Electric vehicle owners don’t buy gas. States look for other ways to pay for roads and bridges

Oregon transportation officials say that without more funding, residents could see further declines in the quality of roads, highways and bridges starting this year. But revenues from gas taxes paid by drivers at the pump are projected to decrease as more people adopt electric and fuel-efficient cars, forcing officials to look for new ways to fund transportation infrastructure. States with aggressive climate goals like Oregon are facing a conundrum: EVs can help reduce emissions in the transportation sector, the nation's largest source of greenhouse gas emissions, but they also mean less gas tax revenue in government coffers. Motor fuel taxes are the largest source of transportation revenue for states, according to the National Association of Budget Officers’ most recent report on state expenditures. But the money they bring in has fallen: gas taxes raised 41% of transportation revenue in fiscal year 2016, compared with roughly 36% in fiscal year 2024, the group found. In California, where zero-emission vehicles accounted for about a quarter of all car sales last year, legislative analysts predict gas tax collections will decrease by $5 billion—or 64%—by 2035, in a scenario where the state successfully meets its climate goals. California and Oregon are among the multiple states that will require all new passenger cars sold to be zero-emission vehicles by 2035. The downward revenue trend is already playing out in Pennsylvania, where gas tax revenues dropped an estimated $250 million last year compared with revenues in 2019, according to the state’s independent fiscal office. Inflation has also driven up the cost of transportation materials, further exacerbating budget concerns. To make up for lost revenue, 34 states have raised their gas tax since 2013, according to the National Conference of State Legislatures. California has the highest gas tax at over 69 cents a gallon when including other taxes and fees, while Alaska has the lowest at 9 cents a gallon, according to figures from the U.S. Energy Information Administration. In Oregon—which in 1919 became the first state to implement a gas tax—it is 40 cents a gallon. This article was provided by The Associated Press.