October 10,2004

Grassley Floor Statement on More Highway Money for States Under Ethanol Tax Restructuring

Delivered before the cloture vote.

Statement of Chairman Grassley
JOBS ACT -- CONFERENCE AGREEMENT, VEETC AND FUEL FRAUD STATEMENT
Sunday, October 10, 2004

For this entire year, I have been on the Floor of the Senate to tell you all the reasons why this is a“must pass” bill. I have talked about trade and tariffs. I have talked about manufacturing and jobs.But now I want to talk about $24 billion dollars.

That’s right, $24 billion that may be gone forever if we do not pass this bill.

This bill raises $24 billion to fund the Highway Trust Fund. I understand that is the biggest singleincrease in the Highway Trust Fund in over 6 years.

And where does $24 billion come from, not with new taxes. No, instead we overhaul an outdatedexcise tax system to address our Nation’s increased use of renewable fuels. In addition, we crackdown on big time Fuel Fraud, to make sure the bad guys are not robbing our states of their muchneeded highway money.

But the ONLY way we can get all of that money, is to pass this bill now. That is the only way wecan get $24 billion into the Trust Fund. The only way.

You have to put the money in the Trust Fund today to build all those roads you want tomorrow. Andyou cannot start collecting any new money until you change the rules. And all the Senators who arefilibustering this bill are costing every state new Highway dollars.

Let me put this in perspective, my home state of Iowa, under this bill could get an additional $900million over 6 years - but only if we pass this bill this year. If my fellow Iowan, Senator Harkin votesno on this bill, he is costing the State of Iowa $900 million dollars. Even if we just postpone the rulechanges until the Highway bill, Iowa will still lose $140 million, forever. We can never get it back.

How many roads can Iowa build with $900 million, how many bridges could we repair with $900million. I do not know why any Senator would jeopardize the safety of every citizen in his State byfailing to fund the Highway trust.

Let’s talk about the other Senators who do not want to put the money in the bank today, so we canbuild the roads tomorrow.

Now do not get me wrong -- every Senator has their right to vote as they please, but every State alsohas the right to know what that vote will cost their Highway bill.

Let’s take California. They could be big winners in the VEETC and Fuel Fraud reform. Theestimated increase in California’s highway revenue is over $2 billion, that’s right, $2 billion newhighway dollars. But the only way to get the full benefit of the estimate is to pass this bill now. Butno - your California Senators do not want to put the money in the bank today. What do you thinkthey will build roads with tomorrow?

Illinois is going to be a big loser if Senator Durbin holds firm to his statement to vote no on clotureand no on this bill. And I want the Illinois Department of Transportation to know exactly what theywill lose with Senator Durbin’s NO vote. How about close to $3 billion. Too bad Illinois -- heretoday, gone tomorrow, because your Senator does not want to put the money in the bank today tobuild roads tomorrow.

Now I certainly hope no one comes whining to me as Chairman of the Finance Committee that wedon’t have enough money to fund the Highway bill. Especially when you have it here today, handedto you on a silver platter - You know, for $24 billion dollars, let me make that “handed to you on agolden platter”.

But no -- we have a group of Senators on the Floor who are bound and determined to deny everystate Department of Transportation $24 billion. Call these people, let them know what you reallythink.

Let me make this perfectly clear -- we may never get the opportunity to put this package of highwayfunding together again - vote no today and every road, bridge and highway construction project ischeated. Vote no today and every highway job, not only next year, but until 2010 will be in jeopardyof running short of money. And I do not know if we can ever get this kind of funding package putback together again.

If you want a highway bill, then you have to put the money in the trust today to start buildingtomorrow. I urge every Senator who wants to fund the Highway bill to vote YES on cloture.