ATA Presses DOT on Stalled Mileage-Based Fee Study
[Stay on top of transportation news: Get TTNews in your inbox.]
In a letter to Transportation Secretary Pete Buttigieg, American Trucking Associations has expressed concerns over a two-year delay by transportation officials to appoint a special advisory board intended to address declining revenue for federal surface transportation investment.
“As you are no doubt aware, there are growing concerns about declining revenue available for federal surface transportation investment, primarily due to improvements in light-duty vehicle fuel efficiency,” said an Aug. 15 letter penned by ATA President Chris Spear. “In response, Congress included language in the Infrastructure Investment and Jobs Act directing the secretary of transportation to conduct a pilot program to explore the viability of a national motor vehicle per-mile user fee.
“As an initial step, the legislation required establishment of a Federal System Funding Alternative Advisory Board within 90 days of enactment. The February 2022 deadline has long since passed, and although a Federal Register notice soliciting nominees for the board was issued in October 2023, board members have not yet been named.”
RELATED: Think Tank Urges DOT to Begin National VMT Fee Pilot
With the IIJA set to expire in about two years, ATA said the opportunity to conduct the pilot program and report the results to Congress is “quickly fading.”
Cox Automotive's Kevin Clark discusses how dynamic parts management can transform your fleet services. Tune in above or by going to RoadSigns.ttnews.com.
“Without this critical information, Congress will not have the knowledge and data necessary to determine whether a mileage-based user fee is the right approach for addressing the shortfall facing the Highway Trust Fund,” the ATA letter said. “A shortage of federal-aid transportation funds puts at risk thousands of projects that are designed to save lives, relieve congestion and improve the reliability of the surface transportation system.”
The Highway Trust Fund continues to be on a collision course for survival.
“Since 2008, $275 billion has been taken from general funds and put into the Highway Trust Fund,” said Darrin Roth, ATA’s vice president of highway policy. “Since then, every highway reauthorization has transferred monies from the general fund to the highway trust fund to fill the gap. The projection right now is that the trust fund will become insolvent by 2028.
“We’re okay right now, but when you look at the projections, you’re looking at a reduction in those revenues from gas taxes, adjusted for inflation over the next 10 years being cut in half.”
States depend on Highway Trust Fund money, especially when they have big projects taking years to complete, Roth said.
“They’re pretty confident the money will be there. But it will be depleted significantly as passenger vehicle fuel efficiency improves.”
Roth said it’s too soon to tell, and ATA is playing wait-and-see on whether to support a mileage-based user fee system as a possible method to right the Trust Fund’s current course.
Despite posting a Federal Register solicitation notice Oct. 3, the Federal Highway Administration has not yet announced formation of the advisory board.
RELATED: Federal Funding Bill Tops Election-Year Agenda
ATA urged Buttigieg to immediately move forward with the appointment of members to the advisory board and provide the staff and financial resources necessary to expedite completion of the pilot program.
The advisory board will assist with:
- Providing the secretary of transportation with recommendations related to the structure, scope and methodology for developing and implementing the national motor vehicle per-mile user fee pilot program.
- Carrying out a public awareness campaign.
- Developing reports to Congress analyzing the national motor vehicle per-mile user fee pilot program.
- Coordinating in the development of the recommendations and a report to Congress required under the Strategic Innovation for Revenue Collection Pilot Program, according to the Federal Register notice.
The deadline for nominations for advisory board membership has passed.
The notice said the transportation secretary planned to appoint, at a minimum, varied representatives and entities ranging from departments of transportation, representatives of the trucking industry (including owner-operator independent drivers) and data security experts to advocacy groups focused on equity and owners of motor vehicle fleets.
Want more news? Listen to today's daily briefing below or go here for more info:
