“Income Tax Cuts in Limbo”
The burgeoning budget deficit may influence many lawmakers to allow the 2001 and 2003 tax cuts to expire as scheduled in less than six months. However – the November elections will likely place pressure on incumbents to take action. Lawmakers have the option to move on extending – in some fashion – the present tax cuts.
The Democratic leadership has yet to decide what to extend, when to move legislation and whether any changes they make should be permanent or temporary. Unless Congress acts by January 1 – the tax cuts will expire – increasing tax rates on earned income, dividends, capital gains and estates.
President Obama has long supported extending the income tax cuts permanently – but only for individuals making less than 200-thousand dollars and for married couples making less than 250-thousand. Senate Finance Committee member Olympia Snowe says it’s important to be very cautious about to what extent these tax cuts are allowed to expire.
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“Legislation to Protect Local Immigration Laws Introduced”
Kansas Representative Jerry Moran has introduced legislation to protect state and local governments from federal lawsuits filed against local immigration laws. He says the federal government’s failure to enforce immigration laws has led state and local governments to enact their own laws in order to address the problem of illegal immigration. But he says the high cost of defending against a federal lawsuit might discourage local action. The Respect for Local Laws Act will require the federal government to pay for any legal costs incurred by state or local governments if a court upholds a federal challenge to a local immigration law.
According to Moran – the State of Arizona should be applauded for trying to enforce our immigration laws – not sued. If the Obama Administration is not going to enforce the nation’s immigration laws – Moran says they should not stand in the way of state and local efforts to do so.
Nebraska Senator Mike Johanns is introducing companion legislation in the Senate.
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“Energy Bill Debate May Start Next Week”
Senate Majority Leader Harry Reid wants to start debate on an energy bill next week. But first he must come up with a bill for consideration. Reid says the bill would address the Gulf of Mexico oil spill, clean energy and job creation – and will include a tax title and language on pollution from power plants. That last provision is widely seen as a limit on greenhouse gases – though Reid has avoided use of the word cap.
Unknown is if provisions from existing energy and climate bills will be put together into one measure. A dozen freshmen Democratic Senators want carbon pricing included in the energy bill. Democrats John Kerry and Joseph Lieberman continue working on brokering an agreement between electric utilities and major environmental groups on a cap covering emissions from power plants.
Lobbyists say the problem is the distribution of emission allowances – as well as new demands by utilities for exemptions from EPA regulations on traditional pollutants – including lead, mercury and ozone – in exchange for agreeing to carbon dioxide limits. Major health and environmental groups have called such exemptions simply unacceptable and a threat to millions of lives.
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“Paper Quantifies Petroleum’s Indirect GHG Emissions”
A paper to be published in Environment Magazine today (Tuesday) – says the production and use of petroleum fuels does generate indirect greenhouse gas emissions – and they are potentially large. The report says military activities related to acquiring and protecting oil imports from the Middle East generate significant GHG emissions that have – so far – been unaccounted for in fuel and climate regulations. In the paper – University of Nebraska Professors Adam Liska and Richard Perrin write – the greenhouse gas emissions from that military activity are relevant to U.S. fuel policies related to climate change.
Renewable Fuels Association President Bob Dinneen says the paper represents a groundbreaking development in the study of indirect GHG emissions. According to Dinneen – this is a landmark study in that it is the first rigorously researched and published estimate of one source of indirect emissions for oil. To date – the debate over indirect emissions has been narrowly focused only on biofuels and the concept of land use change.
Using previously published estimates of the fraction of military expenditures attributable to securing oil supplies – the authors found the consequential approach to military security emissions alone is 17.5 grams carbon dioxide equivalent per mega-joule. A recent Purdue University Study estimated theoretical indirect land use change emissions tied to corn ethanol expansion at 13.9 g/MJ.
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“Harkin, Boswell Support Possibility of Renewable Fuel Pipeline”
Iowa Senator Tom Harkin and Iowa Congressman Leonard Boswell released statements Monday on the Energy Department’s Dedicated Ethanol Pipeline Feasibility Study – a study ordered to examine the economic viability of a pipeline to transport ethanol from the Midwest to the East Coast. The study suggests a pipeline is feasible under certain scenarios and development of a pipeline could be expedited with federal support by a loan guarantee for the project.
Both Harkin and Boswell have worked to include loan guarantees for a pipeline into energy policy. Harkin says biofuels are one of the nation’s best weapons for reducing dependence on oil – and the U.S. can attract private investment in large infrastructure development projects, create good-paying jobs and further move the nation toward energy independence and security by providing federal loan guarantees for biofuels pipelines – all with minimal taxpayer investment. Boswell says a renewable fuels pipeline would reduce the overall cost of those fuels to consumers outside of the Midwest, create jobs and help rural communities thrive – while also reducing greenhouse gas emissions during truck and rail transport of biofuels. He says a pipeline would have important benefits for the country as a whole.
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“Biomass Technologies Providing More Opportunities”
On Monday – Ag Secretary Tom Vilsack toured Quasar Energy Group in Ohio to see the new technologies used to generate bigger supplies of biogas derived from cellulosic biomass – like yard clippings and crop residue. USDA provided funding for the facilities development. The 1.3-million dollars in Rural Energy for America Program funding and about 90-thousand dollars in a grant by the National Institute of Food and Ag was used to install an anaerobic digester processing nearly 25-thousand wet tons of organic biomass a year to generate energy.
Anaerobic digester technology is a proven method of making waste products into electricity. The digester uses food wastes from local food producers, crop residuals, grass and manure from livestock operations of the Agricultural Technical Institute at Ohio State University. The digester can actually supply nearly one-third of the Ohio Agricultural Research and Development Center’s electricity needs.
Vilsack commends the leadership in Ohio for developing a prototype to reduce greenhouse gases and landfill disposal while offering the promise of significant increases in production of renewable energy from the effort. Anaerobic digesters used in dairy operations usually generate enough electricity to provide power to 200 homes.
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“RFA and USGC to Host Export Exchange 2010”
The Renewable Fuels Association and U.S. Grains Council are teaming up to co-sponsor the Export Exchange 2010 – an international trade conference focused on exports of U.S. distillers dried grains with solubles and coarse grains. The event is slated for October 6th through the 8th in Chicago. The purpose of the conference is to connect DDGS and coarse grains international buyers with the U.S. market. The Council is providing sponsorship for targeted international trade teams from more than 25 countries to be able to attend. The targeted trade teams represent around 80-percent of the global export market for DDGS and coarse grains.
RFA President Bob Dinneen says distillers grains consumption is nearing saturation in the U.S. and increasing U.S. exports of DDGS will be instrumental in helping the industry avoid running into a feed wall. USGC President and CEO Thomas Dorr says the world population is demanding more meat, milk and eggs – and U.S. DDGS and coarse grains continue to play an important role in livestock and poultry feed rations globally. Dorr says it’s important to educate and connect buyers and sellers to continue to grow vital markets for the U.S. – which is why the conference will address issues facing U.S. exports and seek to educate and build awareness of U.S. DDGS and coarse grains among international buyers.
Visit www.grains.org for more information.
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“Representatives Ask For RRA Deregulation”
AgriPulse reports that a bipartisan letter signed by 75 members of the U.S. House of Representatives has been sent to Agriculture Secretary Tom Vilsack asking USDA to partially deregulate Roundup Ready alfalfa to allow fall 2010 planting of inventoried seed. The request was organized by Representative Lynn Jenkins of Kansas.
In the letter – the House members request an interim permit be issued to allow the use of RRA for the fall 2010 planting season while the Animal and Plant Health Inspection Service completes its final Environmental Impact Study. The letter states there is no significant impact on the human environment due to granting non-regulated status to Roundup Ready alfalfa.
In a June 21, 2010 decision – the U.S. Supreme Court stated that an earlier ruling of the 9th Circuit was a drastic and extraordinary remedy and that a permanent injunction is not now needed to guard against any present or imminent risk of likely irreparable harm.
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“Researchers Unlocking Genetic Clues”
Agricultural Research Service scientists are a step closer to unlocking genetic clues that may lead to packing more protein and oil into soybeans – a move that would boost their value and help U.S. growers compete in international markets. The scientists have narrowed down where genes that determine protein and oil content are likely to be found along the soybean genome.
The researchers used two different approaches to compare the genomes of two nearly identical inbred lines of soybeans that varied in seed protein and oil content. By comparing the results – the researchers drew up a genetic map that identifies key molecular markers. The region includes 13 candidate genes that are likely to play a role in determining oil and protein levels and a series of associated molecular markers.
Using this information – breeders will be able to use the markers as signposts to enable the development of new soybean lines with higher protein and oil levels.
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“USDA to Develop Biggest Easement on Northern Everglades Watershed”
Deputy Ag Secretary Kathleen Merrigan announced Monday the Natural Resources Conservation Service will provide 89-million dollars through the Wetlands Reserve Program to create easements on almost 26-thousand acres in Florida’s Fisheating Creek – part of the Northern Everglades Watershed. Once restoration of the land is complete – wetlands, wildlife habitat and the quality of the water draining into the Everglades will be enhanced and improved.
Merrigan says the Northern Everglades watershed is one of the last frontiers for large scale land conservation in Florida – and USDA is proud to work with private landowners and state and local partners to protect this unique habitat. She says the enrollment of the properties in the WRP will result in significant wetland restoration and protection – and provide important habitat for rare, endangered and threatened animals and birds and plants.
For more information – go to www.nrcs.usda.gov.


