May 25, 2013

Google plans to expand Council Bluffs operation again

Google-bannerGoogle announced plans today to expand its operations in Iowa with an additional $400-million investment in its Council Bluffs Southlands facility.

Google’s investment in its Iowa facilities now totals over $1.5-billion.

The data center houses computer systems and associated components that support services such as Google Search, Gmail, Google Maps and Google+.

Governor Terry Branstad issued a statement with the Google announcement that said:
“Several years ago, state and local officials began a partnership to streamline our economic development efforts for the high tech industry. Those efforts paid off then with Google establishing a data center in Council Bluffs and today those efforts continue to bear fruit. Iowa is now at the epicenter for high tech development and our work on this front will continue to be a focus of my Administration.”

 

Dupont signs agreement with USDA involving cellulosic ethanol and farming

Ag Secretary Tom Vilsack signs agreement with Dupont VP Jim Borel.

Ag Secretary Tom Vilsack signs agreement with Dupont VP Jim Borel.

U.S. Ag Secretary Tom Vilsack today announced a new federal-private collaboration with DuPont to set up voluntary standards for harvesting corn stalks and other plant material that’s used to make ethanol.

Vilsack signed what’s called “a memorandum of agreement” with company officials at the Dupont-Pioneer research facility in Johnston.

Dupont executive vice president, Jim Borel, says under the agreement the company will work with farmers that will keep topsoil in the fields and out of streams an rivers.

“This is hard stuff, this is hard science. Breaking down cellulosic materials, converting them to sugars and then converting them to fuel, and doing that at a costs or economics that work is a challenge,” Borel says.

Ag Secretary Tom Vilsack talks with senior research director Hillary Sullivan during a tour of the Dupont-Pioneer research facility.

Ag Secretary Tom Vilsack talks with senior research director Hillary Sullivan during a tour of the Dupont-Pioneer research facility.

“And we sure didn’t want to solve one problem and the create another one. Which is why designed the program to be sustainable at the very outset by every measure.”

The first plant involved in this national agreement is near Nevada where DuPont is building a 30-million gallon a year cellulosic facility. “We’ve worked tirelessly to ensure that from farm to fuel we’re creating a system that’s viable for the long haul,” Borel says.

“This was critically important to us and to the growers who have cooperated with us over the last three-and-a-half years that we’ve worked to prepare the ability to bring about 600-thousand bales of stover to our facility every year. That’s about one per minute.”

Secretary Vilsack says the plan helps protect the water that the entire state uses, and he says it helps rural America.

“The reality is that you are dealing in this great adventure that you’ve started with farmers in a 30 to 50-mile radius, and you are creating a local market and a regional market for something that they grow and raise beyond the corn that they raise. You’re creating an ingredient that before that it was just something that was part of replenishing the soil — as important as that is — but now you’ve created a value to it, an additional value, an added value,” Vilsack says.

The former Iowa governor says the economic impact of the environmental practices extends beyond the waterways. “When you have cleaner water, when you’ve got stronger soils, when you have grassy areas that we are engaged in involved our overall conservation, it creates whole new opportunities for outdoor recreation,” according to Vilsack.

Corn stover bales.

Corn stover bales.

“It improves the landscape, it creates better hunting and fishing opportunities, and that brings people to our great state. And it brings people from other countries to our great country.” V

ilsack says the research into plant genetics and cellulosic ethanol conducted by Dupont will lead to innovations that help everyone.

“The bio-based economy is going to extend beyond just what happens with fuel as the scientists and the folks with the white coats who are here today — as they tinker with that DNA stuff I saw — they are going to discover other products, they’re going to create other inventions, they’re going to create new machinery, they’re going to patent new ideas, and that’s going to create a whole new set of industries,” Vilsack says.

Under the agreement, the U.S.D.A.’s Natural Resource Conservation Service will work with farmers to voluntarily come up with a plan to protect the topsoil and yield while removing some of the material that traditionally stays in the fields.

Revenue Department backs plan for online sales tax collection

Officials at the Iowa Department of Revenue say Iowa should once again try to collect sales taxes from online retailers, now that Republicans have retained control of the U.S. House and it’s unlikely to happen at the federal level. Iowa and other states lose millions of dollars in sales taxes from purchases made on the internet.

Victoria Daniels at the Iowa Department of Revenue says late last year it looked like Congress was going to force the retailers to collect the state taxes nationwide.

“Probably the best shot to get something done at the federal level was during that lame duck session last year and it didn’t happen,” Daniels says. Republicans in the U.S. House are backing a new bill that would exempt many sales from the tax. Daniels says that’s why Iowa needs to pass a bill in the Iowa House that allows the state to collect the taxes.

“It definitely makes federal legislation less of a save all, and we need to take matters into our own hands,” according to Daniels. Retailers from Walmart to small main street businesses support the effort, because, they say, internet sales have an unfair advantage over their brick and mortar stores.

But some state representatives like Greg Forristal, a Republican from Macedonia, view it as a tax hike, so their bill would have any newly collected taxes go right back to taxpayers. “In other words if we’re going to raise taxes let’s make sure it benefits the taxpayers,” Forristal says.

The lone Democrat on the House panel objected, saying any new tax revenue should go for education and mental health and other priorities.

Digital goods could still be tax exempt in Iowa

Even if Congress forces more online retailers to collect sales taxes, Iowans would still be able to make many internet purchases tax-free. The change would target retailers like Amazon that don’t have a physical presence in most states.

Amy Harris, at the Iowa Department of Revenue, says it could mean millions of dollars a year in new revenue for the state, but she says digitally-delivered goods would still be exempt for Iowans.

“A lot of those goods are predominantly purchased electronically on the internet,” Harris says. “You’re downloading your book to your Kindle. If this bill passes, that’s still not taxable.” Backers say the law change would even the playing field for brick-and-mortar retailers.

Iowa legislators, years ago, passed exemptions on digitally-delivered goods to encourage the fledgling e-commerce industry. Since then, Harris says, the marketplace has exploded with all kinds of exempt products. “Books, eBooks, your Kindle, your Nooks, also music such as iTunes, computer software is another big item, also ringtones, games for your smartphones and all the smartphones apps.”

Harris told a recent meeting of the Iowa legislature’s Electronic Commerce Study Committee that while such digital goods remain tax-free, the state could receive as much as 24-million dollars in new sales taxes for other online sales.

Lennox gets reprieve, to keep making refrigerated display cases

President Obama has signed legislation that benefits a business in Marshalltown. Congressman Bruce Braley, a Democrat from Waterloo, was a co-sponsor of the bill.

“It was to deal with a regulation that had an unintended consequence of making it difficult for a product manufactured by Lennox to comply with certain energy efficiency guidelines that relate to the refrigerated display cases used in delis,” Braley says.

Lennox Industries, which employs about a thousand workers at its facility in Marshalltown, makes refrigerated cases used in delis and grocery stores, with glass doors and lights in the interior to showcase the products inside that are for sale. Federal officials drafting new energy efficiency standards believed a 2005 law put these refrigerated display cases in the same category as a standard home refrigerator.

According to Braley, the “inherent design” of refrigerated display cases made it impossible for the equipment to reach the minimum efficiency standards for refrigerators, effectively outlawing the manufacture of refrigerated display cases in the United States.

“After…bipartisan efforts to try to fix this problem, I’m very pleased that the bill was signed into law by President Obama yesterday and that’s good news for the employees at Lennox,” Braley says.

Braley and a Republican congressman from Georgia co-sponsored the legislation in May. Their proposal was tacked onto another bill that passed earlier this month in the House and Senate. According to the congressman from Georgia, more than 8500 jobs in plants across the country were at risk if U.S. companies were barred from making refrigerated display cases, including a Lennox Industries plant in his Georgia district as well as the one in Marshalltown.

Google announces another expansion for Council Bluffs data center

Chris Russell of Google annonces another expansion of its data centers in Council Bluffs as Governor Branstad and Lt. Governor Reynolds listen.

Google’s search for more space for it’s data centers has once again turned up Iowa.

Google built a 900-million dollar data center in Council Bluffs in 2007 and began building a second 300-million-dollar data center there this spring. The manager of the data center, Chris Russell, announced another expansion today.

“Today I would like to announce that we are increasing our investment in this new data center by 200-million. This includes increasing the size of the building as well as deploying in Iowa even more of the computing infrastructure that runs Google,” Russell says.

 ”In fact the construction of the expansion is getting underway now.”

The data centers store much of the information used by the internet search company in its operations. Russell says the new money being brought into Iowa has great significance.

“This investment pushes us past a very important milestone. Google has now invested over one-point-one-billion in Iowa in just five short years,” Russell says. Governor Terry Branstad was on hand for the announcement along with local and state officials from Council Bluffs.

The governor recalled the recent groundbreaking for the second Google data center. “I said at that time that I hoped to see Google expand even more. Little did I know that it would be so quick,” Branstad says.

“But thank you very much, you made my day. The people of Council Bluffs and the people of Iowa appreciate the confidence you have shown in our state. This is a company that has a great worldwide reputation.” Google has created over 130 new jobs at its data centers thus far.

Russell could not say how the expansion would impact the number of jobs as the company. “Now we’re staring on the building, and of course there will be jobs connected with this. But right now we are just focusing on the building, so we don’t have that number,” Russell says.

Governor Branstad says the impact immediately will be on the construction jobs needed to build the expansion. Russell says people in the area will notice a difference in the original plan for the second data center. “The original footprint of the building that we announced this summer will be increased quite a bit, so it’s gonna be definitely additional construction,” according to Russell.

This announcement comes on the heals of Google’s plans to invest $75-million into a wind farm near Rippey. The company says that wind farm will produce enough electricity to power 15,000 homes.

Mason City biodiesel plant announces temporary shut down

Another Iowa biodiesel plant is shutting down, temporarily. Soy Energy LLC in Mason City announced the move Monday, laying off 16 of its 28 workers. The blame is being placed, in part, on the federal biodiesel tax credit that expired back in January.

Iowa Senator Chuck Grassley remains optimistic the tax credit will be restored. “I’m going to proceed as if our tax policy is the appropriate one for the time being until biodiesel becomes a mature industry like ethanol so it won’t need (the tax credit),” Grassley says.

Soy Energy was producing 30-million gallons of biodiesel each year, one of about a dozen such Iowa plants. Grassley says legislation to restore the dollar-a-gallon biodiesel tax credit has already passed the Senate Finance Committee.

“It’s in the bill along with about 60 other things that are sunsetting at the end of the year,” Grassley says. “I don’t see biodiesel being taken out.” While many key pieces of legislation, like the farm bill, are on hold until after the elections in two weeks, Grassley says it’s very likely this measure will be taken up right away.

“I think that there’s so much riding on the tax incentive bill that a bill will pass and if the bill passes, biodiesel’s going to be with it,” he says. Iowa is home to 13 biodiesel plants that produced about 175 million gallons of the fuel in 2011.

A recent survey of biodiesel or ethanol plants in Iowa and nine other Midwestern states found two-thirds have cut back production or temporarily shut down in the past year.