Legislation Proposed to Study Mileage-Based User Fees

While acknowledging that there is no time left in the 112th Congress to address new legislation, Rep. Earl Blumenauer (D- Ore.), nevertheless, offered legislation last week that would examine a new way to provide revenue for the Highway Trust Fund. The bill directs the Treasury Department to study the viability of mileage-based user fee to replace the federal motor fuels tax. If this user fee approach is deemed feasible, the legislation would also establish a grant program aimed at ensuring that the technology necessary to implement this new fee system is in place nationwide. Blumenauer notes that while MAP-21 has provided sufficient revenue for the Highway Trust Fund to remain solvent through the end of fiscal year 2014, about $15 billion more annually is needed just to keep highway and transit funding at 2009 levels. Blumenauer noted that two commissions, as well as an array of policy experts, have suggested that transitioning to a vehicle-miles-traveled system, rather than a gas tax, will help in providing the revenue needed to address our nation’s growing transportation infrastructure deficit. Decreased driving, more energy efficient vehicles, the use of alternative fuels and the lack of political support for increasing the gas tax make it necessary to move towards a different revenue source. Blumenauer’s home state has already implemented a pilot study to test the feasibility of using this system to collect user fees. AGC has been on record for several years in support of the miles based user fee and strongly supports this legislation. For more information, please contact Brian Deery at (703) 837-5319 or deeryb@agc.org.