Legislation Seeks to Address Ethanol's Impact
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 Montana Senator Max Baucus |
Montana Senator Max Baucus, Chairman of the Senate Finance Committee, has introduced legislation that would redirect 2.5 cents of the tax currently collected on the sale of ethanol-blended gasoline for deficit reduction to the Highway Trust Fund. The Highway Trust Fund Recovery Act, S. 1306, is pending before the Committee.
"I expect the use of ethanol-based fuels to continue to increase as we continue to search for energy alternatives," Senator Baucus said. "We need to explore every avenue to make sure our highways have enough funding to be maintained and enhanced. The Highway Trust Fund Recovery Act is a creative way to provide additional funding." In the House, Representative Rob Portman of Ohio has introduced companion legislation, H.R. 2808.
The legislation is supported by the ethanol industry and farm and highway organizations. "Ensuring necessary and affordable energy supplies, including ethanol-blended motor fuels and other initiatives, is important to the quality of life and the economic prosperity of all Americans. Policies to achieve these objectives, however, should not come at the expense of transportation infrastructure improvements, which also have wide-ranging societal benefits," these groups wrote in a recent letter to the Senate.
"The Highway Trust Fund Recovery Act would provide an additional $400
million for state highway safety improvement programs without impacting
gasohol sales. Since this action would not become effective until fiscal
year 2004, it would not impact the current budget or apportionment of
federal highway funds among the states," the letter states.
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