Most experts agree putting more electric vehicles on the road is a major step toward fighting climate change, but a new report says states will also need to find new ways to fund road maintenance.

Currently, Michigan pays for road construction with a tax on gasoline and diesel, but as more electric vehicles take to the road, the highway fund is expected to shrink by tens of millions of dollars.

Report author Patrick Anderson, CEO of the East Lansing-based Anderson Economic Group, warned that unless lawmakers devise a new formula to pay for upkeep, Michigan's already-crumbling roadways will only get worse.

"For a lot of people who make a switch to an electric vehicle, they're paying $100 or $200 less a year in road taxes, but they're putting more weight on the road," he said. "That's a big, big switch, and something that has significant consequences for our ability to maintain our roads."

Anderson said EV owners now pay $140 a year in fees, while gas-powered vehicle drivers pay about $400 in fees and fuel costs. By 2030, he said, that could mean fewer tax dollars for the state, by hundreds of millions.

Anderson said a 2021 survey of Michigan roads and highways found that one-third of them were rated "poor," with only one-quarter in "good" condition. Michigan is slated to get $2.4 billion for transportation projects from the Bipartisan Infrastructure Bill over the next five years, but Anderson said the state needs a longer-term solution for its roadway upkeep.

"The report doesn't recommend that people either buy or don't buy an EV - I drive one myself - but they're not telling people what kind of car they should drive," he said. "We are saying that these decisions have consequences and that, right now, electric-vehicle drivers are not paying the same to maintain roads."

The report outlined several suggestions for EVs, including higher registration costs, mileage-based fees, a fee charged per kilowatt hour and a "miles fee" calculated during annual registration or by toll roads. Currently, eight other states are testing pilot programs to equalize the maintenance fees paid by all vehicle owners.

Experts say consumer interest and sales of electric vehicles in Arizona and across the country aren't slowing down.

Arizona is among the top 10 states for EV auto registrations. Year-to-date, EV sales are up more than 50%, year over year, which Chris Harto, senior policy analyst at Consumer Reports, said is impressive, considering how much fuel prices have come down. However, in Arizona, the average gas price is currently $4.25 per gallon - about 40 cents more than the national average - which may entice Arizona drivers to make the switch.

Harto said interest rates might also turn out to be a factor in sales.

"Interest rates have gone up quite a bit, and I think that is going to have an effect on the whole vehicle market, regardless of vehicle type," he said. "We're not quite seeing a slowdown, quite yet."

He said he suspects the market is still trying to adjust and "catch up" after EVs - and vehicles in general - have been in such limited supply in recent years. While many have speculated that EV inventories are high, Harto countered that the "EV only" companies - such as Polstar, Rivian and Tesla - report "very low inventory."

Harto said affordability is top of mind for many people shopping for an electric vehicle. Consumer Reports found 70% of EV sales so far this year have been from just nine models, all of which start at less than $45,000 when incentives are factored in. He also said he recognizes many are concerned about the lack of charging infrastructure, but said that is changing. Arizona has nearly 1,000 charging stations, although more are in the works.

"You definitely have a group of consumers who are waiting for the federal funds that are going out to the states to really build out that national charging network," he said, "to give them that little extra bit of confidence."

He said a number of new requirements have either limited or changed which EVs can qualify for tax credits. So, of course, those that are eligible for tax credits seem to be selling better than those that don't.


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Parking lots dominate the landscapes in many cities, but state lawmakers across the country are looking to reduce the number of unused parking spaces. More than a dozen states that considered ending or reducing parking mandates in 2023 legislative sessions, following Oregon's lead. Nearly every city in the U.S. requires a certain number of parking spaces be built for each new business and housing complex.

Michael Andersen, a senior researcher with Sightline Institute, a Northwest think tank focused on sustainability, said policymakers are reconsidering past efforts to overbuild parking lots.

"People are saying, 'Wait a minute, wait a minute, there are a bunch of unintended consequences here," he explained. "There are a bunch of longer-term side effects of building our cities with these expanses of parking lots everywhere. Let's let cities evolve as they will.'"

Andersen added creating too many lots has environmental, social and economic costs. The boom in legislation, from Vermont to Oklahoma, addressing this issue comes after Oregon approved a law last year reducing parking mandates. In the state's eight largest metro areas, mandates are eliminated completely in certain situations, such as within a half-mile of frequent public transit.

Andersen said this issue is an extension of the larger housing affordability problem gripping cities both big and small and added the upsurge in telecommuting that accompanied the pandemic prompted a large migration of people from big to small.

"These housing shortages have rapidly become more bipartisan because they're manifesting in new areas, and I think people are just looking for ways to cut the cost of housing," he said.

California also eliminated or reduced parking mandates last year.

The Regional Transportation District is holding a public meeting tomorrow - to decide whether or not to adopt a new fare structure, change existing discount and pass programs, and pursue other initiatives aiming to make transit more accessible to people living in the eight counties served by the district.

Bill Sirois, senior manager of transit oriented communities with RTD, said the plan addresses the most common concerns raised by customers - that fares are too expensive and confusing.

"This was a very customer-centric process," said Sirois. "We did have an extensive amount of outreach that we have done over the last year. So we really do feel like we're responding to what we heard."

Currently, local fares are $3, and regional fares are $5.25. The new plan creates a single standard fare of $2.75 for a three hour window to go anywhere in the district, except Denver International Airport.

A-train tickets would also drop slightly to $10. RTD expects the impacts of any lost revenue to be minimal.

RTD currently gets just under 7% of revenue from fares, which would likely drop to 5%.

Sirois said the new plan should help more Coloradans who depend on public transportation get their groceries, get to work and make it to doctor's appointments.

Seniors, people with disabilities, low-income residents and others who qualify will see their fares lowered.

"It goes from $1.35 for a one-way ticket, or $2.70 to ride all day, and that includes the airport," said Sirois. "So those over 65 have a much more expanded access to our system under this new proposal."

Currently, a family of four earning up to $55,500 per year qualifies for a 40% discount. Under the new proposal, a family of four earning up to $75,000 would qualify for a 50% discount.

The plan provides grants to nonprofits to get tickets to people in crisis and those experiencing homelessness. There's also a pilot program to get more young people on board.

"All youth aged 19 and under can ride the RTD system for free through the end of August of next year," said Sirois, "for a whole year."




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