{"id":158603,"date":"2021-01-22T12:52:56","date_gmt":"2021-01-22T17:52:56","guid":{"rendered":"https:\/\/www.thedetroitbureau.com\/?p=158603"},"modified":"2021-01-22T12:52:56","modified_gmt":"2021-01-22T17:52:56","slug":"biden-plan-to-promote-evs-threatens-to-deplete-federal-highway-funds-without-major-changes","status":"publish","type":"post","link":"https:\/\/thedetroitbureau.com\/2021\/01\/biden-plan-to-promote-evs-threatens-to-deplete-federal-highway-funds-without-major-changes\/","title":{"rendered":"Biden Plan to Promote EVs Threatens to Deplete Federal Highway Funds Without Major Changes"},"content":{"rendered":"
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Transportation Secretary nominee Pete Buttigieg told the Senate panel at his confirmation that the Federal Highway Fund coffers need to be replenished.<\/figcaption><\/figure>\n

In his first week in office, President Joe Biden has made it clear that climate change is one of his top concerns, with plans to address issues like tailpipe emissions, fuel economy and the push for battery-electric vehicles on his agenda.<\/p>\n

The new president\u2019s call for rapid adoption of battery cars could complicate the challenges facing Pete Buttigieg, his nominee to become head of the U.S. Transportation Department, which the former South Bend, Indiana touched on during his confirmation hearing on Thursday.<\/p>\n

The Federal Highway Fund is teetering on insolvency, according to the Congressional Budget Office (CBO), even as studies warn the nation\u2019s highways and bridges are in increasingly poor condition. And, with federal gas taxes providing the vast majority of the fund\u2019s revenues, there may be no other option but to increase those taxes, Buttigieg signaled \u2014 or find a complete new way to raise funding.<\/p>\n

(Biden’s trade agenda focusing on China, Mexico.)<\/strong><\/span><\/em><\/a><\/p>\n

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President Joe Biden has an ambitious agenda when it comes to climate change and the nation’s infrastructure.<\/figcaption><\/figure>\n

There is \u201ca lot of work to do to improve the infrastructure in this country, a mission that will not only keep more people safe, but also grow our economy as we look to the future,\u201d Buttigieg told a U.S. Senate panel, adding, “We need to look at any responsible, viable revenue mechanism we can all agree on\u201d to replenish highway fund coffers.<\/p>\n

This could mean moving away from charging motorists by the gallon and focusing on per mile revenues, some transportation planners have suggested.<\/p>\n

Experts in and out of government widely acknowledge the need to increase funding for infrastructure projects, especially as the federal highway program\u2019s funding has been drawn down. But any efforts to raise the gas tax \u2013 frozen at 18.4 cents since 1993 \u2013 have been met with resistance.<\/p>\n

Just to keep up with inflation, however, that figure would have needed to jump to around 48 cents per gallon by now. Several other factors complicate the situation:<\/p>\n