TED CRUZ coma-1mm:
TEXAS ARMED SERVICES

COMMERCE
JUDICIAHY

Hnittd 5tattg $En?tt RULES AND ADMINESTRATION

JOINT ECONOMIC COMMITTEE

November 14, 2017

The Honorable Kim Reynolds
Of?ce of the Governor of Iowa
1007 East Grand Avenue

Des Moines, Iowa, 50319

Dear Governor Reynolds,

Congratulations on recently becoming Iowa?s 43? Governor. I have great respect and affection
for the amazing people of Iowa. Traveling throughout all 99 counties in the state over the last
few years, I had the opportunity to learn ?rsthand what Iowans care about most. Listening to
corn farmers, school teachers, union workers, and small business owners from Sioux County to
Scott County, and everywhere in between, it was clear that they want to secure the opportunity to
succeed for all Americans Iowans and Texans alike.

Accordingly, I write to respond to your recent public comments regarding my position on US.
Department of Agriculture (USDA) nominee Bill Northey and to clarify the intent of my efforts
to ?nd a win-win solution to unleash an American energy renaissance that will revitalize the fuel
industry and help both Iowans and Texans thrive.

As you know, I, along with eight other senators representing states whose constituents depend on
a strong and robust re?ning industry, recently requested that President Trump convene a meeting
with us and our colleagues representing various Midwest states, to discuss elements of the
Renewable Fuel Standard (RPS). Our goal in requesting this meeting is simple: to bring together
diverse interests in an effort to come together and ?nd a mutually bene?cial outcome that will
help Iowa corn growers as well as protect blue-collar, re?nery jobs that are at risk in too
many states across our great nation. For example, a recent study found that if the most
endangered U.S. independent re?ners go out of business, an estimated 273,000 to 150,000 high-
paying and skilled American jobs are potentially at risk. That should be unacceptable for any of
us who care deeply about American workers.

One of the main issues in RFS policy that has recently come under particular scrutiny is
Renewable Identi?cation Numbers (RINs). As you know, re?ners must meet their annual
obligation under the RFS by submitting a set amount of credits, or RINs. Unfortunately, RIN
prices an arti?cial government~created construct continue to skyrocket and the result is
hurting re?ners and the men and women they employ all across the country. The real
bene?ciaries of unsustainably high RIN prices, however, are not corn farmers or reinvestment in
RFS infrastructure, but rather market speculators. Indeed, the data show that when RIN prices
are highest, corn prices are often lowest. Surely, we can agree that our nation?s RFS policy
should bene?t corn farmers and hardworking re?nery workers on Main Street, not fast-talking
bankers on Wall Street.

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And just like my colleagues from Iowa and elsewhere, I also must ful?ll my constitutional
responsibility to provide advice and consent to the President?s nominees. As you know, the RPS
is implemented by the Environmental Protection Agency (EPA), in close consultation with the
USDA and the Department of Energy. The USDA therefore plays a critical role in formulating
RFS policy. Accordingly, I have placed a hold on the nomination of Bill Northey to be the
Undersecretary of Agriculture for Farm Production and Conservation until and unless we secure
the aforementioned meeting where we can bring diverse interests together to try to find
meaningful short-term solutions while setting the stage for longer-term policy certainty. With
jurisdiction over the Farm Service Agency and the Commodity Credit Corporation, the
Undersecretary for Farm Production and Conservation will have a particularly important voice in
the promotion of renewable biofuels.

As you are aware, Your own home state senators similarly placed holds on multiple EPA
nominees (and threatened to do the same on all judicial nominees) when they were trying to exert
influence over the internal review of the RF just a couple of weeks ago. I greatly respect
Mr. Northey?s experience as a generation farmer and his good reputation and history of
service to Iowa, and hope that he will use his background and expertise to help the USDA do
great things for the nation?s farmers going forward.

Indeed, I believe that the only sensible path forward must provide wins for bo_th refinery workers
in Texas and and corn farmers in Iowa and Nebraska. We should find a solution
that allows corn farmers to sell much more com, but without costing thousands of blue-collar
union members theirjobs because of government?created RTN speculators. Both sides of this
debate must negotiate, in good faith, to find a mutually agreeable solution that secures the future
of liquid fuel production in America. I stand ready to work with you, my Senate colleagues from
Iowa and elsewhere, and anyone else, to find that common ground. Our constituents deserve and
should demand nothing less.

Sincerely,

Ted Cruz
US. Senator