Jennifer Jacobs

jejacobs@dmreg.com

Democratic U.S. Senate candidate Bruce Braley's campaign aides said today that they have calculated that eliminating all energy incentives and tax credits would increase energy costs for Iowans by $1,200 a year.

"Tens of thousands of Iowa jobs could be threatened, and business investments in Iowa could be reduced by billions of dollars," Braley aides said in a campaign statement, which they called a "report."

The Braley aides note that their GOP rival, Joni Ernst, said in June that she'd like to end all taxpayer subsidies across the board in every sector.

Here's some pointers on the issue:

WHY IT MATTERS: Braley and Ernst are neck-and-neck in a battle for Iowa's first open U.S. Senate seat in decades. The seat will be open when Democratic U.S. Sen. Tom Harkin retires in early January. The Iowa race, once thought to be a likely Democratic win, is now one of the most competitive races in the nation. Control of the powerful chamber could hinge on this race.

WHAT'S THIS DEBATE ALL ABOUT? It's a philosophical a tug-of-war. Some think the government spends too much money and believe it's best to have a free-market economy where buyers and sellers interact without government intervention through regulations and subsidies. Others have no objection to government subsidies for the coal, oil or other energy industries.

WHAT BRALEY SAYS: "America has used federal energy incentives for a century, and we're better off for it," the Braley campaign's statement today says.

The Braley statement today doesn't mention government subsidies for coal or oil, but says subsidies are good for Iowa's wind and renewable fuels industry. The tax breaks reduce costs for Iowans and entice more domestic production and prevent pollution, Braley aides said.

WHAT ERNST SAYS: Ernst wants to work in bipartisan fashion to end subsidies but has always supported the renewable fuel standard, her aides say. The renewable fuel standard helps ensure a minimum amount of ethanol and biodiesel is blended into the U.S. fuel supply. The U.S. Environmental Protection Agency has proposed scaling back the amount.

Ernst campaign spokeswoman Gretchen Hamel said Braley voted to raise energy prices "when he put his radical environmentalist allies ahead of Iowans. Braley voted for cap-and-trade legislation that would cost Iowa tens of thousands of jobs, and cost every Iowan over $1,000."

Hamel added: "Given that Congressman Bruce Braley owned up to $120,000 in oil and energy stocks, why would Iowans ever trust him on this issue?" Braley's personal finance disclosure report cities ownership of various stocks.

QUOTE: "I was shocked to hear that a state senator from Iowa would actually propose ending all of our nation's investments in renewable energy and biofuels," said Democratic U.S. Senator Debbie Stabenow of Michigan, who talked to reporters via a Braley campaign conference call this morning.

"If Senator Ernst enacted her agenda, it would be great news for billionaires like the Koch brothers, but it would be a disaster for Iowa farmers and Iowa families," said Stabenow, who chairs the U.S. Senate committee on agriculture.

Ernst also favors ending subsidies to Big Oil, which aid industrialists such as the Kochs, Kansas-based brothers who own an energy and chemical conglomerate.