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Senate Defers Action on Highway Extension; Auto Execs Suggest Higher Gas Tax

With the highway and transit programs operating under the terms of a seven week continuing resolution until December 18, Senate Environment and Public Works Committee Chair Barbara Boxer (D-Calif.) had intended to press for floor time to consider a six-month extension of the programs that would have remedied an $8.7 billion rescission of contract authority problem and extended the Highway Trust Fund firewalls. However, the Senate calendar has filled up with consideration of pending appropriations bills and other measures and it appears unlikely that the highway extension will be considered any time soon. If Congress resolves the government funding for the remainder of FY 2010, an additional continuing resolution may not be necessary.  Instead, it would be necessary to enact a separate transportation program extension. No progress has been made on a six-year authorization bill and finding a way to increase funding in the programs remains the biggest stumbling block. Auto executives speaking at a forum in Detroit this week said the best way to get more fuel-efficient vehicles on the road is to raise federal gasoline taxes. Gradually raising taxes to the point where fuel costs $4 to $5 per gallon was touted as the best way to stimulate demand for electric, hybrid and other alternatively fueled vehicles. Others called for even bigger increases in gasoline taxes.