The National Petrochemical & Refiners Association sent a letter to House Speaker Nancy Pelosi (D-CA) today opposing energy legislation being considered by Congress. The NPRA, which includes 450 oil and chemical companies, says it is concerned about national security and the environment, but listed four policies that it is against:

-- A substantially expanded renewable fuels standard (RFS) There is some validity to this concern as requiring ethanol to be used more widely in the future if corn continues to be the primary feedstock. Food prices have been rising, and while we energy independence is a priority, we can't rely on ethanol more than the land and food supply can provide.

-- Punitive tax policies This refers to removing the tax breaks that oil companies get on exploration and ideas about carbon taxes. We shouldn't be giving energy companies huge tax breaks when they continue to have record breaking revenues and pay their execs tens of millions. Drilling more holes at taxpayer expense is not the answer. A carbon tax will likely happen someday as the idea of sustainability hinges on the environmental and health cost of producing a good or service should be factored in as part of the real cost. If renewable energy does less or no harm to human populations and climate change, then it should not be taxed differently than fossil fuels that cause illness and harm the environment.

-- Harmful measures that limit domestic oil and gas exploration and production Petroleum and natural gas companies are eyeing offshore exploration up and down the coasts and in the Gulf and don't want government interference. Just as wind farms or tidal energy sources must be considered for their environmental impact, the returns versus damage done by floating platforms must be considered. In most cases the amount of fuel will be minimal, and our waterways should remain free.

-- Damaging measures that target alleged anti-competitive behavior. This refers to anti-price gouging laws that are popular with constituents but are unlikely to hold up in court and have little affect. It is hard to pinpoint anti-competitive behavior in the energy sector (although the post-Katrina oil prices were excessive). A more effective strategy would be higher taxes on energy company profits, and more competition from biodiesel and ethanol that will expand competition beyond a handful of OPEC and Texas companies.