2024-2025 Group 1 - 2nd Place Essay by Aydin Firoozshahian

Humans’ greenhouse gas emissions are driving climate change, harming all life. However, attempts to reduce emissions in transportation have drastic effects on the economy and infrastructure. By transitioning from gas to electric vehicles, the gas tax declines, and was projected to decrease by $6 billion in the next decade (calmatters.org). This tax provides funding to maintain critical infrastructure, such as roads, bridges, and traffic signals, so compensating for its decline is necessary. Through replacing fuel costs with a miles driven-based fee, implementing more traffic-managed lanes, and implementing a tax on home electric charging plans, the people can pay to replace the gas tax.

First, charging drivers based on miles driven instead of fuel can help compensate for the decline of the gas tax. Some states have already switched to a miles-driven fee, which has benefits of sustainability and equity (ncsl.org).  A miles driven-based fee does not rely on fuel, so it can be kept if the fuel source changes. Also, larger and older cars are less fuel-efficient than smaller and newer cars, causing owners of larger and older cars to pay more for fuel. This inequality increases with increasingly fuel-efficient models. Switching to a miles-driven system that does not rely on fuel efficiency would eliminate this inequity. It also counteracts the gas tax’s decline, because people are using less gas, but driving the same distance overall. 

Second, implementing more traffic-managed lanes can also help raise money. Managed lanes help solve traffic congestion by controlling traffic movement on highways, often being restricted by limited entrance and exit or vehicle qualification (dot.ca.gov). Placing managed lanes on large highways will make the most money because they have the most traffic. Also, too low of an entry price will not make revenue considering construction costs, but too high of a price will turn people away. California contains 40% of managed lanes (dot.ca.gov). Therefore, spreading more of these lanes across all U.S. states will raise the most money and ease residents’ driving experience.

Lastly, implementing a tax on home electric charging plans can provide funding to compensate for the gas tax. Electricity companies such as PG&E offer home charging plans for electric appliances, including EVs (pge.com). Therefore, a small tax on these plans can provide funding while costing only a few extra cents per kilowatt-hour. The tax can increase at higher-demand charging hours to encourage charging EVs during low-demand hours to help the environment. Although this tax will be cheap per kilowatt-hour, the revenue will add up as more people switch to home plans to save money on EV charging. Placing a tax on home charging plans can prove an effective gas tax replacement while only costing a few more cents per kilowatt-hour.

The people can pay to compensate for the gas tax through a miles driven-based fee, more managed lanes, and a tax on home electric charging plans. There are many avenues where money can be raised, so implementing a combination of funding ideas will solve the gas tax decline.

Bibliography

“Electric Vehicle (EV) rate plans.” pge, https://www.pge.com/en/account/rate-plans/find-your-best-rate-plan/electric-vehicles.html. Accessed 16 Jan. 2025.

Lazo, Alejandro. “California gas tax revenue will drop by $6 billion, threatening roads.” Calmatters, 13 Dec. 2023, https://calmatters.org/environment/2023/12/gas-tax-revenue-drop-climate/. Accessed 11 Jan. 2025.

“Managed Lanes.” Caltrans, https://dot.ca.gov/programs/traffic-operations/managed-lanes. Accessed 11 Jan. 2025.

Ryckman, Lisa. “Running on Empty: Refilling the Gas Tax Tank.” NCSL, 10 Sept. 2024, https://www.ncsl.org/state-legislatures-news/details/running-on-empty-refilling-the-gas-tax-tank. Accessed 11 Jan. 2025.