[Congressional Record Volume 150, Number 66 (Wednesday, May 12, 2004)]
[Senate]
[Pages S5362-S5363]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




               SUPPORT OF THE MCCAIN AMENDMENT TO S. 1637

  Mr. FEINGOLD. Mr. President, I would like to express my support for 
the amendment offered by the senior Senator from Arizona, Mr. McCain, 
to strike the energy tax title from the Foreign Sales Corporation bill. 
I recognize the need for a comprehensive energy policy and incentives 
for alternative energy development. I also believe that the tax package 
offered by the Senator from Iowa and the Senator from Montana was more 
balanced than the energy tax title from the H.R. 6. energy conference 
report. However, I am disappointed that the energy tax title in the 
FSC/ETI bill did not extend these tax credits in a more fiscally 
responsible way.
  I support many of the tax credits in this legislation, such as 
extension of the wind energy producer credit. The wind energy tax 
credit is an important step in the continued effort to increase our 
energy security and to decrease our reliance on carbon-based energy 
sources. Wisconsin has a lot to offer in this area. I support tradeable 
tax credits for rural cooperatives, and the other provisions that would 
specifically benefit rural cooperatives and

[[Page S5363]]

small renewable fuel producers. I also support many of the other 
provisions that increase energy efficiency and promote renewable fuels 
and alternative energy sources.
  The energy tax title as written, however, will cost from $15-20 
billion dollars. The oil and gas incentive section would cost taxpayers 
$6.5 billion and allows companies to deduct the costs of mineral 
exploration and marginal oil wells. The nuclear power incentives total 
$1 billion, and the so-called ``clean coal'' incentive is $2.2 billion. 
In addition to these credits to mature industries, the ``non-
conventional fuel credit'' that supports the synfuels industry and 
coalbed methane industry would cost the taxpayers an additional $2.5 
billion. According to a Time magazine article entitled ``The Great 
Energy Scam,'' some plants merely spray newly mined coal with diesel 
fuel or pine-tar resin to qualify for the synfuel tax credit. We also 
need to consider the detrimental environmental impacts of these tax 
breaks. A proposed coalbed methane project in Wyoming, for example, 
could draw on 1 billion gallons of groundwater a day and would benefit 
from this provision.
  I remain committed to supporting legislation to encourage alternative 
energy research and production. In terms of overall energy policy, I 
believe we must develop cleaner, more efficient energy sources and 
promote conservation. We need a comprehensive energy policy, but it 
must be balanced and fiscally responsible. I believe that we can meet 
these goals, but unfortunately, this energy tax title falls short of 
that goal. Therefore, I support the McCain amendment to strike it from 
the bill.

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