Capitol Agenda for the Week of Feb. 26: If We All Drove Electric Cars
A week after President Donald Trump is said to have endorsed an increase in fuel taxes, Kevin Hassett, chairman of the Council of Economic Advisers, was asked at the White House press briefing Feb. 22, “How realistic is it that there could be a hike in the gas tax?”
Hassett, at the briefing to answer questions about the council’s annual economic report to the president, told reporters to imagine a society where everybody got around in electric cars.
“If we’re all driving around in Teslas, then, how is the gas tax going to pay to fix the potholes because there’s no one using gasoline anymore?” Hassett said. “And so, as we approach the 21st century, the president has a very ambitious infrastructure agenda, and he’s basically instructed everybody to think creatively about how are we going to finance that, and to make sure that the thing that’s legislated becomes law and that all of the possible tools are on the table.”
While not completely dismissive of a fuel-tax increase, his sentiment did not address the urgency of the matter.
Key transportation stakeholders are calling on federal policymakers to increase fuel taxes while they “think creatively” on a sustainable infrastructure funding fix. The increase, they say, would quickly address funding woes around the country. A vote on Capitol Hill on a fuel tax would hardly seem inconceivable. More than two dozen states recently voted to raise taxes on gas and diesel.
Most stakeholders also acknowledge the shift toward better fuel-efficient vehicles, the impact of which hampers the Highway Trust Fund, an account backed primarily by revenue from the excise tax on gas and diesel fuel. The fund is used to assist states with infrastructure projects.
When applied to other hypotheticals, Hassett’s thought experiment does not hold up. For instance, imagine a society where every corner was connected via hyperloops, and we all traveled by solar-powered flying cars. A gas tax would be irrelevant.
Or, what if teleportation was achievable. Again, a tax on fuel would not matter. Maybe agencies would set up some sort of a teleport fee. Those scenarios are as unlikely now as Hassett's Tesla-centric society.
To be sure, exiguous methodology notwithstanding, the infrastructure section in the council’s report does favor a fee.
Erp 2018 Final-final by Transport Topics on Scribd
“The declining revenue productivity of existing gasoline taxes has led policymakers to consider other options for funding highways,” according to the report. “One innovative approach is to consider supplementing or replacing fuel taxes altogether with a user fee more closely related to a consumer’s use of the system, such as, in the present context, a tax on vehicle miles traveled.”
As policymakers continue to debate the merits of funding options, one thing is undeniable. Elon Musk would love it if we drove around in Teslas.
THE WEEK AHEAD: (all times ET)
Feb. 26: The Financial Services Roundtable holds its 2018 Spring Conference. Speakers include Deputy Attorney General Rod Rosenstein.
Feb. 27, 8:30 a.m.: The U.S. Chamber of Commerce hosts its 2018 Invest in America Summit. Speakers include Senate Finance Chairman Orrin Hatch (R-Utah), Australian Ambassador to the U.S. Joe Hockey, Republican governors Paul LePage of Maine, Rick Snyder of Michigan, Jeff Colyer of Kansas, Matt Bevin of Kentucky and Phil Bryant of Mississippi, as well as Democrat Gov. John Hickenlooper of Colorado.
Feb. 27, 10 a.m.: The House Energy and Commerce Committee reviews the “State of the Nation’s Energy Infrastructure.”
Feb. 27, 10 a.m.: The House Oversight and Government Reform Committee looks into “Federalism Implications of Treating States as Stakeholders.”
Feb. 27, 12 p.m.: The Electric Drive Transportation Association hosts its 2018 leader series: “Electric Drive in 2018 and Beyond: Outlooks for Markets and Policy.” Speakers include Sens. Tom Carper of Delaware and Jeff Merkley of Oregon.
Feb. 28-March 1: The American Association of State Highway and Transportation Officials hosts its annual Washington briefing. Speakers include Transportation Secretary Elaine Chao, Sens. John Barrasso (R-Wyo.) and Carper, and Reps. Bill Shuster (R-Pa.) and Peter DeFazio (D-Ore.).
Feb. 28, 10 a.m.: The House Interior, Energy and Environment Subcommittee meets for “An Examination of Federal Permitting Processes.”
Feb. 28, 10:30 a.m.: The Senate Commerce Committee examines the “Implementation of Positive Train Control.” Witnesses include Susan Fleming, director of physical infrastructure at the Government Accountability Office; Barry DeWeese, assistant inspector general of the Department of Transportation; David Mayer, chief safety officer for the Metropolitan Transportation Authority; and Richard Anderson, president and CEO of Amtrak
March 1, 10 a.m.: The Environment and Public Works Committee reviews President Trump’s infrastructure proposal with Secretary Chao.
March 1, 1 p.m.: The U.S. DOT Office of the Secretary hosts a summit on automated vehicles.
March 2, 10 a.m.: The Pipeline and Hazardous Materials Safety Administration hosts a meeting by teleconference of the Gas Pipeline Advisory Committee.
IN CASE YOU MISSED IT:
TONNAGE: Truck tonnage rose 8.8% in January on a year-over-year basis, according to American Trucking Associations’ monthly for-hire truck tonnage index. The news also was good on a sequential basis as tonnage increased 2% from December to January. The seasonally adjusted index was 111.6 last month, up from 109.4 in December.
GARDEN STATE: The Port Authority of New York and New Jersey voted Feb. 15 to dedicate $44 million to the multibillion-dollar Hudson River tunnel project. It involves the construction of a new two-track rail tunnel from Newark, N.J., to Pennsylvania Station in New York City and the rehabilitation of the existing 106-year-old North River Tunnel, which incurred damage during Superstorm Sandy in 2012.
‘MAN TO MAN’: A nationwide campaign aimed at raising awareness about human trafficking and amplifying industrywide efforts was launched by Truckers Against Trafficking and key partners, the group announced Feb. 21.
BUZZ:
Infrastructure funding discussions are ongoing between Trump administration officials and top congressional staffers, with an “all options on the table” approach, persons familiar with the discussions told Transport Topics.
WHAT WE’RE READING:
The Hollywood Reporter offers a glimpse of another #MeToo moment.
FAVORITE QUOTE:
They have explicitly carved out in the infrastructure package overall a good size chunk for rural investment, and it’s up to Congress to flush that out, and I think that will be an important part of the package.
Former Transportation Secretary Jim Burnley on Bloomberg TV on Feb. 22
FAVORITE VIDEO:
Volvo. On automation.
FAVORITE TWEET:
Thank you for reading Capitol Agenda. We publish Tuesdays when Congress is in session. E-mail emulero@ttnews.com with tips. Follow @eugenemulero and @transporttopics on Twitter.
