"It's a jubilant day for American agriculture, a clean environment, our rural-based economy and Iowa taxpayers," said Grassley. "Iowa motorists, truckers, tourists, and workers will see their fair share of gas tax dollars hard at work for them over the next six years. This money will provide a big boost to Iowa's infrastructure that is so essential to economic development," said Grassley.
Grassley said clean-burning ethanol provides the third largest market for corn producers, creates 200,000 jobs ? including 42,000 in Iowa, increases net farm income by $4.5 billion, generates $1.7 billion in economic activity in Iowa every year, and as a renewable fuel reduces America's growing dependence on foreign oil.
As a senior member of the Senate Finance Committee, Grassley steered his bipartisan amendment through Congress that extends ethanol's tax credit to 2007. Grassley twice won overwhelming support from the Senate and successfully built a strong bicameral coalition to gain approval for the ethanol program in the 21st century. Leading the fight every step of the way, Grassley worked with the White House, the Senate and House leadership ? including the key support of Speaker Newt Gingrich, farm state lawmakers, Midwestern governors and the grassroots to secure a seven-year extension of the ethanol program.
According to Grassley, the federal funding formula under the new law greatly improves Iowa's share of the highway trust fund. Currently, the Iowa Department of Transportation (IDOT) receives an annual average of $220 million in federal formula funds for highways. Under the six-year Transportation Equity Act for the 21st Century, Iowa will receive $314.6 million each year through 2003 to meet its infrastructure and highway safety needs.