States must find other ways to fund transportation projects as the transportation sector moves toward decarbonization.
As electric vehicles grow in market share, states like California that depend on gas tax revenue for much of their transportation funding must find other ways to make up for the loss.
According to Manola Secaira of Cap Radio, “A report from the state’s Legislative Analyst’s Office projects a net transportation funding decline of about $4.4 billion — or 31% — within the next decade.” Currently, California gets about one-third of its transportation funding from gas taxes and vehicle fees.
Proposed replacements for the gas tax include mileage-based road user fees and new electric vehicle fees. The report recommends diversifying transportation funding sources and considering mileage fees (also known as vehicle miles traveled or VMT), which make all road users responsible for the damage incurred to roads by driving based on how much they travel. “Regardless of whether or not this approach is adopted, the report makes it clear that California officials must think of solutions sooner rather than later.”
FULL STORY: As gas use declines, California could lose $4 billion in transportation funding, report finds
Hawaii Could Implement Road Usage Charge
The tax would apply to electric vehicles, which avoid the state’s gas tax and are a growing percentage of cars on the road.
San Diego County Weighs VMT Proposal
San Diego County could tax developers based on projected vehicle miles traveled as part of a new CEQA requirement that replaces Level of Service with VMT.
The Looming Era of VMT
The gas tax is becoming an increasingly outdated and unsustainable idea. This piece from Miller McCune looks at the prospect of replacing it with a tax based on vehicle miles traveled.
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The VW Bus is Back — Now as an Electric Minivan
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Healing Through Parks: Altadena’s Path to Recovery After the Eaton Fire
In the wake of the Eaton Fire, Altadena is uniting to restore Loma Alta Park, creating a renewed space for recreation, community gathering, and resilience.
San Diego to Rescind Multi-Unit ADU Rule
The city wants to close a loophole that allowed developers to build apartment buildings on single-family lots as ADUs.
Electric Vehicles for All? Study Finds Disparities in Access and Incentives
A new UCLA study finds that while California has made progress in electric vehicle adoption, disadvantaged communities remain underserved in EV incentives, ownership, and charging access, requiring targeted policy changes to advance equity.
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City of Albany
UCLA Lewis Center for Regional Policy Studies
Mpact (formerly Rail~Volution)
Chaddick Institute at DePaul University
City of Piedmont, CA
Great Falls Development Authority, Inc.
HUDs Office of Policy Development and Research