Iowa farmers may haul in a bumper crop this year. The USDA has predicted record-level harvests for the nation’s soybean and corn producers. The plentiful bounty reaped each year from the U.S. Grain Belt blankets America with food security, strengthens economic security and stands ready to provide homegrown energy security.
That’s right. America’s breadbasket can help fill your pantry and your gas tank. And that’s good news for consumers. From motorists to manufacturers, energy costs factor big time into the bottom line. And since the United States heavily depends on foreign petroleum sources to meet the nation’s energy needs, our economy remains vulnerable to a finite source of energy and the likes of OPEC.
As a federal policymaker, I have worked tirelessly to expand homegrown energy. Using my leadership position as chairman of the influential Senate Finance Committee to gain the best advantage for Iowa, I champion efforts to enhance the supply and demand for alternative, renewable fuels and green energy, including ethanol, soydiesel, biomass, and wind.
Zeroing in on every opportunity to develop production and open markets for domestic biofuels, I wouldn’t be too surprised if a few of my colleagues actually wonder if my middle initial stands for "ethanol."
Serving as a watchdog to guard against attempts that would derail the expansion of homegrown, renewable energy, I’ve made it clear that my bark is as big as my bite. Whether it’s Big Oil attempting to undercut ethanol’s market share at the pump or Big Business trying to re-export Brazilian ethanol duty-free, I’ve got my teeth sunk in deep. And this watchdog isn’t going to let go without a fight.
This summer I renewed my fight to tighten the rules of origin to curb the misuse of an international trade program enacted in the 1980s intended to encourage economic development and job creation in the Caribbean. This program, the Caribbean Basin Initiative (CBI), is designed to help lift many Caribbean nations out of poverty by providing duty-free access for certain goods made in the region using primarily local content.
Unfortunately, ever since the program was created some corporate executives seem intent on violating the spirit of the program by merely "dehydrating" Brazilian ethanol in the region and importing it into the United States duty-free as a product of the CBI region. While not technically illegal, such a plan distorts the spirit of U.S. trade law. And it’s a rotten way to treat U.S. corn growers, not to mention the job-creating ethanol industry gaining ground in the state of Iowa.
That is why I was so dismayed to learn that he Export-Import Bank of the United States recently approved $9.6 million in taxpayer-guaranteed credit insurance to help establish an ethanol project in the Caribbean which will dehydrate Brazilian ethanol for shipment to the United States. In essence, the U.S. government helped finance a project that allows some Brazilian ethanol to compete directly with Iowa and U.S. ethanol producers. This goes against the grain for a number of reasons. First, taxpayer money may be being used inappropriately. And second, the law says the bank may not extend credit for products that would compete directly with U.S. production and cause substantial injury to U.S. producers of the same commodity.
So in addition to my efforts to plug the loophole in the Caribbean Basin Initiative, I pushed for inclusion of an amendment to the Foreign Operations Appropriations bill which requires the Export-Import Bank to provide an economic impact analysis of this project to determine if it will case substantial injury to U.S. producers. My amendment also requires prior consultation with lawmakers to make sure we’re all on the same page when it comes to financing future projects in the Caribbean. I can’t support a U.S. subsidy for a venture that will underwrite Brazilian ethanol and allow it to compete duty-free with Iowa ethanol producers.
In September I attended a groundbreaking for a 110 million-gallon ethanol facility near Fort Dodge. When it opens its doors for business in 2006, the Fort Dodge plant expects to process roughly 40 million bushels of corn each year. Operating around-the-clock, seven days a week, the new facility will convert the entire kernel of corn into fuel or high-protein feed. By tapping into the region’s high-quality workforce and offering area farmers a new market for their crop, the Fort Dodge ethanol facility will fuel economic growth throughout the entire region.
That’s why I work so hard to champion ethanol and renewable energy in Washington. It fosters economic development, creates new markets for farmers, brings America closer to energy independence and provides a clean-burning alternative for consumers.
As Iowa farmers bring in the fall harvest, I’m continuing my crusade to help the cornucopia in the heartland not only feed America but also fuel economic prosperity and homegrown energy security for our children and grandchildren.