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Gulf Oil president says price should decide biofuel use

January 26, 2010 By

The president of Gulf Oil Company spoke to the Iowa Renewable Fuels Association summit Monday and said biofuels have a bright future — but gave what he admitted was an unorthodox view of their place in the nation’s energy supply. Joe Petrowski says he doesn’t believe developing biofuels should be about job creation.

Petrowski says creating jobs should not be the focus of energy policy, he says if the policy was simply about jobs, he would say we should get a bunch of fly wheels going and we could all run and create magneto electricity. Petrowski joked that he would benefit the most as he needs the exercise, but says, “It’s not about jobs, it’s about national security and it’s about price. I run a 10-billion-dollar company and the numbers matter.”

Petrowski says the government should not be saying what types of materials are used for making fuel, the market should decide. He says if we can truly develop cellulosic fuel at less than the six to seven cents a pound that corn costs, then there won’t need to be a mandate to produce it. Petrowski says if it can’t be produced at that price, then it should not be produced. He says the ethanol industry should not be shy about subsidies as he says they get very few subsidies compared to oil companies.

Petrowksi says it is important to U.S. security to increase the diversity of its fuels, because 96% of our transportation fuel is petroleum-based. Petrowski says we don’t have to replace the 143-billion gallons of gasoline we use in the U.S. with biofuels. He says if we could replace the gas with biofuels, fine, but he says replacing two or three million gallons of gas a day taken off the market would break the price of oil and put us on a more level playing field.

Petrowski says he’s not even sure that oil is a non-renewable resource, as new methods for recovering oil could open new supplies. He says the price of that supply is again the issue. Petrowski says ethanol has a rightful place in diversifying the fuel supply. Petrowksi says the stand that has to be made on ethanol is that it is a great fuel, that’s domestically produced and can compete with any fuel in the world, and provides diversity in the fuel supply.

Petrowski says the government should not be dictating the types of materials used to make the fuels, but he says they do have a role in regulation. He says for example, regulations need to be changed so pumps can be used to pump gas with higher mixes of ethanol without voiding their warranties.

Filed Under: Agriculture, Environment & Conservation, Politics & Government Tagged With:

Kemin CEO warns cutting credit would cut jobs

January 26, 2010 By

The C.E.O. of a Des Moines-based company that has manufacturing plants in seven other countries says if legislators choose to curtail the state’s tax credit for research activities, the state will lose jobs. 

Kemin Industries makes vitamins and food additives at plants in Belgium, Brazil, China, India, Singapore, South Africa, Thailand and the United States.  Chris Nelson, Kemin’s C.E.O., says it costs nearly three times as much to hire a scientist to work in Des Moines, but the state’s research activites tax credit helps offset that.

“So that regardless that we pay a much higher salary to somebody here in Iowa we can still be very competitive with what’s happening in a research lab outside of Shanghai or one outside of Deli, India,” Nelson says. “And that, I think, is truly one of the core issues the legislature has to come to grips with as they look at this issue.”

Nelson estimates for every dollar Kemin receives from the state tax credit, they spend five to ten dollars on an employee’s salary.  

“We think it’s a very, very good investment, overall, for the state,” Nelson says. 

But others are calling for the research activities tax credit to be scaled back.  Peter Fisher, an economist with the Iowa Policy Project, says it’s shifting money away from schools and universities.

“When we’re in a recession, we do need to make certain we’re not cutting our nose to spite our face, that we’re not underfunding governmental functions that are going to be the lifeblood of this economy in this state and an educated workforce is probably number one,” Fisher says. 

Fisher and Nelson made their comments Monday on the Iowa Public Radio program “The Exchange.”

Filed Under: Business, Politics & Government, Technology Tagged With: , , , , ,

Republicans renew criticism of I-JOBS

January 26, 2010 By

Republicans are criticizing Democratic Governor Chet Culver’s “I-JOBS” initiative, specifically the money reserved for flood and disaster recovery projects.  Representative Pat Grassley, a Republican from New Hartford, says about a fifth of that money went to projects that had nothing to do with helping rebuild after the floods of 2008.

“Even on the I-JOBS website it says that in a very transparent manner,” Grassley says. 

In early 2009, Governor Culver asked legislators to enact his “I-JOBS” initiative as a state-level economic stimulus.  The legislature approved the plan, which eventually saw the state borrow $830 million to finance a variety of projects, including about $100 million for flood recovery on the University of Iowa campus.  Earlier this month during the annual “Condition of the State” address, Culver said he was “proud” of the I-JOBS initiative and he praised the Democratic legislators who supported it.

“A yes vote on I-JOBS was a yes vote for flood victims. A yes vote on I-JOBS was a vote to rebuild our economy!” Culver said. “A yes vote on I-JOBS was a vote for businesses and communities as they struggle to get back on their feet!” 

Culver’s staff used exclamation points in the draft of that section of Culver’s speech.  Grassley says the governor need to explain why $22 million in the I-JOBS program that had been reserved for disaster relief was used instead for unrelated projects, like a community center for the Des Moines suburb of Windsor Heights and renovation of the City Hall in the Sioux City suburb of Sergeant Bluffs.  Grassley says neither of those projects had anything to do with disaster recovery.

“When the governor’s out touting this as being a flood and disaster recovery bill — and then you go and look at the meat and potatoes of the bill and that clearly is not a priority, it should have been set out that disaster recovery came first,” Grassley says. 

Every Republican in the legislature voted against the I-JOBS plan last year.  A report outlining the number of jobs created through the program is due in February.

Filed Under: Business, Fires/Accidents/Disasters, Politics & Government, Weather Tagged With: , , , , ,

Bill to help some cancer patients in clinical trials

January 25, 2010 By

The Iowa House of Representatives has approved a bill to forbid insurance companies from cutting coverage for customers who have cancer and are participating in a clinical trial. 

Representative Tyler Olson, a Democrat from Cedar Rapids, says some cancer patients who’ve signed up for a clinical trial found their insurance company refused to cover routine care.

“The bill…is important for two reasons.  One, we make sure that there aren’t any barriers for folks being treated for cancer, to hopefully have that chance to find a clinical treatment or an experimental treatment that allows them to have a higher quality of life or potentially live longer,” Olson says. “And secondly, we all benefit from the research that is done through these clinical trials.”

Representative Doug Struyk, a Republican from Council Bluffs, called the bill a good compromise. ”Not everybody gets everything they want,” Struyk said during House debate, “but in the end, we have a bill that does exactly what Iowans need.” 

The House passed the bill on a 96-0 vote.  It now goes to the Senate for consideration. 

Supporters of the bill say it may boost participation in clinical trials for cancer drugs.  The bill does not require insurance companies to cover the costs of the experimental drugs, but it would force insurers to pay for other routine care, like visits to the doctor, that would have been covered if the drugs the patient is taking weren’t experimental.  The Iowa Medical Society and the Susan G. Komen Breast Cancer Foundation are among the groups that favor the bill.  But as of 7:30 Monday night the bill was still opposed by a variety of groups, including the Iowa Grocery Industry Association and the Federation of Iowa Insurers.

Filed Under: Business, Health & Medicine, Politics & Government Tagged With: , , ,

ISU looks to bounce back from loss, Iowa wants to build on win

January 25, 2010 By

Iowa State coach Greg McDermott says despite a tough week the Cyclones still have a positive outlook. A week that saw Lucca Staiger quit and go home was capped off by a 23 point loss at home to Kansas.

I.S.U. coach Greg McDermott says they practiced Sunday and he was pleased with the mindset and approach of the team. He says there was a bounce to their step and enthusiasm, and it is time to put a tough week behind them and move on to Oklahoma.

The Cyclones play the Sooners on Wedneasday night. There are 1-3 in the Big 12.

The Iowa basketball team is relying on three point shooting less and having more success. The Hawks have won two of their last three games in the Big Ten, including a 15 point win at Indiana on Sunday, and interior play is a major reason.

Iowa coach Todd Lickliter says they don’t dominate inside, but have been able to get some points inside. He says the chemistry is improving as the players get more experience and it allows them to diversify their play.

Lickliter hopes Sunday’s win provides his team with a confidence boost. He says they may realize the things that go into winning and gravitate toward them. “I don’t think we have everything fixed, but it was a good win for us, without question,” Lickliter says.

Iowa hosts nationally ranked Ohio State on Wednesday night.

Filed Under: Sports Tagged With: , ,

Legislators develop compromise plan on puppy mills

January 25, 2010 By

Legislators from the Iowa House and Senate say they’ve developed a compromise plan that will crack-down on so-called “puppy mills.” Animal welfare activists have been pushing for greater state oversight of dog breeding facilities, citing instances of dirty and unsafe conditions.

Under the plan under consideration at the statehouse, licensed breeders would pay higher fees to cover the costs of new inspections. Senator Matt McCoy, a Democrat from Des Moines, says federal officials admit they aren’t providing adequate oversight.

“I believe that U.S.D.A.’s basic comment back to us is they had about 150 inspectors to inspect all the facilities nationwide,” McCoy says, “and there just was not enough inspectors to get the job done.” The Iowa Senate passed a bill last year which would have mandated state inspections for all federally-licensed dog breeders. But this year’s compromise bill requires state inspections only when a complaint is filed.

“This is an industry that has been, you know, a lucrative industry,” McCoy says. “These are animals that sell anywhere from $300, $400 anywhere up to $1200.” Critics of the proposed legislation say it’s unlicensed breeders causing the vast majority of the complaints about “puppy mills” and the bill does nothing to address those rogue operations.

The bill under consideration calls for beefed up enforcement of uncollected sales taxes on the sale of dogs and cats. And veterinarians would become mandatory reports of animal abuse and neglect. A bipartisan panel of legislators met this summer and fall and endorsed the idea of increasing licensing fees for dog breeders from $20 to 100 bucks.

According to the U.S.D.A., there are 300 commercial dog breeders in Iowa and three U.S.D.A. inspectors are responsible for policing those operations.

Filed Under: Agriculture Tagged With:

Missing money under investigation in Clinton School District

January 25, 2010 By

An investigation is underway after money was discovered missing within the Clinton School District, but little information is being released. School Board President Jim McGraw announced the investigation.

“Within the last week, school district staff, as part of a focused internal review, uncovered a serious financial irregularity,” Shaw says,” upon discovery of this situation, we requested the intervention of our local law enforcement officials. The district is working closely with Clinton Police Chief Brian Guy, County Attorney Mike Wolf and federal authorities.”

The Clinton police chief and Clinton County attorney said they couldn’t add much more to the statement. Other questions were not answered and authorities would not reveal how much money is involved or whether the case involved current or former employees.

By Dave Vickers, KROS, Clinton

Filed Under: Crime & Courts, Education
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