Both improving fuel efficiency of gasoline vehicles and electrification of the vehicle fleet provide key environmental and financial benefits to society. However, these trends are undermining transportation funding sustainability, leading states to consider replacing the fuel tax with a distance-based approach. In addition, the owners of highly efficient vehicles and electric vehicles are typically in upper income groups. The question becomes—"what would the impact of shifting to a distance-based fee have on different households including communities of color, lower income and vulnerable populations?”
The Eastern Transportation Coalition (TETC) has been a national leader in researching possibilities to implement mileage-based fees and has been supported by EBP in working with member states to conduct detailed, data-driven assessments of current revenue policies and policy alternatives. The team has developed insights about equity across urban and rural parts of states as well as across income considering household characteristics such as race, ethnicity, geography, size, and more. Washington State has been a leader in advancing a transition towards mileage-based usage fees including insightful work into the equity impacts of mileage-based user fees (MBUF.) Attendees heard lessons learned from MBUF work from across the country and received practical, actionable ideas on how to move the MBUF conversation forward.