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As sales of electric vehicles begin to reach significant numbers across the US, states are exploring approaches to replace lost tax revenue since EV drivers don’t pay fueltaxes as drivers of gas-powered cars do at gas stations. Unfortunately there is currently no simple and agreed upon best replacement for the fueltax.
Transportation pricing: Gasolinetaxes. Shift to VMT-based road fees as the number of ZEVs grows and fueltax revenues decline. This could come from carbon capture and sequestration (CCS) projects, possibly using direct air capture to pull carbon dioxide out of the air and store it underground.
Just as conventional internal combustion engine (ICE) cars measure fuel by the gallon, EV owners measure their energy consumption in kWh. Although much cheaper than putting gasoline into a ICE car, charging an EV is not necessarily free. In Pennsylvania , there is an existing alternative fueltax in effect.
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