BILL ANALYSIS �
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THIRD READING
Bill No: AJR 5
Author: Bonnie Lowenthal (D), et al.
Amended: 3/29/11 in Assembly
Vote: 21
SENATE TRANSPORTATION & HOUSING COMMITTEE : 7-2, 5/10/11
AYES: DeSaulnier, Huff, Kehoe, Lowenthal, Pavley, Rubio,
Simitian
NOES: Gaines, Harman
ASSEMBLY FLOOR : 46-16, 3/29/11 - See last page for vote
SUBJECT : Transportation revenues: vehicle miles
traveled
SOURCE : Author
DIGEST : This resolution urges the federal government to
study the feasibility of collecting transportation revenues
based on vehicle miles traveled to create a reliable and
steady transportation revenue source.
ANALYSIS : Existing federal law imposes an excise tax of
18.4 cents per gallon on gasoline and of 24.4 cents per
gallon on diesel. The federal government first imposed an
excise tax on gasoline in the 1930s and imposed the current
tax rate in 1993. The resulting revenue stream provides
the primary and largest source of federal transportation
funding. Because these federal excise taxes on
transportation fuels do not adjust with time or inflation,
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this revenue stream shrinks over time as inflation,
improved vehicle fuel efficiency, and the increased use of
alternative fuels occur.
The federal transportation act of 2005, known as the Safe,
Accountable, Flexible, Efficient Transportation Equity Act
- A Legacy for Users (SAFETEA-LU), established the National
Surface Transportation Policy and Revenue Study Commission
to examine the condition and future needs of the nation's
surface transportation system, as well as short- and
long-term alternatives to excise taxes on fuels. After
months of study, the commission issued its report in
December 2007. Among its recommendations was consideration
of a vehicle miles traveled (VMT) fee.
This resolution respectfully requests that the President
and the Congress of the United States enact legislation to
study the feasibility of collecting transportation revenues
based on VMT to create a reliable and steady transportation
funding mechanism.
Comments
VMT fee challenges . Implementing a VMT fee involves a
number of operational, technological, and institutional
challenges, including determining the method for
calculating the miles a vehicle is driven, the process by
which mileage data is transmitted to a tax collection
agency, contingencies to address potential equipment
failures, adequate privacy protections, and a strategy for
transitioning from the fuel tax to a VMT fee, if it is to
replace the existing excise taxes. Before policy makers
can assess whether or not a VMT fee is a feasible source of
revenue, someone must catalog and understand these varied
issues. This resolution asks the federal government to
take on this task.
The federal government has already done some research on
implementing a VMT fee. Through SAFETEA-LU, Congress
funded a study that the University of Iowa Public Policy
Center conducted to see how the public responds to a
mileage-based road user charge system. The researchers
completed their field testing, which took place in 12
cities around the country, last summer. Those who
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participated in the field tests had an on-board computer
temporarily installed in their vehicles, which stored a
record of charges due from road use. The information
collected was uploaded to a processing center. If the
federal government were to implement a VMT charge, the
processing center would then bill the vehicle owner. For
the study, however, no money was collected. Currently, the
study team is analyzing data collected from participant
surveys and computers. The results of the study will be
presented at a congressional hearing sometime in 2011.
FISCAL EFFECT : Fiscal Com.: No
SUPPORT : (Verified 5/11/11)
American Lung Association
Sierra Club
ARGUMENTS IN SUPPORT : The author's office notes that the
current federal transportation funding mechanism is
unsustainable over the long term. To wit, the federal fuel
tax experienced a 33 percent loss in purchasing power since
1993. Similarly, the state's 18-cent gasoline excise tax
has experienced a 29 percent loss in value since 1994, the
year of its last increase. Additionally, further erosion
of state and federal fuel taxes will occur as fuel
efficiency and the use of alternative fuel vehicles
increase.
While the fuel tax is eroding, use of the transportation
system is steadily increasing. In California, the
California Transportation Commission notes that travel on
California's roads increased by 35 percent between 1991 and
2006.
The author's office reports that numerous states have
already begun to consider the possibility of instituting
VMT fees to support transportation infrastructure. While
recognizing the value of each state's experience, she also
asserts that it is important that a coordinated national
effort take place. This resolution encourages the
President and the Congress to order a feasibility study to
evaluate methods for a mileage-based transportation fee
system to replace the current fuel tax.
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The American Lung Association, writing in support, notes
that VMT fees not only could help protect transportation
revenues but can also better signal to the public the
actual costs of driving and help encourage healthier, more
active transportation choices that favor walking, biking,
and transit use. These in turn fight air pollution,
climate change, and chronic illnesses, such as obesity,
diabetes, and heart and lung disease.
ASSEMBLY FLOOR :
AYES: Alejo, Allen, Ammiano, Atkins, Beall, Block,
Blumenfield, Bonilla, Bradford, Brownley, Buchanan,
Butler, Campos, Carter, Cedillo, Davis, Dickinson, Eng,
Feuer, Fong, Fuentes, Furutani, Galgiani, Gatto, Gordon,
Hall, Hayashi, Roger Hern�ndez, Hill, Hueso, Huffman,
Lara, Bonnie Lowenthal, Ma, Mitchell, Monning, Pan, V.
Manuel P�rez, Portantino, Solorio, Swanson, Torres,
Wieckowski, Williams, Yamada, John A. P�rez
NOES: Achadjian, Conway, Donnelly, Garrick, Grove, Hagman,
Halderman, Harkey, Jones, Knight, Logue, Nielsen, Olsen,
Perea, Silva, Wagner
NO VOTE RECORDED: Bill Berryhill, Charles Calderon,
Chesbro, Cook, Fletcher, Gorell, Huber, Jeffries,
Mansoor, Mendoza, Miller, Morrell, Nestande, Norby,
Skinner, Smyth, Valadao, Vacancy
JJA:mw 5/11/11 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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