Oberstar wants vehicle-miles fee

Might replace fuel tax

Steve Hawley, Mar 11, 09.

Rep. James Oberstar of Minnesota, chairman of the House Transportation and Infrastructure Committee, wants the upcoming surface transportation bill to include a temporary fuel tax increase and a vehicle-miles fee, according to the New York Times. Oberstar says the gas tax increase would prevent a funding shortfall, but that the nation ultimately needs to transition to a vehicle-miles fee.

The article notes, “Increases in fuel economy coupled with the fact the current federal gas tax has remained stagnant for more than a decade has already taken a toll on federal revenues to fund road and transit construction and maintenance. The Highway Trust Fund would have run dry last September if it were not for an $8 billion transfer by Congress to keep it in the black.”

It continues, “Pricing advocates argue the gas tax fails to force drivers to confront the true cost of using roads and bridges. Because of relatively frequent swings in the price of fuel, they say many Americans associate the tax with the cost of gas and not of driving. They argue by pricing roads, Americans will drive less, in turn cutting congestion and the air pollution and oil consumption that accompanies the gridlock.”

According to the article, Transportation Secretary Ray LaHood recently made similar comments, although they were quickly denounced by President Obama’s spokesman. However, Oberstar and a growing number of legislators on both sides of the aisle are considering the vehicle-miles fee.

The Obama administration also indicated recently that the legislation will focus on livable communities. Oberstar hopes the surface transportation bill will be completed by early June.