State Legislature Sets Aside $225 Million For County Roads

Tanker Truck on the Highway

In what looks to be a start to fixing local roads in South Texas, the state legislature has set aside $225 million in what was deemed a "Transportation Infrastructure Fund".

The Texas Department of Transportation (TXDot) will administer a grant program that will distribute the funds. The beneficiaries will be counties in West and South Texas who have been affected by high volumes of oilfield traffic.

Senator Carlos Uresti stated "It’s never been done before where the state appropriates money for county roads.”

The program will last for two years and the money will be used to fix county roads. Counties will also be able to set up "County Transportation Reinvestment Zones" that will allow local districts to raise property taxes and sales taxes to help fund road repairs.

TXDoT money typically funds repairs of highways and farm to market roads. This will be the first time state money has been used to repair county roads. Local counties will have to cover 10-20% of the cost of repairs.

Ethanol Tax Credit at Risk by Senate

The ethanol tax credit so long maligned by many free market proponents is finally coming under the gun from politicians. Ethanol producers of course don't like it... but liquids producers in the Eagle Ford Shale play should be happy at the support this will add to crude oil and liquids pricing.

"Three senators reached a deal on Thursday to repeal the $6 billion per year ethanol tax credit by the end of July, an agreement that must still be passed by Congress.""The loss of the subsidy could add extra costs for ethanol blenders such as Valero Energy Corp and Marathon Oil Corp, but it is unlikely to reduce demand for corn."

" 'This agreement is the best chance to repeal the ethanol subsidy, and it's the best chance to achieve real deficit reduction,' said Senator Dianne Feinstein from California, who made the deal with senators John Thune from South Dakota, and Amy Klobuchar from Minnesota."

"The deal would reduce the federal deficit this year by $1.33 billion and direct $668 million to extend tax breaks for technologies to help alternative motor fuels including biofuels get to market, Feinstein said."

Read the full news release at reuters.com