Most experts agree that putting more electric vehicles on the road is a positive step toward fighting climate change, but a new report warns that states may need a new system to fund road construction and maintenance.
Currently, EV owners pay an extra fee with their annual registration, but it is far less than the average gas tax paid by drivers of internal-combustion vehicles.
Report author Patrick Anderson - CEO of the Anderson Economic Group - said that means as the number of EVs grows, highway maintenance funds will shrink. Without a new plan, he said Illinois' already-crumbling roadways will only get worse.
"People haven't really thought through all the implications of moving a large share of the driving public over to an electric-vehicle platform," said Anderson. "And one of the ones that is going to surprise a lot of people is that battery-electric vehicles don't pay any gas tax."
Illinois drivers already pay some of the highest gas-tax rates in the nation, at 42.1 cents per gallon. EV owners currently pay about $250 a year in registration fees, while gas-powered cars cost $400 or more in fees and fuel taxes.
In a recent study, Illinois ranked 14th worst in the nation for road infrastructure, with 20% of state roads - more than 6,500 miles - rated non-acceptable, and 12% of bridges in poor condition. To make things worse, the state ranked near last in spending on repairs.
Illinois is expected to receive approximately $11 billion over five years in transportation funds from the federal Bipartisan Infrastructure bill, but Anderson said it's unclear how that will be spent.
"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," said Anderson. "That's a big switch and something that has significant consequences for our ability to maintain our roads."
Illinois officials say they are studying ways to equalize the costs, including a tax at the charging station or a per-mile fee, but they have not finalized a proposal.
get more stories like this via email
President Donald Trump's budget bill took another step forward Tuesday by passing in the U.S. Senate.
The bill would end some tax credits one Kansas manufacturer said are vital to American competitiveness abroad.
Kurt Neutgens, cofounder and president of Kansas City-based Orange EV, which manufactures electric yard hostlers, chargers and battery storage systems, explained his industrial customers use a $40,000 tax credit to help purchase his all-electric yard hostlers for loading and unloading cargo.
Senate Republicans voted to cut the tax credit by September. Neutgens pointed out EV manufacturers, and renewable energy companies in general, frequently compete with Chinese manufacturers, which are subsidized by the government.
"If we don't support clean energy, from materials to manufacturing to assembly to even clean energy products all the way up to vehicles, in this bill then we are really handing dominance to China for all of that," Neutgens asserted.
Policies like the EV tax credits from President Joe Biden's Inflation Reduction Act have been in the Trump administration's crosshairs. Republican lawmakers have argued market competition should be the driving force on which vehicles -- electric or gas -- people drive.
Neutgens, who employs more than 300 people, said tax credits help the electric vehicle manufacturers increase their volume, which will allow them to compete with China.
"We need these incentives to be able to get ourselves to a level where we have enough volume so that we can compete," Neutgens emphasized. "Even though they're getting government subsidies."
A study by Princeton University found if electric vehicle tax credits are cut and clean air regulations for vehicles are curtailed, EV sales could drop up to 40% by 2030, compared to what they'd be if the Biden-era policies continued.
get more stories like this via email
The U.S. Department of Transportation has frozen millions in grant dollars awarded by the Biden administration, leaving those counting on them in limbo.
Powell County, Montana was set to receive more than $6.3 million for its Parks to Passes project, a collaboration with neighboring groups and governments to close gaps in a pedestrian and biking corridor spanning roughly 230 miles between Butte and the Idaho border. The trail is part of the larger Great American Rail-Trail route.
Kevin Mills, vice president of policy for the Rails to Trails Conservancy, said the eventual coast-to-coast trail will stretch 3,700 miles from Washington, D.C., to Washington state.
"It's really stalling an important connection in that nationwide trail," Mills pointed out. "That puts at risk Montana's potential to tap into what we've calculated to be $16 million in new economic development."
The grant was part of President Joe Biden's Rebuilding American Infrastructure with Sustainability and Equity program. U.S. Transportation Secretary Sean Duffy said the Biden administration delayed construction with, quote, "leftist social requirements" including the consideration of a project's climate change and social justice impacts.
In addition to economic and climate benefits, effective trail corridors improve safety. Mills noted 9,000 pedestrians and cyclists die on roads each year in the U.S. and 130,000 more are injured.
"This is a problem that's really grown over the last decade because we don't really provide safe places to walk and bike," Mills explained. "These federal grants that are on hold are sorely needed to make the situation better."
In Montana, he added, about $200 million in grants have been frozen, including $10 million for trail projects.
Disclosure: The Rails To Trails Conservancy contributes to our fund for reporting on Community Issues and Volunteering, Public Lands/Wilderness, and Urban Planning/Transportation. If you would like to help support news in the public interest,
click here.
get more stories like this via email
New data show Arizona's two largest airports have fared well for on-time departures and arrivals but the same cannot be said about U.S. airlines in general.
Air travelers filed about 67,000 complaints last year, up 9% from 2023, according to a new report from the Public Interest Research Group Education Fund. The top grievances were cancellations and delays, not receiving refunds and luggage being lost or damaged.
Teresa Murray, consumer watchdog director for the group's Arizona education fund, said the number of travelers was expected to increase by about 7% this year but economic uncertainty and concerns from international travelers has curbed it. She noted Delta, Southwest and United have all indicated they will cut their number of flights in the months ahead.
"Then you throw in the safety issue," Murray added. "We don't have any way of knowing -- and I don't think the airlines really know for sure -- what to expect in the months ahead, although it is certainly expected that maybe we won't see a 7% increase in passengers this year."
Murray pointed out travelers have more rights this year than they did a year ago. For instance, complaints about refunds and delays prompted action from Congress on an FAA reauthorization bill, which mandates airlines to issue fast, no-hassle refunds if a flight is canceled for any reason. Online, people can visit pirg.org/flighttips for more information.
Murray noted overall, cancellations and delays across the nation increased last year. Just this week, Newark Airport saw many delays and cancellations after the FAA issued a ground stop following an outage at one of its air traffic control facilities. Murray argued flyers need to be in the know and on alert about where they are flying through.
"Pay attention to the news," Murray urged. "Because there are going to be other hot spots where, because of the air traffic control shortages and because of equipment, there may be some airports that are just a little bit more headache-inducing than what we've seen."
Murray realizes some are on edge about the current state of the airline industry but emphasized being courteous and respectful to fellow passengers and airline representatives goes a long way.
Disclosure: Arizona Public Interest Research Group Education Fund contributes to our fund for reporting on Civic Engagement, Consumer Issues, Energy Policy, and Urban Planning/Transportation. If you would like to help support news in the public interest,
click here.
get more stories like this via email