[Congressional Record Volume 148, Number 133 (Thursday, October 10, 2002)]
[Senate]
[Pages S10377-S10378]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. BAUCUS (for himself and Mr. Crapo):
  S. 3097. A bill to amend the Internal Revenue Code of 1986 to provide 
a nonrefundable credit for holders of qualified highway bonds; to the 
Committee on Finance.
  Mr. BAUCUS. Mr. President, I rise today to introduce the MEGA 
INNOVATE ACT. Maximum Economic Growth for America through Innovative 
Financing.
  MEGA Innovate is part of a series of bi-partisan bills that Senator 
Crapo

[[Page S10378]]

and I have introduced that serve as our proposals for TEA 21 
Reauthorization.
  I was privileged to have been an author of TEA 21, and I look forward 
to working with my fellow Finance Committee members, EPW Committee 
members, as well as members on other Committees, as we craft the next 
highway bill under the leadership of Senator Jeffords.
  The Finance Committee has held hearings that examined how to provide 
funding for our highway system. We heard about projections for Trust 
Fund income over the next 10 years.
  As successful as standard financing has been, our transportation 
needs far outweigh our resources.
  The MEAGA INNOVATE ACT is about increasing financing to the Highway 
Trust Fund without raising taxes. I am looking at additional means of 
financing to supplement the Highway Trust Fund in order to meet our 
Nation's transportation needs.
  In recent years there has been increased recognition, throughout the 
country, of the important contribution that a strong highway program 
makes to our nation's economic prosperity and quality of life.
  In Montana it is our economy's ``golden egg'' so to speak.
  As we prepare to reauthorize the highway program next year, a 
fundamental question for the Congress is how to increase the level of 
investment, for the benefit of all citizens and all States.
  Earlier this year Senator Crapo and I introduced bi-partisan 
legislation with 12 co-sponsors, S. 2678--the MEGA TRUST Act, Maximum 
Economic Growth for America through the Highway Trust Fund. This bill 
laid out some ways to increase investment in the highway program 
without raising taxes.
  That legislation would allow the Highway Trust Fund to be properly 
credited with taxes either paid or foregone with respect to gasohol 
consumption.
  It would also reinstate the principle that the highway and mass 
transit accounts of the Highway Trust Fund should be credited with 
interest on their respective balances.
  Those are important reforms that I believe we must enact as soon as 
possible. But we must continue to work to find additional ways to 
enable a stronger level of highway investment, because that investment 
is so important and beneficial to the country.
  Today I am introducing the MEGA INNOVATE Act--Maximum Economic Growth 
for America Through Innovative Financing.
  Under this legislation the Secretary of the Treasury would sell Tax 
Credit Bonds with the proceeds being placed in the Highway Account of 
the Highway Trust Fund. The Treasury would be responsible for the 
principal and interest.
  The bond proceeds will enable the basic highway program to grow and 
would help the citizens of every state.
  Administration of this initiative will be simple. No new structures 
are required. This is a new idea that does not raise taxes, but would 
advance our national interest in a strong highway program.
  As this is a new idea for highways, the bill introduces this concept 
at a very modest level, in the range of $3 billion annually in bond 
sales.
  However, when combined with the provisions of the MEGA TRUST Act, and 
the continuation of current sources of revenue, this legislation should 
enable the highway program to achieve an obligation level of 
approximately $41 to 42 billion by fiscal year 2009.
  Many other officials and organizations have shown interest in both 
MEGA TRUST and MEGA INNOVATE, such as the State DOTs of Montana, Idaho, 
North and South Dakota and Wyoming. Highway Advocate groups, such as 
the Highway Users Alliance have also shown support for both bills.
  I very much appreciate the support of these groups, as well as the 
support of others for these two important initiatives.
  A well-funded highway program is certainly essential to the economic 
future of my State of Montana and to other States.
  So, I look forward to working with my colleagues on the MEGA INNOVATE 
ACT, on the MEGA TRUST ACT, and all my other MEGA bills. I also look 
forward to looking at other ways to help our citizens benefit from 
increased levels of highway investment.
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