The Washington Times headline said a lot: “Jeb Bush: Federal wind tax credit should be renewed for short period of time.” But there’s more to the story if you read between the lines Seth McLaughlin wrote.
Of course, I noticed this because I’ve written quite a bit about wind energy and its advocates the American Wind Energy Association of late. Fortunately, the weather has finally moderated so I’m not writing in the midst of a cold snap as I’d often done when writing about the AWEA and their single-minded approach to promoting wind energy with the federal Wind Production Tax Credit as a sweetener incentive.
In this instance, though, you need to know the situation: Jeb and others were speaking before the Iowa Agricultural Summit, which as the Times notes is “hosted by Bruce L. Rastetter, a major GOP donor.” And it can be argued that Iowa is to wind power what Texas, North Dakota, or Alaska are to oil: according to the AWEA, in 2013 Iowa ranked first in the nation in the amount of its electricity produced by wind power at 27.4%. It also has the third-most installed capacity in the country behind Texas and California, which are far larger states in both population and geography.
So you might get the idea that telling Rastetter and others that the Wind Production Tax Credit should be renewed is a way to meet with their approval, even though Jeb conceded it should only be a three- to five-year extension because wind is “now competitive.” Wait a minute – if it’s “now competitive” why is the tax incentive needed again?
Naturally, the bad news on energy didn’t stop there. Iowa is also ground zero for the Corn Belt, which means anyone who competes in that state either supports ethanol subsidies or risks the wrath of farmers who don’t care whether their crop goes in your gas tank or your stomach as long as the price stays profitable. And Jeb had good news for them too, noting, “So at some point we will see a reduction of the RFS need because ethanol will be such a valuable part of the energy feedstock for our country. Whether that is in 2022 or sometime in the future, I don’t know.”
Ethanol will be a valuable part of our energy feedstock? We are now the world’s top producer of oil and natural gas, and those who set ethanol policy based on a belief that we were past the point of “peak oil” have been thoroughly discredited. It’s a horrible case of pandering when the news to Rastetter and others should have been that it’s time for farmers to adjust to a post-ethanol world as that failed experiment of making food into fuel is coming to a close.
Fortunately, it’s possible to win the presidency without winning Iowa. But it’s a state with outsized importance in the electoral sweepstakes thanks to its early caucuses, so we have to pay attention to what they want. (To illustrate this point: if Maryland were first, people would be tripping all over themselves to make grandiose promises to clean up Chesapeake Bay whether they benefitted – or bankrupted – the rest of the country or not.)
For all the Left’s wailing about the Bushes being in the pocket of Big Oil, they certainly haven’t done any favors to our energy situation. Father George H.W. Bush increased the gas tax by a nickel a gallon (a healthy 56% increase) to balance the budget back in 1990 – breaking his “read my lips” vow – while George W. Bush signed the bill that put the Renewable Fuel Standard in place in 2005 and expanded it in 2007. It looks to me like Jeb is cut from the same cloth.