Pressure is building to move beyond gas taxes and EV fees

The way we currently fund our transportation system is falling short in many ways. MIT researchers anticipate electric vehicles will account for 50% of the national fleet in 15 years and 80% by 2050, which means gas tax revenues will decline by around 30% in just 14 years. Their new study, Replacing the Gas Tax, offers a useful lens for evaluating the alternatives. 

Gas taxes are unpopular and insufficient, here are some alternatives

From flailing transit systems to inadequate maintenance, states throughout the country are struggling to adequately fund their transportation infrastructure. Making the problem more difficult is the fact that one of their primary funding mechanisms, the gas tax, is failing to cover added costs. Due to projected revenue decline from increased fuel efficiency and EVs, the political aversion to raising the tax, and looming fiscal cliffs, some state legislatures are beginning to consider how to supplement gas tax revenue to sustainably  fund their transportations systems.

Continued fare-free transit will require new funding streams

Fare-free transit has made headlines recently as more agencies propose bold plans to cut costs for riders. The latest ambitious proposal comes from Washington, D.C., which will eliminate fares on all bus rides in the city starting July 1 while also expanding 24-hour service. This is especially beneficial for low-income riders, although transit advocates often worry that eliminating fare revenues could force agencies to cut service or prevent them from making necessary improvements. These concerns raise important questions. How are these programs being paid for, and what are the prospects that they will be sustainable? 

New study finds households with constrained parking drive fewer miles

More studies over the years have shown us that the price and availability of parking has a strong influence on people’s travel choices. A ten-year-old study from New York, for instance, called attention to the influence of parking availability on people’s decision to drive to work. Several years later, I led a study connecting long-term parking growth to citywide increases in car commuting. Now a new study by a cohort of researchers across North America, including myself, makes that connection even clearer by drawing a direct line from residential parking ratios to household VMT.

If the future of cars is electric, what does that mean for transportation funding?

The adoption of electric vehicles is growing in the United States, with all-electric vehicle sales increasing by 85% from 2020 to 2021 and plug-in hybrid sales rising 138%. This is a welcome trend for many, but the increased popularity of EVs combined with better fuel efficiency, and a gas tax that hasn’t been raised in thirty years, is posing a major challenge to policy makers; how to make up for lost gas tax revenue, which currently pays for 29% of state highway funds and 84% at the federal level.

Planning congestion pricing to avoid burdening the vulnerable

Congestion pricing seeks to better manage the capacity of urban highways by shifting some travel away from peak periods in order to improve traffic flow. For drivers who are low-income, have no alternative but to drive at peak times, and would be financially burdened by paying tolls, this has the potential to be regressive and inequitable. However, a new report from the Institute of Transportation Studies at UCLA suggests that the establishment of congestion pricing affords an opportunity to design the system from the ground up in an equitable way. The authors state that, “Congestion pricing can be introduced with a mechanism in place to protect the most vulnerable drivers.”

Reforming fees and fines could help chip away at transportation inequities

A recent report by the Chicago Metropolitan Agency for Planning (CMAP) highlights transportation inequities in the greater Chicago area. Big-picture findings support the region’s comprehensive plan, but the near-term recommendations focus on changes in transportation-related fees, fines, and fares—a small but important share of overall transportation costs.

Micromobility in Cities, A History and Policy Overview (National League of Cities, 2019)

Bike sharing—both docked and undocked, manual and electric-assist—plus kick and electric scooters have become commonplace in cities across the U.S. But best practices are still emerging, and cities are often not sure if these new micromobility devices will bring positive or negative consequences to their transportation system and neighborhoods. The National League of Cities has provided a history of the rise of micromobility, a guide for what cities should think about as they move forward with regulation and policy, and finally case studies from across the country.

How and Where Should I Ride This Thing? “Rules Of The Road” for Personal Transportation Devices (Mineta Transportation Institute, 2019)

The Mineta Transportation Institute surveyed various levels of government—cities, states, and college campuses— as well as conducted personal interviews with stakeholders, to detail how jurisdictions are regulating electric and kick scooters, skateboards, e-skateboards, hoverboards, Segways, and rollerblades. They then recommended model state laws to bring some standardization to the use of these personal transportation devices.