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Submitted URL: https://info.conference-board.org/MjI1LVdCWi0wMjUAAAGOas-5jtN44UeRJj9N0tnfxMqdz38zisFf-cnpb3dsiC6t-JTkXh3m10TZwgpWvmlMIFHKeAw=
Effective URL: https://www.conference-board.org/publications/EV-adoption-could-exacerbate-transportation-infrastructure-funding-shortfall?mkt_to...
Submission: On September 25 via api from US — Scanned from DE
Effective URL: https://www.conference-board.org/publications/EV-adoption-could-exacerbate-transportation-infrastructure-funding-shortfall?mkt_to...
Submission: On September 25 via api from US — Scanned from DE
Form analysis 7 forms found in the DOM
<form class="gsc-search-box gsc-search-box-tools" accept-charset="utf-8">
<table cellspacing="0" cellpadding="0" role="presentation" class="gsc-search-box">
<tbody>
<tr>
<td class="gsc-input">
<div class="gsc-input-box" id="gsc-iw-id1">
<table cellspacing="0" cellpadding="0" role="presentation" id="gs_id50" class="gstl_50 gsc-input" style="width: 100%; padding: 0px;">
<tbody>
<tr>
<td id="gs_tti50" class="gsib_a"><input autocomplete="off" type="text" size="10" class="gsc-input" name="search" title="search" aria-label="search" id="gsc-i-id1" dir="ltr" spellcheck="false"
style="width: 100%; padding: 0px; border: none; margin: 0px; height: auto; background: url("https://www.google.com/cse/static/images/1x/en/branding.png") left center no-repeat rgb(255, 255, 255); outline: none;"></td>
<td class="gsib_b">
<div class="gsst_b" id="gs_st50" dir="ltr">
<a class="gsst_a" href="javascript:void(0)" title="Clear search box" role="button" data-feathr-click-track="true" data-feathr-link-aids="["5c93db898e0fad126815e024"]" style="display: none;"><span class="gscb_a" id="gs_cb50" aria-hidden="true">×</span></a>
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</tr>
</tbody>
</table>
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<td class="gsc-search-button"><button class="gsc-search-button gsc-search-button-v2"><svg width="13" height="13" viewBox="0 0 13 13">
<title>search</title>
<path
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<td class="gsc-clear-button">
<div class="gsc-clear-button" title="clear results"> </div>
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</form><form class="gsc-search-box gsc-search-box-tools" accept-charset="utf-8">
<table cellspacing="0" cellpadding="0" role="presentation" class="gsc-search-box">
<tbody>
<tr>
<td class="gsc-input">
<div class="gsc-input-box" id="gsc-iw-id2">
<table cellspacing="0" cellpadding="0" role="presentation" id="gs_id51" class="gstl_51 gsc-input" style="width: 100%; padding: 0px;">
<tbody>
<tr>
<td id="gs_tti51" class="gsib_a"><input autocomplete="off" type="text" size="10" class="gsc-input" name="search" title="search" aria-label="search" id="gsc-i-id2" dir="ltr" spellcheck="false"
style="width: 100%; padding: 0px; border: none; margin: 0px; height: auto; background: url("https://www.google.com/cse/static/images/1x/en/branding.png") left center no-repeat rgb(255, 255, 255); outline: none;"></td>
<td class="gsib_b">
<div class="gsst_b" id="gs_st51" dir="ltr">
<a class="gsst_a" href="javascript:void(0)" title="Clear search box" role="button" data-feathr-click-track="true" data-feathr-link-aids="["5c93db898e0fad126815e024"]" style="display: none;"><span class="gscb_a" id="gs_cb51" aria-hidden="true">×</span></a>
</div>
</td>
</tr>
</tbody>
</table>
</div>
</td>
<td class="gsc-search-button"><button class="gsc-search-button gsc-search-button-v2"><svg width="13" height="13" viewBox="0 0 13 13">
<title>search</title>
<path
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</svg></button></td>
<td class="gsc-clear-button">
<div class="gsc-clear-button" title="clear results"> </div>
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</tr>
</tbody>
</table>
</form>Name: sign — POST /signin/signincontroller.cfm
<form name="sign" action="/signin/signincontroller.cfm" method="post" class="form-horizontal sign bv-form" role="form" novalidate="novalidate"><button type="submit" class="bv-hidden-submit" style="display: none; width: 0px; height: 0px;"></button>
<div id="loginInput Login">
<div class="form-group required has-feedback">
<div class="col-lg-12 ">
<label for="email">Email</label>
<input type="text" class="form-control" placeholder="Enter Business Email Address" name="username" id="username" value="" data-bv-field="username"><i class="form-control-feedback" data-bv-icon-for="username" style="display: none;"></i>
<small class="help-block" data-bv-validator="callback" data-bv-for="username" data-bv-result="NOT_VALIDATED" style="display: none;">The username should be valid and cannot be empty</small>
</div>
</div>
<div class="form-group required has-feedback">
<div class="col-lg-12">
<label for="email">Password</label>
<input type="password" class="form-control" placeholder="Enter Password" name="password" id="password" value="" data-bv-field="password"><i class="form-control-feedback" data-bv-icon-for="password" style="display: none;"></i>
<small class="help-block" data-bv-validator="notEmpty" data-bv-for="password" data-bv-result="NOT_VALIDATED" style="display: none;">The password is required and cannot be empty</small>
</div>
</div>
</div>
<div class="memberCheck">
<a href="/membership/check-membership/" data-feathr-click-track="true" data-feathr-link-aids="["5c93db898e0fad126815e024"]">Check if You're a Member</a>
</div>
<div class="caFp">
<a href="/signin/?action=signup" data-feathr-click-track="true" data-feathr-link-aids="["5c93db898e0fad126815e024"]"> Create Account
<img src="/assets/newLayout/images/banner-blue-arrow-right.png" height="15" alt="">
</a>
</div>
<div class="caFp">
<a href="/signin/forgotpassword.cfm?reflink=https://www.conference-board.org/publications/EV-adoption-could-exacerbate-transportation-infrastructure-funding-shortfall" data-feathr-click-track="true" data-feathr-link-aids="["5c93db898e0fad126815e024"]">Forgot Your Password?
<img src="/assets/newLayout/images/banner-blue-arrow-right.png" height="15" alt="">
</a>
</div>
<div class="">
<input type="hidden" id="pagePathInfo" name="pathInfo" value="https://www.conference-board.org/publications/EV-adoption-could-exacerbate-transportation-infrastructure-funding-shortfall">
<button type="submit" name="login_submit" class="btn btn-primary sigInB">Sign In</button>
</div>
<div class="clearfix"></div>
<div class="form-group Login">
<div class="col-lg-12 ">
<div class="checkbox keepSigin">
<label>
<input type="checkbox" name="remember" value="true" id="remember">
<p class="lheight16px">Keep My Computer Signed In</p>
</label>
</div>
</div>
</div>
</form>Name: contentHubForm — POST
<form id="contentHubForm" name="contentHubForm" action="" method="post">
<input type="hidden" id="contentHubPubId" name="contentHubPubId" value="">
</form>Name: confContentHubForm — POST
<form id="confContentHubForm" name="confContentHubForm" action="" method="post">
<input type="hidden" id="contentHubConfId" name="contentHubConfId" value="">
<input type="hidden" id="contentHubConfType" name="contentHubConfType" value="">
</form><form id="mktoForm_3670" novalidate="novalidate" class="mktoForm mktoHasWidth mktoLayoutLeft" style="font-family: inherit; font-size: 13px; color: rgb(51, 51, 51); width: 1048px;">
<style type="text/css"></style>
<div class="mktoFormRow">
<div class="mktoFieldDescriptor mktoFormCol" style="margin-bottom: 5px;">
<div class="mktoOffset" style="width: 5px;"></div>
<div class="mktoFieldWrap"><label for="FirstName" id="LblFirstName" class="mktoLabel mktoHasWidth" style="width: 5px;">
<div class="mktoAsterix">*</div>
</label>
<div class="mktoGutter mktoHasWidth" style="width: 5px;"></div><input id="FirstName" name="FirstName" placeholder="First Name" maxlength="255" aria-labelledby="LblFirstName InstructFirstName" type="text"
class="mktoField mktoTextField mktoHasWidth" style="width: 149px;"><span id="InstructFirstName" tabindex="-1" class="mktoInstruction"></span>
<div class="mktoClear"></div>
</div>
<div class="mktoClear"></div>
</div>
<div class="mktoFieldDescriptor mktoFormCol" style="margin-bottom: 5px;">
<div class="mktoOffset" style="width: 5px;"></div>
<div class="mktoFieldWrap"><label for="LastName" id="LblLastName" class="mktoLabel mktoHasWidth" style="width: 5px;">
<div class="mktoAsterix">*</div>
</label>
<div class="mktoGutter mktoHasWidth" style="width: 5px;"></div><input id="LastName" name="LastName" placeholder="Last Name" maxlength="255" aria-labelledby="LblLastName InstructLastName" type="text"
class="mktoField mktoTextField mktoHasWidth" style="width: 150px;"><span id="InstructLastName" tabindex="-1" class="mktoInstruction"></span>
<div class="mktoClear"></div>
</div>
<div class="mktoClear"></div>
</div>
<div class="mktoFieldDescriptor mktoFormCol" style="margin-bottom: 5px;">
<div class="mktoOffset" style="width: 5px;"></div>
<div class="mktoFieldWrap"><label for="Title" id="LblTitle" class="mktoLabel mktoHasWidth" style="width: 5px;">
<div class="mktoAsterix">*</div>
</label>
<div class="mktoGutter mktoHasWidth" style="width: 5px;"></div><input id="Title" name="Title" placeholder="Job Title" maxlength="255" aria-labelledby="LblTitle InstructTitle" type="text" class="mktoField mktoTextField mktoHasWidth"
style="width: 150px;"><span id="InstructTitle" tabindex="-1" class="mktoInstruction"></span>
<div class="mktoClear"></div>
</div>
<div class="mktoClear"></div>
</div>
<div class="mktoFieldDescriptor mktoFormCol" style="margin-bottom: 5px;">
<div class="mktoOffset" style="width: 5px;"></div>
<div class="mktoFieldWrap mktoRequiredField"><label for="Company" id="LblCompany" class="mktoLabel mktoHasWidth" style="width: 5px;">
<div class="mktoAsterix">*</div>
</label>
<div class="mktoGutter mktoHasWidth" style="width: 5px;"></div><input id="Company" name="Company" placeholder="Company Name" maxlength="255" aria-labelledby="LblCompany InstructCompany" type="text"
class="mktoField mktoTextField mktoHasWidth mktoRequired" aria-required="true" style="width: 155px;"><span id="InstructCompany" tabindex="-1" class="mktoInstruction"></span>
<div class="mktoClear"></div>
</div>
<div class="mktoClear"></div>
</div>
<div class="mktoFieldDescriptor mktoFormCol" style="margin-bottom: 5px;">
<div class="mktoOffset" style="width: 5px;"></div>
<div class="mktoFieldWrap mktoRequiredField"><label for="Email" id="LblEmail" class="mktoLabel mktoHasWidth" style="width: 5px;">
<div class="mktoAsterix">*</div>
</label>
<div class="mktoGutter mktoHasWidth" style="width: 5px;"></div><input id="Email" name="Email" placeholder="Email Address" maxlength="255" aria-labelledby="LblEmail InstructEmail" type="email"
class="mktoField mktoEmailField mktoHasWidth mktoRequired" aria-required="true" style="width: 150px;"><span id="InstructEmail" tabindex="-1" class="mktoInstruction"></span>
<div class="mktoClear"></div>
</div>
<div class="mktoClear"></div>
</div>
<div class="mktoFieldDescriptor mktoFormCol" style="margin-bottom: 5px;">
<div class="mktoOffset" style="width: 5px;"></div>
<div class="mktoFieldWrap mktoRequiredField"><label for="Country" id="LblCountry" class="mktoLabel mktoHasWidth" style="width: 5px;">
<div class="mktoAsterix">*</div>
</label>
<div class="mktoGutter mktoHasWidth" style="width: 5px;"></div><select id="Country" name="Country" title="Select Country" aria-labelledby="LblCountry InstructCountry" class="mktoField mktoHasWidth mktoRequired" aria-required="true"
style="width: 155px;">
<option value="">Select Country</option>
<option value="United States">United States</option>
<option value="Afghanistan">Afghanistan</option>
<option value="Aland Islands">Aland Islands</option>
<option value="Albania">Albania</option>
<option value="Algeria">Algeria</option>
<option value="American Samoa">American Samoa</option>
<option value="Andorra">Andorra</option>
<option value="Angola">Angola</option>
<option value="Anguilla">Anguilla</option>
<option value="Antarctica">Antarctica</option>
<option value="Antigua and Barbuda">Antigua and Barbuda</option>
<option value="Argentina">Argentina</option>
<option value="Armenia">Armenia</option>
<option value="Aruba">Aruba</option>
<option value="Australia">Australia</option>
<option value="Austria">Austria</option>
<option value="Azerbaijan">Azerbaijan</option>
<option value="Bahamas">Bahamas</option>
<option value="Bahrain">Bahrain</option>
<option value="Bangladesh">Bangladesh</option>
<option value="Barbados">Barbados</option>
<option value="Belarus">Belarus</option>
<option value="Belgium">Belgium</option>
<option value="Belize">Belize</option>
<option value="Benin">Benin</option>
<option value="Bermuda">Bermuda</option>
<option value="Bhutan">Bhutan</option>
<option value="Bolivia">Bolivia, Plurinational State of</option>
<option value="Bonaire Sint Eustatius and Saba">Bonaire, Sint Eustatius and Saba</option>
<option value="Bosnia and Herzegovina">Bosnia and Herzegovina</option>
<option value="Botswana">Botswana</option>
<option value="Bouvet Island">Bouvet Island</option>
<option value="Brazil">Brazil</option>
<option value="British Indian Ocean Territory">British Indian Ocean Territory</option>
<option value="Brunei">Brunei</option>
<option value="Bulgaria">Bulgaria</option>
<option value="Burkina Faso">Burkina Faso</option>
<option value="Burundi">Burundi</option>
<option value="Cambodia">Cambodia</option>
<option value="Cameroon">Cameroon</option>
<option value="Canada">Canada</option>
<option value="Cape Verde">Cape Verde</option>
<option value="Cayman Islands">Cayman Islands</option>
<option value="Central African Republic">Central African Republic</option>
<option value="Chad">Chad</option>
<option value="Chile">Chile</option>
<option value="China">China</option>
<option value="Christmas Island">Christmas Island</option>
<option value="Cocos (Keeling) Islands">Cocos (Keeling) Islands</option>
<option value="Colombia">Colombia</option>
<option value="Comoros">Comoros</option>
<option value="Democratic Republic of the Congo">Congo, Democratic Republic of</option>
<option value="Congo">Congo</option>
<option value="Cook Islands">Cook Islands</option>
<option value="Costa Rica">Costa Rica</option>
<option value="Cote d'Ivoire">Côte d'Ivoire</option>
<option value="Croatia">Croatia</option>
<option value="Cuba">Cuba</option>
<option value="Curacao">Curaçao</option>
<option value="Cyprus">Cyprus</option>
<option value="Czech Republic">Czech Republic</option>
<option value="Denmark">Denmark</option>
<option value="Djibouti">Djibouti</option>
<option value="Dominica">Dominica</option>
<option value="Dominican Republic">Dominican Republic</option>
<option value="Ecuador">Ecuador</option>
<option value="Egypt">Egypt</option>
<option value="El Salvador">El Salvador</option>
<option value="Equatorial Guinea">Equatorial Guinea</option>
<option value="Eritrea">Eritrea</option>
<option value="Estonia">Estonia</option>
<option value="Ethiopia">Ethiopia</option>
<option value="Falkland Islands (Malvinas)">Falkland Islands (Malvinas)</option>
<option value="Faroe Islands">Faroe Islands</option>
<option value="Fiji">Fiji</option>
<option value="Finland">Finland</option>
<option value="France">France</option>
<option value="French Guiana">French Guiana</option>
<option value="French Polynesia">French Polynesia</option>
<option value="French Southern Territories">French Southern Territories</option>
<option value="Gabon">Gabon</option>
<option value="Gambia">Gambia</option>
<option value="Georgia">Georgia</option>
<option value="Germany">Germany</option>
<option value="Ghana">Ghana</option>
<option value="Gibraltar">Gibraltar</option>
<option value="Greece">Greece</option>
<option value="Greenland">Greenland</option>
<option value="Grenada">Grenada</option>
<option value="Guadeloupe">Guadeloupe</option>
<option value="Guam">Guam</option>
<option value="Guatemala">Guatemala</option>
<option value="Guernsey">Guernsey</option>
<option value="Guinea-Bissau">Guinea-Bissau</option>
<option value="Guinea">Guinea</option>
<option value="Guyana">Guyana</option>
<option value="Haiti">Haiti</option>
<option value="Heard Island and McDonald Islands">Heard Island and McDonald Islands</option>
<option value="Holy See">Holy See (Vatican City State)</option>
<option value="Honduras">Honduras</option>
<option value="Hong Kong">Hong Kong</option>
<option value="Hungary">Hungary</option>
<option value="Iceland">Iceland</option>
<option value="India">India</option>
<option value="Indonesia">Indonesia</option>
<option value="Iran">Iran, Islamic Republic of</option>
<option value="Iraq">Iraq</option>
<option value="Ireland">Ireland</option>
<option value="Isle of Man">Isle of Man</option>
<option value="Israel">Israel</option>
<option value="Italy">Italy</option>
<option value="Jamaica">Jamaica</option>
<option value="Japan">Japan</option>
<option value="Jersey">Jersey</option>
<option value="Jordan">Jordan</option>
<option value="Kazakhstan">Kazakhstan</option>
<option value="Kenya">Kenya</option>
<option value="Kiribati">Kiribati</option>
<option value="North Korea">Korea, Democratic People's Republic of</option>
<option value="South Korea">Korea, Republic of</option>
<option value="Kuwait">Kuwait</option>
<option value="Kyrgyzstan">Kyrgyzstan</option>
<option value="Laos">Lao People's Democratic Republic</option>
<option value="Latvia">Latvia</option>
<option value="Lebanon">Lebanon</option>
<option value="Lesotho">Lesotho</option>
<option value="Liberia">Liberia</option>
<option value="Libya">Libya</option>
<option value="Liechtenstein">Liechtenstein</option>
<option value="Lithuania">Lithuania</option>
<option value="Luxembourg">Luxembourg</option>
<option value="Macao">Macao</option>
<option value="Macedonia">Macedonia, Republic of</option>
<option value="Madagascar">Madagascar</option>
<option value="Malawi">Malawi</option>
<option value="Malaysia">Malaysia</option>
<option value="Maldives">Maldives, Republic of</option>
<option value="Mali">Mali</option>
<option value="Malta">Malta</option>
<option value="Marshall Islands">Marshall Islands, Republic of</option>
<option value="Martinique">Martinique</option>
<option value="Mauritania">Mauritania</option>
<option value="Mauritius">Mauritius</option>
<option value="Mayotte">Mayotte</option>
<option value="Mexico">Mexico</option>
<option value="Micronesia">Micronesia, Federated States of</option>
<option value="Moldova">Moldova, Republic of</option>
<option value="Monaco">Monaco</option>
<option value="Mongolia">Mongolia</option>
<option value="Montenegro">Montenegro</option>
<option value="Montserrat">Montserrat</option>
<option value="Morocco">Morocco</option>
<option value="Mozambique">Mozambique</option>
<option value="Myanmar">Myanmar</option>
<option value="Namibia">Namibia</option>
<option value="Nauru">Nauru</option>
<option value="Nepal">Nepal</option>
<option value="The Netherlands">Netherlands</option>
<option value="New Caledonia">New Caledonia</option>
<option value="New Zealand">New Zealand</option>
<option value="Nicaragua">Nicaragua</option>
<option value="Niger">Niger</option>
<option value="Nigeria">Nigeria</option>
<option value="Niue">Niue</option>
<option value="Norfolk Island">Norfolk Island</option>
<option value="Northern Mariana Islands">Northern Mariana Islands</option>
<option value="Norway">Norway</option>
<option value="Oman">Oman</option>
<option value="Pakistan">Pakistan</option>
<option value="Palau">Palau, Republic of</option>
<option value="Palestine">Palestine</option>
<option value="Panama">Panama</option>
<option value="Papua New Guinea">Papua New Guinea</option>
<option value="Paraguay">Paraguay</option>
<option value="Peru">Peru</option>
<option value="Philippines">Philippines</option>
<option value="Pitcairn">Pitcairn</option>
<option value="Poland">Poland</option>
<option value="Portugal">Portugal</option>
<option value="Puerto Rico">Puerto Rico</option>
<option value="Qatar">Qatar</option>
<option value="Reunion">Réunion</option>
<option value="Romania">Romania</option>
<option value="Russia">Russian Federation</option>
<option value="Rwanda">Rwanda</option>
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EV ADOPTION COULD EXACERBATE TRANSPORTATION INFRASTRUCTURE FUNDING SHORTFALL
31 July 2023 / Brief
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CEO INSIGHT MINUTE: HOW WILL TRANSITIONING TO EVS AFFECT HIGHWAY FUNDING?
Video
CEO INSIGHT MINUTE: HOW WILL TRANSITIONING TO EVS AFFECT HIGHWAY FUNDING?
Federal gas taxes partly fund US roads and transit infrastructure; EV adoption
could mean this revenue declines by 60%.
In the US, taxes on gasoline and diesel fuel have historically been the source
of federal revenue for the Highway Trust Fund (HTF), which is designed to fund
maintenance and replacement of road and transit infrastructure. However, the HTF
has been chronically underfunded because federal motor fuel taxes have not been
raised since 1993, and they are not indexed to inflation. The broad adoption of
electric vehicles (EVs) could exacerbate the funding shortfall and—additional
resources from the Bipartisan Infrastructure Law notwithstanding—create the need
for an alternative funding mechanism, without which road and transit
infrastructure would likely deteriorate and potentially increase the cost of
moving goods through the supply chain.
TRUSTED INSIGHTS FOR WHAT'S AHEAD™
* Based on our projections, federal fuel tax revenues could decline by nearly
60 percent if passenger and truck electric vehicle sales made up 100 percent
of new annual vehicle sales by 2040. Without a financial offset, such a
funding gap could create financial shortfalls and insufficient investments.
Businesses and households would need to anticipate higher costs of goods
deliveries and logistics due to worsening transportation infrastructure
conditions.
* Businesses might have to prepare to pay for alternative funding mechanisms
such as fees based on vehicle miles traveled (VMT) or on electricity used for
charging. Today, revenue for the Highway Trust Fund is collected when
motorists purchase gasoline or diesel. In a modified road usage charging
system, revenue could be collected based on peak demand and the specific
impacts on infrastructure during its use. A shift toward a different revenue
collection system, while not entirely costless in itself, could affect
variable vehicle costs but might also provide room for efficiencies such as
better route choices or time-of-day planning.
* Data security would be a critical issue for businesses and households; a new
system of telematics—data collected from vehicles via sensors or smart
devices for pricing and revenue collection—would be needed to implement a
more dynamic charging and cost recovery system. Despite likely operational
improvements, systems operators would have to carefully manage information to
assuage data privacy concerns. In addition, data collection would depend on
new system infrastructure and not on an already established system.
In the US, taxes on gasoline and diesel fuel have historically been the source
of federal revenue for the Highway Trust Fund (HTF), which is designed to fund
maintenance and replacement of road and transit infrastructure. However, the HTF
has been chronically underfunded because federal motor fuel taxes have not been
raised since 1993, and they are not indexed to inflation. The broad adoption of
electric vehicles (EVs) could exacerbate the funding shortfall and—additional
resources from the Bipartisan Infrastructure Law notwithstanding—create the need
for an alternative funding mechanism, without which road and transit
infrastructure would likely deteriorate and potentially increase the cost of
moving goods through the supply chain.
TRUSTED INSIGHTS FOR WHAT'S AHEAD™
* Based on our projections, federal fuel tax revenues could decline by nearly
60 percent if passenger and truck electric vehicle sales made up 100 percent
of new annual vehicle sales by 2040. Without a financial offset, such a
funding gap could create financial shortfalls and insufficient investments.
Businesses and households would need to anticipate higher costs of goods
deliveries and logistics due to worsening transportation infrastructure
conditions.
* Businesses might have to prepare to pay for alternative funding mechanisms
such as fees based on vehicle miles traveled (VMT) or on electricity used for
charging. Today, revenue for the Highway Trust Fund is collected when
motorists purchase gasoline or diesel. In a modified road usage charging
system, revenue could be collected based on peak demand and the specific
impacts on infrastructure during its use. A shift toward a different revenue
collection system, while not entirely costless in itself, could affect
variable vehicle costs but might also provide room for efficiencies such as
better route choices or time-of-day planning.
* Data security would be a critical issue for businesses and households; a new
system of telematics—data collected from vehicles via sensors or smart
devices for pricing and revenue collection—would be needed to implement a
more dynamic charging and cost recovery system. Despite likely operational
improvements, systems operators would have to carefully manage information to
assuage data privacy concerns. In addition, data collection would depend on
new system infrastructure and not on an already established system.
BROAD ADOPTION OF EVS COULD REDUCE FUEL GAS TAX REVENUES BY MORE THAN HALF
The Highway Trust Fund is the federal financial structure used to fund road and
transit projects in the US. The main source of revenue for the HTF is the tax
collected from gasoline and diesel sales. States operate their own separate but
similar funding mechanisms: they collect state tax revenues at the pump by
charging for gasoline and diesel purchases. As of 2023, the federal tax rates
applied to gasoline and diesel are 18.3 and 24.3 cents per gallon,
respectively.1 In 2022, the HTF received a deposit of roughly $36 billion from
fuel taxes.
Historically, the HTF has been underfunded; that is, federal expenditures on
construction and maintenance have exceeded the amount generated by fuel taxes
and other fees. In 2021, the funding gap amounted to approximately $16 billion
because motor fuel taxes had not been sufficiently raised or adjusted for
inflation. Additionally, vehicles have become more fuel efficient, reducing the
quantity of motor fuel needed per mile.2 This might be an ongoing trend that
could worsen in the future due to even greater vehicle efficiency and
electrification of many passenger and freight vehicles. In several prior
instances, transfers from the general fund to the HTF were used to fill
financial gaps and make up the differences between revenues and
expenditures.3 Nevertheless, the HTF, even after the recent inclusion of
additional resources from the Bipartisan Infrastructure Law, could again face
insolvency by 2027.4
Electrification of the transportation sector could challenge the funding
mechanism of the HTF. Ironically, there might be a direct conflict between the
policy of funding infrastructure through motor fuel taxes and that of
subsidizing drivers who switch to EVs. Without the purchase of gasoline or
diesel fuels, no taxes will be collected from those operating those vehicles. In
fact, if EV sales increased to 100 percent of new passenger vehicles and medium
and heavy trucks by 2040, deposits into the HTF might be permanently reduced by
roughly 60 percent as a result of lower fuel tax receipts. At that point in
2040, electric cars and trucks would constitute a larger share of total vehicles
in the US than fossil fuel vehicles based on the projection presented in our
brief The Future of US Vehicle Electrification and GHG Emissions.
ALTERNATIVE FUNDING MECHANISMS COULD BE NECESSARY TO CONTINUE INFRASTRUCTURE
FUNDING
Decline in fuel tax revenue could necessitate the redesign of the funding
structure for the HTF. Solvency in the fund could be achieved in several
plausible ways, including higher gasoline and diesel taxes, a mileage-based fee
for some or all vehicles, a tax applied on crude oil sales, or a fee on the GHG
emissions from tailpipes of cars and trucks.5 Taxes on electricity used for
vehicle charging or higher EV registration fees have also been proposed as
funding alternatives.6 In the evaluation of the different revenue collection
mechanisms, it is important to consider the additional infrastructure, and
therefore investment, needed to operate the new mechanism. Establishing a
completely new system would in itself be costly and take away from the revenue
generated for road and transit projects.
In the case of a usage-based cost recovery system, private households and
businesses would be paying the direct costs of vehicle operations. Such usage
charges could be designed to be more sensitive to periods of high traffic
(“congestion pricing”) or the varying costs of highway maintenance,
construction, and replacement.7 Through real-time data collection, road prices
could be displayed at the time that vehicles are driven, and drivers could be
incentivized to use public transportation or make other choices that lower the
cost of operating their vehicles (just as insurance companies offer rebates and
discounts for drivers who stay within speed limits, avoid abrupt breaking
maneuvers, etc.). Roads could be priced based on demand, which could manage
congestion and adverse traffic impacts. Optimizing the demand for transportation
infrastructure in that way could also extend the life of roads or bridges and
consequently lower costs.
A revised system that aligns business transportation costs with the distances
covered by various users and freight loads transported within a supply chain
could provide greater transparency and align shipping costs more closely with
transportation demands. Depending on the complexity of the transportation fee
system, managers might be able to optimize when and how they send out shipments
and alter their operations accordingly.
DYNAMIC PRICING COULD MEAN GREATER EFFICIENCY BUT ALSO CREATE DATA SECURITY
CONCERNS
As stated above, dynamic usage-based road revenue collection (i.e., cost
recovery that is sensitive to demand patterns and infrastructure maintenance and
replacement needs) could allow for greater efficiency of the interstate highway
system. Such a system would allow for per-mile fees to be higher when demand is
greater or encourage users to avoid roads where maintenance costs are
significantly higher than on other routes. For example, heavy vehicles that
impose disproportional damage on road surfaces could be incentivized to choose
routes in the network that are better able to accommodate higher vehicle
weights. Such a system based on usage and not gasoline and diesel taxes might be
able to fill the funding gap of the HTF just as well as merely raising motor
fuel taxes would in the current system.
Efficient infrastructure cost collection would require significant data to be
collected from vehicles, at least temporarily. Similar to the global positioning
system (GPS), the information flow might only be one directional (i.e., the car
knows where it is on the network, but the network does not know where the car
is). However, it is likely that some two-directional data collection of time and
route paths would be required. These data could allow appropriate cost-recovery
methodology to be employed, but the driving public and freight community would
have to be assured that their data are safe from unauthorized access. In effect,
any mileage- or usage-based cost recovery system would need to be carefully
managed and operated.8
--------------------------------------------------------------------------------
[1] US Energy Information Administration, How Much Tax Do We Pay on a Gallon of
Gasoline and on a Gallon of Diesel Fuel? last updated August 1, 2023.
[2] Congressional Research Service, Highway and Public Transit Funding Issues,
June 4, 2019.
[3] Joseph Kile, Testimony on Addressing the Long-Term Solvency of the Highway
Trust Fund, Congressional Budget Office, April 14, 2021.
[4] Committee for a Responsible Federal Budget, Ten Options to Secure the
Highway Trust Fund, February 4, 2022.
[5] Committee for a Responsible Federal Budget, Ten Options to Secure the
Highway Trust Fund.
[6] John Gallagher, Report: Electric Vehicle Tax Could Revive Highway Trust
Fund, FreightWaves, September 29, 2021.
[7] Plug in America, Transportation Funding and EV Fees, August 2020.
[8] Robert D. Atkinson, A Policy Maker’s Guide to Road User Charges, Information
Technology & Innovation Foundation, April 22, 2019.
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AUTHOR
ALEXANDER HEIL, PHD ALEXANDER HEIL, PHD
Senior Economist, ESF Center
The Conference Board
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