REP. MIKE THOMPSON LEADS CALL TO PROTECT LOCAL CLEAN ENERGY ROYALTIES
May 15, 2013
U.S. Rep. Mike Thompson (D-CA) today announced that he has led a bipartisan letter with Reps. Mark Amodei (R-NV), Steven Pearce (R-NM), Joe Heck (R-NV), Jared Huffman (D-CA), John Garamendi (D-CA) and Juan Vargas (D-CA) calling on President Obama to protect local clean energy royalties from harmful budget cuts. The letter urges the President to not repeal the sharing of geothermal royalty payments with counties. Because of the high burdens that geothermal production places on the counties where it is developed, counties currently share in the revenue of the federal receipts. Revenue sharing was targeted for cuts in the President's FY 2014 budget.
“Geothermal development comes at a cost so if a community invests in developing geothermal energy they deserve to get their fair share in returns,” said Thompson. “Repealing geothermal royalty payments to counties is a short sighted, fiscally irresponsible plan that will have no meaningful impact on deficit reduction. It will strip away funds that our counties use to pay for public safety, road maintenance and law enforcement.”
Revenue sharing was first started through the bipartisan Energy Policy Act of 2005. Ending this sharing would negatively impact counties while having no meaningful deficit reduction impact. Over a ten year period, revenue sharing accounts for less than one tenth of one percent of the federal debt.
Currently, counties use geothermal revenues to pay for governmental services, such as road maintenance, public safety and law enforcement, and conservation easements. Many of the counties receiving revenue from geothermal receipts are small, rural counties facing uncertain budget situations. The loss of such revenue for these counties could result in the elimination or reduction of essential services.
Last year, Lake County received more than $760,000 a year in geothermal royalties.
Last year, Sonoma County received $1 million in geothermal royalties.
The full text of the letter is below.
May 9, 2013
President Barack Obama
The White House
1600 Pennsylvania Ave
Washington, DC 20500
Dear President Obama,
We are writing to express our disappointment that your Fiscal Year 2014 Budget proposal repealed the sharing of geothermal royalty payments to counties. We understand the need to propose a fiscally prudent budget, but repealing geothermal royalty payments to counties is a short sighted method that does nearly nothing to solve our fiscal problems.
In the bipartisan Energy Policy Act of 2005, Congress decided that because of the high burdens geothermal production places on the counties where geothermal development is located, these counties should share in the revenue of the federal receipts. In turn, counties have used these revenues to pay for critical governmental services, such as road maintenance, public safety and law enforcement, and conservation easements. This revenue sharing has also made counties vested partners, and ultimately champions, in the continued development of geothermal energyâ€"a clean, renewable, and domestic energy source that provides jobs in rural areas.
Ending the geothermal revenue sharing plan would have a significant negative impact on our districts, while the overall effect on our nation's fiscal well-being would be minisculeâ€"$4 million in 2014 and $48 million over 10 years. Many of the counties that receive revenue from geothermal receipts are small, rural communities facing precarious budget situations. The loss of such revenue for these counties could result in the elimination or reduction of essential services. We strongly support geothermal revenue sharing with counties and we encourage you to reconsider its repeal in future budget and deficit reduction proposals.
We appreciate your attention to this issue and look forward to working with you to promote geothermal energy production and provide support for the surrounding communities.
Sincerely,
MIKE THOMPSON MARK AMODEI
Member of Congress Member of Congress
JARED HUFFMAN STEVAN PEARCE
Member of Congress Member of Congress
JOHN GARAMENDI JOE HECK
Member of Congress Member of Congress
JUAN VARGAS
Member of Congress
Congressman Mike Thompson is proud to represent California's 1st Congressional District, which includes the Counties of Del Norte, Humboldt, Lake, Mendocino, Sonoma, Napa, and Yolo. He is a senior member of the House Ways and Means Committee and the House Permanent Select Committee on Intelligence. Rep. Thompson is also a member of the fiscally conservative Blue Dog Coalition and sits on the bipartisan, bicameral Congressional Wine Caucus.
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“Geothermal development comes at a cost so if a community invests in developing geothermal energy they deserve to get their fair share in returns,” said Thompson. “Repealing geothermal royalty payments to counties is a short sighted, fiscally irresponsible plan that will have no meaningful impact on deficit reduction. It will strip away funds that our counties use to pay for public safety, road maintenance and law enforcement.”
Revenue sharing was first started through the bipartisan Energy Policy Act of 2005. Ending this sharing would negatively impact counties while having no meaningful deficit reduction impact. Over a ten year period, revenue sharing accounts for less than one tenth of one percent of the federal debt.
Currently, counties use geothermal revenues to pay for governmental services, such as road maintenance, public safety and law enforcement, and conservation easements. Many of the counties receiving revenue from geothermal receipts are small, rural counties facing uncertain budget situations. The loss of such revenue for these counties could result in the elimination or reduction of essential services.
Last year, Lake County received more than $760,000 a year in geothermal royalties.
Last year, Sonoma County received $1 million in geothermal royalties.
The full text of the letter is below.
May 9, 2013
President Barack Obama
The White House
1600 Pennsylvania Ave
Washington, DC 20500
Dear President Obama,
We are writing to express our disappointment that your Fiscal Year 2014 Budget proposal repealed the sharing of geothermal royalty payments to counties. We understand the need to propose a fiscally prudent budget, but repealing geothermal royalty payments to counties is a short sighted method that does nearly nothing to solve our fiscal problems.
In the bipartisan Energy Policy Act of 2005, Congress decided that because of the high burdens geothermal production places on the counties where geothermal development is located, these counties should share in the revenue of the federal receipts. In turn, counties have used these revenues to pay for critical governmental services, such as road maintenance, public safety and law enforcement, and conservation easements. This revenue sharing has also made counties vested partners, and ultimately champions, in the continued development of geothermal energyâ€"a clean, renewable, and domestic energy source that provides jobs in rural areas.
Ending the geothermal revenue sharing plan would have a significant negative impact on our districts, while the overall effect on our nation's fiscal well-being would be minisculeâ€"$4 million in 2014 and $48 million over 10 years. Many of the counties that receive revenue from geothermal receipts are small, rural communities facing precarious budget situations. The loss of such revenue for these counties could result in the elimination or reduction of essential services. We strongly support geothermal revenue sharing with counties and we encourage you to reconsider its repeal in future budget and deficit reduction proposals.
We appreciate your attention to this issue and look forward to working with you to promote geothermal energy production and provide support for the surrounding communities.
Sincerely,
MIKE THOMPSON MARK AMODEI
Member of Congress Member of Congress
JARED HUFFMAN STEVAN PEARCE
Member of Congress Member of Congress
JOHN GARAMENDI JOE HECK
Member of Congress Member of Congress
JUAN VARGAS
Member of Congress
Congressman Mike Thompson is proud to represent California's 1st Congressional District, which includes the Counties of Del Norte, Humboldt, Lake, Mendocino, Sonoma, Napa, and Yolo. He is a senior member of the House Ways and Means Committee and the House Permanent Select Committee on Intelligence. Rep. Thompson is also a member of the fiscally conservative Blue Dog Coalition and sits on the bipartisan, bicameral Congressional Wine Caucus.
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