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Clean Energy Lobby Outspends Big Oil! September 8, 2010

Posted by Jamie Friedland in Congress, Politics.
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No, that didn’t happen.  The mere thought of it is preposterous.  What actually happened is a recent report highlighted increased lobbying expenditures from renewable energy companies, and the conservative reaction has been predictably devoid of perspective.  Pot?  Kettle here.  Let’s get you a mirror.

But if they want to talk about energy subsidies, let’s do it.  The following passage from OpenSecrets.org was quoted in a post on the conservative blog RedState:

“By 2007, the alternative energy industry had begun to drastically increase its lobbying spending, almost doubling its expenditures from the previous year. In 2009, alternative energy organizations shelled out an unprecedented $30 million to protect and promote their interests on Capitol Hill, and this year, it’s on pace to equal that record output.

The alternative energy industry’s lobbying expenditures have grown to 12 times from its 1998 level. In comparison, oil and gas spending and mining spending have grown less than three times their 1998 amount, and electric utility spending has grown to just twice its 1998 amount.” (emphasis added by RedState)

That sounds like a lot of money, and it is.  But of course the concept of context is lost upon RedState.  Let’s try adding some.

Renewable energy companies spent $30 million on lobbying in 2009.  Compare that to 2009 lobbying expenditures for:

  • Misc. Energy: $56,013,293 –  $30 million in renewables = ~$26 million*

Total: more than $373 million in 2009 lobbying.

*The “Misc. Energy” category contains dozens of companies, some from the renewable energy sector but others such as the FutureGen Industrial Alliance, which lobbies for “clean” coal.  OpenSecrets cited $30 million for renewables, so I used that number here.

In 2009 alone, dirty fuel interests outspent clean energy by a factor of 12.4.  The oil and gas industry outspent renewables by a factor of nearly 6.  And Exxon Mobil – alone – spent 90% as much on lobbying as the entire clean energy sector.

Since 1999, oil and gas companies along with electric utilities have spent over $2 billion.  In that period, the renewable energy sector spent $105 million.  So tell me again why we’re whining about the big bad clean energy lobby?

The author of this RedState blog post, writing under the pseudonym Vladimir, identifies himself only as “Operations Manager for a small Gulf of Mexico oil & gas explorer & producer.”  Vlad further explains the crippling burden imposed by tyrannical American energy subsidies upon the tiny, innocent oil industry:

“The wind industry is pocketing subsidies that dwarf those garnered by the oil and gas sector. …Wind subsidies are more than 200 times as great as those given to oil and gas on the basis of per-unit-of-energy produced.”

First of all, The per-unit cost difference is easily explained: oil industry is fully mature whereas renewables are still very much developing.  New industries, especially those with positive instead of negative social benefits, receive subsidies so that they can develop more quickly and their costs can come down.  These fuels are our future, and we’d like to get there as soon as possible.

Side note: That future isn’t just clean and renewable, it’s really cool: check out these self-healing solar cells.

But more importantly, NO wind subsidies absolutely do NOT “dwarf” oil subsidies.  That is patently false.  When one compares size, one generally compares…size.  A > B.  Not A/X > B/Y.

Below is a wonderful graphic produced by the nonpartisan Environmental Law Institute (where, in the interest of full disclosure, I currently work – this was compiled long before my recent arrival).

This chart is slightly dated.  For example, just this Tuesday, the Department of Energy pledged more than $575 million in stimulus funding for 22 different projects related to Carbon Capture and Storage (E&E News, subscription required).  But you get the idea.

You cannot make the serious claim that renewables get unduly preferential government treatment on account of their lobbying.  One look at the benefits these lobbying efforts reap dispels that notion.

The conservative self-delusion is irreconcilably hypocritical when subjected to the facts of real life.  That is why the two worldviews currently exist without much overlap.

Hat tip to Kevin Grandia at DeSmogBlog for his post on this.

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