February 16, 2006

HIGHLITES FROM THE SENATE

SENATOR MARK ZIEMAN

On Wednesday, the Environmental Protection Agency announced that it has lifted the ethanol requirement for gasoline. This announcement may give the ethanol industry in Iowa a cause for pause.

The corn growers were at the Capitol on Monday to lobby for their ethanol bill. Theirs is just one of many bills than have been introduced on this issue. Before the dust settles there will likely be a bill that will be consumer friendly and encourage the use of renewable fuels. Iowa is a leader in the voluntary use of ethanol. We are the only state that sells 89 octane gas cheaper than regular leaded 87 octane gas as a result of the incentives that are in place from the state and federal governments. We are hearing stories of ethanol leaving the our state in tankers at $2.20 per gallon plus freight. The industry is doing a good job of marketing this product to the benefit of its investors.

The public employees pension bill was passed in the Senate this week. It will increase the contribution rate by 2%, define what 100% funded means, ensure no enhancements are made without proper contribution rate increases and limit the spiking of benefits, which unfortunately, some recipients are doing. We found that with the now passed language, 8% of last year’s class of retirees were spiking benefits at the expense of the others in the system. We will continue to look at problems within the system to ensure that retirees get what was promised, but not more through unethical or illegal spiking.

Saturday, February 25th, at 9 a.m., I will be at a forum hosted by the Farm Bureau at their office in New Hampton. Following that, I will join Representative Gipp for another forum at the Fireman Inn in Ridgeway at 10:30 a.m. If you have would like an update on legislation or have concerns to share, please join us on the 25th.

For further information or clarification, please contact me at the Capitol (515) 281-3371 or at my home (563) 864-3104