President Obama doubled down on his party’s energy policy during the State of the Union. Typical of Democrats, he demonized America’s oil and natural gas producers and looked to subsidize inefficient, alternative sources of energy.
Obama: With more research and incentives, we can break our dependence on oil with biofuels, and become the first country to have a million electric vehicles on the road by 2015
If Obama’s endgame is energy independence, it is impossible to accomplish this goal without increased access to America’s outer continental shelf and vast natural gas deposits. America currently imports around 60 percent of its oil and is yet to find a viable domestic biofuel that could supplement this import/export disparity.
The President’s second goal, a million electric vehicles on the road by 2015, is achievable only through the extension of massive taxpayer subsidies. The stimulus package allocated $2.4 billion in grants for advanced battery and vehicle manufacturing. The 2007 Energy Independence and Security Act guaranteed a $25 billion direct loan program aimed at electric vehicles. Furthermore, the $2,500–$7,500 tax credit available to electric car purchasers should be repealed and replaced in a revenue neutral way.
Obama: I'm asking Congress to eliminate the billions in taxpayer dollars we currently give to oil companies.
President Obama is referring to is Section 199 and dual-capacity deductions, two tax rules employed by nearly every domestic manufacturer. If the president wants to eliminate these policies, he should do so for all industries in a revenue neutral way. Raising taxes means higher energy bills and fewer jobs.
Obama: So tonight, I challenge you to join me in setting a new goal: By 2035, 80 percent of America's electricity will come from clean energy sources. Some folks want wind and solar. Others want nuclear, clean coal and natural gas. To meet this goal, we will need them all — and I urge Democrats and Republicans to work together to make it happen.
A Clean Electricity Standard is not a novel idea and is nothing more than a mandate for Democrat’s preferred sources of energy. Forcing utilities to purchase energy from less efficient sources will raise Americans’ energy bills and further disadvantage American companies.