| Technology Profile
automotive technology,
electrification, and supply/
demand for petrol-based energy
will change dramatically. As the
industry and fleet changes, new
thinking of transportation
policy must follow. Policy
makers will need to address the
continuing decline in revenues
and recognize that fuels excise
taxes, congestion, growing
vehicle fleets, and increased trip
generation will adversely impact
local and national
competitiveness. While we
will find new ways to deliver
goods and personal services,
delivery will be dependent on
the health and wellbeing of
the US roads and bridges.
Even new technologies such
as autonomous vehicles will
demand good infrastructure
to succeed.
Urgent action required
Despite the wide array of tools
in our transportation policy
toolbox, action must be taken
if a ‘user pays’ principle is to
survive. Dithering and half
measures dealing with a
meaningful transportation
policy are no longer acceptable.
Right or wrong, some or various
combinations of the policy
options are necessary to address
congestion, improve the
environment, and generate
sufficient revenue to invest
and maintain the transportation
infrastructure to match
economic goals and livable
communities
By Luís Nunes CSO, A-to-Be
www.a-to-be.com.
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075
a turbulent environment for
resolving transportation policy.
Adding to the confusion is
judging which transportation
options should be pursued,
such as raising the gas tax,
tolling, public private
partnerships, increasing
funding for public
transportation, or finding
an alternate to the gas tax
with options such as road
usage charging.
In effect, the current
policy environment to rebuild
American Infrastructure and
the USA transportation network
is struggling to find the right
blend of policies for the future.
Consequently, one can view
the current environment as
doing nothing.
In the meantime, US states
are not standing still. The states
A-to-Be
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have an advantage over most
similar international
jurisdictions because under the
US Federated divisions of
powers, they have the right to
raise their own fuels excise
taxes. The tax paid per gallon
has both a federal component
and a state tax component, in
addition to some local
jurisdictional taxes added to the
price per gallon consumed. Due
to the above federal or national
inaction, states are increasingly
taking their own steps to be
more self-sufficient by raising
vehicle registration fees,
licensing fees, gas/petrol taxes
and diesel fuel taxes to fund
their necessary transportation
and infrastructure projects.
Raising costs
Recently, the state of Ohio
became the 30th state to raise
or reform its gas tax. Despite
all studies and data to indicate
a declining revenue base and
increased inequity of the fuel
taxes, there is a remarkable level
of agreement across all states
that the immediate cure for the
lack of transportation revenue
is raising the gas/petrol and
diesel taxes. Many states are
implementing the short-term
fix of reversing transportation
revenue losses caused by
rising construction costs
and improvements in vehicle
fuel economy, as well as the
rising percentage of hybrids,
improved plug-in hybrids,
and battery or electric vehicles
in their vehicle fleets.
Maybe the most detrimental
impact to such fuel tax increases
is the growing efficiency of
medium and heavy vehicle
truck fleets. This trend towards
alternate fuels such a liquid
natural gas will have a much
higher detrimental effect on
fuels tax revenues than those
evidenced in the personal
car fleets.
The negative points for
raising fuel excise taxes is
the continuing decrease in
this consumption tax due to
the changing nature of the
vehicle fleet. As addressed
above, fuel economy, hybrid
vehicle efficiency, and battery/
electric vehicles are gutting this
revenue source. While the
collection costs are typically
inexpensive – at or less than 1%
– gas tax is a longtime favorite
source for state treasuries.
Time for change
It is important to face the reality
that over the next 25 to 50 years,
September/October 2019 Traffic Technology International
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