A.  Every semester and during two summer sessions I offer Iowa college students and new graduates opportunities to work as interns in my Iowa and Washington, D.C., Senate offices.  Interns assist permanent staff members with constituent services and administrative, legislative and communications work, including work related to my responsibilities as Ranking Member of the Senate Committee on the Judiciary.

Q.  Who should apply?

A.  Right now, I'm encouraging applications from new college graduates who are interested in learning more about American government and gaining valuable work experience.  It's especially important to me to encourage greater understanding and involvement in the process of representative government, so the internships are available to young Iowans in all areas of study, not just to those with political science majors.  Spending a semester working in a congressional office, during college or after college, is a good way both to learn a lot about the legislative branch of the federal government and to develop workplace skills.

Q.  How do students apply?

A.  My office is accepting applications for the fall 2011 session, which runs from late August to mid-December.  Applications are available online at http://grassley.senate.gov/info/internships.cfm.  Forms are also available from my offices in Cedar Rapids, Council Bluffs, Davenport, Des Moines, Sioux City and Waterloo.  Completed applications are due Friday, July 8.  They should be emailed to intern_applications@grassley.senate.gov or faxed to 202-224-5136.

June 28, 2011

Tax Predictability Sought to Encourage Expansion of Clean Energy Alternative, Sustain and Create Jobs

WASHINGTON, D.C. - U.S. Senators Chuck Grassley of Iowa and Maria Cantwell of Washington today introduced legislation to simplify and extend the tax incentive for domestic biodiesel production.  Their bipartisan bill would provide predictability to investors and producers so the United States can continue moving forward to displace imported fossil fuels with low carbon, renewable biodiesel.

In putting forward the Biodiesel Tax Incentive Reform and Extension Act of 2011, S.1277, Grassley and Cantwell said that the lack of certainty about the tax policy inhibits access to capital and could undermine the progress that the U.S. biodiesel industry has made to build the production capacity and infrastructure needed to displace imported petroleum diesel fuel with domestically produced, renewable, low-carbon biodiesel.

"Today's high gas and diesel prices are slowing our economic recovery and burdening families," said Cantwell. "For economic reasons, national security reasons, and environmental reasons, we must continue to invest in America's clean energy economy. Biodiesel is America's first advanced biofuel, it can be made from a variety of feedstocks, and is less polluting than today's petroleum-based diesel fuel.  This bipartisan bill is smart federal policy because it is helping launch a nascent, domestically-based industry, reforms an existing credit to make sure it supports American biodiesel producers, and provides the industry the certainty it needs to continue to grow."

"America is trying to kick its addiction to foreign oil, and biodiesel is part of the cure," said Grassley.  "The more we can encourage domestic production and meet demand, the better off we'll be economically, environmentally, and geopolitically.  This legislation simplifies the tax credit for producers.  It also gives investors predictability so they'll be more likely to put their money into biodiesel production.  And it's directly tied to jobs."  

The biodiesel tax incentive was first enacted in 2004.  Since then, it has helped encourage the production and use of biodiesel.  Production in the United States has increased from 25 million gallons in 2004 to 690 million gallons in 2009, before Congress allowed the tax credit to lapse at the end of 2009, which resulted in job loss throughout 2010.  The credit was restored retroactively in December 2010 through December 2011.

A study by Cardno ENTRIX, an international consulting firm that specializes in environment and natural resources economics, estimates that this year, domestic biodiesel production is expected to support more than 31,000 jobs and replace 800 million gallons of imported diesel fuel.  The same study estimates that with the appropriate federal framework, by 2015 biodiesel production will replace 1.9 billion gallons of imported diesel fuel, support more than 74,000 jobs, and generate $4 billion in income and approximately $7.3 billion in gross domestic product.  The study also found that if Congress does not enact the Cantwell-Grassley Biodiesel Tax Incentive Reform and Extension Act of 2011 and the biodiesel tax credit is allowed to expire at the end of 2011, consumers would be forced to spend an additional $6.6 billion for diesel fuel between 2012 and 2015.

Specifically, the Cantwell-Grassley measure would:

• eliminate potential abuses and simplify administration of the incentive for both taxpayers and the Internal Revenue Service.  The bill changes the incentive from a blender credit to a production tax credit so that incentives are given for building the domestic production industry.   The change would focus the benefits of the credit on the production capacity of these cleaner, greener fuels rather than on the activity of just blending them with petroleum diesel. By focusing on the production of the 100 percent bio-based fuel, this bill will shut down, once and for all, any remaining opportunity for the abuse known as "splash and dash," in which oil companies add a few drops of biodiesel to their petroleum diesel just to qualify for the tax credit. 

• provide the $1 per gallon tax credit for the production of biodiesel, renewable diesel and aviation jet fuel that complies with fuel standards and Clean Air Act requirements that define qualified fuels under current law.

• increase the credit from $1 to $1.10 for the first 15 million gallons of biodiesel produced for small producers, those with an annual production capacity of less than 60 million gallons

• simplify the definition of "biodiesel" to encourage production from any biomass-based feedstock or recycled oils and fats.

• simplify the coordination between the income tax credit and the excise tax liability to tighten compliance and reduce administrative burdens on taxpayers.

• extend this tax credit for five years, giving needed financial predictability so that more facilities can be brought online in the United States.

-30-

Prepared Statement of Senator Chuck Grassley of Iowa
Senate Agriculture Committee
Farm Bill Accountability:  The Importance of Measuring Performance,
While Eliminating Duplication and Waste
Thursday, June 23, 2011

Madam Chairwoman, the focus of today's hearing is timely as we consider what policies to set in the next farm bill.  We have to make sure farm bill programs are being implemented the way we intended. 

And if they are not being properly administered, then we need to fix the problems.  I want to thank the undersecretaries and assistant secretary for coming today.  I am eager to hear their testimony on a variety of issues.

I know many farmers are probably eager to hear the department's comments regarding crop insurance.  Most farmers tell me crop insurance is crucial to their operations. 

But as we know, the crop insurance program has had a reduction in funds.  So it's more important than ever that we hear what the department is doing to minimize waste, fraud, and abuse in the crop insurance program.  We have to make sure those dollars go to those who really need it.

I am also eager to hear from the department about what they are doing to ensure individuals applying for farm program payments are truly actively engaged in farming.

I will note I also made the same request to the past two chairs of the Agriculture Committee as well. 

While I'm glad Mr. Leonard is here today, I still believe the civil rights and discrimination issues facing the department are a big enough concern that this committee needs to take up the issue in a separate hearing. 

I do hope you will consider conducting a separate hearing on civil rights and discrimination issues at the Department of Agriculture in the near future.

Specifically, I would like you to speak on what the department is doing to address complaints made by employees.   I continue to hear from Agriculture Department employees that they have to wait a long time to have their complaints heard and processed. 

I am not passing judgment on the validity of any employee's particular claim.  My concern is that their claims be considered in a timely and appropriate manner, because that is what they deserve.

I hope the department will provide us with some idea of how it is making sure that happens.

Thank you Madam Chairwoman.

Finance Leaders Begin Investigation Into Medtronic Infuse Trials 

"These reports that doctors conducting medical trials while on Medtronic's payroll may have hidden serious side effects for patients are deeply troubling," said Senate Finance Committee Chairman Baucus.  "Information is one of the most important tools patients and doctors have when making medical decisions.  Patients have a right to know the risks associated with their treatments, and medical device companies have a duty to disclose this information.  We need to do everything we can to ensure companies aren't concealing serious medical complications from patients just to increase profits."

"A patient having surgery has to rely on his doctor's knowing the risks and benefits of a medical device.  The doctor in turn has to rely on the medical literature.  If the medical literature has been written by those with financial ties to the device maker, the doctor and his patient should know that.  A lack of transparency leaves doctors and patients in the dark on something any of us would want to know before surgery.  It's alarming to learn after the fact that articles draw conflicting conclusions about a device's safety and complications.  The lack of disclosure of payments raises questions about the integrity of the conclusions reached, whether integrity was compromised or not," said senior committee member Grassley.

The full text of Baucus's and Grassley's letter to Medtronic appears below:

June 21, 2011

Omar Ishrak, Ph.D.

Chairman and Chief Executive Officer

Medtronic, Inc.

710 Medtronic Parkway

Minneapolis, MN 55432

Dear Dr. Ishrak:

The United States Senate Committee on Finance (Committee) has jurisdiction over the Medicare and Medicaid programs.  As Chairman and a senior member of the Committee, we have a special responsibility to the more than 100 million Americans who receive health care under those programs to ensure that beneficiaries receive treatments that are safe and effective.

We are extremely troubled by press reports suggesting that doctors conducting clinical trials examining the safety and effectiveness of Infuse on behalf of Medtronic were aware that Infuse, a treatment commonly used in spinal surgery, may cause medical complications, but failed to report this in the medical literature.  This issue is compounded by the fact that some clinical investigators have substantial financial ties to Medtronic. 

• Last year, the Milwaukee Journal Sentinel reported that a Medtronic-funded study published in 2004 found that 75% of bone morphogenetic protein 2 (BMP-2) patients experienced ectopic bone growth, where potentially harmful bone growth occurs outside of the fusion area.  The authors, who had financial ties to Medtronic, "concluded that 'although not desirable,'" the ectopic bone growth "did not appear to have an ill effect on the patients." However, in a separate 2008 study conducted by physicians without financial ties to Medtronic, "neurological impairment occurred" in five patients who had the same ectopic bone formation.[1]

• According to the New York Times, a recent study "found that men treated with Infuse developed a condition that causes temporary or permanent sterility at a far higher rate than men who received a bone graft."  This link to sterility was not reported in the original Medtronic-funded study.[2] In addition, the Milwaukee Sentinel Journal reports that one author of the original study, Thomas A. Zdeblick, an orthopedic surgeon at the University of Wisconsin School of Medicine and Public Health, received "more than $23 million in various royalty payments from Medtronic since 2002."  In addition, "Zdeblick also is the editor of the journal where two of the Infuse papers that failed to mention the link [to sterility] were published."[3

We are also concerned that other severe side-effects of Infuse and similar bone-growth products developed by Medtronic may have been unreported or under-reported in clinical literature.  Reports have linked Infuse to potentially fatal swelling in the neck and throat, and radiating leg pain.  Concerns have also been expressed about a potential link to cancer.[4

Given these concerns, please provide the Committee with the following documents:

1.       All documents and communications pertaining to adverse postoperative events and/or medical complications relating to the use of recombinant human bone morphogenetic protein 2 (rhBMP-2) treatments, including but not limited to:

a.       All communications with and regarding medical journals or their representatives pertaining to adverse postoperative events and/or medical complications relating to the use of recombinant human bone morphogenetic protein 2 (rhBMP-2) treatments.

b.      All communications with and regarding clinical investigators who participated in Medtronic sponsored clinical trials pertaining to adverse postoperative events and/or medical complications relating to the use of rhBMP-2 treatments.

c.       All communications with and regarding the Food and Drug Administration (FDA) pertaining to adverse postoperative events and/or medical complications relating to the use of rhBMP-2 treatments. 

d.      All communications and records between and among Medtronic and members of FDA Advisory Boards pertaining to adverse postoperative events and/or medical complications relating to the use of rhBMP-2 treatments. 

e.      All communications and records between and among Medtronic and physician consultants pertaining to adverse postoperative events and/or medical complications relating to the use of rhBMP-2 treatments. 

2.      A detailed account of payments that Medtronic made to all Infuse clinical investigators.  Please include payments to corporate entities in which Medtronic-sponsored Infuse clinical investigators are principals. 

3.       For each individual and organization identified in question number 2 above, please provide the following information for each payment in table format:  

a. Date of payment

b. Payment description (CME, royalty, honorarium, research support, etc.)

d. Year end or year-to-date payment total

In cooperating with the Committee's review, no documents, records, data, or other information related to these matters, either directly or indirectly, shall be destroyed, modified, removed, or otherwise made inaccessible to the Committee.

We look forward to hearing from you by no later than July 11, 2011. All documents responsive to this request should be sent electronically, on a disc, in searchable PDF format to [staff] and [staff].

If you have any questions, please do not hesitate to contact [staff] with Senator Baucus at (202) 224-4515 or [staff] with Senator Grassley at (202) 224-6522.

Sincerely,

Charles E. Grassley                       Max Baucus

¹ "Complications rise along with off-label use of BMP-2," Journal Sentinel, August 28, 2010.

2 "New Study Links Spine Product From Medtronic to Risk of Sterility in Men," New York Times, May 25, 2011. 

3 "Researchers get royalties, papers omit sterility link," Journal Sentinel, May 25, 2011.

4 "Complications rise along with off-label use of BMP-2," supra note 1.

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