Fillibuster Stalls Energy Bill

Filibuster Stalls Energy Bill
Partisan maneuvering in Washington derailed a bipartisan effort in November to enact a comprehensive energy strategy for America. It's a shame when politics trumps good public policy. The energy bill crafts a well-balanced plan that promotes renewable energy and recognizes the importance of traditional fuels to the U.S. economy.
As chairman of the Senate Finance Committee, which has legislative jurisdiction over tax policy, I fought successfully to incorporate a package of "green energy" tax incentives, including ethanol, biodiesel and wind.
Iowans have a lot riding on the bill. Notably, key incentives I championed for renewables and energy efficiency would foster much-needed economic growth in rural areas and create more opportunities for high-paying jobs in Middle America. Iowa has long been renowned for its agricultural abundance. Our farmers help feed people from around the world. As an Iowa farmer and federal lawmaker, I say we also tap into our quality farm resources to produce energy for America, too.
The Senate failed to override the filibuster by just two votes in November. Just consider what's at stake for Iowa:
A new Renewable Fuels Standard. It would double the nation's ethanol use and could increase Iowa ethanol production from approximately 650 million gallons per year to more than 1.2 billion gallons per year. This could push up the price of corn by up to seven cents per bushel, resulting in $156 million of new revenue to Iowa corn growers per year.
A first-time tax incentive for biodiesel. It could increase soybean prices by up to 12-cents per bushel. That's a $60 million shot in the arm to Iowa soybean producers.
An incentive for farmer-owned ethanol cooperatives. A dozen farmer-owned ethanol plants now operate in Iowa. Several more are under construction. The energy bill would ensure these facilities would receive the full program benefit by increasing the definition of small producer from 30 to 60 million gallons per year.
More federal dollars for Iowa roads. Iowa motorists would gain under the bill thanks to my hard-fought provision that would increase federal highway funding to Iowa by nearly $150 million over the next six years by ensuring full gas tax revenues are paid into the Highway Trust Fund.
Opportunities for Iowa to "waste not want not." The energy bill includes an extension of the production tax credit for electricity produced from poultry waste and expands it to include electricity produced from swine and cattle waste. As the top egg-producing state in the country, Iowa produces enough poultry manure to power about 24,000 homes.
An extension of the wind energy tax credit. Iowa ranks third in the nation for wind generation capacity. At 423 megawatts, that's enough electricity to serve nearly 300,000 homes. The federal tax credit would help ensure the continued expansion of this promising, clean, renewable source of energy.
A first-time tax credit for super-energy-efficient appliances. Iowa is a national leader in the manufacturing of refrigerators and clothes washers. Appliance manufacturing facilities in Iowa employ more than 8,000 Iowans. The new federal tax credit would trigger growth in the effort to accelerate the production and purchasing of super-energy-efficient appliances.
An extension and expansion of the production tax credit for electricity produced from biomass. Farmers and conservationists in southern Iowa are working on a project to displace coal with home-grown, renewable switchgrass. The tax credit extension would help keep this project on track. Plus, the bill would expand the tax credit to open-loop biomass, renewable by-products not grown exclusively for electricity production, including corn stalks, soybean straw, tree trimmings and saw dust.
A homeowner's incentive to reduce energy costs. The bill would give homeowners a break for replacing older, inefficient building materials with new, highly-efficient windows and doors. As a national leader in high-quality window and door production, the industry employs at least 6,000 Iowans.
A provision to encourage the increased production of natural gas. A stable, reliable supply of natural gas affects homeowners across Iowa. This incentive also bears particular importance to Iowa's farm sector which uses large quantities of natural gas to produce nitrogen fertilizers and to dry crops at harvest time.
A provision to change the tax treatment of non-member revenue received by rural electric cooperatives. Iowa's 43 rural electric cooperatives and their 190,000 residential consumers would benefit.
A repeal of the unfair dividend allocation rule affecting farmer coops. The bill would help nearly every farmer in the state represented by one of the 152 farmer coops in Iowa. Currently, cooperatives are charged an additional tax for paying a dividend on their capital stock.
After the massive black-out in the Northeast this summer, concerns about sky-rocketing natural gas prices during the cold winter months and perpetual instability of gasoline prices at the pump, it's unfortunate to see political gamesmanship thwart sincere efforts to enact a long-term U.S. energy strategy that would help clean up the environment, stabilize the nation's electricity grid, reduce our dangerous dependence on foreign sources of energy, defuse the economic stranglehold petroleum-rich nations have over the United States and promote homegrown, renewable sources of energy.
From my key leadership position in the U.S. Senate, I'll press for every opportunity in the New Year to break through the partisan blockade and win enactment of my "green energy" tax incentives.