As fossil fuel giants continue to rake in billions of dollars in profits, U.S. Rep. Ro Khanna on Thursday is reintroducing legislation to end giving billions in taxpayer dollars to companies that inject captured carbon dioxide into wells to extract more climate-wrecking oil.
“The fossil fuel industry receives over $20.5 billion in taxpayer dollars every year while fleecing American consumers and driving a global climate crisis,” Khanna (D-Calif.) told Common Dreams. “The End Polluter Welfare for Enhanced Oil Recovery Act will eliminate the subsidy for captured carbon used for enhanced oil recovery, which only leads to more fossil fuel extraction and does nothing to mitigate climate change.”
While advocates of carbon capture utilization and storage claim that it’s necessary to address the fossil fuel-driven climate emergency, most CO2 captured in the United States is used to extract more planet-heating oil and gas, leading many scientists and green groups to argue that it is a “false climate solution.”
“Oil drilling is the real story behind the fossil fuel industry’s carbon capture obsession,” said Jim Walsh, policy director at Food & Water Watch, which has endorsed Khanna’s bill. “These corporate polluters are raiding public coffers from what could easily be hundreds of billions of dollars while greenwashing the further degradation of our climate.”
Walsh also highlighted the impact on people who live near fossil fuel infrastructure, telling Common Dreams that “communities across the country are facing the potential for thousands of harmful industrial projects and tens of thousands of miles of dangerous pipelines that will do little more than put money in the pocket of the fossil fuel industry.”
Despite such warnings, Congress has actually boosted Section 45Q tax giveaways for companies using captured CO2 for enhanced oil recovery (EOR) since Khanna first introduced the legislation in December 2021. The Inflation Reduction Act of 2022 was heralded as a “landmark” climate package for its investments in cleaner energy, but a little-noticed provision in the law increased the relevant credit for CO2 injection from $35 to $60 per metric ton.
This year, 15 other House members are backing Khanna’s bill, as are over a dozen organizations. Among them is Evergreen Action, which has spent years calling for reforms, including a June memo denouncing 45Q subsidies that encourage more fossil fuel production.
“It’s unconscionable that American taxpayers are still subsidizing oil and gas companies to extract even more fossil fuels through so-called ‘enhanced oil recovery,'” said Evergreen Action senior energy transition policy lead Mattea Mrkusic. “By eliminating these wasteful tax giveaways, Rep. Ro Khanna’s bill takes a crucial step toward ending one of many federal fossil fuel handouts that drive climate pollution.”
“Climate change is no longer a distant threat — it’s happening right now, fueling more frequent and severe weather events, disproportionately impacting marginalized communities, and costing the American people billions every year,” Mrkusic told Common Dreams. “Taxpayers shouldn’t be left footing the bill to help Big Oil boost its profits at the expense of our health and economy. It’s a perfect time to fully invest in our clean energy future instead.”
Khanna’s reintroduction of the End Polluter Welfare for EOR Act follows the hottest year in human history — a record that 2024 is expected to beat, with historic summer heat that led global scientists to demand urgent action to shift away from fossil fuels.
It also comes less than six weeks away from the U.S. general election, in which Americans are set to determine the makeup of Congress and the next occupant of the Oval Office. While Democratic Vice President Kamala Harris has the support of nearly every major climate group, former Republican President Donald Trump, who has pledged to swiftly gut federal climate policies if Big Oil puts $1 billion toward his campaign, has been dubbed an existential threat to progress on the climate crisis.
Regardless of who wins in November, there’s also a looming Capitol Hill battle over taxation, given that policies Trump signed into law in 2017 are set to expire at the end of next year. As Common Dreams reported in June, the climate movement sees that debate as an opportunity to end tax giveaways for the fossil fuel industry.
“Fossil fuel companies have raked in astronomical profits at the expense of communities while Big Oil and Gas lobbyists actively work to keep us hooked on their polluting products that perpetuate the climate crisis,” said Mahyar Sorour, Sierra Club’s director of beyond fossil fuels policy. “It is absurd that taxpayers should then also provide a blank check through subsidies, corporate giveaways, and sweetheart deals.”
Sierra Club is supporting Khanna’s bill, as are 350.org, Alliance for Affordable Energy, Center for Biological Diversity, Center for International Environmental Law, Climate Justice Alliance, Environment America, Friends of the Earth, Greenpeace USA, Oil Change International, Our Revolution, Oxfam America, Progressive Democrats of America, U.S. PIRG, and Zero Hour.
“We must end the billions of dollars in wasteful taxpayer subsidies to the fossil fuel industry,” Sorour stressed. “Congress continues to say they are concerned about the country’s deficit. Ending handouts to billion-dollar corporations that price gouge consumers and pollute our environment is a great way to reduce spending.”
“We are grateful to Rep. Khanna for leading this legislation and look forward to supporting this and other types of similar legislation that hold Big Oil and Gas companies accountable,” Sorour told Common Dreams.
Earlier this year, U.S. Sen. Bernie Sanders (I-Vt.) and Rep. Ilhan Omar (D-Minn.) reintroduced the broader End Polluter Welfare Act, of which Khanna is a co-lead. Its sponsors say that by closing tax loopholes and ending corporate handouts to the fossil fuel industry, that bill “would save American taxpayers up to $170 billion over the next 10 years.”
We’re not backing down in the face of Trump’s threats.
As Donald Trump is inaugurated a second time, independent media organizations are faced with urgent mandates: Tell the truth more loudly than ever before. Do that work even as our standard modes of distribution (such as social media platforms) are being manipulated and curtailed by forces of fascist repression and ruthless capitalism. Do that work even as journalism and journalists face targeted attacks, including from the government itself. And do that work in community, never forgetting that we’re not shouting into a faceless void – we’re reaching out to real people amid a life-threatening political climate.
Our task is formidable, and it requires us to ground ourselves in our principles, remind ourselves of our utility, dig in and commit.
As a dizzying number of corporate news organizations – either through need or greed – rush to implement new ways to further monetize their content, and others acquiesce to Trump’s wishes, now is a time for movement media-makers to double down on community-first models.
At Truthout, we are reaffirming our commitments on this front: We won’t run ads or have a paywall because we believe that everyone should have access to information, and that access should exist without barriers and free of distractions from craven corporate interests. We recognize the implications for democracy when information-seekers click a link only to find the article trapped behind a paywall or buried on a page with dozens of invasive ads. The laws of capitalism dictate an unending increase in monetization, and much of the media simply follows those laws. Truthout and many of our peers are dedicating ourselves to following other paths – a commitment which feels vital in a moment when corporations are evermore overtly embedded in government.
Over 80 percent of Truthout‘s funding comes from small individual donations from our community of readers, and the remaining 20 percent comes from a handful of social justice-oriented foundations. Over a third of our total budget is supported by recurring monthly donors, many of whom give because they want to help us keep Truthout barrier-free for everyone.
You can help by giving today. Whether you can make a small monthly donation or a larger gift, Truthout only works with your support.