Renewables to get funding at expense of oil industry

The U.S. House of Representatives has passed a measure rescinding tax breaks for the oil and gas industries, and granting new breaks for alternative energy sources.

Lawmakers overwhelmingly approved (264 to 163) a measure that would recover up to $14 billion dollars over 10 years in oil industry tax breaks and royalty payments said to be owed by oil companies.

"The oil and gas industry is extraordinarily well established and well off," said House Democratic leader Steny Hoyer. "It does not need the American taxpayer's help to be successful or to make a dollar."

The new money is being earmarked to fund research for renewable energy sources, according to lawmakers, who were short on specifics today but have expressed interest in promoting solar and wind power, and alternative fuels including ethanol and biodiesel and incentives for conservation.

The measure still must be approved by the Senate and the president before it becomes law.

Today's measure doesn't reverse all of the subsidies and other incentives the oil industry currently receives from the U.S. government. As identified in the Cleantech Group's Oil industry subsidies for dummies, there are a wide variety of ways the oil and gas industries' businesses are supported. Only a few were addressed by today's measure, and even then, only in a limited way.

U.S. House Speaker Nancy Pelosi said she is now forming a special committee to draft legislation aimed at diversifying America's energy supply, developing new energy sources and cutting emissions linked to global warming.

Pledging results by July 4th, she did not provide details at a news conference late today on precisely what the legislation would contain.

Critics of today's move said the action would reduce domestic oil production and increase reliance on imports.

It was the last of six bills the new Democratic majority said it would pass in its first hours in office.

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