California to Lose Tax Revenue Over Diesel Ban
It seems like when it comes to trucking under strict Californian regulations, truckers can never seem to get a break. It seems their ban on operation of diesel vehicles by 2042 will have reverberating effects, as the decreased tax revenue from gasoline and diesel fuel taxes will lead to worse road conditions.
Details
The news comes from the Legislative Analyst’s Office in California, which says that the rapid adoption of zero-emission vehicles as required by the California Air Resources Board will cut into the taxes that these vehicles pay by using fossil fuels, leaving $4.4 billion in revenue on the table.
California’s highway maintenance and rehabilitation programs, responsible for 52,000 lane miles of highway and 13,000 bridges, will feel the sting of this reduced revenue, and road conditions are likely to get worse, especially as these construction costs rise. To mitigate this disaster, the Legislative Analyst’s Office came up with four potential solutions:
- Increase the fuel taxes on those still using fossil fuel vehicles until the ban takes place, hoping to recoup the future losses in the present.
- Reduce transportation program spending, leading to more dilapidated roads.
- Acquire funding for road repair from other sources.
- Create an alternative tax for greener fuels such as electricity and hydrogen.
One other option California may eventually introduce is the Vehicle Miles Traveled tax, which has been introduced in Connecticut with much furor.
Conclusion
The nation’s roads and bridges are already in a questionable position as it is, the cutting of this funding will only exacerbate the problem. Damaged roads lead to damaged vehicles, causing fleets and private drivers of cars to have to pay more for vehicular maintenance and repair. It is ultimately a huge circus of dominoes, with one decision leading to numerous consequences.
As of the time of writing, however, California is still set on implementing its 2042 diesel ban, regardless of the loss in revenue. As that date creeps closer and closer, we will have to see whether or not the government behind the Golden State will change its mind about abandoning gasoline and diesel.
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