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ATRI study uncovers how EVs could contribute to highway funding

October 1, 2021 Uncategorized

The American Transportation Research Institute (ATRI) Wednesday released research that describes a framework for electric vehicle (EV) taxation to support transportation infrastructure.

Through a small tax on the electricity that is used in transportation, the report identifies an approach to efficiently connecting the growing number of U.S. electric vehicles with highway trust fund (HTF) revenue streams. At present, ATRI says electric vehicles do not contribute substantively to state and federal highway trust funds. In fact, there are numerous programs that subsidize the use of electric vehicles, thus exacerbating the infrastructure investment deficit. 

[RELATED: Dealers could be expected to invest six figures to support electric trucks]

ATRI’s analysis quantifies this revenue loss at more than $4 billion over the next 10 years. The report suggests U.S. electric utilities are well equipped to begin collection of a per-kWh charge of 2.1 cents for transportation-related electricity consumption in the coming years. ATRI says using a phased approach, utilities would identify, measure and tax electricity that is used for transportation — starting first with electricity that is dispersed through public charging stations and residential smart chargers.

“This analysis demonstrates how an electricity tax can easily emulate all the key components of a fuel tax. Moving forward with an efficient utility-based approach will help EV owners support the infrastructure that they use every day,” said Paul Enos, CEO of the Nevada Trucking Association.

For access to the full report please visit ATRI’s website at TruckingResearch.org.

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