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Ethanol bill: Just what would be a conflict of interest?

By Kyle Prast
Tuesday, Feb 5 2008, 11:55 AM
First, let me share my response from our own Governor Jim Doyle to my plea to him to oppose the ethanol mandate. Notice how the highlighted statements match rather closely to an email (in bold) from ethanol producer Paul Olsen (Senator Luther Olsen's brother).

"From: Paul Olsen
Sent: Friday, February 01, 2008 7:43 AM

Subject: State Sen. Olsen drops role in pushing

alternative fuel mandate

Renewable fuels...
creates jobs $$$$
clean environment $$$$$
supports local economy $$$$$$$
keeps our dollars home $$$$$$$$$$$
its the future $$$$$$$$$$$$$$$$$$
a flip flop senator who doesn't defend reality

WORTHLESS !!!"

 

Now for the conflict of interest issue.

 

We know that Senate Bill 380 sponsor Senator Olsen removed his name from the bill and will abstain from voting for it due to a perceived conflict of interest. That article from the Oshkosh Northwestern paper stated: (Emphasis added)

Olsen came under fire shortly after the bill was introduced in early January because he has family ties to the ethanol industry and is a part owner of a grain mill that sells corn for ethanol production. Olsen was a co-sponsor of Senate Bill 380, which would require vehicle fuel distributors to make renewable fuels 25 percent of their total sales volume by 2025.

On Wednesday, Wisconsin Government Accountability Board Director Kevin Kennedy indicating Olsen's support of the bill would not violate conflict of interest statutes even though Olsen has a one-third ownership stake in Olsen's Mill, a family business that sells corn to Olsen's brother's ethanol plant, Utica Energy LLC...

...The Wisconsin Government Accountability Board's Standards of Conduct for elected officials generally requires legislators to step away from discussions, votes or support for legislation that will have a benefit for the legislator, a member of the official's immediate family or any organizations with which the legislator is associated...

...Kennedy's decision indicates "immediate family" applies to a spouse or children, but not to brothers or sisters. He said the actual impact of the legislation on Olsen's Mill, in which Luther Olsen has a financial interest, would be "unspecific and speculative."

"Thus, based the facts you have provided, in my view you may participate in the sponsorship, consideration and vote on legislative proposals that increase incentives for manufacturing and using ethanol and renewable fuels without violating laws administered by the Government Accountability Board," Kennedy's letter reads.

So, according to the Government Accountability Board, there was no real conflict of interest.

But here is another tidbit from Jay Webber that I was unaware of. (My alarm is set to WISN so I catch a bit of his radio show each morning.) According to Jay this morning, ethanol producers cannot purchase corn from just anyone--it is not like just any Farmer John Doe can take his load of corn to Senator Luther Olsen's brother's Utica Energy LLC ethanol factory. No, Jay said it had to come from a licensed grain mill, such as Olsen Mill, the one Senator Luther Olsen is a co-owner of!  To me, that really crowds that perceived conflict of interest line.

Jay also told about a very interesting email Charlie Sykes spoke about on his radio show. It was from Senator Luther Olsen's Chief of Staff Heather Smith. It evidently is a response to an email sent by Luther's brother Paul. Pretty interesting stuff. The complete email is at the bottom of the Charlie Sykes link. Here are just a few excerpts:

Why? [does Luther have a target on his back over this issue] Because of you [brother Paul]. They know that you are the c h i n k in Luther's armor. It doesn't matter what any ethics board says about if it's ok or not. Anyone who is not completely retarded running a political campaign knows how to make a perceived ethical problem look just as bad as a real one.

So, in other words, she does not think there is any real conflict of interest! 

 

I also found it interesting that Ms. Smith noted there was not one call from a constituent in favor of ethanol--after all, their calls would be from Luther Olsen's district, presumably a more favorable district toward ethanol considering the potential for new jobs.

There were not a hundred calls, or ten, or EVEN ONE CALL from a constituent who wanted to tell Luther, "Heck yeah, vote for this, it's great!" We got a memo from a "special interest group" and the DNR, and heaven knows the DNR should always be listened to.

 

Is it any wonder we need to watch all of our politicians regardless of their party? 

 

Let Governor Doyle know if you agree with his assessment of ethanol in Wisconsin. 

Governor Doyle

608-266-1212, 414-227-4344

 

counter hit xanga

Blogs: Brookfield7, Fairlyconservative

Links: Betterbrookfield Vicki Mckenna 

 


 

It's back! Ethanol bill heads to senate Thursday--speak up

By Kyle Prast
Tuesday, Jan 29 2008, 09:56 PM

UPDATE: The Ethanol bill is on the Senate floor right now. Reportedly, Senator Jim Sullivan is on the fence regarding this bill. Please let him know what you think. If passed, the bill goes to the Assembly. There Assembly Speaker, Mike Huebsch is said to also be on the fence.

I heard that Senate Bill 380, commonly referred to as the Ethanol Bill, made it out of State Senate committee with a 4-1 vote. State Senator Ted Kanavas cast the only NO vote on the measure. (Thank you, Ted.)

The bill now heads to the Senate possibly as early as this Thursday, January 31st.

"This bill generally subjects a refiner to a penalty if the percentage of renewable fuel sold by the refiner, beginning in 2009, is less than a percentage set in the bill. The percentage of renewable fuel sold is determined by dividing the total volume of wholesale sales of renewable fuel in a year by the refiner’s five year rolling average volume of wholesale sales of all motor vehicle fuel, other than diesel fuel, and multiplying by 100. The percentage begins at 10 percent and increases to 25 percent in 2025 and thereafter." (Emphasis added)

Like so many of these Going Green bills and measures, they sound good but are NOT environmentally friendly--nor are they practical or economically feasible. Ethanol is not an efficient fuel*. In fact, many scientists believe it takes more energy to produce ethanol than it provides.The miles per gallon with ethanol are not as high as without ethanol.

The only thing Green about this renewable fuel bill is when you follow the money to the ethanol manufacturers and corn growers.

If contacting your state representatives about ethanol mandates seems familiar, it is because we defeated this once before back in 2006(?)

Sometimes I feel like we are playing that old arcade game called Whack-a-Mole with these bad bills that keep returning. (Whack-a-Mole is a game where the player takes a mallet and tries to hit a plastic mole who pops out of various holes in the game play field.) But call or email we must; it is only weapon against oppressive legislation like this. 

Contact your representatives:
State Senator Jim Sullivan, Democrat, 5th District
Sen.Sullivan@legis.wisconsin.gov  608-266-2512,  866-817-6061

State Senator Theodore Kanavas, Republican, 33rd District

Sen.Kanavas@legis.wisconsin.gov  608-266-9174, 800-863-8883

State Representative Leah Vukmir, Republican, 14th District
Rep.Vukmir@legis.wisconsin.gov  608-282-3614

Representative Rich Zipperer, Republican, 98th District
Rep.Zipperer@legis.wisconsin.gov  608-266-5120 

Governor Doyle
608-266-1212, 414-227-4344

Rep. Jeff Fitzgerald (Assembly Majority Leader), from Horicon. Counties: Columbia and Dodge
Rep. Michael Huebsch (Assembly Speaker), from West Salem. Counties: LaCrosse and Monroe
Sen. Scott Fitzgerald (Senate Minority Leader), from Juneau. Counties: Columbia, Dane, Dodge, Jefferson, and Waukesha

With gas prices rising, people naturally are looking toward purchasing more fuel efficient vehicles. The free marketplace is addressing fuel efficiency and experimental fuel vehicles. We don't need to mandate the use of such an expensive carbon footprint fuel like corn ethanol.

And let's not forget that taxpayers (us) subsidize the price of each gallon of ethanol blended gasoline. From the Competitive Enterprise Institute:

"Motorists pay 51 cents less in federal gasoline taxes for every gallon of ethanol purchased, and Wisconsin pays ethanol makers 20 cents for every gallon produced. If ethanol were such a great deal for consumers, it would not need market-distorting tax breaks and subsidies, much less a market-rigging mandate, to compete with conventional gasoline."

 Be sure to read The Ethanol Fallacy in February 2008's Popular Mechanics issue.

* "Among the various ethanol sources, sugarcane is by far the most efficient in both land and energy use. The ethanol yield of sugarcane per acre is roughly 650 gallons, whereas for corn in the United States it is 350 gallons, scarcely half as much. The net energy yield of 8 for sugarcane offers an overwhelming advantage over that of the 1.5 for corn."

Links: Betterbrookfield, Brookfield7, Fairlyconservative


 
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