For Immediate Release
Today, a broad coalition of dozens of national and New York organizations released a letter urging Senate Majority Leader Schumer to reject billions of dollars in federal subsidies for the fossil fuel industry in the reconciliation bill being negotiated by Congressional leaders this week. The Congressional Democrats’ Build Back Better Act is a historic opportunity to eliminate fossil fuel subsidies, including:
- A subsidy enacted in 1916 (Sections 263(c) and 291) allowing many fossil fuel producers to deduct 100 percent of many costs associated with extraction;
- A subsidy enacted in 1926 (Sections 611 through 613A and 291) that allows many producers to deduct 15 percent of gross income annually, which often results in a deduction greater than the value of actual assets;
- A tax credit for “carbon capture and sequestration” (Section 45Q), an unrealized, faulty technological process that is falsely characterized by the industry as a solution to toxic climate emissions.
Just last week, the House failed to meet the moment, advancing fossil fuel subsidies within the reconciliation package, and even adding new ones like those for false solutions like carbon capture. As the Act moves into the Senate, groups across New York expect Senator Schumer to champion the issue and ensure no fossil fuel subsidies are left in the bill that passes the Senate.
Senator Schumer has called for the elimination of fossil fuel subsidies in the Act, and environmental, youth and justice organizations across the state, representing a wide swath of the Senator’s constituents expect him to deliver on his promise. With New York still reeling from deadly Hurricane Ida, a crisis supercharged by fossil fuel-driven climate change, the imperative to move off of fossil fuels is clearer than ever.
“For decades, our federal government has used public money to prop up polluters,” said Food & Water Watch Northeast Region Director Alex Beauchamp. “And New Yorkers like those who lost their lives or loved ones in Ida pay the consequences. Senator Schumer must stand up to this powerful industry and cut off their taxpayer lifeline — New Yorkers will be watching to see if he matches his words with action, and backs up his rhetoric with leadership.”
“Since the House dropped the ball on repealing domestic fossil fuel subsidies, Senator Schumer’s climate leadership is more important than ever,” said Britten Evans, Senior Regional Organizer with Friends of the Earth. “It’s bad enough that Big Oil poisons our planet; they shouldn’t get $15,000,000,000 in taxpayer dollars per year to do it.”
“Including fossil fuel subsidies in the infrastructure package spits in the face of the working class choking to death on toxic smog and dying in climate disasters like Hurricane Ida,” said Stylianos Karolidis, Organizer with the New York City Democratic Socialists of America. “We urge Senator Schumer to accept the science and eliminate fossil fuel subsidies from the infrastructure package. If he fails to do so he will continue this country’s coal, oil, and gas fueled march to global apocalypse.”
“New Yorkers know the extreme dangers of the climate crisis first-hand, with the recent deaths from Hurricane Ida serving as yet another tragic reminder,” said Pete Sikora, Climate and Inequality Campaigns Director with New York Communities for Change. “Now, we need Senator Schumer to stand strong and eliminate subsidies to the fossil fuel companies poisoning our communities for corporate profit.”
“Democrats need to deliver on their promises to voters, and Senator Schumer should take action to fulfill Democrats’ promises on the climate crisis, inducing ending fossil fuel subsidies,” said Paco Fabián, Director of Communications and Campaigns at Our Revolution. “Failing to deliver on ending fossil fuel subsidies will have consequences at the ballot box during the 2022 midterm elections and beyond.”
Contact: Phoebe Galt, [email protected]