IOWA CAUCUSES

Ethanol questions dog Ted Cruz in Iowa

Matthew Patane
mpatane@dmreg.com
Senator Ted Cruz campaigns at an airplane hanger Webster City Municipal Airport in Webster City, Thursday, Jan. 7, 2016.

POCAHONTAS, Ia. — Texas Republican Ted Cruz is driving hundreds of miles across Iowa this week in one of his final pushes before the Feb. 1 caucuses.

And no matter where he goes, Cruz is followed by questions about where he stands on ethanol and the Renewable Fuel Standard, seen by many Iowa farmers and the state's ethanol industry as a crucial component for their business.

A pro-renewable fuels group — America's Renewable Future — has also trailed Cruz throughout the state this week. The group's RV can be seen just outside of Cruz's events as staffers pass out pamphlets calling out Cruz for his stance on the RFS.

Cruz, a U.S. senator, has long said he opposes mandates and subsidies for energy production. This week, he has repeatedly stressed he favors a phase out of of the RFS over five years.

ARF jumped on that point to declare a victory of sorts, saying Cruz is finally listening to Iowans and farmers.

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“Farmers and rural communities across Iowa are going to be encouraged by Sen. Cruz’s remarks," ARF's Eric Branstad said in a statement Wednesday. "He is clearly listening to the people of Iowa and understands the importance of the Renewable Fuel Standard to America’s economy and energy independence, as he started the caucus process calling for immediate repeal. While not perfect, this is a big step forward by Sen. Cruz.”

The Cruz campaign, though, called those comments false, saying Cruz has consistently supported a phase-out plan for a few years.

Cruz spokeswoman Catherine Frazier pointed to legislation Cruz sponsored in 2013 and 2014 as the first time the presidential candidate called for a phase out. The legislation, which lays out Cruz's energy plan, calls for a repeal of the Renewable Fuels Standard by phasing out the program over a five-year period.

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But Cruz also co-sponsored legislation in 2013 from Wyoming Sen. John Barrasso called the "Renewable Fuel Standard Repeal Act." Cruz was one of 18 senators to co-sponsor the legislation. Barrasso's bill does not include a phase-out component and instead would have repealed the RFS immediately upon passage.

Frazier said the ultimate goal for Cruz is to end the RFS.

"The end goal is to end the RFS because he believes it distorts the marketplace and prevents competition and that’s not good for the economy," Frazier said.

The language Cruz used also prompted some reports that he had "flip-flopped" on his stance.

Seeing Cruz in Storm Lake Wednesday, 46-year-old Kerby Todd asked him to clarify his stances citing some of those new reports. Cruz repeated his view that he doesn't think government should pick winners and losers.

Todd, who works for a company that supplies parts to ethanol plants, told the Register he was satisfied with Cruz's answer. Still, Todd said the ethanol industry needs clarity to move forward.

"Our government cannot keep changing the rules every year based on whether its an election year or some lobbyist. We need to set a plan and stick to it," Todd said, adding he would be OK with a phase-out of the RFS should the government get rid of subsidies for oil companies.

Senator Ted Cruz campaigns at an airplane hanger Webster City Municipal Airport in Webster City, Thursday, Jan. 7, 2016.

The Renewable Fuel Standard enjoys widespread support among likely caucusgoers. In an early December Des Moines Register/Bloomberg Politics Iowa Poll, 61 percent of likely Republican caucusgoers supported the standard, as did 77 percent of likely Democratic caucusgoers.

But in an election cycle dominated by worries over terrorism and debate over economic opportunity, political observers have voiced doubt that a candidate’s position on the fuel standard will sway many voters.

“All the events I’ve been to, it has been a relatively minor issue, if it’s popped up at all,” Dennis Goldford, a professor of politics at Drake University, said in late November.

Still, the fuel standard’s supporters argue that in a Republican field with 11 candidates, a niche issue could make a difference.

In crowds that have hovered at or above 100 people throughout northern Iowa this week, at least one person has asked him about ethanol and the RFS at almost every stop.

Toward the end of his day Thursday, Cruz started bringing up the topic himself, unprompted. He has added that he would rescind the Environmental Protection Agency's regulations on how much ethanol can be blended into gasoline, known as the "blend wall."

Dave Vander Griend, the CEO of ethanol plant design firm ICM Inc., joined Cruz and his presidential campaign on the fourth day of the Texas Republican's Iowa bus tour.

Vander Griend said he started talking with the campaign about a month ago after they sought clarity on ethanol and the Renewable Fuel Standard.

"We have spent the last month or so just educating, giving him information, giving him background, and helping him to understand that the RFS is not a long-term solution.

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While he is opposed to the mandate, Cruz has said the idea that he is against ethanol or other renewable fuels is "utter nonsense." Cruz has said this week lobbyists want Iowa farmers focused on the RFS because it keeps Washington D.C. in the spotlight.

"By the way, that makes the lobbyists rich. It’s a very good arrangement when Iowa is dependent on Washington. It means the lobbyists can keep extracting a lot more paychecks," Cruz told a crowd near Webster City Thursday.