One of the nation's primary infrastructure funding sources, however, isn’t benefitting from the wave of innovation.
Yet.
The gas tax is the primary source of funding for the nation’s roads and bridges. The increasing efficiency of internal combustion engines and the rise of electric and hybrid vehicles have eroded gas tax funding for years and the trends point to a further, accelerating decline.
Ultimately, the country needs a new funding mechanism to replace the unsustainable gas tax, which has less purchasing power than it did when it was last raised in 1993, as well as factoring in the advent of electric vehicles which decrease gas tax revenues. Road usage charging, or RUC, is gaining traction at the state and federal levels as a possible replacement.
The concept behind RUC is to treat the usage of our roadways just like other public utilities. Drivers are charged for the amount they use the roadways. Just like electricity, the more one uses, the more one will pay, regardless of what “fuel” propels the vehicle.
While there are many questions about a nationwide RUC implementation, the BIL funds its study, pilot programs are underway and more discussion is expected soon.
We look forward to the release of RUC grants in the near future, which will further demonstrate the viability of mileage-based fees and enable states and local governments to continue addressing important areas of research. Additionally, the near-term deployment of a national RUC pilot program, as required in BIL, will be an important moment to take lessons learned from state-based pilots and build a broad-based nationwide program. Frankly, now’s the time to take RUC to the next level.