The winner of the 2016 Iowa presidential caucuses, Sen. Ted Cruz of Texas said he will block a confirmation vote on a key USDA nominee until President Trump convenes a meeting to hash out oil-state complaints about the Renewable Fuel Standard. “We’ll have no such meeting,” responded Iowa Sen. Chuck Grassley, a bulldog supporter of corn ethanol.
The EPA is obliged to announce the 2018 biofuel mandate by Nov. 30, which would reduce Cruz’ leverage over the federal targets for use of ethanol, biodiesel and other renewable fuels. Under pressure from Midwestern senators, EPA administrator Scott Pruitt pulled the plug a month ago on two potential changes to the RFS that would have hurt biofuel sales and agreed to consider year-round sales of E15, a higher blend of ethanol than the traditional 10 percent.
In a letter to Iowa Gov. Kim Reynolds, Cruz said he would prevent a Senate vote on Bill Northey, nominated for undersecretary in charge of farm subsidies and land stewardship, “until and unless we secure the … meeting where we can bring diverse interests together to try to find meaningful short-term solutions while setting the stage for longer-term policy certainty.” Cruz and eight other “oil patch” senators asked for the meeting in late October. A chief issue for Cruz are the credits, known as RINS, that refiners must buy if they are unable to blend enough ethanol to satisfy the U.S. mandate.
“Our goal in requesting this meeting is simple: To bring together diverse interests in an effort to come together and find a mutually beneficial outcome that will help both Iowa corn producers as well as protect blue-collar refinery jobs that are at risk in too many states across our great nation,” Cruz told the Iowa governor. Iowa is No. 1 in corn and ethanol production.
During a weekly teleconference with ag reporters, Grassley rejected Cruz’s contention that he was playing tit-for-tat with Northey against strong-arm tactics by ethanol supporters. Asked why he was certain there would be no White House meeting for Cruz, Grassley replied, “The White House would have to be interested in such a meeting. Nobody’s contacted me from the White House.”
Trump rolled up landslide margins in rural areas last fall with his promises of tax reform, regulatory relief and support for ethanol. In the weeks before the presidential election, Trump said he was “totally in favor of ethanol 100 percent.” Cruz, who supported a five-year phase out of the ethanol mandate, won the Iowa caucuses with 28 percent of the GOP vote. Trump was second with 24 percent and Florida Sen. Marco Rubio placed third with 23 percent.
Reynolds said Trump “personally committed to me” his support for a strong RFS last month at the same time the White House reportedly told EPA to drop any idea of weakening the rule.
The Iowa governor said she would wear a “Free Bill” T-shirt at the Republican Governors Association meeting in Texas this week. Agriculture Secretary Sonny Perdue also has talked about wearing a “Free Bill Northey” T-shirt. During a visit to Iowa last week, Perdue said the administration would not meet Cruz because it was U.S. policy “not to negotiate with hostage-takers,” reported the Cedar Rapids Gazette.