Work Foundation
National Rifle Association (NRA)
National Rifle Association (NRA-ILA)
News Busters
O'Bluejacket's Patriotic Flicks
Open Secrets
Presidential Prayer Team
Religious Freedom Coalition
Renew America
Ron Paul Institute
State Policy Network
Tax Foundation
Tax Policy Center
The Club for Growth
The Federalist
The Gold Standard Now
The Heritage Foundation
The Leadership Institute
Union Facts



Blogs For Borders

Reject the United Nations

Adopt Our Troops in Prayer


Thousands of Deadly Islamic Terror Attacks Since 9/11

FairTax Nation on FaceBook
Friends of Israel
Blog Feeds
Syndicated - Get the ARRA News Service feed Syndicated!
ARRA Blog Feed

Add to Google Reader or Homepage

Add to netvibes

Add to Bitty Brouser

Add to The Free Dictionary

Powered by Blogger

Politics Blogs
Politics blog


  • How To Exchange Links!
  • Comments by contributing authors or other sources do not necessarily reflect the position the editor, other contributing authors, sources, readers, or commenters. No contributors, or editors are paid for articles, images, cartoons, etc. While having reported on and promoting the beliefs associated with the ARRA, this blog/site is not controlled by nor funded by the ARRA. This site/blog does not advertise for money or services nor does it solicit funding for its support.
  • Fair Use: This site/blog may contain copyrighted material the use of which has not been specifically authorized by the copyright owner. Such material is made available to advance understanding of political, human rights, economic, democracy, and social justice issues, etc. This constitutes a 'fair use' of such copyrighted material as provided for in section Title 17 U.S.C. Section 107 of the US Copyright Law. Per said section, the material on this site/blog is distributed without profit to readers to view for the expressed purpose of viewing the included information for research, educational, or satirical purposes. Any person/entity seeking to use copyrighted material shared on this site/blog for purposes that go beyond "fair use," must obtain permission from the copyright owner.
  • © 2006 - 2016 ARRA News Service
Creative Commons License
Creative Commons Attribution Noncommercial Share Alike 3.0 Unported License.