Ethanol dispute shows power of regional interests in narrow GOP majority

A recent disagreement over ethanol exemplifies the power of regional issues to potentially change — or even threaten to derail — Republican bills, given the party’s small House majority.

GOP leaders last week apparently bowed to pressure from corn-state Republicans to maintain biofuel tax credits extended by the Democrats to keep their support for the party’s proposal to raise the debt limit. 

It wasn’t the first time a small group of GOP lawmakers exerted an outsized influence in this Congress, and likely won’t be the last. 

“I think we can expect a lot more of this. When majorities are small, I think small coalitions within that majority can throw their weight around, and a lot more effectively,” said Sasha Mackler, the executive director of the energy program at the Bipartisan Policy Center.

Members of the Republican caucus from the Midwest, where corn that’s used to make ethanol is grown, expressed concerns last week about provisions in the debt limit bill that would eliminate biofuel tax credits that were extended in the Democrats’ Inflation Reduction Act (IRA). The provisions were removed from the bill in an apparent deal with the lawmakers.

Party leaders initially proposed to repeal the tax credits alongside others in the IRA that aim to boost climate-friendly energy sources.

House Majority Whip Tom Emmer (R-Minn.) said in a written statement to The Hill that the changes came after members raised concerns about the provisions. 

“This was nothing more than members communicating their legitimate concerns to us and Speaker McCarthy making technical corrections to address those concerns,” Emmer said. 

Small numbers of Republican lawmakers have gotten their way in other high-profile negotiations in this Congress as well. The most notable example came before members were sworn in, when a group of largely hard-right Republicans demanded concessions in exchange for voting Kevin McCarthy (R-Calif.) as House Speaker.

Regional energy interests also played a role in shaping the Republicans’ energy package, touted as the party’s top priority.

During negotiations over the legislation in March, Florida Republicans raised concerns about issues including offshore drilling and offshore wind. They expressed worry that such energy projects could affect tourism at the state’s beaches, which are a major contributor to Florida’s economy. Rep. Matt Gaetz (R-Fla.) also said they could interfere with operations at a military testing area.

Ultimately, the bill was amended to require studies on the sufficiency of the environmental review process for offshore wind and its potential effects on military readiness, the environment and tourism.

The episodes show small groups of lawmakers coming together over regional or other special interests to protest legislation could pose an ongoing issue for Republicans.

“In a lot of instances, and this is particularly true in energy, regional interests can be as important or more important as party interests or principled interests,” Mackler said. 

Emmer described regional differences as natural and said Republicans would work to ensure various voices are heard.

“It would be naive to assume that a member from New York shares the same concerns as a member from Arizona, and those differing views should be considered before any bill comes to the House floor,” he said. 

“Kevin McCarthy and this Republican majority respect each other and communicate with each other, and that’s why we have been and will continue to be successful,” he added. 

Not every policy disagreement will necessarily result in change. 

Reps. Nancy Mace (R-S.C.) and Jen Kiggans (R-Va.) raised concerns about provisions to eliminate renewable energy tax credits in the debt limit bill as well, highlighting the importance of manufacturing jobs in their districts related to renewable energy.

But unlike in the case of the biofuel tax credits, the lawmakers’ concerns did not prompt changes to the proposal. Both of them ultimately voted for the bill even though it still included the provisions they objected to.

In a floor speech, Kiggans said “I do not support the repeal of these clean energy tax credits,” but added the bill “gets us to the negotiating table.”

She asked for “assurance that I will be able to address these concerns as we move forward in these negotiations.”

What influence potential defectors have over legislation may be limited to Republican bills that are primarily intended to send messages to voters, rather than legislation that stands a good chance of passing — at least for now.

Any bill that would garner the support from the Senate and the White House required for it to become law would probably also have to be bipartisan in the House, meaning small groups of Republicans would be less crucial to its passage.

“Because Democrats control the Senate and the White House, the prospects for significant legislative progress in this Congress are low—and to the extent that Republicans do have things that they can accomplish, they will require bipartisan support,” said Molly Reynolds, a senior fellow at Brookings, in an email. 

“As a result, many of the ‘keep the conference happy’ type measures are likely to be messaging bills,” Reynolds said.