Thank you. I deeply appreciate your courtesy in permitting me to speak, and I appreciate your leadership in focusing on the need to rebuild and renew this country, putting Americans back to work, being able to not just revitalize our…
Thank you. I deeply appreciate your courtesy in permitting me to speak, and I appreciate your leadership in focusing on the need to rebuild and renew this country, putting Americans back to work, being able to not just revitalize our economy, but our neighborhoods and strengthen our families. It is true that there are some areas where there are some great opportunities for healthy competition. The gentleman may be referencing the fact that recently we have started manufacturing a streetcar in the United States for the first time in 58 years, and it's being manufactured in Portland, Oregon. But I would note that that project, manufacturing streetcars, includes the work of subcontractors across the country, including 40 in the Midwest that had been so hard hit by some of the decline in manufacturing activity.
The point is that being able to make goods in this country, whether it's light rail, streetcar, heavy rail, whether we're dealing with fabricating steel for bridges and roads or rebuilding the power grid, these are all areas that are a tremendous source of family-wage jobs. I find no amount of irony that one of the major Republican candidates for President somehow thought that President Obama was being--and I'm using his direct word--``elitist'' by advocating that young people have the chance for a college education or going to a community college. My goodness, how out of touch can you possibly be? I don't know any American that doesn't want his or her child to be able to have the opportunity for further education and training. This is part of an agenda here. I look forward to the conversations this evening.
At one point, I'd like to cycle back to the spectacle we had on the floor of the House the week before we recessed for Presidents Day where we had the most partisan transportation bill in the history of the House--narrow in focus, small in vision, dividing the various elements of transportation--that was so bad that our Republican friends were embarrassed to even have a hearing on it. Never before in the history of the House have we had a major surface transportation reauthorization that never even had a hearing.
Well, mercifully, our Republican friends have decided that that wasn't getting them anywhere. The outcry from transit agencies across the country, from cyclists, even from the people who advocate safe routes to school, the program designed for our children to be able to get back and forth to school
safely that they eliminated--so they've put that on the back burner. But the point is, you are right. We've enjoyed, if I can use that term, their Republican leadership of the House for 14 months. We have no economic development plan, we have no transportation bill, and we continue to have an opportunity to rebuild and renew America languishing.
Well, I appreciate the invitation.
You know, today, as we speak, the people in Michigan are voting in a Presidential primary to help determine the Republican nominee. I just mentioned one of them. My friend and former colleague here, Rick Santorum, with whom I served in the House, is the person who thinks it's elitist that American families have an opportunity for their kids to go to school. The other major contender, the gentleman who is likely to even win the ballot in Michigan today, more Republican votes, has been quoted as saying one of his top targets, if he's elected President, would be to eliminate Amtrak.
Yesterday he was on the trail. This is one of his top five projects.
Mr. Romney wants to eliminate the funding for Amtrak. This is one of his targets.
Well, the United States is--in the past, I have actually been brought up short when I've talked about the United States having a third world rail passenger system, because I've ridden railroads in places like Malaysia or Thailand, and we do an injustice to their rail systems.
The United States is the only major country in the world that does not have higher-speed rail passenger service. It is the only major country that has no plan to move forward. The President, to his credit, put forth $14 billion to be able to strengthen our rail passenger system, some of which, several billion would have helped with a California vision; the California voters have approved an opportunity to go forward.
It is frustrating for me because there is no doubt that Americans will have higher-speed rail over the course of the next quarter century, no doubt. But the question is, coming back to the point that you have so relentlessly and eloquently developed on the floor here, Congressman Garamendi, is the notion of: Where will America's rail system come from? Because the path we're on, if we follow it with Romney, who would zero it out, with Republicans who have fought these investments every chance they get, the high-speed rail we'll have will be built and operated by the Chinese. They will design it; they will build it. The value will be added in another country, and we'll pay for the privilege.
The alternative is to invest here in the United States in the tracks, the signals, the equipment, to be able to revitalize a vital system of transportation, taking pressure off of airports and roads. But, as I say, the choice is whether or not we're going to build it, we're going to own it, and it will accrue to the benefit of the American public.
One of your points about the impact, that one piece of the bridge project, the $400 million element of steel, it wasn't just the steel itself. Had we been developing that portion of the steel for the project in the United States, there would have been thousands of other jobs that would have been related to it to support that effort, in terms of the manufacturing, the development, the people who provide the equipment to manufacture the steel and put it in place, and the tools. It is a dramatic ripple effect.
You referenced 150,000 miles of road in critical need of repair. What's under the surface is even in worse shape. We
have, in the United States, every day 6 billion gallons of water that leaks from water mains that are old, in some cases unsafe and unhealthy. That's the equivalent of 9,000 Olympic-size swimming pools. Lined end to end, it would go from Washington, D.C., to Pittsburgh, Pennsylvania.
It's a lot of water that's wasted.
It is a problem in terms of undermining roads. We've all seen these terrible pictures of sinkholes that develop. I used to keep them and use them for presentations. I stopped when one of the sinkholes was actually in my old neighborhood of Portland, Oregon, that opened up in the middle of the street and swallowed a maintenance truck. This is serious business.
The American Society of Civil Engineers, every 5 years, does a report card on the state of American infrastructure. Their most recent report card showed that we have $2.3 trillion unmet need, and the grades ranged from C-minus to an F in terms of water, the electrical grid, transit, roads and bridges. This is serious business in terms of American quality of life. And think about the hundreds of thousands of family-wage jobs if we were investing in rebuilding and renewing America.
I know you appear to have a little statistic here.
That's a very important point. The Society of American Civil Engineers has produced another fascinating report about what the cost will be if we don't invest in the water infrastructure. They have documented tens of billions of dollars of extra cost if we do not take care of these problems. It is not a problem that is unknown to American homeowners, who quickly find out if you don't fix the hole in the roof, you end up with massive structural damage.
The damage that you mentioned earlier in terms of the roads that are in need of critical repair, the cost to the American motorists in terms of the damage to car suspension systems and tires, that wear and tear wears out cars more rapidly. Delays in traffic for something like UPS--a 5-minute delay I think translates to something like $100 million of costs to them over the course of a year. This $1.57 of economic impact for every dollar invested translates into over 25,000 jobs for each billion dollars that is spent on infrastructure. A far greater rate of return than on military spending, on a lot of the other things--tax cuts, for Heaven's sake. This is real economic benefit, particularly when we've got a building trade sector where unions are looking at 20, 30, 40 percent or more unemployment. These are opportunities to put people to work tomorrow on things that people in America need today.
The gentleman is absolutely correct. There are lots of ways of going about this.
Ronald Reagan in 1982 understood that the gas tax, a user fee, could be used to help the country, which at that point was in a serious economic recession. Ronald Reagan signed into law a nickel-a-gallon increase in the gas tax that helped spur economic development activity.
If you don't want to raise a tax, there are unnecessary tax benefits that are flowing, for instance, to the largest oil companies that no longer need these tax breaks. In fact, George Bush the younger was famously quoted as saying when oil prices got to $50 a barrel that oil companies didn't need incentives to drill for the most profitable commodity on the face of the planet. Where we've watched it go to $100 a barrel or more, we could completely capitalize the infrastructure bank the gentleman talked about just by unnecessary tax benefits to oil companies, which the majority of the American public would approve in a heartbeat. There are also the expiring tax provisions on the wealthiest of Americans where just half of that would enable us to fully fund the transportation gap over the next 10 years.
I have bipartisan legislation that would deal with a water trust fund that would leverage close to a trillion dollars because of what the gentleman said--that there are other funds flowing for infrastructure like that, a trillion dollars of development over the next 20 years. There are opportunities here for us to step up and meet the needs of America and to rebuild and renew it.
Well, it is one of the very real problems we are facing in terms of building it in America. We are in the process of constructing a wind energy in the United States. It's been remarkably successful over the course of the last 20 years.
We've watched the price per kilowatt-hour produced by wind drop dramatically. At the same time, we are watching these wind turbine farms--you have them in California. We have them in the Pacific Northwest. They're in the Midwest. They're in Texas. They are providing revenue to rural America. Farmers and ranchers are being able to harvest the wind, literally.
At the same time, this is low carbon. This is not adding to our greenhouse gas effect. It's not something that is being exported overseas, giving money to people who don't like us very much.
At the same time, it is building this infrastructure: people who are now manufacturing wind turbines in the United States; people who are putting up, fabricating these towers; people dealing with the transmission capacity.
But I will say that one of the things this Congress should do is to extend the production tax credit. We've talked about benefits that flow to the oil industry long past time that they were necessary to provide incentives for them to develop oil resources, but we have provided a little bit of an incentive to help get the wind energy business competitive.
Well, that production tax credit expires at the end of the year. Already, we are watching investment patterns start to pull back because people are uncertain that they can go ahead with large-scale projects, investing tens of millions of dollars not certain that they will continue to have this tax benefit. That's outrageous.
Of the $4 trillion of tax provisions that are going to expire at the end of the year, the opportunity for us to actually have deficit savings by recalibrating some of those--at a minimum, we ought to step up, and we ought to step up now, to be clear that the production tax credit is, in fact, going to continue so we don't shut down the wind energy industry, we don't lose the manufacturing and the construction, to say nothing of clean, renewable energy. That would be a tragedy.
We have bipartisan legislation I've introduced with my friend from Seattle, Congressman Reichert. We have a number of very distinguished cosponsors, including yourself. This is something that shouldn't be languishing. There's a bipartisan interest in making sure that the wind energy industry doesn't shut down and that we continue making it in America.