WHITE PAPER Planning for State Transportation Revenue in a Coming Era of Electric Vehicles State Transportation Revenue in a Coming Era of Electric Vehicles AUTHORS Jake Varn Policy Analyst Energy, Infrastructure and Environment Division NGA Center for Best Practices
[email protected] Garrett Eucalitto Program Director Energy, Infrastructure and Environment Division NGA Center for Best Practices Sue Gander Division Director Energy, Infrastructure and Environment Division NGA Center for Best Practices The NGA Energy, Infrastructure and Environment Division thanks the state officials and other experts who attended the Experts’ Roundtable in November 2019 that informed this paper. NGA appreciates the additional experts who offered insights and feedback. NGA also thanks the Energy Foundation for its support of the roundtable and publication of this paper. Recommended Citation Format Varn, J., Eucalitto, G., & Gander, S. (2020, February). Planning for state transportation revenue in a coming era of electric vehicles. Washington, DC: National Governors Association Center for Best Practices. - 2 - State Transportation Revenue in a Coming Era of Electric Vehicles Executive Summary States face a grave transportation funding situation: Revenues are not keeping pace with needs as vital infrastructure assets reach the end of their designed life cycle and populations grow and shift. The funding gap is significant. According to an estimate from the American Society of Civil Engineers, $1.4 trillion in additional funding is required to meet the country’s infrastructure needs by 2025, and that gap is growing. At current funding levels, the gap will rise to $4.3 trillion by 2040.1 Traditionally, states have relied on a variety of revenue sources for transportation funding under a “user pays, user benefits” principle that roughly approximates a “user fee” to at least some degree.