Even Without Handouts for Liquid Coal, Tax Package Pending in Senate Could Subsidize Dirty Energy

For Immediate Release

Organization Profile: 
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Scott Baumgartner, 202-222-0751, sbaumgartner@foe.org
Alex Moore, 202-222-0733, amoore@foe.org

Even Without Handouts for Liquid Coal, Tax Package Pending in Senate Could Subsidize Dirty Energy

Friends of the Earth urges senators to further clean up bill after House of Representatives axed liquid coal subsidy

WASHINGTON - Friends of the Earth dirty fuels campaigner Alex Moore had the
following statement regarding the “American Workers, State, and Business
Relief Act of 2010” (HR 4213), which includes a variety of tax breaks
for polluting industries and may soon come up for a vote in the Senate.
The bill passed the House of Representatives Friday, May 28.

“We are pleased to see that the House
voted to eliminate all subsidies for the production of dirty liquid
coal, which generates twice as much global warming pollution as regular
gas. The House leadership deserves credit for its instrumental role in
removing these subsidies.

“However, improvements are still
needed. Senators now considering the bill must vote to end a loophole in
the Build America Bonds program that has funneled a billion dollars
since 2009 to other dirty coal projects.”

The liquid coal tax credits eliminated
by the House (26 U.S.C. § 6426(d) & 6426(e)), subsidized liquid
coal production at $0.50 per gallon. Liquid coal is not currently being
produced in the U.S., so this credit aimed to create an industry that
would be dependent on government assistance. The credit expired in
December 2009 and the coal lobby had been pushing for its extension.

In addition to liquid coal, Congress
also cut a subsidy for refined coal, a product used in electricity
generation.

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Friends of the Earth is the U.S. voice of the world's largest grassroots environmental network, with member groups in 77 countries. Since 1969, Friends of the Earth has fought to create a more healthy, just world.

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