Congressman Dan Goldman Fights Big Oil Profiteering to Reinvest in Communities on Frontlines of Climate Change
Big Oil Windfall Profits Tax Act Would Tax Record Big Oil Profits; Provide Consumer Rebate
Energy Resilient Communities Act Would Invest in Clean Energy Microgrids to Power Frontline Community Infrastructure in Wake of Extreme Weather Events
Washington, DC – Congressman Dan Goldman (NY-10) today announced he is cosponsoring legislation that would tax large oil companies’ profiteering in the wake of the COVID pandemic and reinvest in underserved and climate justice communities most susceptible to the devastating effects of climate change.
“Since the start of the COVID pandemic, Big Oil has raked in record profits while gas prices soar, American families struggle to make ends meet, and climate change continues to wreak havoc on our communities,” Congressman Dan Goldman said. “These two critically important pieces of legislation would redirect unjustifiable corporate profiteering to the pockets of everyday Americans and invest in life-saving green infrastructure in communities that are on the frontline of the devastating effects of climate change.”
Big Oil Windfall Profits Tax Act
Russia’s invasion of Ukraine continues to disrupt an already volatile global oil market by further reducing supply. This instability underscores yet another consequence of a continuing dependence on fossil fuels. Meanwhile, big oil companies are making record profits. For example, ExxonMobil made $77.8 billion in profits in 2022, more than double its 2021 profits (a 249% increase). The companies have used the proceeds to further enrich their shareholders by engaging in billions of dollars of stock buybacks.
This bill would provide consumers guaranteed relief while maintaining American
competitiveness and reducing pressure on inflation by attacking corporate profiteering.
The Big Oil Windfall Profits Tax Act will:
Claw back Big Oil’s Windfall Profits.
Large oil companies will owe a per-barrel tax equal to 50 percent of the difference between the current price of a barrel of oil and the pre-pandemic average price per barrel between 2015 and 2019. This tax will be paid quarterly. It will apply to both domestically produced and imported barrels of oil to ensure a level playing field. The tax will apply to oil profits in 2022 and going forward so that Americans gouged by high prices are made whole.
Apply to the largest companies.
Large companies that produce or import at least 300,000 barrels of oil per day will be subject to the tax. Smaller companies accounting for roughly 70 percent of domestic production will be exempt, so oil giants like Exxon Mobil and Chevron cannot simply gouge consumers further without the threat of losing market share.
Lower consumer costs with relief rebates.
Revenue raised from the windfall profits of big oil companies will be returned to consumers in the form of a rebate, which would phase out for single filers who earn more than $75,000 in annual income and joint filers who earn more than $150,000. With oil priced at roughly $90-100 per barrel, this levy would raise approximately $49.1 billion per year. At this price, single filers would receive an estimated $260 each year and joint filers $390.
Energy Resilient Communities Act
The Energy Resilient Communities Act will create a new program at the U.S. Department of Energy to invest in clean energy microgrids to power the critical infrastructure that communities rely on in the aftermath of an extreme weather event or power disruption.
As the climate crisis worsens, cities and towns across the country are at increased risk from more frequent and severe natural disasters, such as wildfires, floods, and hurricanes. One of the many challenges these extreme events pose is the loss of power in the days and weeks following a disaster.
Electricity can be a lifeline for residents relying on powered medical equipment, and it is critical to maintaining essential community services such as hospitals, water systems, and senior housing.
This legislation will help to reverse environmental inequities by prioritizing grants for environmental justice communities, while also helping our country combat and adapt to climate change and build the clean energy economy.
Many clean energy microgrids are being installed in the U.S., however the majority are still powered in part by burning fossil fuels. In order to transition the United States to clean energy as quickly as possible to address the climate crisis, we need to accelerate the development of clean energy microgrids so they become the standard rather than the exception.
The Energy Resilient Communities Act will kickstart the clean energy revolution in communities across the country, while simultaneously bolstering the resilience of critical community infrastructure. The Act authorizes technical assistance and grants for clean energy microgrids to support hundreds of new projects a year and prioritizes environmental justice communities.
Energy Resilient Communities Act Highlights:
Authorizes $1.5 billion in annual grants for clean energy microgrids to support the critical infrastructure needed in the aftermath of an extreme weather event and $50 million in annual grants for technical assistance. Examples of critical infrastructure include hospitals, grocery stores, community centers, public safety facilities, public or affordable housing, medical baseline customers, and senior housing.
A minimum of $150 million of annual authorized funding is reserved for grants supporting the construction of community-owned energy systems.
State and local governments, territories, tribal agencies, utilities, and non-profits can apply for Grants.
Grants are prioritized for applications from environmental justice communities.
Projects are additionally prioritized based on several criteria, including how effectively they reduce pollution and improve public health, are built on previously disturbed land, prioritize contracts for women and minority owned businesses, utilization of apprenticeships, and whether the proposed project will be a community-owned energy system
The maximum federal cost share of 60%, except for environmental justice communities, where the maximum federal cost share is 90%.
Includes Buy American provisions to maximize the creation of American manufacturing jobs in the production of materials and technology for microgrids.
Includes worker hiring targets for each project to maximize the number of local workers, as well as economically disadvantaged workers, including those who live in environmental justice communities or were displaced from a previous job in the energy sector.
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