Another major environmental concern with S.2557 is the range of new subsidies for marginal oil wells. Marginal oil wells are domestic oil producers that simply do not produce enough oil or gas to remain economically viable. Several provisions in the legislation give support for these poorly producing wells at the taxpayers expense. In Pursuit of Pollution A variety of other provisions in the bill would also have serious environmental impacts. One section proposes that the Department of Energy issue grants for the developing and demonstration of coal liquefaction technology, including the design and construction of a plant capable of producing commercial quantities of liquefied coal.
Coal liquefaction is one of the most polluting forms of liquid fuel.
However, the sponsors of S. 2557 have skipped the usual legislative process, so the budget impact has not been determined. Regardless of the exact figures, many of the provisions in S.2557 will waste tax-dollars by delivering most of its benefits to the domestic fossil fuel industry, which already receives billions in tax breaks annually. Environmental Benefits Few and Far Between S.2557 does contain a few provisions to promote more environmentally sustainable energy sources and energy conservation. The title includes an education program promoting increased purchase and storage of heating oil when prices are low as well as the establishment of a Northeast Home Heating Oil Reserve. Title 9 focuses on expanding use of renewable energy, improving energy efficiencies and converting to clean burning fuels.