Could an "electric fuel" tax for EV use help states solve the gas-tax dilemma?

Green Car Reports

The gas tax remains one of the main funding sources for road infrastructure, which has led to cries that electric-car drivers aren't paying their fare share of road maintenance costs. Consider electricity a fuel.

Tax 165

US COVID-19 mitigation efforts resulting in significant decline in traffic, emissions and fuel-tax revenues

Green Car Congress

Fuel saved, tax revenue lost. Fuel use dropped from 4.6 It also resulted in fuel-tax revenue reductions, which vary by state.

2020 227
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Lordstown SEC probe, Tesla and fuel taxes, Polestar and Volvo updates: Today’s Car News

Green Car Reports

Tesla has tried to convince the UK to raise its fuel tax. A recall on two EVs underscores how over-the-air updates can simplify some safety recalls. And Lordstown Motors asserts that it will be cranking out an Endurance electric pickup every six minutes in September.

UC Davis report proposes mileage fee for EVs, maintaining fuel tax for ICEs to support road repairs

Green Car Congress

A research report submitted to the California Legislature this week by the University of California, Davis’ Institute of Transportation Studies proposes switching EVs to a mileage-based road-funding fee (road user charge, RUC) while continuing to have gasoline-powered cars pay gasoline taxes. Since electric vehicles use no gasoline, EV drivers pay no gasoline tax. As more people drive EVs, gas-tax revenue for road repairs is dwindling.

2019 228

11 states assessing fees on EV owners in lieu of traditional fuel taxes

Green Car Congress

Eleven states currently assess fees on electric vehicle owners in lieu of traditional fuel taxes, according to the US Department of Energy’s Office of Energy Efficiency and Renewable Energy (EERE). Highway maintenance has traditionally been funded from a combination of Federal and state taxes collected at the fuel pump. Because EVs do not refuel at pumps that collect state and Federal fuel taxes, they do not contribute to the upkeep of the highways.

2015 190

API releases latest report on US and state fuel taxes

Green Car Congress

The American Petroleum Institute has released its January 2014 update report and maps on gasoline and diesel taxes for all 50 states in the US along with a national average; the information is updated quarterly. any taxes which can vary across a state’s jurisdiction are averaged according to the population of the local areas subject to each particular tax rate. Gasoline taxes, January 2014. Diesel taxes, January 2014. The federal tax on gasoline is 18.40

2014 210

“Electric fuel” tax for EVs, VW ID.4 road-trip charging, Volvo online sales: Today’s Car News

Green Car Reports

Would a by-the-kilowatt-hour charging tax help states recover infrastructure funds from dwindling gas tax revenues? Volvo is moving to online-only sales, starting with its EVs. Volkswagen looks ahead to its 2026 EVs.

California Governor signs $52B fuel tax and vehicle fee bill for transportation infrastructure; $100 ZEV fee

Green Car Congress

billion over the next decade through an increase in fuel taxes and vehicle fees—including on zero emission vehicles (ZEVs)—to fix roads, freeways and bridges in communities across California and put more dollars toward transit and safety. billion by increasing diesel excise tax 20 cents (currently $0.13) on 1 November 2017. billion by increasing diesel sales tax to 5.75% on 1 November 2017. California Governor Edmund G. Brown Jr.

2017 163

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). This analysis underscores the potentially large costs of a fuel economy standard relative to alternative policies aimed at reducing petroleum use and GHG emissions. Emissions Fuel Efficiency Policy

2013 242

Fuel economy standards to hit fuel tax

Green Cars News

There may be one negative knock-on effect of improving the fuel economy standards of our vehicles: fuel tax revenues could slump massively. According to a report by the Congressional Budget Office (logo, pictured), fuel economy standards proposed for 2017-2025 would cut revenues from petrol tax by 21 per cent in 2040. Green cars Green credentials Latest news Congressional Budget Office fuel consumption fuel economy fuel tax green cars

Virginia General Assembly moving forward with replacing gasoline and diesel fuel tax with sales tax; $100 annual tax for EVs, HEVs and alt-fuel vehicles

Green Car Congress

The Virginia General Assembly is moving forward with legislation ( HB2313 ), that, among its other elements, would abolish the state’s gasoline and diesel fuel taxes and replace them with a sales tax. Currently, both gasoline and diesel carry a $0.175/gallon fuel tax. Beginning 1 July 2013, the gasoline tax would be replaced with a 3.5% cents-per-gallon tax. percent wholesale tax to 5.1

2013 220

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

Green Car Congress

The Minnesota Department of Transportation (Mn/DOT) will recruit 500 people from Wright and Hennepin counties to take part in research to test technology that could someday be used to collect a mileage-based user fee (MBUF) in lieu of a gasoline tax. Minnesota’s highway revenues are derived from three sources: the gas tax, vehicle registration fee or tabs and the motor vehicle sales tax.

2011 224

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. With Federal fuel taxes included, the tax on gasoline in the state would be $0.609 per gallon, and the tax on diesel would be $0.669 per gallon.

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., In order to support the transition from the gas tax to a mileage-based charge, the Financing Commission recommends a ten cent per gallon increase in the federal gas tax (15 cents for diesel) and indexing the tax to inflation going forward.

Australia PM Gillard announces carbon pricing plan; transport fuels exempt, but lowered fuel tax credits to bring carbon price to some businesses

Green Car Congress

Under the scheme, around 500 of the largest emitters in Australia—facilities that have direct greenhouse gas emissions of 25,000 tonnes of CO 2 -equivalent per year or more (excluding emissions from transport fuels and some synthetic greenhouse gases)—will need to buy and surrender to the Government a permit for every tonne they produce. Transport fuels will be excluded from the carbon pricing mechanism.

2011 183

UK Government Pre-Budget Report Offers Tax Exemptions for EVs, £30M in Additional Support for Low-Carbon Vehicles; Annual Fuel Tax Increases and End of Duty Differential for Biofuels

Green Car Congress

In the Pre-Budget Report (PBR) released on 9 December, UK Chancellor Alistair Darling announced that all electric cars will be exempt from Company Car Tax (CCT) for 5 years and electric vans will be exempt from Van Benefit Charge (VBC) for the same period. A 100% first year tax allowance will also be provided for the purchase of electric vans subject to State Aid clearance. In his statement, the Chancellor may announce changes to taxes and new spending measures.

2009 174

Report: Tesla lobbied for higher taxes on gas and diesel vehicles in the UK

Green Car Reports

Tesla lobbied the United Kingdom government to raise taxes on gasoline and diesel cars in order to fund higher subsidies for electric cars, The Guardian reported Tuesday.

California reduces tax on dimethyl ether (DME) fuel to be consistent with other alternative fuels; enabling retail sales

Green Car Congress

The California state legislature passed and the Governor signed into law a bill ( AB-2663 ) that lowers the Use Fuel Tax rate of dimethyl ether (DME) from $0.18 per gallon of DME-propane fuel blend used on or after 1 July 2021 (the same tax rate as propane, $0.06

2020 315

New tax on gas-guzzlers could replace VED

Green Cars News

Gas-guzzling vehicles could face a new tax of up to £23,000 under new proposals drawn up by a government advisor. Green credentials fuel tax VEDThe new plans, supported by the Lib Dems, could even see the most efficient cars subsidised to the tune of £750 and see the end of annual Vehicle Exercise Duty payments. According to The Telegraph, [.].

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Motor vehicle taxation brings in €440.4B for governments in major European markets

Green Car Congress

The taxes fall into three broad categories: vehicle acquisition (VAT, sales tax, registration tax); ownership (annual circulation tax, road tax); and motoring (fuel tax). The top 5 countries with the highest motor tax revenues are: Germany ?

2020 254

DOE: Average annual gasoline taxes paid per vehicle, by state, 2019

Green Car Congress

According to the Federal Highway Administration, the average fuel economy for all light vehicles on the road today is 22.3 The Federal tax on gasoline is 18.4 cents per gallon, and each state has a gasoline tax, ranging from 8.95

2019 295

T&E: Rising use of private jets sends CO2 emissions soaring

Green Car Congress

T&E calculates that a jet fuel tax applied proportionately to flight distances could raise €325 million if applied to all flights departing from the EU and UK. European policymakers need to urgently start taxing fossil-fuel powered private jets and ban their use by 2030.

CO2 343

Texas CNG, LNG motor fuel sales double FY 2014 estimate

Green Car Congress

As of 31 July, fiscal 2014 tax revenue from sales of compressed natural gas (CNG) and liquefied natural gas (LNG) motor fuel totaled $2,178,199, according to the Texas state Comptroller’s office. State forecasters projected fiscal 2014 natural gas motor fuel tax revenue of $992,000, equal to sales of 6.6 At 15 cents per gallon equivalent, $2,178,199 of motor fuel tax equals sales of 14,521,326 gallon equivalents of natural gas.

2014 240

Study: air pollution caused 1.1M deaths across Africa in 2019, toll from outdoor pollution rising

Green Car Congress

Fossil fuel combustion has driven an increase in outdoor air pollution that in 2019 killed 29.15 Air pollution was responsible for 1.1

Africa 297

How the Budget affects green car drivers

Green Cars News

At the same time, however, Mr Darling has announced a two pence per litre increase on fuel duty which will apply from September this year. The increase has been dubbed a “tax of the many&# by Conservative Party leader David Cameron. Furthermore, the increase in fuel duty may be seen as a tax that encourages people to think about how they drive and to take a more eco-conscious approach to limit their mileage.

2009 34

Iowa gives B11 and above a tax break

Green Car Congress

Iowa Governor Terry Branstad signed into law a bill ( Senate File 257 ) which, among other things, raises the state’s fuel tax while providing a small incentive for biodiesel. A provision of the bill gives a partial exemption to the new tax for diesel blended with at least 11% biodiesel (B11). The increase of 10 cents a gallon for both diesel and gasoline will help repair and improve Iowa’s roads and bridges.

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California BOE considers lowering gasoline excise tax rate for third year in a row

Green Car Congress

The California State Board of Equalization (BOE) will consider lowering the excise tax rate for gasoline by 2.2 If adopted, the excise tax rate on gas will be 27.8 The current excise tax rate of 30 cents per gallon remains in effect until 30 June 2016. California drivers pay two types of state taxes on gas: sales tax, which is a percentage of the price, and a per-gallon excise tax.

2016 150

DOE: US gasoline taxes dropped below 20% of total price in 2015

Green Car Congress

Fuel taxes in the United States in 2015 accounted for 19% of the price of a gallon of gasoline, down from just under 30% in 1990, according to figures compiled by the US Department of Energy (DOE). By comparison, in France, Germany, and the United Kingdom, taxes accounted for more than half of the total price for both 1990 and 2015. Japan’s gasoline taxes were nearly half of the price in those years. Gasoline prices and taxes for selected countries, 1990 and 2015.

2016 190

Study finds higher gasoline taxes do not disproportionately impact the poor, especially in developing countries

Green Car Congress

However, a new study by researchers at the University of Gothenburg (Sweden) finds that middle- and high-income earners are generally affected the most by gasoline taxes, especially in poor countries, rather than poor people. Petrol taxes are effective and actually don’t affect poor people disproportionally. Powerful lobbyists have tried to undermine the whole idea of petrol taxes, claiming that the effects are too hard on the poor.

2011 209

UC Davis study: roadkill declines as COVID-19 continues

Green Car Congress

Additional recent reports cover the impacts of COVID-19 mitigation on traffic accidents, greenhouse gas emissions and fuel tax revenues.

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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 report, “Transportation Revenue Options: Infrastructure, Emissions, and Congestion”, summarizes discussions at a May 2010 workshop convened by the Belfer Center in which 27 experts debated three broad revenue-generating options: higher fuel taxes, perhaps supplemented by a carbon tax; fees collected based on vehicle miles traveled (VMT); and congestion fees on major roadways. users pay for the construction and maintenance of roads via a federal fuel tax.

2010 183

OECD: governments should make better use of energy taxation to address climate change; “meaningful” increases limited to road sector

Green Car Congress

Taxes are effective at cutting harmful emissions from energy use, but governments could make better use of them. Tax rates were below the low-end estimate of climate costs (EUR 30/tCO 2 ) for 97% of emissions. The report assesses the magnitude and coverage of taxes on energy use in 2015, and considers change between 2012 and 2015. Comparing taxes between 2012 and 2015 yields a disconcerting result. In road transport, 97% of emissions are taxed.

2018 163

National Academies report finds US interstate highways need major overhaul; calls for 20-year blueprint for action

Green Car Congress

The report calls for a 20-year “blueprint for action,” which includes creating an “Interstate Highway System Renewal and Modernization Program,” increasing the federal fuel tax to help pay for it, and allowing tolls and per-mile-charges on more interstate routes. Furthermore, technological advances are offering new opportunities, but they may also undermine a principal source of income for the interstates, namely the tax on fuel.

2018 214

Electric Cars Must Pay Higher Taxes To Build Power Plants, Says Power-Plant Builder

All Cars Electric

According to a recent article, a study reveals that a fuel tax of 10p a mile With the increase in coverage that electric cars are enjoying in both the motoring and the mainstream press, you might be forgiven for thinking that the future is bright for EV lovers worldwide. The U.K. newspaper The Telegraph might have you believe otherwise, though.

2010 52

New UK Report Welcomes Moves to Promote Green Cars but Stresses Importance of Policies to Reduce Car Use

Green Car Congress

It also discusses fuel taxes and prices, which affect both travel and vehicle choices. There is no point forcing car makers to produce low carbon options if no-one will buy them, so it is right that ambitious regulation is combined with grants and other incentives—including taxes on gas guzzlers—to deliver a transformation of the car fleet. Relatively low elasticity of demand for fuel suggests that the impact of fuel tax increases may be limited in the short run.

2009 150

Ryder San Francisco fueling facility offers 100% renewable diesel

Green Car Congress

Ryder System, a leader in commercial fleet management, dedicated transportation, and supply chain solutions, has begun to offer 100% renewable diesel (RD) fuel at its San Francisco fueling facility. Therefore, offering a better solution for fuel filters, elastomer seals and components, and storage tanks. —Chris Nordh, Ryder Director for Global Fuel Products.

Study explores impact of changing gasoline and diesel taxes in Europe

Green Car Congress

Diesel is currently taxed at a lower level than gasoline in Europe; however, since 2011 the EC has been considering reversing that situation by making energy taxes systematically reflect the CO 2 performance of the energy product. As on a volumetric basis, diesel contains more carbon than gasoline, the tax on diesel fuel would increase. A scheme including a decreased gasoline tax could bring about an increase in CO 2 emissions.

2013 246

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

Green Car Congress

New Jersey’s Department of the Treasury announced on Friday that lower fuel consumption trends, which have been exacerbated by the COVID-19 pandemic, will necessitate a gas tax increase of $0.093 per gallon in order to ensure compliance with the 2016 law that requires a steady stream of revenue to support the state’s Transportation Trust Fund (TTF) program. The increase brings the gasoline tax from $0.414 to $0.507 per gallon (22.5%). Fuels Market Background Regulations

2020 174

GM weighs in against Washington’s proposed EV surtax

Green Car Congress

Proponents of the surtax argue the fee is needed to offset losses in state gas tax revenues since EV owners don’t need to buy gas. As a practical matter, there are currently so few electric vehicles on Washington’s roads today that their impact in replacing fuel tax revenues will, for now, be negligible. General Motors earlier this week sent a letter to Washington Gov.

Initial results of 2-year US field study on Mileage-Based Road User Charge

Green Car Congress

Researchers from the University of Iowa report the initial results of a 2-year field study evaluating the technical feasibility and user acceptance of mileage-based charging as a potential replacement for the current motor fuel tax in a paper in Transportation Research Record: Journal of the Transportation Research Board.

2011 190

UC report to CalEPA outlines policy options to decarbonize California transportation by 2045

Green Car Congress

A team of transportation and policy experts from the University of California released a report to the California Environmental Protection Agency (CalEPA) outlining policy options to significantly reduce transportation-related fossil fuel demand and emissions. The studies are designed to identify paths to slash transportation-related fossil fuel demand and emissions while also managing a strategic, responsible decline in transportation-related fossil fuel supply.

BMW-Sixt car-sharing JV DriveNow launches in London; 30 i3s coming in 2015

Green Car Congress

All costs such as fuel, taxes, insurance and parking charges are already included in London as well. DriveNow, the carsharing joint venture between the BMW Group and Sixt SE ( earlier post ), has launched its flexible carsharing service in London. Initially, 210 BMW 1 Series and MINI Countryman models will be available for spontaneous hire.

2014 190

Senators Sanders, Boxer propose legislation to institute GHG price on large stationary sources and remove support for fossil fuel industries

Green Car Congress

The legislation also proposes numerous actions against financing and support for fossil fuel industries. The proposal was drafted as two measures, the Climate Protection Act —which sets the carbon price and finance programs for sustainable technologies—and the Sustainable Energy Act —which ends federal support for fossil fuel companies and research and extends tax incentives for renewables. Bernie Sanders (I-Vt.) and Barbara Boxer (D-Calif.)

2013 223