Governor's Ethanol Coalition
April 21, 1997
The Honorable Newt Gingrich
Speaker of the House
U.S. House of Representatives
Washington, D.C. 20515
The Honorable Richard Gephardt
Democratic Leader
U.S. House of Representatives
Washington, D.C. 20515
Dear Messrs. Gingrich and Gephardt:
On behalf of the members of the Governors' Ethanol Coalition, I am writing to express strong
opposition to proposals being considered by the Ways and Means Committee to eliminate the
ethanol tax incentive. I respectfully urge you to consider the devastating impact these proposals
will have on American agriculture, the ethanol industry, rural economies and the Federal
Treasury, and ask for your assistance in maintaining this important domestic renewable energy
resource.
The federal ethanol program is truly a success story, reducing oil imports and air pollution while
increasing our nation's energy security and creating jobs. The industry is responsible for
192,000 domestic jobs and increases farm income by $4.5 billion a year, stimulating rural
America. The industry adds over $450 million to state tax receipts and improves the U.S. trade
imbalance by $2 billion annually. This all done at a net savings of $3.6 billion to
the federal budget.
Any attempt to eliminate the ethanol tax incentive will jeopardize jobs and household farm
income in rural America, as well as billions of dollars in new plant investments that have been
based on Congress' commitment to the ethanol tax incentive through the year 2000.
In a time of fiscal budgetary constraints, we appreciate your efforts to reduce the budget deficit.
However, we believe the ethanol tax incentive has provided tremendous benefits by generating
domestic economic activity, reducing the budget deficit by expanding agricultural markets,
reducing our trade imbalance, and reducing imports of oil. Please oppose any efforts to
eliminate this valuable domestic fuel market.
Sincerely,
/s/ Terry E. Branstad
Terry E. Branstad, Chair