NCGA News












January 3, 2001 * Volume 8 * Number 1

While most of the U.S. was settling down for the holidays, NCGA grower leaders and staff were busy working on policy and political issues affecting corn growers. As the following items show, NCGA President Lee Klein's air time rivaled St. Nick's as he jetted to Austin, Texas, on Dec. 22 to meet with the incoming Bush Administration in Austin; and after Christmas flew to Washinton, D.C., to work with an ag coalition to keep the Clinton Administration from playing "The Grinch Who Stole Ethanol" by granting a waiver for California.

NCGA Welcomes New Secretary of Agriculture

The National Corn Growers Association (NCGA) has welcomed President-elect George W. Bush's selection of Ann Veneman as U.S. Department of Agriculture (USDA) secretary. "The NCGA looks forward to working with Ann Veneman for several reasons," said NCGA President Lee Klein. "First, she has a personal working knowledge of agriculture and farming; she brings a wealth of experience in state and federal government based on her work in California and USDA; and she has experience in trade issues, specifically policy and trade reform." He added: "We expect that her background in California agriculture can help achieve the goals set for ethanol. We are eager to work with her on these and other issues that affect U.S. corn growers." Veneman, 51, served as director of the California Department of Food and Agriculture from 1995 to 1999, appointed by former Republican Gov. Pete Wilson as the first woman to head the agency. She was the highest-ranking woman in the U.S. Department of Agriculture from 1989 to 1991, when she was deputy secretary for international affairs and commodities programs when Bush's father, George H.W. Bush, was president.

Coalition Urges Clinton to Deny California Oxygenate Waiver

The NCGA recently joined two other farm groups in urging President Clinton to deny a request by the State of California for a waiver from the oxygenate requirement of the federal Reformulated Gasoline (RFG) program. In a letter sent on Dec. 21 to the president, the NCGA, along with the American Farm Bureau Federation and the National Farmers Union, said: "The scientific evidence presented to EPA thus far does not support California's waiver request. One of the main arguments being used to support the waiver request is that emissions of nitrogen oxides will increase if the waiver is not granted. However, a plain reading of the Clean Air Act reveals that an increase in these emissions would be a violation of the law, and therefore, could not occur." The NCGA and the other farm groups told President Clinton that the technical and legal grounds for California's request are highly suspect and far from being resolved. "The record clearly shows that California's waiver request is not motivated by an legitimate concern related to the air quality impacts of oxygenates," they said. "EPA should not adopt for the sake of expediency the scientifically flawed assertion by the oil industry that ethanol pollutes."

Klein Attends 'Ag Summit' With President-Elect Bush

It takes a lot to impress NCGA President Lee Klein. But impressive was the word Klein used to describe his participation in the "Ag Summit" with President-elect George W. Bush on Dec. 22. Klein joined more than two dozen leaders of national farm organizations and state ag departments in the 90 minute meeting at the Driscoll Hotel in Austin. Also attending the meeting were Vice President-elect Dick Cheney, USDA Secretary nominee Ann Veneman, the nominated head of EPA Christine Todd Whitman, and Andrew Card, who will be Bush's White House Chief of Staff. President Bush spoke briefly, then took questions from the group. Klein said he was impressed with Bush's knowledge of the issues facing agriculture and the homework the president and his staff had done to prepare for the meeting. Bush fielded the questions personally, deferring to staff only on a question related to immigration issues. He came out in favor of an energy policy that includes ethanol and biomass. Bush emphasized that he has been a long-term supporter of ethanol, and that he didn't adopt a pro-ethanol stance solely for his campaign in Iowa. Having EPA and USDA in the same ag summit sent a clear signal that Bush expects both agencies to work together and involve agriculture in the regulatory decision-making process. Bush also said he wants to involve ag leaders in the decisions that affect trade and the U.S. economy.

Catching a California Waive(r) (Or Is California Dreamin'?)

On Thursday, Dec. 28, 2000, NCGA President Lee Klein and John McClelland, NCGA Director of Energy and Analysis, along with representatives from the American Farm Bureau, and National Farmers Union, met with Sally Katzin, deputy director of the Office of Management and Budget, to battle against California's request for an oxygen waiver. Katzin will play a major role in the administration's decision on the waiver. At the White House meeting Klein and McClelland made three points. First, they explained there were already adequate supplies of ethanol to meet the California market; second, they noted that USDA recently announced a program to commit $300 million over the next two years to help expand the ethanol market; third, they pointed out that the waiver itself has caused uncertainty that has delayed investments in new ethanol plants. NCGA supports an oxygen-averaging program that would allow some reformulated gasoline (RFG) to be produced with no oxygen as long as the average oxygen content for all RFG was 2 percent in a given year. Katzin said she would provide President Clinton with a recommendation by Jan. 10 unless told to move more quickly. She was surprised when told that EPA's position is that any proposal would include a 30-day comment period. Following the meeting, NCGA provided Katzin with letters detailing EPA's commitment to the comment period.

 



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