The auto industry has long been a target of environmental activists. The push to put American consumers in smaller cars has been made quite clear. First, the Obama Administration enacted higher fuel efficiency standards – standards laden with unintended consequences. Now Congress is considering a cap and trade proposal that, by 2035, would raise inflation-adjusted gasoline prices by 58 percent. But that’s not all. The Heritage Foundation’s economic analysis of the Waxman-Markey cap and trade bill found that the transportation equipment industry would be one of the hardest hit sectors. …
Rep. James Oberstar (D-MN) came out strongly in favor of a vehicle mileage tax (VMT) yesterday. Just two months ago Transportation Secretary Ray LaHood floated a similar idea, but was quickly shot down by the Obama Administration. The VMT was a bad idea in February and it’s a bad idea now. Below is what we wrote when the idea was initially suggested. The analysis is as applicable today as it was then: The VMT would fund transportation projects and increase conservation by increasing the cost of driving. It is unnecessary, …
The Obama administration’s initial efforts at transportation policy are off to a rocky start. Transportation Secretary Ray LaHood this morning came out in favor tracking and taxing drivers on the miles they drive instead of the amount of gas they consume. Almost immediately a spokesperson at the Transportation Department said such a system will not be part of the Obama administration’s policy, suggesting Secretary LaHood is still early on in his learning curve. Scotching this idea was right, however, because it was a bad idea to begin with. The vehicle …
In a process familiar to any troubled sub prime borrower, the current federal highway reauthorization bill spends more money than it takes in. Historically, any excess spending is paid through the Federal Highway Trust Fund and has always been exclusively funded through the gas tax. However, in an unprecedented action, the House overwhelmingly passed HR 6532, a bill that would transfer over $8 billion in general revenue to the highway trust fund, adding directly to the federal deficit. The Senate is set to take up the proposal as part of …
The steep rise in gas prices has had a dramatic impact on American driving habits. According to Federal Highway Administration data, this May marked the seventh consecutive month that Americans drove fewer miles this year than the year before. Americans drove almost 10 billion fewer miles in May 2008 than they did in May 2007. That 3.7% drop in miles driven means less gas tax revenue for the federal Highway Trust Fund, which Transportation Secretary Mary Peters says is expected fall $3.1 billion short of its fiscal 2009 budget. As …
The Metropolitan Washington Airports Authority plan to extend Metrorail 11.6 miles to Dulles International Airport has enjoyed support from the Congressional leaders in both parties, the Governor of Virginia and the local business community. With all this political muscle, however, the plan is now on life support after the Federal Transit Administration found the project is unfit for federal funding. A quick look at some facts contained in the projects own projections reveals why: By the project’s completion in 2025, traffic volumes on the ten highway links in the corridor …
Last week, the federal government indicated it was reconsidering a $900 million grant to fund a massive expansion of the Washington Metro. Today, the Washington Post reports that a funding solution may be in sight: private investors may help the rail extension project meet its funding needs. As reported previously on The Foundry, the publicly-run Metro subway and bus system already faces a number of problems. On-time service has declined and costs are soaring out of control, prompting the largest fare hike in its history this month and raising questions …
