Energy package disappoints Hatch, Bennett

WASHINGTON — A Senate panel has approved only a portion of the tax proposals by Utah senators in an energy tax bill.

Sen. Orrin Hatch, R-Utah, saw his attempts at creating incentives for people to buy fuel-efficient cars watered down while an idea by Sen. Bob Bennett, R-Utah, was left out entirely.

Hatch is a senior member of the Senate Finance Committee that approved a $32.1 billion tax package to be included in the energy bill now under consideration on the Senate floor. He opted to vote against the package because he felt it would drive up the cost of gasoline, instead of relieve the pain at the pump in Utah and across the country.

"With gas prices at record highs this summer, it makes no sense to pass a bill that would make prices go higher," Hatch said. "I have a strong record of supporting alternative and renewable energy sources. That's the future. But we shouldn't pay for it by making it more costly to get gasoline to our cars today. We need a balanced approach."

Hatch was one of five senators that voted against the bill on the committee.

But Committee Chairman Max Baucus, D-Mont., called the bill "a forward-focused, fiscally responsible tax package." He said the bill's cost is made up partly from changes to tax laws to oil and gas companies and that the final package advances the development of renewable energy and a more advanced electricity infrastructure, includes incentives to mitigate carbon emissions, promotes security of our domestic fuel supply, supports the use of alternative vehicles and encourages energy savings and efficiency.

"These tax incentives blaze a trail toward new energy solutions for tomorrow and require more responsible use of the energy resources we rely on today," Baucus said in a statement. "This combination of incentives and offsets provide a new and proper balance to our tax code's treatment of energy issues. With the right emphasis on renewable fuels and alternative energy, we can turn the corner toward energy independence for our country."

Hatch felt the package encouraged research and development of unconventional energy sources that may not reduce gas prices for decades instead of focusing on what people use today.

Hatch wanted to see a 100 percent tax write off to expand an oil refinery or build a new one that allowed investors to see quicker return on their investment, but the committee only allowed a 50 percent write-off through 2013.

"You bring the price of gasoline down by producing more of it, not by making it harder to develop," Hatch said. "I cannot support an energy policy which actually works against the goal of increasing the amount of oil and gas available to the people who need it."