California lawmakers are fighting over a bill that would study replacing the gas tax with a road use charge. Republicans call it a sneaky plan to raise taxes. However, the bill would only require a state agency to collect and summarize existing research. California gets most road repair money from gas taxes. Officials say that revenue keeps shrinking as cars burn less fuel and more drivers switch to electric vehicles. Some rural Republicans and conservative groups back the study. They say road work already gets delayed and rural areas get shortchanged. Democrats fear the political blowback, even as local leaders say the state needs options.
States with aggressive climate goals like Oregon are facing a conundrum. Electric vehicles can help reduce emissions in the transportation sector, the nation's largest source of greenhouse gas emissions; but they also mean less gas tax revenue in government coffers. Revenues from gas taxes paid by drivers at the pump are projected to decrease as more people adopt electric and fuel-efficient cars. That's forcing officials nationwide to look for new ways to fund transportation infrastructure. According to the National Association of Budget Officers, motor fuel taxes are the largest source of transportation revenue for states. But the money they bring in has fallen.
