Electric vehicle owners don’t buy gas. States look for other ways to pay for roads and bridges

Category: Top Stories

Listening

00:00
00:00
00:00

Unlocking Word Meanings

Read the following words/expressions found in today’s article.

  1. project / prəˈdʒɛkt / (v.) – to determine or predict an amount or result expected in the future based on current information
    Example:

    Sales are projected to increase until next year because of the continuous global demand.


  2. sector / ˈsɛk tər / (n.) – a part of a particular area of activity, especially in the economy
    Example:

    The tourism sector is recovering after being severely affected by the pandemic.


  3. coffers / ˈkɔ fərz / (n.) – the funds or money of an organization, government, etc. that is available to spend
    Example:

    After buying new equipment for the science laboratory, the university’s coffers have decreased significantly.


  4. expenditure / ɪkˈspɛn dɪ tʃər / (n.) – the total amount of money spent over a specific time by an organization, government, or person
    Example:

    The company will reduce its expenditures to increase its profits.


  5. exacerbate / ɪgˈzæs ərˌbeɪt / (v.) – to make an already bad situation worse or more severe
    Example:

    Rising rent prices are exacerbating the homelessness crisis in the city.


Article

Read the text below.

Oregon transportation officials say that without more funding, residents could see further declines in the quality of roads, highways and bridges starting this year. But revenues from gas taxes paid by drivers at the pump are projected to decrease as more people adopt electric and fuel-efficient cars, forcing officials to look for new ways to fund transportation infrastructure.


States with aggressive climate goals like Oregon are facing a conundrum: EVs can help reduce emissions in the transportation sector, the nation’s largest source of greenhouse gas emissions, but they also mean less gas tax revenue in government coffers.


Motor fuel taxes are the largest source of transportation revenue for states, according to the National Association of Budget Officers’ most recent report on state expenditures. But the money they bring in has fallen: gas taxes raised 41% of transportation revenue in fiscal year 2016, compared with roughly 36% in fiscal year 2024, the group found.


In California, where zero-emission vehicles accounted for about a quarter of all car sales last year, legislative analysts predict gas tax collections will decrease by $5 billion—or 64%—by 2035, in a scenario where the state successfully meets its climate goals. California and Oregon are among the multiple states that will require all new passenger cars sold to be zero-emission vehicles by 2035.


The downward revenue trend is already playing out in Pennsylvania, where gas tax revenues dropped an estimated $250 million last year compared with revenues in 2019, according to the state’s independent fiscal office.


Inflation has also driven up the cost of transportation materials, further exacerbating budget concerns.


To make up for lost revenue, 34 states have raised their gas tax since 2013, according to the National Conference of State Legislatures. California has the highest gas tax at over 69 cents a gallon when including other taxes and fees, while Alaska has the lowest at 9 cents a gallon, according to figures from the U.S. Energy Information Administration. In Oregon—which in 1919 became the first state to implement a gas tax—it is 40 cents a gallon.


This article was provided by The Associated Press.


Viewpoint Discussion

Enjoy a discussion with your tutor.

Discussion A

  • As more people switch to electric cars, governments are losing money from gas taxes, which are used to fix roads, bridges, and highways. What do you think the government should do to address the loss of gas tax revenue (ex. tax electric car owners, adjust how road maintenance is funded)? Discuss.
  • Do you think it’s fair to ask electric car owners to pay extra taxes, considering their choice helps the environment? Why or why not? Discuss.

Discussion B

  • Some states in the U.S. will require all new cars to be electric by 2035 to help fight climate change. Do you think doing so will successfully fight climate change? Why or why not? What difficulties could occur because of such a policy? Discuss.
  • In your country, do a lot of people drive their own cars? Do you think their actions contribute to the fight against climate change? Why do you say so? Discuss.