Paul McKinley

Senate Majority Leader Paul McKinley, R-Chariton, followed through on his promise Friday and dropped out of the 2010 campaign for governor.

McKinley said last month that when former Gov. Terry Branstad made his candidacy official, he would withdraw. While Branstad has yet to formally enter the race, he’s hired staff and begun holding campaign events, making McKinley’s departure inevitable.

In a press statement, McKinley said he plans to devote attention to winning back a Republican majority in the Iowa Senate.

“The actions taken by the Culver administration and the Democrats in the Legislature during the last three years have made it abundantly clear that Iowa needs new leadership and a new direction,” McKinley said. “I am confident that next November, Iowans will elect a Republican governor and add many more Republicans to the Legislature. With Republicans leading the way in Iowa, our state will finally get serious about curbing our out-of-control spending and higher taxes brought forth by Governor Culver and legislative Democrats, we will finally get serious about making it easier to create good jobs and we will give our citizens a greater voice in their own government.”

McKinley’s departure leaves six men battling it out for the GOP nomination to take on Gov. Chet Culver — Branstad, state Sen. Jerry Behn, businessman Christian Fong, former state House Speaker Chris Rants, state Rep. Rod Roberts, and businessman Bob Vander Plaats.

File photo: Sen Charles Grassley. (Lauren Victoria Burke/wdcpix.com)

Grassley, and many farm-state lawmakers, fear legislation passed in the House earlier this year that calls for limits on carbon dioxide emissions through the buying and selling of carbon credits would force the Midwest to shoulder an unfair burden of the costs. He repeatedly said that in order to deal with climate change a global treaty is needed.

“A global approach makes more sense than unilateral action on climate legislation, but if unilateral climate legislation is taken up in Congress it should at least share the economic burden equitably across all states and regions of the country,” Grassley said. “It’s clear that this highly questionable policy must be changed for the sake of fairness and credibility with the legislation.”

The American Clean Energy and Security Act of 2009, commonly referred to as the Waxman-Markey bill, passed the U.S. House in June. It aims to reduce emissions by imposing a national limit, or cap, on greenhouse gases. It would then allow polluters to buy and sell their emissions credits. If a polluter emitted less than its allotment, it could sell the excess. Some fear the system benefits utilities operating on the east and west coasts that are less dependent on coal than their Midwest counterparts.

In a letter to the chairs of the Senate Environment and Public Works Committee, which plans to take up the legislation Tuesday, Grassley said U.S. action without an international agreement would have “little or no environmental benefit.”

He also criticized the cost of the legislation, calling it a “national energy tax.”

“The current provision that allocates a large portion of allowances to utilities regardless of a utility’s actual compliance obligation is in effect a transfer of wealth to the East and West coasts at the expense of other regions, like the Midwest, which will already be shouldering a larger share of the burden under the proposed system,” he said in his letter. “Surely you can recognize that this provision will be unacceptable to senators on both sides of the aisle that represent regions on the losing end of this highly questionable policy and it must be changed for the sake of fairness and credibility.”

A study of the plan by the Congressional Budget Office found that the cost of implementing a cap and trade system would vary depending on income. Low-income consumers could expect to save $40 a year, while high-income consumers will see a net cost for energy of $235 to $340 annually.

Here is a copy of Grassley’s letter:

The Honorable Barbara Boxer, Chairman The Honorable John Kerry, Chairman Committee on Environment and Public Works Committee on Foreign Relations 410 Dirksen Senate Office Building 446 Dirksen Senate Office Building Washington, DC 20510 Washington, DC 20510

Dear Senators Boxer and Kerry:

As you know, the global warming legislation moving forward in the Senate will have far reaching economic impacts for all Americans. I question the wisdom of any unilateral U.S. legislation outside of a fair and equitable international agreement given the acknowledgement by EPA Administrator Jackson and other experts that this would have little or no environmental benefit. However, if the Senate is to consider unilateral climate legislation, it should at least share the economic burden equitably across all states and regions of our country.

According to testimony from the Congressional Budget Office before the Senate Finance Committee, “a cap-and-trade program would lead to higher prices for energy and energy-intensive goods” and “Under a cap-and-trade program, consumers would ultimately bear most of the costs of emission reductions.” In order to try to alleviate the burden of increased energy costs on American families in the first years of such a program, current proposals involve a system of free allocation of emission allowances for the electricity sector.

These free allowances are intended to offset a portion of the increased energy costs caused by the requirement to purchase allowances. (CBO has also made clear in response to my written questions that, “The value of the allowances created under a cap and trade program would be large, but would inevitably fall short of the total economic effects of the policy—which would include the cost of allowances themselves as well as the losses associated with the reduction in output associated with transitioning to a less carbon-intensive economy.”) However, the current formula in the House-passed Waxman-Markey bill and the recently released Boxer-Kerry bill allocates only half of the free allowances based on a particular utility’s requirement to purchase emissions allowances and the other half based on retail sales of electricity. In other words, free allowances will be given for electricity generated by means that entail no requirement for emissions allowances and therefore no increased costs.

It is important for Members of Congress to recognize that since a cap-and-trade system inevitably involves increased costs for American consumers, it is in effect a national energy tax and emissions allowances represent a portion, but not all of the cost of this tax to the American people. Therefore, most, if not all, of the revenue generated by this tax in the form of emissions allowances should be given back to the American people in proportion to what they were forced to pay in the first place.

The current provision that allocates a large portion of allowances to utilities regardless of a utility’s actual compliance obligation is in effect a transfer of wealth to the East and West coasts at the expense of other regions, like the Midwest, which will already be shouldering a larger share of the burden under the proposed system. Surely you can recognize that this provision will be unacceptable to senators on both sides of the aisle that represent regions on the losing end of this highly questionable policy and it must be changed for the sake of fairness and credibility.

Sincerely,

Charles E. Grassley United States Senator

The Senate Minority Leader will reportedly begin “aggressively exploring” a bid for governor today, and he will file paperwork to form a campaign committee soon:

“During my travels, I’ve been actively encouraged to run for governor,” said McKinley. “I’m going to take some more time to tell Iowans my story and my vision.”

When asked if he had yet reached the $750 threshold that would trigger the required paperwork to form an exploratory committee, McKinley told The Bean Walker, “We will make the necessary changes wihin the next day or two.”

Updates:

According to Radio Iowa’s O. Kay Henderson:

Today I am announcing that I will begin aggressively exploring a run for governor,” McKinley just told me over the phone. “During my travels as senate leader around the state… I’ve been actively encouraged to run for governor and now I’m going to start devoting more time to telling Iowans my story and my vision and my vision is we must prepare our state for the global economy and give Iowans back their government and I believe my background is best suited to make the necessary changes.”

State Sen. Paul McKinley (R-Chariton)

McKinley gave nearly identical interviews to The Des Moines Register’s Tom Beaumont, The Ottumwa Courier, Lee Newspaper’s Charlotte Ebby, and the Associated Press.

Rumors of McKinley’s interest in a gubernatorial bid have been circulating for months in political circles. Last month, conservative blogger Craig Robinson and controversial radio host Steve Deace included McKinley in their unscientific straw poll of potential 2010 candidates.

McKinley is serving his first term as minority leader. He was first elected to the state senate in 2000. If he jumps into the race, he would join Bob Vander Plaats, Christopher Rants, Christian Fong and Rob Roberts in what is becoming a crowded GOP field.

Jason Hancock contributed to this story.

The Department of Defense announced Saturday that Army Staff Sgt. Miller died from wounds he received during enemy small-arms fire during combat operations for Operation Enduring Freedom in Barikowt, Afghanistan. Miller, a Special Forces weapons sergeant, was assigned to Company A, 3rd Battalion, 3rd Special Forces Group (Airborne) based out of Fort Bragg, N.C.

Miller, a native of Harrisburg, Pa., enrolled in the U of I because of his interest in the gymnastics program. “He hoped to be on the gymnastics team,” his mother, Maureen Miller, told The Daily Iowan. Miller’s mother also said that her son had been interested in the military.

Although Miller never made it on the Iowa gymnastics team, he was an active member of the gymnastics program. After his freshman year, however, he enlisted in the Army in 2003. Upon graduating from the Special Forces Qualification Course in 2005, Miller earned his Green Beret status.Miller deployed for service in 2006. During his deployment, he was awarded the Army Commendation Medal with Valor and was promoted to the rank of staff sergeant. His other awards and decorations include the Army Good Conduct Medal, Afghanistan Campaign Medal, Global War on Terrorism Service Medal, two Noncommissioned Officer Professional Development Ribbons, NATO Medal, Parachutist Badge, Ranger Tab and Special Forces Tab.

Miller is survived by his parents, Philip and Maureen Miller; brothers Thomas, Martin, and Edward; and sisters Joanna, Mary, Therese, and Patricia, all of Oviedo, Fla.

Miller is the 64th person with ties to Iowa to die from injuries in Iraq or Afghanistan since March 2003.

Five of the Democratic candidates took the stage in the fairground barn, including (in order of appearance) Rep. Dennis Kucinich of Ohio, former North Carolina Sen. John Edwards, New Mexico Gov. Bill Richardson, Sens. Chris Dodd of Connecticut and Hillary Clinton of New York. Academy Award winning actor Forest Whitaker spoke on behalf of Sen. Barack Obama of Illinois, and Delaware Attorney General Beau Biden spoke on behalf of his father, Sen. Joe Biden of Deleware, who was in New Hampshire delivering the keynote address at the Coos County Democrats Harry S. Truman Dinner.