NEBRASKA SPOTLIGHT
Ethanol: Nebraska's Seed Corn
Gov. Heineman pledges to make his state the
No. 1 producer of alternative fuel. |
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In the past 12 months, alternative fuel companies have announced four new ethanol manufacturing plants in Nebraska, each exceeding $50 million in capital investment. By the time construction of these facilities concludes, Nebraska will be the No. 1 producer of ethanol in the United States. Nebraska Gov. Dave Heineman wouldn't have it any other way. "We have more ethanol plants under construction in our state than in any other state in the nation," he said. "We will go from the No. 3 producer of ethanol to the No. 1 producer by the end of this year." The investment tally is considerable. Advanced Bioenergy LLC is spending $135 million to build a new ethanol plant in Fairmont; Demeter Enterprises is investing $125 million to establish a new ethanol facility in Albion; E Energy will commit $83 million toward an ethanol factory in Adams; and Wahoo Ethanol LLC will pay $50 million toward a new ethanol manufacturing plant in Wahoo. Heineman says it is all part of Nebraska's plan to diversify its economy beyond agriculture, logistics and raw materials and compete globally in the advanced manufacturing economy. The Republican governor recently took time to talk about this and other issues of importance to corporate site selectors in an interview with Site Selection. Site Selection: What do you feel are the three most critical challenges confronting Nebraska economic developers today? Gov. Heineman: In no particular order, I would say making sure we have a prepared work force and making sure they have the training they need for 21st century jobs. Second is the global competition. We are competing on a global basis. It is no longer just a domestic economy. Our state recognizes that. The third part is trying to leverage innovation to allow us to move forward. SS: What has your administration done to make Nebraska an even more competitive location for business? Gov. Heineman: The Nebraska Advantage Act (LB 775) last year was the most comprehensive jobs creation and economic development incentive legislation that had been passed since the 1980s. It provided opportunities for both urban and rural Nebraska and for both large and small businesses. It went into full effect on Jan. 1, 2006. Already, we have had 48 companies investing $2.6 billion and creating 5,600 jobs applying for this benefit. Because of global competition, you can no longer pass an incentive package that is good for 10 years without an adjustment. We have to continue to adjust in order to be competitive. The second issue is regulatory reform. We are trying to streamline our permitting process. We are bringing in our customers and asking them how we should streamline our processes and make them more efficient. I want to make us a more business- friendly state. We are not here to create additional obstacles. Another project is Bio Nebraska. Nebraska has some definite advantages in life sciences, in both human health and animal health. This effort is private sector driven. Novartis, for example, is doing a big expansion project in a rural county just outside of Lincoln. Finally, our Logistics Council is a public- private partnership that focuses on Interstate 80 and the ability to locate logistics centers here and easily reach both coasts of the country. We are seeing opportunities coming our way from major American companies. SS: How involved do you get personally in recruitment of new industry to Nebraska? Gov. Heineman: I suspect I am more involved than most governors in the country. I have very good relationships with virtually every chamber of commerce in the state. I know most of the major business leaders personally. If you want me to call some CEO to persuade them to bring their company to Nebraska, give me their name and number and I will call them. As governor, I can provide a personal touch. I recently sat down over lunch with a company that was considering coming to Nebraska. The Nebraska Advantage program was very, very persuasive. I've gone to Cuba twice now and secured in total a $60- million trade agreement. That is by far the highest level of trade with Cuba of any state. I worked at Procter & Gamble, so I know about marketing. But it still comes down to people and how bad you want the business. I ask them, "What does it take to sign on the bottom line and get the deal done right here this afternoon?" SS: If you could convey one message to corporate real estate decision- makers at major industrial companies, what would it be? Gov. Heineman: I would convey to them that we have a highly productive work force in this state and a low- cost structure that they could operate in. SS: What public policy changes need to be made to make Nebraska even more business- friendly? Gov. Heineman: It all involves taxes. I have been governor for 18 months and I have already lowered taxes and I will continue to lower taxes. In order to compete on a global basis, you have to have the most competitive tax structure possible. In a broad sense, we are talking about rates across the table. The most important taxes are income tax rates. Low tax rates are the most critical. SS: How would you evaluate your state's quality of life? Gov. Heineman: I believe Nebraska is a great place to live, work and raise a family because of the uniqueness of our state. The quality of life here is extraordinary. We have a new $100- million performing arts center, the College World Series and a great business climate that has attracted PayPal and Ameritrade. Also, the second wealthiest person in the country (Warren Buffett) lives here. And Nebraska is a right- to- work state. We are making progress, we need to be ever vigilant, and I will be out there on the leading edge. – Ron Starner
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