News
Print This Page « Send to a friend «
Subscribe
e-Subscribe to News updates
CEO: Mileage-Based User Fee Could Fund Nation’s Infrastructure Needs
11/24/2008
As current federal-aid surface transportation legislation is scheduled to expire in September 2009, and with infrastructure needs far out-stripping funding from current taxes, Martin Capper, CEO of MARK IV IVHS, told the 5,000 delegates of the 15th World Congress last week in New York that a mileage-based fee is technically possible and is a fair way to collect funds needed to meet North America’s infrastructure needs.
According to Capper, “With key transportation leaders seeking an annual increase in infrastructure spending as great as $50 billion per year, we must look at alternatives to the motor fuel tax, especially in the long term when fuel tax revenue will decline because of fuel economy, alternative fuels and a long-term increase in oil prices.”
To raise $ 50 billion annually with fuel taxes would require an increase in the current federal motor fuels tax of about 28 cents-per-gallon. A two (2) cent-per-mile user fee would raise the same amount based only on activity in the top 100 major Metropolitan areas. Nationally, the revenue collected would be substantially more.
“Because of its inherent fairness in allocating costs to system users, a per-mile fee is one option that should be considered,” added Capper. “5.9 GHz is proven and could be utilized to implement such a new fee, as well as offering coast-to-coast ubiquity for motorists in applications that today utilize disparate technologies such as electronic toll collection.”
5.9 GHz has moved past the theoretic stage with successful field testing in California and Detroit during 2008. Once in place, a 5.9 GHz open-architecture system would be available for many additional applications, including a mileage-based fee to support infrastructure.
