Appeals Court: Lawmakers Should Decide Impact of Ethanol Plants on Environment

Webster County residents lose their appeal to try to stop an ethanol plant from being built on a 252-acre plot between Rogersville and Fordland.
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AND in its 37-page opinion the Appeals Court writes that public policy issues related to the "efficacy of ethanol, the propriety of land-use planning, or the conservation of our natural resources are beyond the scope of our appellate function and inquiry and are rightfully left to appropriate legislative bodies and executive agencies for consideration and determination."
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WATCH THE KY3 NEWS @ 10 REPORT HERE

The plaintiffs plan to appeal as high as the state Supreme Court.
Webster County has no planning or zoning laws.
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Parties involved say they may lobby lawmakers for legislation that would limit the amount of water a company could use before adversely impacting the surrounding area.

Lipstick on A Pitbull

STEELMAN DENIES AID FOR ETHANOL

Treasurer Says Plant Should Have No Investment Ties To Politicos

Missouri State Treasurer Sarah Steelman today revoked conditional approval for financial aid for an ethanol plant that has political connections.

Show-Me Ethanol had received conditional approval in October 2006 for a 48 million dollar state bank deposit that would be used for a reduced-interest-rate loan. But the big condition was that the ethanol plant could have no investors who either were state officials or related to them. Among the investors was Governor Blunt's brother, Andy Blunt, and state House member John Quinn.

"Despite repeated requests, you have refused to give information or provide documentation about shareholders and those conflicts. At least four times since April our office has informed you of the need for this documentation and as of today you have still not supplied it," Steelman wrote in a letter to Show-Me Ethanol's Greg Thomas.

Steelman's office said Show-Me's "repeated refusal" to cooperate in complying with the laws that govern the program lead to her decision. The Treasurer said Show Me Ethanol repeatedly refused to clarify "syndication and financial issues."

"The only conclusion that is reasonable at this point is that your organization is not in compliance with the policies and laws of this state, and that you refuse to cooperate in coming into compliance. Two years is well beyond what should be expected by anyone who has come to the state asking for assistance and then refused to make any effort to comply with the laws and policies the state has established for that assistance," Steelman wrote.

"Accordingly, the conditional approval previously granted is revoked, and your application is denied," she concluded.

E-T-H-A-N-O-L: Farmer Spells Out Why He's For Steelman

After meeting both candidates, farmer Stacey McCallister e-mails the KY3 Political Notebook about why he's decided to support Sarah Steelman over Kenny Hulshof

McCallister met Hulshof at a fundraiser in Springfield a few weeks back. He met Steelman in Hartville during her RV tour Monday.

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PLUS: The A.P's Lieb pens piece that seems favorable toward the Steelman argument. ALSO: Uber-strategist Jeff Roe pulls down the curtain, offers tidbits about the strategy behind the bus tour . . .

***She's stopping in each of the 47 counties with the largest number of likely G.O.P. voters . . . Two days before each visit, those voters get an automated call . . . Fewer than 1 percent show up, but the calls themselves are a goal

Excerpts from McCallister's e-mail:

"Hulshof never really impressed me. He tried to spin things on ethanol that I new better. Such as we would have to import 300,000 plus barrels of oil and I told him repealing the mandate would NOT stop production. ethanol was still going to be made. It would curb speculation thus making corn more affordable for the refineries . . .

"Anyway, he said he seen what I was trying to say, but my impression is he is part of the Republican status quo and only looks to the party for answers. He never once says HIS vision for Missouri.

"Steelman was way more impressive today (in Hartville). She seems to know where she wants to take the state on many topics. She seems truly concerned on all parts of the economy but with an ear to the people not just the Republican elitists."

Friday Night Surprise

STEELMAN GOES UP IN SOUTHWEST MISSOURI EVENING NEWSCASTS WITH ANTI-ETHANOL MANDATE AD

TAGLINE: "Congressman, Washington answers don't work in Missouri."

CITES KY3 Political Notebook column, featuring the positive adjectives describing Steelman, while (not) surprisingly omitting the favorable Hulshof descriptions . . .

Just to be clear, we don't do endorsements, we do balanced analysis

Ho-hum . . . Oh well, welcome to the fray

Steelman Camp: I'll Raise McCain to Your Chavez

ALSO: PULLS OUT AN OLD HULSHOF QUOTE

"My family grows corn, so the idea of high corn prices is appealing to me."

AND FROM TODAY'S WALL STREET JOURNAL:

"The biofuels boom in the U.S. and the new Asian middle class's appetite for grain-fed meat have combined to drain world grain stockpiles."

Sarah Steelman's campaign for Governor called Congressman Kenny Hulshof "simply disgusting" Wednesday for comparing anti-ethanol mandate advocates to Venezuelan dictator Hugo Chavez.

"It is simply disgusting that Congressman Hulshof’s campaign would refer to people who don’t agree with his support of government mandates that are hurting Missouri families as socialists and supporters of a South American dictator," said Sarah Steelman spokesman Spence Jackson.

"Congressman Hulshof’s Washington logic is so out of touch with Missourians that he thinks opposing government mandates and supporting the free market is socialist."

The release goes onto note that Republican presidential nominee John McCain has been a consistent critic of wasteful pork barrel spending in Washington "supported by Congressman Hulshof." But the release does not attempt to pin down McCain's stand on an ethanol mandate.

"Hulshof also insulted his own supporters namely State Representatives Darrell Pollock, Charlie Dennsion, David Sater and Allen Icet who oppose this government mandate. In addition to these representatives Hulshof also attacked five others for having the courage to stand up against him and his mandate allies. Those Representatives are Mike Dethrow, Bob May, Maynard Wallace,
Don Wells and Van Kelly," noted Jackson in the release.

As a kicker, the Steelman campaign also ripped out an old quote from Hulshof in the Prairie Journal in 2007: "My family grows corn, so the idea of high corn prices is appealing to me," Hulshof said.

Invoking Hugo Chavez

HULSHOF CAMP SUGGESTS STEELMAN ETHANOL PLAN WOULD AID VENEZUELAN DICTATOR

Campaign Believes Ethanol Debate "Will Go On For Awhile"

Kenny Hulshof's campaign for Governor released a group of independent studies Monday which they claim "debunk" Sarah Steelman's recent assertions that the state ethanol mandate is leading to higher food prices and hurting Missouri farmers.

The Hulshof case boosting ethanol includes:

• Merrill Lynch analysis that concluded oil prices would be 15% higher without biofuels
• U.S. Ag Dept. analysis that found that without ethanol, gas would be 35 cents higher
• Iowa State Study that found ethanol has lowered gas by 30 to 40 cents per gallon
• A.G. Edwards analyst asserting that ethanol blending could ultimately reflect lower prices at the pump
• American Farm Bureau president Bob Stallman: “The production of 6.5 billion gallons of ethanol in 2007 displaced the need for 228 million barrels of oil. That is equivalent to nearly half of the oil imported from Venezuela in 2007.”

The Hulshof campaign also pointed to a statement by Venezuela dictator Hugo Chavez condemning the U.S. for its "crazy" initiatives to produce ethanol.

"The promotion of biofuels, including Missouri’s ethanol mandate, is clearly working," said Scott Baker, communications director for Hulshof. "If not for ethanol, Missourians would be facing significantly higher prices at the pump, and we would have to import millions of additional barrels of oil from dictators like Hugo Chavez. Steelman’s plan is dangerous for America and extremely harmful to Missouri."

Show-Me Institute: E-10 Mandate Drives Costs

The Show-Me Institute has a full study on the ethanol mandate that contradicts what the Missouri Corn Merchandising Council has found.

"The MCMC study ignores important effects of the E-10 mandate, however, most notably the documented decrease in fuel efficiency of E-10 blended fuel and the taxpayer cost of ethanol subsidies. We find that accounting for these costs significantly impacts the MCMC savings projections and would result in a net loss to Missouri consumers of almost $1 billion during the next decade. If one were to consider the additional impact of the E-10 mandate on higher food prices and CO2 gas emissions, these costs would be even higher," write Justin Hauke and David Stokes.

Read it all HERE.

Mo. Corngrowers: Ethanol Repeal "A Political Scheme"

A statewide group dedicated to increasing the profitability of corn is calling Sarah Steelman's plan to repeal the statewide ethanol mandate "a political scheme."

A day after Steelman's announcement to scrap the 10 percent ethanol mandate, the Missouri Corngrowers Association has blasted out a release claiming that a repeal would result in increased prices for consumers.

"By utilizing corn-based ethanol in gas pumps throughout the state, Missouri consumers have earned bragging rights for having the cheapest gas in the nation," said Corngrowers Association CEO Gary Marshall. "By design, the use of ethanol as required by the Missouri Renewable Fuel Standard works only to lower the cost to consumers. The law is written with a price trigger that if ethanol is ever priced higher than gasoline, marketers are not required to use the high performance fuel."

"Removing the ethanol requirement in Missouri would only increase prices at the pump for already hurting consumers," reads the release.

But Steelman said Tuesday that ethanol doesn't make traveling any cheaper for drivers. "You don't get as many miles per gallon burning the blend, the ethanol blend, as you do regular gas. So that if you're not getting as many miles per gallon, you have to fill up more often at $4 a gallon," the State Treasurer said.

Marshall pointed to a recent analysis by Merrill Lynch that shows that gasoline prices would be 10 to 15 percent higher without the ethanol supply in the marketplace. That translates into ethanol helping hold down gasoline costs to American drivers by 60 to 70 cents per gallon.

Marshall also said our dependence on foreign oil is driving up grocery bills. "While commodities are a small factor, fuel costs alone represent more than twice the value of corn contained in each box of corn flakes," Marshall said. "The price of groceries is heavily dependent upon energy for processing, packaging, and transportation - energy derived from expensive oil."

"With energy and food prices at record levels, the wealthy oil and food companies are looking for a scapegoat while they rake in record profits. Politicians joining the fray with short-sighted strategies intended for political gain simply add insult to injury. Ignoring ethanol's benefits and throwing Missouri farmers under the bus is no way to solve today's energy crisis," said Marshall.

The Nightcap Piece: Hulshof vs. Steelman on the Ethanol Mandate

Reversing course from her previous position, Republican candidate for Governor Sarah Steelman is calling for an end to Missouri's 10 percent ethanol mandate. Republican rival Kenny Hulshof believes doing that would push gas prices even higher.

Watch the debate, including what one local farmer has to say, in our piece on KY3 News @ 10 HERE.

Steelman's Ethanol Mandate Repeal

Here's the short piece that aired on KY3 News @ 5.

Longer piece comes tonight at 10.

The "Pit Bull" Returneth

STEELMAN EXPLAINS ETHANOL FLIP

NOW CALLS FOR REPEAL OF MANDATE

***Watch Exchange Above***

BUT IN APRIL STEELMAN SAID: "As an economist, I am very concerned about the use of mandates in a free market system. However, the consequences of our nation's continued dependence on foreign oil are so far ranging and serious, that I support mandates in the short run to help establish a market for renewable fuels."

ALSO: Proposes $500 Dollar Vehicle Tax Credit, Proposes construction of oil refineries in Missouri and Supports Nuclear Plant to be Built in Missouri

Lots of successful politicians have changed their minds (i.e. flip-flopped) on major issues. Ronald Reagan flipped on abortion. George W. Bush flipped on nation building. Barack Obama flipped on public financing. Sarah Steelman has now flipped on an ethanol mandate. There's an argument to be made that flips are, at times, honorable, even courageous, but no pol likes admitting to it. Is that their fault or the media's?

***MORE VIDEO DEVELOPING HERE . . . PLUS FULL REPORTS TONIGHT ON KY3 NEWS @ 5, 6 & 10

We're Back

. . . from a little vaca in Sin City.

So if we didn't post or cover your event or release over the past four days, it's because you can't count on old media for that anymore.

First stop back . . . a 1 p.m. presser with Republican candidate for Governor Sarah Steelman on why she's calling for a repeal of the state ethanol mandate.

Steelman Takes Aim At Another Blunt Policy

Missouri State Treasurer and Republican candidate for Governor Sarah Steelman today vowed to overturn a provision of an economic development bill that allows state elected officials and their family members to benefit from alternative fuel tax credits.

Gov. Matt Blunt signed the bill into law yesterday.

“At a time of economic uncertainty and ever rising gas prices the last thing Missouri taxpayers need is a provision that will allow lawmakers to enrich themselves at the public’s expense,” Steelman said in a statement. “These kinds of actions by lawmakers are what cause government to get bigger," she said.

The Associated Press reported back in May that "about 20 past or present Missouri officials have received more than $400,000 in tax credits for investing in alternative fuels such as ethanol and biodiesel."

As Treasurer, Steelman took action to prohibit similar conflict of interest situations. "This is wrong and as Governor I will end it immediately," Steelman said.

Steelman also called on her Republican primary opponent, Kenny Hulshof, to support her in ending this policy.

"Hulshof, however, is a shareholder in an alternative fuels business," reads the Steelman release.

Bright & Early

STEELMAN HOLDS THURSDAY MORNING PRESSER
in Springfield
Expected To Lambaste Senate Vote Allowing Lawmakers to "Profit From Incentives" They Approve For The Alternative Fuel Industry
9:30 a.m. @ Greene County Courthouse

***Will Mark 6th Public Springfield-Area Stop For Steelman Since Her Late January Announcement for Governor

Truth & Consequence

***8 HAPPENINGS***
Ranked in order of impact, through the mindset of a local TV newsroom

1. The House voted to repeal the controversial "village law," which allows one person to hold an election to incorporate an area as a "village." It now goes back to the Senate for a final vote. If it clears, an emergency clause is attached to make it effective as soon as the Governor signs it.

2. John Edwards endorsed Barack Obama.

3. Gov. Matt Blunt threatened to call a special session if lawmakers don't approve his illegal immigration reforms.

4. Kenny Hulshof and Sarah Steelman launched the first TV ads of their primary campaign for Governor right here in Southwest Missouri.

5. Sarah Steelman called on state lawmakers to "reverse course" and remove a provision that would allow state lawmakers and elected officials who have a "conflict of interest" in the alternative fuels industry to receive taxpayer subsidies and tax credits. She cites an A.P. story that reported about 20 officials have received thousands of dollars in those subsidies.

6. A Senate committee approved a resolution to put a Constitutional Amendment on the ballot that would create a revenue growth lid for the state. The Joint Resolution needs to pass the full Senate before it could be placed on a statewide ballot. But some groups are already saying its passage would result in a severe fiscal crisis in Missouri.

7. The Office of Administration announced its investigating Attorney General Jay Nixon's handling of $629,987 in state funds acquired through a multi-state settlement with a prescription benefits company. House Budget Chair Allen Icet asked for the investigation, citing concern that Nixon and his office may have misappropriated state funds by spending the money without the approval of the General Assembly.

8. GOP Whip Roy Blunt downplayed the Republican House election loss in Mississippi Tuesday, saying that “six months ago, Rudy Giuliani was the front runner in the Republican contest and Barack Obama did not have a chance.” Blunt said that Democrats won in Mississippi and Louisiana by running “on what the GOP is for.” “So we know now that the message works,” he said, according to The Politico. “So we have to be sure that nationally, we connect the message with the Republican Party, rather than the other party.”

The 5% Solution?

DEBATE OVER MANDATING BIODIESEL
AG, OIL INTERESTS FACE OFF

House Transportation Cmt. Proceeds With Caution
Petroleum Pipeline Company: "Don't force us to make a bad investment."
Soybean Association: "We add to fuel supply, while reducing the cost of feed for famers, as well as food for consumers."
Rep. Charlie Denison: "I'm not sure this bill will get us a lower price in diesel fuel."
MINNESOTA THE ONLY OTHER STATE WITH SIMILAR MANDATE . . .
. . . and Diesel Has Proven to be Cheaper Than Biodiesel Every Day, according to Magellan Midstream Partners
WATCH MY KY3 NEWS @ 6 REPORT HERE

The arguments FOR the 5% biodiesel mandate: Reducing the carbon footprint, biofuels lower the price of gas by 15% according to Merill Lynch, crushing soybeans will help make farmer feed more economical, mandate only kicks in if price of biodiesel blend is lower than diesel, mandate would bring uniform standards to biofuel and improve quality, boon to soybean industry struggling with new trans-fat standard in foods, would open the market to challege oil companies hold on market.

The arguments AGAINST the 5% mandate: Mandates distort the free-marketplace, costs too high to put infastructure in place to handle biodiesel blend, biodiesel proven to be very expensive, and therefore never may be used, private companies may decide to forgo costs and stop shipping or selling diesel altogether, if a terminal runs out of biodiesel - what do you do?, too much is still unknown about the price of biodiesel and its stability, companies forced to comply with mandate may pass cost on to the consumer.

Not Vin Diesel . . .

. . . BIO - DIESEL

The Debate Over A Mandate

Tonight on KY3 News @ 5 & 6

It's Beautiful This Time of Year

ON THE ROAD . . .

To Jefferson City Tuesday

HOUSE TRANSPORTATION CMT. HEARING ON BIODIESEL

Should Missouri Mandate 5 percent Biodiesel Blend?

Soybean, Agriculture, Dairy & Environmental Interests expected to testify at Early Bird Hearing Tuesday

***DEVELOPING . . .

CHECK BACK LATER TUESDAY FOR UPDATES

Blunt Says Ethanol Not Tied to Higher Prices

HULSHOF, STEELMAN & NIXON ALL BACK MANDATE

Steelman Shows Most Concern Over Future Impact

Gov. Matt Blunt dismissed concerns Thursday that ethanol production is leading to higher livestock feed prices for Missouri farmers, calling the argument "illogical."

Watch my KY3 News @ 10 report HERE.

A House committee is considering legislation to repeal Blunt's mandate that requires all gas to include 10 percent ethanol. Rep. Mike Dethrow, the bill's sponsor, has called his vote for the mandate "a mistake." Some area farmers agree.

"I think its too much, too quick," said David McCroskey, a dairy and beef management consultant who works with Ozarks farmers. "Right now, more mandatory ethanol use, means more corn use, that doesn't go towards feed and food for our people. We've seen our feed prices, the biggest part driven by corn --- double in the past two years," McCroskey said.

Blunt dismissed that claim, calling it "not logical." He said all commodities --- not just corn --- are rising because of higher energy and fertilizer costs as well as increased worldwide demand.

"They'd be paying even more without the mandate," Blunt said. "It's about $40 a year saved last year because of ethanol," he added. "I think the E-10 mandate or requirement is totally disconnected from the surge in worldwide demand for food prices."

Gary Clark of the Missouri Corn Growers Association noted that the price of grain is not even set in Missouri and reiterated that a repeal "would have zero impact on the price in Missouri."

"We are overproducing corn to meet the need here, corn supply is not the problem," Clark said. He also pointed to a study commissioned by the Corn Growers Association that showed gas would be 9 to 10 cents higher without ethanol.

"We're all upset about the economy right now. The livestock industry is having a tough time, we acknowledge that. But some people are getting the wrong impression," Clark said.

The three leading candidates for Governor all support Blunt's mandate --- and oppose an attempt at a repeal.

"When you talk about the price of ethanol, a lot of things go into it, corn is one, but you've got the weak dollar, exports, weather . . . many, many factors going into it," said Kenny Hulshof's campaign spokesman Scott Baker. "Ethanol is a very small part," he said, noting that Hulshof supports the mandate. He said Hulshof believes ethanol technology "is still in its infant stages, and thinks its important to enhance the market for continued research."

Baker points to this report which quotes a Merrill Lynch analyst who says world oil prices would be 15% higher without the expansion of biofuels.

Hulshof's rival for the Republican nomination, Sarah Steelman, said she's concerned about mandates, but supports this one in the short run.

"As an economist, I am very concerned about the use of mandates in a free market system," Steelman said. "However, the consequences of our nation's continued dependence on foreign oil are so far ranging and serious, that I support mandates in the short run to help establish a market for renewable fuels," she added.

Presumptive Democratic nominee for Governor Jay Nixon also supports the 10% ethanol requirement.

"Ethanol development has been beneficial to our economy and Jay Nixon supports keeping the mandate in place," said campaign spokesperson Oren Shur. "In doing so, we must be mindful of our family farmers who are struggling with the rising prices of everything from fuel to food. If the state can afford to give $95 million dollar in tax credits to one big developer, we certainly have the resources to invest in ethanol and give our family farmers the support they need," Shur added.

Boon or Doggle?

SECOND THOUGHTS ABOUT ETHANOL

Ozarks Lawmakers Sign on to Repeal Mandate

Reps. Wallace, Pollock, Denison Agree

Cite Rising Food, Farm Prices

HULSHOF SUPPORTS KEEPING MANDATE

Hulshof Campaign: "If you look at everything that goes into the price of corn, ethanol is but a small part."

DEVELOPING . . .