In the last few years, there has been a steep decline in road and infrastructure quality. The Highway Trust Fund, which is intended to maintain these, has not been able to keep up with the level of work that is needed to get done around the country. Roads, bridges, and nearby areas need far too much work to be done so that it is now simply unmanageable. In order to make the work more manageable, some industry leaders have a few suggestions. Specifically, the Truckload Carriers Association, also known as the TCA, has an idea for lawmakers that they feel will solve many infrastructure problems facing the Highway Trust Fund.
Their idea? Change the current fuel tax system.
The current fuel tax system has been in place, mostly unchanged, since 1993. The TCA is proposing a change that they are calling the Gallons-Based User Fee, or the GBUF for short. In their proposal, they are hoping to adjust the fuel tax to take account for inflation which has changed drastically in the last 32 years. Furthermore, they proposed an annual registration fee be required for electric vehicles as well, which currently do not pay anything per the current fuel tax system.
The TCA states the fuel tax system does work; it just needs an update.
In 1993, electric vehicles were rare and almost nonexistent. Now, they are common and often the promoted vehicle type. With the increase in electric vehicles on the road, annual fuel fees have decreased. This has caused a decline in the Highway Trust Fund. By updating to include an annual fee for electric vehicles as well, trucking leaders believe the fund will be able to manage road work more efficiently.
The GBUF program includes a $250 annual fee.
The program also takes into account hybrid vehicles, suggesting a $100 annual registration fee. This number is lower as, being partially gas powered, they would still have a payment to make for fuel taxes. In addition to the annual fee for electric and hybrid vehicles, the program proposal lays out the gallon gas adjustment that would account for the inflation over the years. They propose a 39.9 cent increase per gallon of gasoline and a 52.0 cent increase per gallon of diesel.
Aside from these adjustments, the program would continue to function as is.
According to the TCA’s estimation, the program changes would bring in an additional $220.2 billion in just four years. Currently, the Highway Trust Fund has a predicted nine-year shortfall. This shortfall is expected to be around $181 billion. If the changes succeed, the shortfall would be eliminated easily. Furthermore, the program changes would be able to aid in closing in on the national debt for the road and bridge funding. This would be a huge economic win for the trucking industry and the overall U.S. economy.
This would only affect the average driver by an increase of about $236 more per year. This means the program is not a massively devasting change to make.
The TCA is going to be holding a meeting in Washington D.C. in late September to push lawmakers toward change.