Dow Chemical Exploits President Obama’s Failed Energy Policy
by Judy Kent
Washington, D.C. - Policy experts at the National Center for Public Policy Research are calling attention to Dow Chemical's exploitation of Obama's failed energy policy.
"Dow Chemical is taking advantage of President Obama's failed leadership on energy. Dow is aggressively lobbying for cap-and-trade and Obama's green initiatives to line its pockets with taxpayers' funds while it expands the company's manufacturing base overseas. American taxpayers are subsidizing Dow's moving costs," said Tom Borelli, Ph.D., director of the National Center's Free Enterprise Project.
Dow is a member of the United States Climate Action Partnership - a lobbying coalition that is actively pursuing cap-and-trade legislation.
The Waxman-Markey cap-and-trade bill that passed the House of Representatives last year gave companies the vast majority of energy tax revenue in the form of carbon allowances free of charge. Originally, President Obama intended to auction off carbon allowances to industry with the revenue going to the government.
Dow is expanding its investment in overseas operations especially in the Middle East. In 2007, Dow entered into an agreement with Saudi Aramco to establish a multi-billion dollar petrochemical joint venture based in Saudi Arabia. More recently, Dow partnered with the King Abdullah University of Science and Technology on a multi-million dollar joint research effort.
"Dow CEO Andrew Liveris' actions demonstrate he sees the company's future outside the U.S. In the U.S., Dow is happy to join with the growing list of climate profiteers to exploit Obama's green dream but when it comes to real investment in chemical manufacturing, Liveris is all in with Saudi Arabia," added Tom Borelli.
Dow is also aggressively lobbying for the Home Star Energy Retrofit Act of 2010. The legislation, also known as 'Cash for Caulkers,' was recently passed by the House of Representatives, and provides rebates for homeowners who take measures to update their homes with energy saving products such as insulation. Dow, a supplier of home insulation products, stands to cash-in on the bill that provides $6 billion in rebates.
"Savvy CEOs are reaping the benefits of Obama's poor leadership. Big business has figured out it can profit from Obama's green initiatives which are subsidized by government funds. This is a losing proposition for Americans; our debt goes up while companies such as Dow use subsidies to make significant investments overseas" said Deneen Borelli, Fellow with Project 21.
"The disaster in the Gulf of Mexico will only exacerbate problems for the oil and chemical companies. Obama's war on fossil fuels will likely chase more companies overseas leading to slower economic growth and higher unemployment," added Deneen Borelli.