Blue-ribbon panel endorses road pricing, shift from gas tax

February 26, 2009 at 4:01 pm

(Source: Greenwire via New York Times)

A blue-ribbon federal transportation panel called today for a temporary gas-tax hike followed by a move toward charging drivers directly for every mile they travel — two ideas that have been soundly rejected by the White House in the past week.

The controversial road-pricing scheme would become the dominant funding mechanism for road construction and maintenance by 2020, with drivers being charged an average of 2 cents per mile, according to the report released by the 15-member panel created by Congress in the last highway bill authorization.

The National Surface Transportation Infrastructure Financing Commission says the shift is necessary because the current funding mechanism — federal fuel taxes — has failed to raise the necessary revenue for needed roadwork and runs counterintuitive to national environmental and energy goals.

“The more successful U.S. transportation policy is at increasing fuel efficiency and reducing both foreign oil dependency and carbon emissions, the faster its primary funding source, the gas tax, becomes obsolete,” said Texas state Rep. Mike Krusee, a commission member.

Increases in fuel economy, coupled with the fact that the current federal tax on gasoline has remained stagnant at 18.4 cents a gallon since 1993, have already taken their toll on federal revenues to fund road construction and maintenance. The Highway Trust Fund, which receives the bulk of its money from federal fuel taxes, would have run empty late last year if it were not for an eleventh-hour transfer of $8 billion by Congress to keep it solvent.

“With the expected shift to more fuel-efficient vehicles, it will be increasingly difficult to rely on the gas tax to raise the funds needed to improve, let alone maintain, our nation’s surface transportation infrastructure,” said commission Chairman Robert Atkinson, president of the Information Technology and Innovation Foundation, a nonpartisan think tank.

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