This new program directs USDOT to carry out a nationwide pilot, soliciting volunteer participants from all 50 states, including commercial and passenger vehicles. ![]() National Motor Vehicle Per-Mile User Fee Pilot (IIJA Section 13002)-$50 million over 5 years IIJA Section 1301 also explicitly requires USDOT to submit a report to Congress in 2024 with recommendations on a national alternative revenue mechanism based on results from the state pilots. The new version of the grant also increases the federal share for new pilot projects to 80%, with a 70% share for recipients who have already received STSFA grant money. This updated version of the STSFA will provide grants for state-level user fee pilots, but expanding eligibility from state-level DOTs to local governments and metropolitan planning organizations. Strategic Innovation for Revenue Collection (IIJA Section 13001)-$75 million over 5 years The IIJA includes funding for two mileage-based user fee pilot programs: additional grants for state-level pilot programs, and the establishment of a new national pilot program. While funding for STSFA pilots through the FAST Act in 2015 has come to a close, these programs are eligible for continued funding through the IIJA. Administrative costs: Pilot administrators noted potentially expensive aspects of mileage-based user fees including start-up costs of a new system, operating costs and data processing, and enforcement costs with certain mileage tracking technology.However, despite this perception, several states reported that disparities in fees paid by rural drivers compared to other drivers are greater under gas taxes than mileage-based user fees. Equity: Some state transportation officials noted that the public believed rural drivers would pay more than their fair share under a mileage-based user fee system.Technology to track miles driven does not have to include GPS data, and technology that does track location can be subject to various privacy policies. Privacy: State pilot administrators found that drivers were concerned about the government tracking their location.Oregon and Utah have the most advanced pilot projects, where drivers can avoid paying registration fees by opting instead to pay mileage-based user fees, with revenue directed to transportation infrastructure projects.Ī recent GAO report highlighted some of the primary challenges for mileage fees-some of which BPC explored in a previous video series-that arose during STSFA pilots and ought to inform IIJA pilots and any broader mileage-based user fee programs in the future: ![]() Six states have ongoing pilot programs funded by STSFA. As EV ownership rises, transportation infrastructure will require an alternative source of dedicated revenue at both the state and federal levels.Īll STSFA pilots were limited to volunteer participants, ranging from 100 to 5,000. Many of these states rely on state-level gas taxes to fund transportation infrastructure, in addition to federal support. is expected to more than double between 20, with EVs representing a growing share of cars on the road.Ĥ5 states and DC provide some sort of incentive for EVs 13 states and DC require manufacturers to sell a certain number of vehicles that do not emit tailpipe emissions per year. Even without these efforts to boost EV uptake, the number of EVs sold in the U.S. auto manufacturers have signaled their intention to help meet that target. The Biden administration has set the ambitious goal of a 50% electric vehicle sales share by 2030-a critical step in helping the administration meet its overall goal of net-zero U.S. However, as vehicles become more fuel efficient, gas taxes will not be a long-term sustainable means to fund roads, bridges, and other transportation infrastructure. The federal government and many state governments rely on excise fees on motor fuel to maintain safe, efficient modes of transportation. ![]()
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