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Massachusetts Governor Proposes $0.19 Increase in State Fuel Tax to Support Transportation Projects

Green Car Congress

As part of a comprehensive reform plan to simplify the Commonwealth of Massachusetts’ transportation system, Governor Deval Patrick is proposing a fuel tax increase of $0.19 The increased fuel tax is intended to be in lieu of an increase in tolls. per gallon—a 81% increase of the current $0.235 per gallon.

Fuel Tax 150
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MIT study finds fuel economy standards are 6-14 times less cost effective than fuel tax for reducing gasoline use

Green Car Congress

In a study published in the journal Energy Economics , MIT researchers have found that a fuel economy standard is at least six to fourteen times less cost effective than a fuel tax when targeting an identical reduction in cumulative gasoline use (20% by 2050).

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Belfer Center report calls for policymakers to begin taking steps to change policies for funding US transportation infrastructure

Green Car Congress

The US has up to now adhered to the user-fee principle in financing transportation infrastructure—i.e., users pay for the construction and maintenance of roads via a federal fuel tax. In the meantime, cars and trucks have become more fuel-efficient. In the meantime, cars and trucks have become more fuel-efficient.

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Congressional Budget Office estimates US federal policies promoting EVs and other fuel-efficient vehicles will cost $7.5B through 2019; little or no impact on gasoline use and GHG in the short term

Green Car Congress

The nonpartisan US Congressional Budget Office (CBO) estimates that federal policies to promote the manufacture and purchase of electric vehicles, some of which also support other types of fuel-efficient vehicles, will have a total budgetary cost of about $7.5 —“Effects of Federal Tax Credits for the Purchase of.

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National Research Council Report Explores Improving Fuel Economy of Medium- and Heavy-Duty Vehicles; Recommends Immediately Beginning Developing a Regulatory Approach

Green Car Congress

The report also recommends approaches that federal agencies could use to regulate these vehicles’ fuel consumption. Currently there are no fuel consumption standards for such vehicles, which account for about 26% of the transportation fuel used in the US. The report urges Congress to consider this approach.

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How the Budget affects green car drivers

Green Cars News

On one hand, the scrappage scheme should encourage drivers to take up more fuel efficient cars - although as the Environmental Transport Association pointed out earlier this week (see our article here ), driving new and greener cars will not necessarily surpass the environmental impact of disposing of older vehicles.