WASHINGTON, D.C. - The Midwest Congressional delegation called on the Office of Management and Budget (OMB) this week to provide in Fiscal Year 2012 the highest possible level of funding for the Lewis & Clark Regional Water System, an under-construction water system that will serve rural communities in Iowa, Minnesota, and South Dakota. The budget for the 2011 Fiscal Year (FY10) allotted only $2 million for the project, a level that will not allow it to award new construction contracts and will not cover the cost of inflation.

"If the project were to remain at the enacted FY10 funding level, Lewis & Clark estimates the system would not be completed until 2048. That is simply too long for our citizens to wait for something as simple as clean water," the letter reads. "OMB must lead the way in making sure that this project is a priority, otherwise the investment already made by taxpayers and state and local partners will be in jeopardy."

When completed, the Lewis & Clark Regional Water System will provide treated water to 300,000 people in its member municipalities and rural water systems in Iowa, Minnesota, and South Dakota.

The full text of the letter is below.

Dear Director Lew:

As you make your final decisions about funding levels in the Administration's FY2012 budget, we write to urge you to provide the highest possible level of funding for the Lewis & Clark Regional Water System.

We are grateful that your staff took the time to meet with members of the Iowa, South Dakota, and Minnesota delegations in September.  As we relayed to your staff, this is a critical juncture for the Lewis & Clark Rural Water project.  If the project were to remain at the enacted FY10 funding level, Lewis & Clark estimates the system would not be completed until 2048 (please see enclosed chart). That is simply too long for our citizens to wait for something as simple as clean water.

The federal government's commitment and contributions are vital to its success.  Previous appropriations and the $56.5 million the project received through the 2009 Recovery Act have helped make up two of the four years the project was behind schedule and will ensure completion of the system's water treatment plant.  However, a project of this scope and complexity requires consistent annual appropriations and advance planning.  The project sponsors have assured our offices and the Bureau of Reclamation (BOR) that they can responsibly obligate significantly more than $35 million in FY2011.  We fully appreciate the balancing of priorities that must be considered while putting together the Administration's budget, and accordingly, ask that you recognize this as a priority and include the highest amount of funding possible for Lewis & Clark in the upcoming FY2012 budget.

We were disappointed that the Administration's budget recommendation for Fiscal Year 2011 included only $2 million, a level that will not allow the project to award any new construction contracts and does not even come close to covering the cost of inflation.  It is also frustrating that the Office of Management and Budget (OMB) recommended such a low amount and continues to use the American Recovery and Reinvestment Act (ARRA) as a justification for not funding the project at pre-stimulus levels.  

This project, as required by the authorization, is a cost-share project.  OMB must lead the way in making sure that this project is a priority, otherwise the investment already made by the taxpayers and state and local partners will be in jeopardy.  

In recognition of the significant impact of this project, the local members and the three states involved have pre-paid millions of dollars to make this project a reality.  In fact, the states and 20 local communities and rural water systems - including those in Minnesota and Iowa - have already committed 99.6 percent of their share requirement totaling $109 million. Please note that the people of Iowa and Minnesota have received no water despite having paid in full their shares of $7 million and $5.4 million, respectively.

As well as spurring economic development in the three-state region, the project is critical to ensure residents in the tri-state area have adequate, clean drinking water.  When completed, Lewis & Clark will deliver high-quality and dependable drinking water through its members to more than 300,000 tri-state area residents covering a service area the size of Connecticut.   

In addition to requesting the highest possible level of funding, we ask that you share with us the steps being discussed to ensure the appropriate and responsible prioritization of Bureau of Reclamation projects across the country.  Since construction on the Lewis and Clark project has been underway since 2003, we believe it should remain a top priority and be completed before new Bureau of Reclamation projects are initiated.  It makes sense to complete the project and make sure our investment is well managed.  We also ask that you provide us with a list of new starts projects recommended by OMB and by the House and Senate Appropriations Committees for Fiscal Year 2011.  We would like this information no later than January 1, 2011.

We appreciate your consideration of this request.   Please do not hesitate to contact us if you have any questions about the Lewis and Clark Regional Water System project.

Sincerely,

U.S. Senator Tom Harkin (IA)
U.S. Senator Amy Klobuchar (MN)
U.S. Senator Chuck Grassley (IA)
U.S. Senator Tim Johnson (SD)
U.S. Senator John Thune (SD)
U.S. Senator Al Franken (MN)
U.S. Representative Steve King (IA)
U.S. Representative Stephanie Herseth Sandlin (SD)
U.S. Representative Tim Walz (MN)

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Holiday Party

Music by Susan Hanford and Craig Clough.

At

The Moline Commercial Club

513 16th Street. Moline Il 61265

Wine, beverages and light refreshments are hosted. Cash bar is available at 6:30 pm.

The Independent Scholars' Evenings are sponsored by The Institute for Cultural and Healing Traditions, Ltd.

A 501(c)3 organization at state and federal levels incorporated in 1996

www.qcinstitute.org

Grassley is Key to Securing Inclusion of Biodiesel, Ethanol Tax Credits in Tax Agreement

WASHINGTON - Prevailing in the view that ethanol and biodiesel offer the most effective alternative to foreign oil and support hundreds of thousands of jobs in the United States, Sen. Chuck Grassley today said the tax agreement negotiated between congressional leaders and the White House contains an extension of the ethanol and biodiesel tax credits and an extension of the ethanol tariff at current rates.  The Senate and House next will need to vote on the tax agreement to advance the provisions.

"Ethanol has proven its value as a homegrown, renewable fuel and, in light of the hundreds of billions of dollars shipped abroad as a result of foreign oil dependence, ethanol is a relative bargain," Grassley said.  "Biodiesel also builds energy independence.   Our country spends more than $730 million a day on imported petroleum.  Letting these items lapse would be a textbook case of penny-wise, pound-foolish legislating."

Grassley fought tooth and nail to secure the inclusion of the ethanol and biodiesel provisions in the tax legislation agreement negotiated by the White House and congressional leaders, facing efforts by some congressional majority Democrats and the White House to undermine biofuels production. He also marshaled like-minded senators to voice support for continuing these economy-boosting provisions.

Under the tax agreement, the ethanol tax credit - known as the volumetric ethanol excise tax credit, or VEETC, also known as the blenders' credit - will continue at its current level of 45 cents through Dec. 31, 2011.  The tariff on imported ethanol will continue at its current level of 54 cents.   "The United States already provides generous duty-free access to ethanol from Brazil and other countries imported under the Caribbean Basin Initiative, but the CBI cap has never once been fulfilled.  In fact, in 2009, only 25 percent of it was even used by Brazil and other countries, and for this year, the figure is projected to be less than 1 percent," Grassley said.

The current congressional majority allowed the blenders' tax credit for biodiesel to expire at the end of 2009, causing the loss of nearly 23,000 jobs.  The tax agreement would extend the biodiesel credit retroactively to cover all of 2010 and through the end of 2011.

"It's tragic to lose nearly 23,000 jobs in this economy," Grassley said.  "We can't risk a repeat performance with ethanol, where 112,000 jobs are at stake.  Getting these tax provisions extended will boost jobs and investment in the alternative energy sector, exactly when the economy needs a real shot in the arm."

Grassley has worked at every opportunity to extend the biodiesel and ethanol tax credits.  He and Sen. Maria Cantwell filed a biodiesel bill in August 2009, and he's pushed for action ever since, including making unanimous consent requests this summer, which were objected to by Democratic leaders.  He also filed a biodiesel tax credit amendment to the small business lending bill.   Grassley and Sen. Kent Conrad introduced a bill in April to extend the ethanol tax incentives, and Grassley has pushed to keep these green-energy job-creating incentives at the forefront.

Grassley has a long record of building support for alternative energy sources.  He worked to dramatically expand the wind energy tax credit that he first authored in 1992.  Also included in the 2005 energy tax incentives package were major Grassley-written extensions and expansions for biodiesel, biomass, ethanol and solar energy.   Grassley also took on and derailed a deceptive smear campaign launched by Washington lobbyists against ethanol that threatened to hinder the ethanol industry.

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