Sen. Markey & Rep. Blumenauer Introduce Tar Sands Tax Loophole Elimination Act

Share, email, print, bookmark SOURCE reports.

In full transparency, the following is a media release from Sen. Ed Markey, who was elected by voters in the Commonwealth of Massachusetts to serve the state in Washington DC in the US Senate. He is a Democrat.

***

WASHINGTON DC – Unlike other types of oil, tar sands oil – one of the dirtiest forms of fossil fuel – is currently exempt from taxes used to fund the clean up of oil spills. Today, March 8, Senator Edward J. Markey (D-Mass.) and Representative Earl Blumenauer (OR-03) reintroduced the Tar Sands Tax Loophole Elimination Act, bicameral legislation to close that unfair tax loophole and ensure Big Oil pays their fair share into the Oil Spill Liability Trust Fund.

“We cannot allow any oil company to evade the bill for spills. For far too long, American taxpayers have borne the burden of mass oil spills along our coasts, waterways, and farmlands, while tar sands companies walk away scot-free,” said Senator Markey. “The dirtiest fuels must have the strictest requirements, not the largest regulatory loopholes. We need to close this tax loophole for tar sands and make sure every Big Oil company pays for their clean-up costs.”

“Big Oil already gets billions of dollars in taxpayer support every year that they do not need,” said Representative Blumenauer. “The facts are clear; we are in a climate emergency and must take action. It is past time we hold fossil fuel polluters accountable for the impact they have on the environment. Tar sands oils are one of the dirtiest forms of crude oil and should not be treated any differently in the tax code.”

In addition to Blumenauer and Markey, the legislation is supported by Senators Elizabeth Warren (D-Mass.), Sheldon Whitehouse (D-R.I.), Jeff Merkley (D-Ore.), and Bernard Sanders (I-Vt.) in the Senate. In the House, the legislation is supported by Natural Resources Chair Raúl Grijalva (D-AZ), along with Reps. Nanette Barragán (D-CA) and Dan Kildee (D-MI).

A copy of the legislation is available HERE.

Authorized by Congress in 1990, the Oil Spill Liability Trust Fund makes resources available to pay for the immediate costs of cleaning up oil spills. In 2011, the Internal Revenue Service (IRS) issued a ruling concluding that oil derived from tar sands is not considered crude oil and therefore is not subject to the excise tax that goes into the Oil Spill Liability Trust Fund. In addition to creating a substantial tax loophole, this ruling resulted in an unequal playing field where certain forms of oil extraction are not paying their fair share for the cost of oil spills.

The Tar Sands Tax Loophole Elimination Act, introduced today in both chambers of Congress, would close the tax loophole by adding oil derived from tar sands and oil shale to the definition of crude oil, restoring original congressional intent, and requiring oil companies to pay the full excise tax into the trust fund.

The Oil Spill Liability Trust Fund’s revenue source is a nine cents per barrel excise tax on crude oil and petroleum products. In 2017, the Joint Committee on Taxation estimated that eliminating this tax loophole would generate approximately $665 million in revenue over 10 years.

While President Joseph Biden revoked a key permit for the dangerous Keystone XL pipeline, several tar sands projects are currently operating or undergoing construction, including Enbridge’s controversial Line 3 pipeline replacement project. Enbridge is building the Line 3 pipeline in northern Minnesota to transport tar sands from Canada to Wisconsin.

The Tar Sands Tax Loophole Elimination Act is endorsed by 350.org, Friends of the Earth, Food and Water Watch, Greenpeace, Sierra Club, Oil Change International, Zero Hour, and Union of Concerned Scientists.

editor

email: editor@FraminghamSource.com call or text at 508-315-7176

Translate »