From Deseret News archives:

House votes to roll back oil tax breaks

Published: Friday, Jan. 19, 2007 12:13 a.m. MST
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Matheson spokeswoman Alyson Heyrend said what the Republicans are calling a tax increase, is just the elimination of a loophole that allowed companies to qualify for a tax provision intended to encourage domestic manufacturing. As the rising number of drilling leases in Utah indicate, she said, the market determines how producers invest in oil and gas, so eliminating this loophole is not going to impede any production.

Pelosi said this bill will help the country reduce its dependence on foreign oil.

"By investing in American ingenuity, Democrats will accelerate the implementation of existing clean, energy-efficient technologies," Pelosi said. "We will promote homegrown alternatives, creating good paying jobs while bolstering our national security, sending our energy dollars to the Midwest, not the Middle East."

But Bishop said the "bad bill" does exactly the opposite of what it wants to do.

"Instead of penalizing domestic development of our own resources, the feds should be encouraging it," Bishop said. "And when it comes to the apparent slush fund for alternative energy, there are no guarantees or restrictions in the bill on what the reserve funds would be used for, meaning they might never go towards alternative energy development."

Rep. Chris Cannon, R-Utah, called the bill a "disaster."

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"Instead of encouraging U.S. production to break our addiction to foreign oil, this bill will increase volatility in oil markets and make us even more dependent on Hugo Chavez and other unstable regimes by limiting our energy production and increasing the cost of energy for all Americans," Cannon said.

Other members of the House Western Caucus, which Cannon heads, also opposed the bill, calling it "political deception."

"This is a tax increase, pure and simple, and it will impede our ability to meet our critical energy needs," Cannon said.

The bill now moves to the Senate.

Meanwhile, as one to-do list closed, Pelosi open another with the new committee focusing on energy independence and global warming.

The committee will not have jurisdiction over the bill but "will help develop information that will help us give these issues the legislative priority they demand," Pelosi said.

She wants the other House committees that handle energy, environment and technology policy to report legislation on the issues by June and get the bills through by July 4.

"This year, Independence Day is also 'Energy Independence Day,'" she said.

Utah's member all sit on committees that likely will be involved with these bills.

"The science of global warming and its impact is overwhelming and unequivocal. We already have many of the technologies and techniques that we need to reduce global warming pollution, and American ingenuity will supply the rest. With this new Select Committee, we demonstrate the priority we are giving to confront this most serious challenge," Pelosi said.


E-MAIL: suzanne@desnews.com

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