Tuesday, May 31, 2011

Pawlenty's opposition to energy subsidies may signal change of attitude in Iowa on ethanol

For decades, presidential candidates have come to Iowa, home of the first presidential voting and thousands of corn growers, and endorsed federal subsidies for ethanol. That appears to be changing "with overall federal spending and deficits becoming such a major issue," reports Don Gonyea of National Public Radio.

The main sign came from former Gov. Tim Pawlenty of adjoining Minnesota, who announced his Republican candidacy in Iowa last week and said "We need to phase out subsidies across all sources of energy and all industries, including ethanol." That put him at odds with former Massachusetts Gov. Mitt Romney and former House Speaker Newt Gingrich, but in line with Arizona Sen. John McCain, who campaigned little in Iowa in 2008 but still won the nomination.

Pawlenty "believes times have changed enough to allow him to oppose ethanol subsidies," Gonyea reports. "Des Moines Register political columnist Kathie Obradovich says he may be right." Obradovich told him, "Tim Pawlenty is coming in at a time when the ethanol industry is mature — and some people think it may be oversaturated." The key, she said, is that ethanol be treated no differently than similar subsidies. (Read more)

UPDATE, June 6: Politico reports many GOP candidates still favor the subsidy.

At the same time, Republicans in Iowa are wondering whether their caucuses are losing relevance in the nominating process, report Karen Tumulty and Philip Rucker of The Washington Post, asking: "When the rest of the country is focusing on the economy, will Republicans in other states take their lead from the outcome of an eccentric process that has been dominated by social conservatives? And as the GOP looks to defeat an African American president who mobilized record numbers of young and minority voters four years ago, how relevant are the preferences of 200,000 or so caucusgoers in a rural state that is overwhelmingly white and significantly older than average?" (Read more)

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