Wednesday, May 26, 2010

Will the electric car kill the Interstate Highway System?

As The United States shifts more and a lot more toward electric autos and efficiency standards that require that all cars to achieve at least 35 mpg, there may be a hidden peril lurking for the Interstate Highway System. As Keith Crain points out in a recent op-ed piece for Automotive News, the funding mechanism for maintaining the IHS – the Highway Trust Fund – depends heavily upon gasoline tax. As drivers consume more gasoline, a lot more tax dollars are funneled to the Highway Trust Fund. Eventually, the new breed of efficient internal combustion and electronic vehicles will require no gas to operate. Thus, Crain calls for Congress to find option means of maintaining the Highway Trust Fund.

Article Source: Is the electric car going to kill the Interstate Highway system?

The short term stimulus for the Interstate Highway System

During President Dwight Eisenhower’s administration, the National Interstate and Defense Highways Act of 1956 (which established the Interstate Highway System) was considered a landmark public works law. The network of highways remains the largest system of its kind in the world, and the ways in which it has furthered commerce, travel and defense in The United States cannot be discounted. But lawmakers at that time were unable to predict just how much money would be required to maintain the IHS over time. Congress has found solutions to keep the Highway Trust fund operational after it had expired. Of course, this has only been short term. President Obama’s green initiatives look good on paper, but transitioning the American public to using public transport rather than private autos for daily tasks may be a difficult goal.

The Highway Trust Fund debate is complicated

C-Span recently posted a three-plus hour debate on funding the highway system. Part of the problem, according to Senators Tom Coburn and John McCain, is that Congress too often “raids the cookie jar,” taking money out of the Highway Trust Fund in order to finance unrelated pet projects. Transportation Secretary Ray LaHood has proposed a tax on car miles traveled (VMT) to help make up for gasoline tax shortages. As outlined by the Washington Post, this idea is very unpopular because there are numerous that fear the government will use mileage counters to monitor drivers.

Where will the money come from?

Nobody has agreed on any one answer. Crain advises that Congress seriously consider solutions right now, rather than waiting until the last moment and deciding hastily. The number of hybrid vehicles on America's roads grew by about 1.6 million according to a 2009 study published by Tobbits.com. If the trend continues, the Interstate Highway System and Highway Trust Fund issues will only increase.

Sources

American Trails

The Washington Post



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