The Energy Security Funding Act
From dKosopedia
Act XX of Energize America
Contents |
Objective
To provide the financing necessary to implement and support the migration to U.S. energy security.
Description
Achieving US energy security by 2020 will be difficult and require both financial and political discipline. However, this effort is to ensure our national security, maintain our economic wellbeing, and protect the American way of life. Current energy and tax policies are ineffective, frequently counterproductive, and are poorly aligned to meet this country’s growing energy needs in the 21st century. Energize America provides a comprehensive plan that will ultimately save the US economy, and US consumers, tens of billions of dollars annually. The Energy Security Funding Act provides the funding framework for this crucial effort in a fair and consistent manner and includes the following:
- Energy Budget Transparency Act - This act will mandate a yearly audit of all energy related federal expenses or tax incentives, to be disclosed publicly. Showing how energy is subsidized will make taxpayers more conscious of the costs of various energy sources and will help in the transition to renewable energies.
- Energy Subsidy Reallocation Act – This act will reallocate federal funds away from mature sectors of the energy industry and away from hydrocarbon production. The most egregious subsidies to the oil sector will be transferred to support the nascent industries in the renewable energy sector that will provide sustainable energy, and high tech jobs, to Americans.
- Oil & Gas Royalty Enforcement Act - This act will provide increased enforcement of existing oil and gas royalty agreements. Initial estimates are that over $35 billion is owed to the federal government through inadequate and inaccurate reporting of oil/gas production on federal lands. Full collection will provide $3 billion per year in additional revenue.
- Windfall Profits Royalty Act - This act will restructure royalty payments for oil/gas and other extractive industries on federal lands to provide increased percentage royalties as commodity prices increase. For example, oil royalties will step up at $50 per barrel and increase again, in percentage terms, above $75 per barrel. As well, a tax of $1 per barrel will be applied against all imported oil. This measure will provide a total of $5 billion per year.
Benefits
The Energy Security Funding Act will fully pay for the twenty Acts of Energize America and will enable Americans to achieve energy security by 2020, and will pave the way to reach energy independence by 2040. Americans will also benefit by saving hundreds of billions of dollars annually in energy costs and by dramatically reducing GHG emissions. At its core, though, the Energy Security Funding Act will help keep America from fighting future wars over access to and control of oil in the coming decades.
Costs
The Energy Security Funding Act will cost an estimated $10 million through 2020, primarily in program management costs within the Department of Energy and Department of Treasury.
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