Since 2008, investors have poured several hundred billion dollars into fossil fuel-related master limited partnerships that shield income from virtually all corporate taxation. The MLP tax loophole — a sort of reverse carbon tax — has heavily subsidized the nation’s ongoing oil and natural gas fracking boom.
Solar, wind and other renewable energy companies are not eligible for the MLP tax dodge. Although bipartisan support is building in Congress to extend the tax deductions to them, insiders say legislation to do so will most likely have to wait for and be a part of a comprehensive tax reform package, which has proven elusive.
Until then, existing incentives will serve as a drag on the U.S. economy’s transition from fossil fuels to renewable energy sources. As long as Congress fails to act, fossil fuels will continue to exploit their government-approved competitive advantage even as mounting evidence shows their use accelerates global warming and prompts calls to tax carbon. Continue reading Fossil Fuels Get Huge Master Limited Partnership Tax Breaks – “Green” Energy Shut Out
Anti-fracking protestors, a recent march in Albany, call for Gov. Andrew to ban tracking statewide. (Photo: 350.org)
ALBANY, N.Y. — Towns across New York State and as far away as Texas and Colorado may soon feel the aftershocks of a landmark decision June 30 by the highest court in New York that towns have the authority to ban drilling for natural gas.
The 5-2 ruling by the state Court of Appeals has emboldened opponents of high-volume hydraulic fracturing, for fracking, and they hope to make the most of it.
“Any town that has held off banning fracking for fear of getting sued by the frackers just got a neon green light to proceed with a ban,” said Chip Northrup, an energy investor turned anti-drilling activist from Cooperstown. “While they are at it, they should ban frack waste, since most New York towns are more liable to being dumped on than fracked.” Continue reading Landmark Decision for Local Control – Major Setback for Fracking Supporters
The salt and storage wells of the Watkins Glen brine field lie 2,000 feet below the network of small roads just north of the US Salt plant on Seneca Lake in New York. The Village of Watkins Glen is just outside the picture to the south.
In the 1960s, a 400,000-ton block of rock fell from the roof of an old salt cavern in the Finger Lakes region of New York — a cavity that new owners now want to reopen and use to store highly pressurized natural gas.
The Midwestern energy company that seeks a federal permit for the storage project has denied knowing the roof failure ever happened. And the Federal Energy Regulatory Commission (FERC), which is poised to rule on the company’s permit application, has never publicly acknowledged the event.
But a Houston geologist hired by lawyers for opponents of the project characterized the omission by Arlington Storage Co. and FERC as “an incredible error” that heightens safety concerns about the project next to Seneca Lake, less than three miles from the Village of Watkins Glen, population 1,860.
“Clearly, Arlington’s application and FERC’s conclusions are compromised by this error,” H.C. Clark wrote in a Jan. 15 letter that is now part of FERC’s public record in the case. Continue reading Geologist Says Feds Made “Incredible Error” Ignoring Huge N.Y. Salt Cavern Roof Collapse
On Dec. 11, the Cornell University Faculty Senate adopted by a 43-13 vote a resolution calling for the school to divest by 2035 all its investments in the top 200 holding companies ranked by fossil fuel reserves. A similar resolution adopted by the Cornell Student Assembly in the spring had called for divestiture by 2020.
“These reserves already comprise three to five times more than the total amount of fossil fuels that can be burned before exceeding the 2°C rise in mean global temperature that scientists and governments have agreed is the threshold for dangerous climate change,” eight pro-divestment Cornell faculty members wrote in a letter to the student newspaper Dec. 4. “Nonetheless, these companies are financially committed to burning these reserves and continuing to explore for even more.” Continue reading Ivy League University Votes To Dump Oil and Gas Investments