The streets are paved with oil

Bike-hatin’ DOT head Mary Peters warns of decline in gas-tax revenues 20

Muckraker: Grist on Politics

Mary Peters, President Bush's Secretary of Transportation, is best known in green circles for blaming bike-riders and pedestrians for the decay of the nation's roads and bridges. But green-transit-hating Peters seems to be singing a different tune, now that the Highway Trust Fund is threatened by a decrease in driving.

Congress yesterday approved an $8 billion relief package for the fund, to compensate for decreased revenues from the federal gas tax. And in a telephone press conference with reporters recently, Peters acknowledged that high gas prices and the threat of climate change will inevitably change the transit habits of Americans. Perhaps, then, it's time for a new method of funding highways, she said:

We need a sustainable, supportable source of funding for our transportation system in our nation. And if we in America move away from the dependence we have on fossil-based fuels, run more efficient vehicles, run more renewable fuels, lessen our dependence on foreign oil, we need to find a funding mechanism that will be sustainable, that will be responsive over time. The gas tax is simply not that mechanism ... we need to hear from Congress, from others in the community, and come up with a long-term solution.

Some straight talk from a Bush appointee in the final months of the administration. Now what can the federal government do to help spur the transition away from fossil-based fuels? Not a lot of details on that in the materials Peters's office released last week.

Kate Sheppard is Grist’s political reporter.

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  1. Pangolin's avatar

    Pangolin Posted 10:20 am
    12 Sep 2008

    But cars pay for themselvesOr at least that's what we get told when we ask for money for public transit projects. You would swear from the screams that every inch of asphalt laid down came from gas tax monies.  
    Now the DOT says that ain't so. Who you gonna trust anymore.

    Put the Carbon Back
  2. Sam Wells Posted 2:06 pm
    12 Sep 2008

    It's pretty much all gas taxesI don't know where you read that the USDOT gets much money any funds other than the per-gallon tax on gasoline and diesel - it's all oil money except for some special "pork" earmarks such as the Highway to Nowhere, the Senator Byrd Highway, and a few special line item that might include transit projects.
    So what I take home is that the USDOT needs a new way to raise money for maintaining and constructing highways and mass transit, as our infrastructure continues to degrage and fall apart - a bridge falling into the Mississippi was just a first sign.
    True, the mass transit fund hasn't been affected all that badly yet, but there is no mechanism to give that a real "shot in the arm" to increase capacity; in fact many cities are curtailing bus and train transit due to rising energy costs.  Bad combination!

    -sammie

    Onward through the fog
  3. Jon Rynn's avatar

    Jon Rynn Posted 2:41 pm
    12 Sep 2008

    Hey Sammie, hope you're OK in Texas
  4. Sam Wells Posted 3:31 am
    13 Sep 2008

    Thanks JonI'm almost near the Mexico border so the only thing we saw was some very high tides and surf - some of the best surf in three years. Many from the Houston area drove down here to get away from Ike.
    The situation in Houston, Galveston, and the greater surroundings is not so clear. Ike seemed to have less winds and surge than NOAA and the media predicted. It will take at least a week to understand the damages, since much of it is underwater or without electricity now.
    Impacts on the highway and transit functions aren't known but could be quite severe. For all we joke about Houston being a totally unplanned community with no zoning, it did have a large bus and Metro-Rail program.  
    Thanks for asking, Jon, and prayers or best wished for those up the coast.  -sam

    Onward through the fog
  5. MAD MAC Posted 3:41 am
    13 Sep 2008

    Leave it to Pangolin............. to make the debate about who shot John and a credibility issue.
    Can we just focus on the issue and not sling darts at someone or some political orientation. Jesus Christ already.

    Victory in Pattani
  6. GreyFlcn Posted 5:20 am
    13 Sep 2008

    SoOne argument I've heard
    Remove the gas tax, but create mileage based car insurance, and tax that.

    -David Ahlport
  7. Bob Wallace Posted 5:45 am
    13 Sep 2008

    Close...If we move away from pumped fuel, which is fairly certain, then a mileage tax would be a nice replacement.  Should be easy to do via smart-metering and could be adjusted for vehicle weight.
    (Weight, IIRC, is what destroys roads.)
    Don't tax the insurance.  Just charge a mileage fee for road usage.
    Pay as you go insurance would be great.  Those of us who have a few assets have to buy 'uninsured motorist' coverage to protect us from those who don't.   And that ain't fair.
  8. MAD MAC Posted 6:13 am
    13 Sep 2008

    Life ain't fair"Pay as you go insurance would be great.  Those of us who have a few assets have to buy 'uninsured motorist' coverage to protect us from those who don't.   And that ain't fair."
    Those of us who are law abiding citizens also have to buy weapons to protect us against those who are not. The government can not protect us against evil, just provide some limited capacity to make our lives easier.

    Victory in Pattani
  9. Wolverine Posted 6:45 am
    13 Sep 2008

    I Agree, Pay As You GoWhile I'd love to see a very high gasoline tax, I'm also OK with charging for miles driven.  Making the cost high enough would certainly change behaviors toward less car travel, which is better for the Earth.
  10. Bob Wallace Posted 6:49 am
    13 Sep 2008

    Don't know where you live...Here in the civilized world we have police.
    They're doing a danged good job protecting us from the bad guys.
    We get together as a community and hire them.  
    I haven't had to shoot a Republi, er, crook in years....
  11. GreyFlcn Posted 9:07 am
    13 Sep 2008

    Not Insurance. Then what?Don't tax the insurance.  Just charge a mileage fee for road usage.
    Well I say to tax the insurance, because frankly, the only other way to do it is to put GPS tracking and reporting inside every car.
    And frankly I doubt that would be politically possible, since people would scream bloody murder about "Big Brother" implications to that.

    -David Ahlport
  12. Bob Wallace Posted 9:42 am
    13 Sep 2008

    Don't think so...We've started moving toward a 'smart grid' where information and power can flow both directions.
    Plug in for a charge and your mileage gets automatically uploaded.  
    No need to track where/when.
    We could do a very low tech version of that right now.  Many places have required annual safety/emission checks.  I'm sure mileage is recorded at the time.
  13. GreyFlcn Posted 9:51 am
    13 Sep 2008

    Fair point

    -David Ahlport
  14. Sam Wells Posted 9:30 am
    14 Sep 2008

    Fuel IS Mileage!When you tax a gallon of fuel - which hasn't gone up in a long time to match inflation, the cause of the highway fund shortfall - you ARE taxing mileage. See, if you get 8 to 60 MPG, you're paying a carbon tax right there,  It is a beautiful system where the less economical engines driven the most pay the most!
    So raising the tax on gasoline and diesel makes a lot of sense in one way, since it would recover some of the money needed for highways and transit.
    However, it is horribly regressive for the poor and lower middle class, as well as the transportation sector (think truckers).
    Politically, I think most uber-conservatives could care less about a tax being regressive, such as having to pay more for gasoline and have less food on the table.  However, luck is on our side for the meantime largely because of the "no new taxes" mantra.
    If we can figure out how to handle the socially regressive aspects of higher state and federal motor fuel taxes, I say jack them up to about 50 or 70 cents a gallon.
    Remember, those folks making $14,000 a year can't afford to buy a brand new electric or hybrid car, my friends.  -sam

    Onward through the fog
  15. ConsumeLessofIt Posted 10:41 am
    14 Sep 2008

    They shouldn't need moreIt was actually quite inspiring to finally see people figuring out ways to drive less when gas hit $4/gallon.  In fact I support raising the gas tax, a mileage tax, and taxing heavy inefficient vehicles when they are sold.  The fewer vehicles on the road the better.  
    I also don't fully understand why there is a revenue crisis at the Highway Trust Fund.  If there are less vehicles on the roads, the fund makes less revenue.  But shouldn't less vehicles also mean less wear-and-tear, and less maintenance?  Hence, there should be a correlation between number of vehicles and revenue needed.

    Cheers!

    Stu

    www.ConsumeLessofIt.com
  16. Bob Wallace Posted 1:30 pm
    14 Sep 2008

    Jacking gas prices...That would be useful for cutting demand but it would also mean an awful lot of politicians hitting the unemployment line.
    Solutions have to be politically acceptable.
    Solutions have to have little to no impact on voters or voters have to be convinced that there is good reason for them to accept the pain.
  17. Sam Wells Posted 1:34 pm
    14 Sep 2008

    Highway maintenance ...A lot of people have the same question and thanks for asking - not that I'm any expert at all. But I can say that about 30 to 40 percent of our bridges, for example, are beyond their useful like, have not been maintained, and are at risk of deteriorating to the point they fall down.  I hate it when bridges do that!
    The second problem, actually mentioned in passing in this thread, was trucks.  What's the average car, a half-ton to maybe a ton or two?  A heavy-duty Class 8b truck-tractor is rated up to about 40 tons and about 5 to 10% of those trucks are overweight (which is why they have weigh stations on the highway). The ripple effect of all those axle wheels can actually destroy a road in three years if not maintained.
    A third problem is simply severe weather. Up north it is frozen ground and frost heaves. Down south when it gets over 100 degrees, the road can so much it buckles. Extreme rain events can cause the base coats of material to delaminate or turn into mush. You'll see that up north, summer is "highway construction season" and down south it is the reverse.
    What happens when maintenance stops, is that even your little electrics and hybrids could fall into giant potholes that could shallow an entire vehicle - New York comes to mind, as well as dome other places.
    We tend to think of the highway motor fuel tax being used for completely new roads in the wilderness. This is not exactly true ... most are tearing up old highways and building new ones from scratch because they are so dilapidated. Unfortunately, our country does not place a high premium on preventative maintenance, and only does it when funds are available.

    Onward through the fog
  18. John former Marine Posted 1:13 am
    15 Sep 2008

    I'm for higher gas taxes...As someone said earlier, fuel=miles.  I actually think that, in this case, a fuel tax is the "small government" solution.  Inevitably, however, somebody will come up with some other incredibly complex, corrupt, big government scheme to keep wealthy people driving their fancy cars on fine roads.  And they'll be taxing the poor to do it, believe me.  We all know rich people don't pay taxes on the wealth they "create" by exploiting the labor of poor people or by various banking schemes.  It seems to me that if you believe in the marketplace, truckers should be passing on the higher cost of shipping to customers.  If customers decide that $10/lb is too much to pay for strawberries in Maine in winter, then they'll eat something that has travelled less distance and truckers will stop transporting stuff they shouldn't be shipping.  The idea that we should be supporting an industry that we may not need is totally communist (and not very environmentally-friendly).  Let the marketplace decide who can afford to drive and let those people driving pay for the roads.  When this cheap fossil energy runs out, there's nothing you can do to keep shipping costs down.  In fact, they should just let all the highways fall apart and use the money to repair and build up our rail networks in this country.  Cars are soon to be a thing of the past and I don't think that heavily subsidizing highways with my taxes is the answer.  Let the Hummer driver pay for the highways.

    Il faut cultiver notre jardin.
  19. John former Marine Posted 1:14 am
    15 Sep 2008

    I'm for higher gas taxes...As someone said earlier, fuel=miles.  I actually think that, in this case, a fuel tax is the "small government" solution.  Inevitably, however, somebody will come up with some other incredibly complex, corrupt, big government scheme to keep wealthy people driving their fancy cars on fine roads.  And they'll be taxing the poor to do it, believe me.  We all know rich people don't pay taxes on the wealth they "create" by exploiting the labor of poor people or by various banking schemes.  It seems to me that if you believe in the marketplace, truckers should be passing on the higher cost of shipping to customers.  If customers decide that $10/lb is too much to pay for strawberries in Maine in winter, then they'll eat something that has travelled less distance and truckers will stop transporting stuff they shouldn't be shipping.  The idea that we should be supporting an industry that we may not need is totally communist (and not very environmentally-friendly).  Let the marketplace decide who can afford to drive and let those people driving pay for the roads.  When this cheap fossil energy runs out, there's nothing you can do to keep shipping costs down.  In fact, they should just let all the highways fall apart and use the money to repair and build up our rail networks in this country.  Cars are soon to be a thing of the past and I don't think that heavily subsidizing highways with my taxes is the answer.  Let the Hummer driver pay for the highways.

    Il faut cultiver notre jardin.
  20. canibefrank Posted 1:56 am
    15 Sep 2008

    Long term solution....The gas tax needs to remain the same, raising it now  during the current economic downturn would not be fair. Sort of like changing the rules in the middle of the game. BUT one way to supplement it would be to raise fees on renewing your vehicle tag: cars with high mpg should pay less, low mpg should pay more. If you can afford 50k for a Hummer, you should be able to plop down a thousand or more for the tag...

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