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Congressionally-created Commission Recommends Mileage Tax Instead of Fuel Tax for Transportation Infrastructure Financing

Green Car Congress

A bi-partisan Congressionally-created commission has recommended a shift from motor fuel taxes to direct fees charged to transportation infrastructure users—i.e., a federal mileage fee—as a way to reform financing of the US transportation infrastructure. The nation faces a crisis. Summary of revenue options.

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Mn/DOT assessing potential for mileage-based user fee to replace fuel tax; Battelle conducting technology assessment

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Minnesota’s highway revenues are derived from three sources: the gas tax, vehicle registration fee or tabs and the motor vehicle sales tax. Other state DOTs also are researching alternative financing methods to supplement or replace a gas tax. —Cory Johnson, project manager.

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

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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.

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NJ boosts gasoline tax 22.5% to $0.507/gallon effective 1 October, diesel to $0.577

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In order to ensure the state has the funds necessary to support these projects, the law dictates that the Petroleum Products Gross Receipt (PPGR) tax rate must be adjusted accordingly to generate roughly $2 billion per year. Background on Chapter 57 & calculation of tax rate formula. million.

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Proposed US Transportation Reauthorization Plan Links Greenhouse Gas Reductions to Transportation Planning

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in a press conference last week, is the linkage of transportation planning with greenhouse gas emissions reductions. DOT, through performance measures, would verify that States and metropolitan areas achieve progress towards national transportation-related greenhouse gas emissions reduction goals. Oberstar (D-Minn.) Mica (R-Fla.)

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Next 10 report finds California will meet or exceed original target of 1.5M ZEVs by 2025

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Bloomberg New Energy Finance estimates battery cost will decline by almost 10% until 2025, when ZEVs will reach price parity with ICE vehicles. In January 2018, Assemblyman Phil Ting introduced a bill that would ban gas-powered cars by 2040. Performance: Battery range has been increasing annually. Grid overload is another concern.

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Analysis concludes that current transportation policy in most US states will likely worsen GHG emission trends in US

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greenhouse gas (GHG) emissions from the transportation sector, and in most cases make decisions that will likely increase. transportation, and ensure state fuel taxes can support all transportation modes. Update transportation financing and funding formulas to reward reductions in driving, VMT, and fuel.