On behalf of the
members of the Governors' Ethanol Coalition, Governor Branstad wrote to Speaker
Newt Gingrich and Democratic Leader Richard Gephardt asking them to resist
efforts in the House to prematurely sunset 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," Branstad wrote.
"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," added Branstad. "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."
