Wednesday, April 04, 2012

GAO: Fuel Economy Standards, Green Vehicles Jeopardizing Transportation Funding

The Highway Trust Fund risks bankruptcy as early as 2013 according to Government Accountability Office projections, in part because of government-imposed fuel economy standards and government-subsidized alternative fuel vehicles. “The major source of federal surface transportation funding is the Highway Trust Fund, but the revenues that make up that fund are eroding,” the GAO wrote in a March 29 report to Congress. “This trend will continue with the introduction of more fuel-efficient and alternative-fuel vehicles that have the potential through fuel savings to decrease motor fuel purchases and associated tax receipts.” The Highway Trust Fund is funded exclusively via the federal gasoline tax. As car companies are forced to make more fuel efficient cars – achieving 54.5 miles-per-gallon by 2025 – and produce more alternative fuel vehicles, the government expects that gasoline consumption will decline, leading to lower revenues from the federal gas tax...more

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