House votes to roll back oil tax breaks

WASHINGTON — The House voted to roll back tax breaks for "big oil" Thursday as the Democrats crossed the last item off their 100-hour agenda, just 42 legislative hours into the 110th Congress.

Energy was the key word in the House Thursday, as House Speaker Nancy Pelosi, D-Calif., celebrated what the Democrats see as a commitment to investing in renewable energy. The bill passed 264 to 163. Pelosi also created a new Select Committee on Energy Independence and Global Warming and plans to have energy legislation done by July 4.

But Republicans came out in force against the bill, which they say does nothing for energy independence and would raise oil prices so Americans would pay more at the pump. The measure also could increase taxes, they said.

It's "poor policy that's just plain wrong," said Rep. Rob Bishop, R-Utah, who voted against the bill.

Bishop said Congress avoided a tax increase for almost 13 years, and it took the Democrats only 13 days to create one. "While predictable, their efficiency and commitment to taxing is remarkable," Bishop said.

According to House Majority Leader Steny Hoyer, D-Md., the bill repeals several loopholes that allowed tax breaks for oil companies to encourage manufacturing and studies on oil exploration. It also ends rules allowing oil companies operating in the Gulf of Mexico to avoid fees.

Bishop said this "will raise the cost of gas and home heating for every American, ship manufacturing jobs overseas and increase, not decrease, our dependence on foreign oil."

"If we're going to tax anything, it ought to be foreign oil coming over, not domestic oil that could be produced and refined here," Bishop said. "We're not going to help this economy and our energy supplies by going after American energy producers, where the increased costs then get passed on to American consumers in the form of higher prices."

Democrats would use the $14 billion these eliminated tax breaks would generate to create a "Strategic Energy Efficiency and Renewable Reserve." The money would be invested in renewable energy programs to be determined at a later date, Pelosi's office said. The goal would be more renewable energy resources, conservation efforts and research and development into cleaner technologies.

Rep. Jim Matheson, D-Utah, supported the bill, calling it a good step in the right direction to "wean" the country off oil. Matheson, supports renewable energy technology and worked on the issue when he sat on the House Science Committee. He is now on the House Energy and Commerce Committee but is working with leadership to remain on his other committee.