Monday, 1 August 2011

New CAFE standards will result in $65B in lost revenue for road projects

According to a new study by the American Road & Transportation Builders Association, new Corporate Average Fuel Economy Standards that mandate cars and light trucks average 54.5 mpg by 2025 will deprive federal highway projects of more than $65 billion in revenues.

That estimation is based on the fact that at-the-pump taxes levied on fuel are by law funneled to transportation projects. With mandatory CAFE fuel mileage increases, the amount of revenue collected from gas taxes will go down, which will cut into road revenues, the report says.

Of course, there are ways of circumventing that lost income, but all that will surely play out in the coming few years.

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