Sustainable Transportation Funding
Times are changing
Americans pay for transportation infrastructure primarily with a fuel tax. As fuel efficiency increases and more electric vehicles are on the road, the amount motorists pay to use our transportation system becomes more linked to the type of car they drive versus the number of miles they drive. The combination of improving fuel efficiency and an increase in electric vehicles, has weakened the current fuel tax funding mechanism, making it unsustainable in the future. Therefore, the Coalition is exploring an MBUF system as sustainable transportation funding solution in the future. Instead of older, less fuel-efficient vehicles paying more for using the transportation network, an MBUF charges for the amount of miles you use.
Fuel efficiency has improved.
Fuel efficiency has risen significantly since 1975 and is at an all time high for both cars and trucks.
Source: U.S. Environmental Protection Agency, Fuel Economy Trends Report 2015
Inflation has eroded revenue.
Congress last raised the federal gas tax from 14.1 cents per gallon to 18.4 cents in 1994. Adjusted for inflation, the current gas tax rate is 11.5 cents in 1994 dollars—nearly 3 cents less than what it was before Congress raised it.
Sources: U.S. Bureau of Labor Statistics U.S Bureau of Economic Analysis
Congestion has increased.
The number of hours a motorist spends in traffic jams has doubled since 1982, and about 45 percent of federal highways and major roads in the U.S. are not in good condition.
Sources: 1. Texas Transportation Institute, 2. U.S. Federal Highway Administration