October 21, 2021

October 21, 2021

Your Source for Free Speech,
Talk Radio, Podcasts, and News.

Time To End All Energy Subsidies – Here Is Why

by | May 19, 2020 |

Print Friendly, PDF & Email

It is time to finally end the quagmire of outdated energy subsidies in the U.S. They were built up over a century of programs once intended to help develop innovative ideas for energy development. But now practically all of them are simply aiding and abetting the flow of money to companies and individuals no longer deserving to feed at the government trough.
Assuming governments don’t do something foolish like trying to enable the damaging and hopelessly impractical Green New Deal, no one alive today will ever see energy shortages in America again. Powerful new technologies have allowed our nation to move from worrying about running out of oil to no longer having sufficient space to store all the oil and gas we are capable of developing.
Of course, the problem of over-abundance has been exacerbated by the government’s hysterical reaction to the Chinese Coronavirus that shut our economy for the past two months. Soon, that will pass and our abundance will settle back to normalcy. In the process, there will be a ‘survival of the fittest’ shakeout in the energy sector with some companies having to close their doors, but that ultimately is the way of the world for all industries.
While the vast amounts expended on dozens of subsidy-type programs in the energy sector are near impossible to pin down, the programs developed long ago can give us an idea of wasted tax dollars. Our colleague, American lawyer, policy analyst, and columnist, Peter Ferrara, was able to track the names of 187 different means-tested welfare programs in his 2015 book Power To The People. Obviously, many of them should have been phased out long ago but, as we all know, government programs rarely die. We will not attempt to uncover the breadth of all energy subsidies currently in operation but rather to make a case that it is time to end each and every one of them, no matter the technology.
First, there is the colossal waste of taxpayer monies on so called renewable energy, in particular, wind and solar power. These technologies are mature enough that subsidies to them should have ended long ago, leaving them to stand, or more likely fall, on their own in a competitive marketplace.
Without your federal and state tax benefits supporting them, there would be no solar or wind industry of any significance. While they may, at times, seem cost-competitive with fossil fuels due to the extremely wide and complicated web of government policies biased in favor of renewable energy, consumer prices increase every time. The renewable portfolio mandates requiring utilities to invest in renewables force all ratepayers to subsidize them whether we want to or not.
For years now, the Energy Information Agency (EIA) has shown a combined federal benefit for wind and solar of $2.8 billion per year. It comes through a tax credit of 2.4 cents per kilowatt-hour produced, as well as a deduction of 30% of the installation cost. These benefits were supposed to expire years ago but did not. Now they are set to expire in 2021 but don’t hold your breath on that one either. A 10% tax credit on solar and geothermal installations would still remain, as well.
The situation in Canada is also nonsensical. There, the federal government will spend more than $2.4 billion over the next four years to promote the production and use of “clean energy”, especially solar and wind power. Samples of wind & solar subsidies in Canada include:

>  R&D funding

>  Funding for demonstration projects

>  Grants, contributions and low-interest loans to suppliers or purchasers

>  Preferential procurement practices

>  Tax incentives (e.g., credits, deductions and exemptions that are not provided to other firms)

>  Preferences granted through regulation

>  Preferential, above-market utility rates, e.g., “feed-in-tariffs,” often guaranteed for the life of the contract

>  Restrictions on property and other taxes on solar and wind project sites

Economist Dr. Andrew Reed concluded that variable renewable energy “subsidies and other hidden costs would likely more than double the ‘real’ costs to society for wind and solar in Canada.”
The U.S. states are even more aggressive in helping wind and solar. At the end of 2018, 29 states and the District of Columbia had renewable portfolio mandates collectively accounting for 63% of retail electricity costs. What this means is that these states require every electric utility to include a certain amount of wind and solar power in their energy mix regardless of the cost. And, of course, for every kilowatt-hour the utilities now produce from intermittent and expensive wind and solar plants, they must create an additional kilowatt-hour of capacity from reliable fossil fuels to account for the periods when the sun does not shine or the wind either does not blow or blows too hard (at which point, the blades must be feathered or they will break).

Electricity consumers across America are being severely punished by the cost of this energy that has yielded no benefit to the service they receive from the utility.

And all this in the name of protecting the environment, which, as Michael Moore demonstrated in his superb documentary, Planet of the Humans (over 8 million views on YouTube since April 21), is being severely damaged by these supposedly green energy sources.
Moving on to the even larger elephant in the room: historically, subsidies granted to the fossil fuel industry were designed to lower the cost of fossil fuel production and incentivize new domestic energy sources. Today, U.S. taxpayer dollars continue to fund many fossil fuel subsidies that are outdated, but remain embedded in the tax code. A sample of these include:

>  Intangible Drilling Cost Deductions

>  Percentage Depletion Deductions

>  Non-Conventional Fuels Tax Credit

>  Credit for Clean Coal Investment

>  Foreign Tax Credits

>  Master Limited Partnerships

>  Domestic Manufacturing Deductions for oil

>  Master Limited Partnerships

>  Clean Energy for America Act

Add to these, financial gifts from the U.S. Export-Import Bank and the Overseas Private Investment Corporation.

Not all of the subsidies that oil, coal and natural gas industries receive are obvious, and this is part of the reason that they have been going on forever, long after we went from a nation thought to be running out of oil to one now awash in it.

In seeking fiscal reforms that have the potential to save taxpayer dollars, phasing out subsidies for the fossil fuel industry should be a priority for federal policy makers. While regulations that unnecessarily hamper fossil fuel development should continue to be cancelled, especially those that are founded on the nonsensical climate scare, subsidies aid an industry that is mature and well-established, with abundant private financing. Industry representatives argue that renewable energy gets orders of magnitude more in subsidies and, in support per kilowatt-hour generated, this is indeed true: solar and wind power get 326 and 69 times more in subsidies than coal, oil and natural gas per amount of energy generated, according to an article published in Forbes earlier this month.

But two wrongs do not make a right. Our nation no longer needs a red cent spent on energy subsidies when we are already the richest energy-producing nation on Earth.

Note: Portions of this article were excerpted from Climate Change Reconsidered II: Fossil Fuels (CCRII: Fossil Fuels), produced by the Nongovernmental International Panel on Climate Change (NIPCC) published by The Heartland Institute, with permission of the editors Joseph Bast and Diane Bast. The authors strongly recommend the book for a complete exposé of the fallacies behind the nation’s energy subsidies.


Dr. Jay Lehr is a Senior Policy Analyst with the International Climate Science Coalition and former Science Director of The Heartland Institute. He is an internationally renowned scientist, author, and speaker who has testified before Congress on dozens of occasions on environmental issues and consulted with nearly every agency of the national government and many foreign countries. After graduating from Princeton University at the age of 20 with a degree in Geological Engineering, he received the nation’s first Ph.D. in Groundwater Hydrology from the University of Arizona. He later became executive director of the National Association of Groundwater Scientists and Engineers.

Tom Harris is Executive Director of the Ottawa, Canada-based International Climate Science Coalition, and a policy advisor to The Heartland Institute. He has 40 years experience as a mechanical engineer/project manager, science and technology communications professional, technical trainer, and S&T advisor to a former Opposition Senior Environment Critic in Canada’s Parliament.

Notify of
1 Comment
Most Voted
Newest Oldest
Inline Feedbacks
View all comments
Dave James
Dave James
1 year ago

Tom Harris and Dr. Jay Lehr assert human-caused climate change is a “nonsensical climate scare.” However, the scientific evidence does not support their assertion. (Source 4th National Climate Assessment, Volume I).
Dr. Jay Lehr’s and Mr. Tom Harris’ opinion pieces show that they are pro-coal activists:
“Time to End the War on Coal” by Dr. Jay Lehr & Tom Harris, May 3, 2019, The Post & Email
“Time to end the war on coal” by Jay Lehr and Tom Harris, May 15, 2019, Citizen Journal
“Trump right to try to end the WAR ON COAL” by Dr. Jay Lehr & Tom Harris, Apr 16, 2019, America Out Loud
“Clean coal for the future” Tom Harris, Feb 9, 2018, Idaho Press
“Coal key to national security strategy” Tom Harris, Jan 13, 2018, The Spectrum
“Climate scare must be debunked for coal to recover” Tom Harris, Jan 2, 2018, Superior Telegram
“Harris: Coal has many uses” Tom Harris, Sep 3, 2018, Casper Star Tribune
Coal is a dying industry. It is being replaced by cheaper cleaner sources of energy like natural gas and renewables. “Between 2010 and early 2019, 546 coal plants that generated 102,000 megawatts retired. And in 2020, another 150 are on the chopping block, says the just-released U.S. Energy Information Administration. Coal’s share of the electric generation portfolio was 50 percent in 2007. Now it is 25% and will fall to 19%.
It’s good news for renewables, which will see its 17% market share jump by 11% in 2020. That’s potentially even better news for climate change because coal makes up about 30% of all manmade CO2 emissions.” (Source “Renewables Have Outrun Coal. Appalachia Needs To Join The Green Brigade” by Ken Silverstein, May 18, 2020, Forbes)

Disclaimer: The information contained in this website is for educational, general information, and entertainment purposes only and is never intended to constitute medical or legal advice or to replace the personalized care of a primary care practitioner or legal expert.

While we endeavor to keep this information up to date and correct, the information provided by America Out Loud, its website(s), and any properties (including its radio shows and podcasts) makes no representations, or warranties of any kind, expressed, or implied, about the completeness, accuracy, reliability, suitability, or availability with respect to its website(s) or the information, products, services or related graphics and images contained on the website(s) for any purpose.

The opinions expressed on the website(s), and the opinions expressed on the radio shows and podcasts, are the opinions of the show hosts and do not necessarily represent the opinions, beliefs, or policies of anyone or any entity we may endorse. Any reliance you place on such information is therefore strictly at your own risk.

At no time, nor in any event, will we be liable for any loss, or damage, including without limitation, indirect or consequential loss of data or profits arising out of, in an association of, or connection with the use of this website.

Through this website, users can link to other websites that may be listed. Those websites are not under the control of America Out Loud or its brands. We have no control over the nature, content, or availability of those sites. America Out Loud has no control over what the sites do with the information they collect. The inclusion of any links does not necessarily imply a recommendation, nor does it endorse the views expressed with or by them.

Every effort is made to keep the website up and running smoothly. However, America Out Loud takes no responsibility for, nor are we, and will not be liable for being temporarily unavailable due to technical difficulties beyond our control. America Out Loud does not sell, trade, nor market email addresses or other personal data.

Use the code ‘OUTLOUD’ and receive your 20% discount on your first order.

America’s Decline is a Choice

America’s Decline is a Choice

Many in America think that America needs to be brought down to size. Barack Obama once said, “My legacy will be an America brought down to the level of the rest of the world,” and though Obama was not able to realize this ambition, the Biden Administration is moving full speed ahead with plans to weaken the United States militarily and economically, destroying the wealth of the American people in the process…

BLM Joins MAGA in Extraordinary Backlash against Dems

BLM Joins MAGA in Extraordinary Backlash against Dems

Marching alongside residents like John Tabacco, NYC Conservative Activist and host of the Newsmax show “Wiseguys” were equally incensed New Yorkers like Rev Kevin McCall, a BLM activist. Where MAGA rally-goers generally remain lawful and peaceful, unlike what mainstream media likes to portray, BLM protesters have no such parameters. McCall “made it clear to the crowd that sometimes civil disobedience is the only way to get the government to listen.”

19 Biden Policies Designed to Destroy the Middle-Class

19 Biden Policies Designed to Destroy the Middle-Class

The dark forces behind the scenes working to reshape the U.S. are not stupid. It’s clear they’re working to destabilize society, with the long-term objective being to get them the power to transform America! The enemy of the Biden Cabal are clearly those terrible middle-class deplorables who cling to their guns and Bibles. It’s all those creepy people who go to work every day, pay their taxes, obey the law…

School Transfers Gender-Fluid Boy to Another School to Rape Again

School Transfers Gender-Fluid Boy to Another School to Rape Again

The latest mutation is “gender fluid” people – you can be a man one day, a woman the next day, then back to a man, and then whatever suits you. The predictable result? Rapists can now claim to be female whenever it helps them to rape. This rapist wore a skirt, entered the girl’s restroom, then raped a girl. Twice. Enabled and abetted by the school authorities, who knowingly transferred him to another school where he promptly committed the same crime all over again…

Biden Blunders Make Trump Tweets Sound Like Music

Biden Blunders Make Trump Tweets Sound Like Music

Politically biased private communication monopolies have canceled social media accounts of a duly elected sitting president, along with blocking scandalous information regarding foreign influence-peddling by his opponent just prior to the 2020 election. First Amendment rights are being routinely abridged through an ever-creeping ideologically…

Vaccination Alone Will Not End This Pandemic

Vaccination Alone Will Not End This Pandemic

We can see that as the months rolled on over the summer and the Delta variant shaded in the CDC variant report, the virus has found a way to attack the most vulnerable citizens who so badly needed protection from the vaccines. Since so many unvaccinated have natural immunity from prior infection, we can expect a greater proportion of those with severe illness to be among the vaccinated…

The Dehumanization of the Founding Fathers

The Dehumanization of the Founding Fathers

Since the use of a bioweapon against American citizens is as clear as day… the Democrat bioweapon may be considered by some as a justifiable trigger for instituting the program for dealing with tyranny and despotism outlined by Thomas Jefferson. And it is for that reason, Jefferson is feared by the Neo-Nazi Democrats. Jefferson provides a way out…

Beware of Laboring for the Food that Perishes

Beware of Laboring for the Food that Perishes

The work environment itself is now oppressive for most because of the Coronamania hoax. And our hard-earned dollars don’t stretch nearly as far as in the past because of rapidly rising inflation. Joe Biden team, thanks for nothing! Working more hours just means paying more taxes for wasteful causes and oppressive changes to suit the Communist administration’s agenda…


Your Source for Free Speech, Talk Radio, Podcasts, and News.

Here we take on the challenges of our generation so that we can preserve future generations.

Help Support Our Mission


The APPS are free; the mission is priceless!

Free APP

Podcast Networks

Apple Podcasts
Google Podcasts

Subscribe and Listen on Your Favorite APP

Our Columnists and Show Hosts

COVID Solution Summit

Apple Podcasts

Evacuating Americans & fully-vetted Afghan's at Risk - Help Us!

Apple Podcasts

Empowering and mentoring conservative trailblazers from Generation Z to win!

Apple Podcasts

Turning Point Action is Recruiting Precinct Chairs - Become a Grassroots Warrior Today!

Apple Podcasts

Please join us to protect the Supreme Court:
Sign the Petition!

Apple Podcasts

The LATINO USA EXIT from the Democrat Party, click for details...

Apple Podcasts

Fighting corporate censorship and ensuring voter integrity...

Apple Podcasts

Support wounded and fallen police officers. The Wounded Blue.

Wounded Blue
Share via
Copy link
Powered by Social Snap