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The California state legislature passed and the Governor signed into law a bill ( AB-2663 ) that lowers the Use FuelTax rate of dimethyl ether (DME) from $0.18 per gallon of DME-propane fuel blend used on or after 1 July 2021 (the same tax rate as propane, $0.06 per gallon of DME used and $0.06 per gallon).
A research report submitted to the California Legislature this week by the University of California, Davis’ Institute of Transportation Studies proposes switching EVs to a mileage-based road-funding fee (road user charge, RUC) while continuing to have gasoline-powered cars pay gasoline taxes. on-board diagnostic [OBD] devices).
The upside is that the private jet market is ideally suited to help bring about aviation’s Tesla moment, making hydrogen and electric planes a reality. T&E calculates that a jet fueltax applied proportionately to flight distances could raise €325 million if applied to all flights departing from the EU and UK.
Advanced vehicles powered by low-carbon sources of electricity or hydrogen offer an alternative to conventional fossil-fuelled technologies. Making conventional gasoline and diesel vehicles more expensive to run—through increased fuel or carbon taxes—is not enough to incentivize the majority of consumers to change.
The analysis was based on various combinations of policy options and technological improvements including new vehicle emission limits, increased fueltaxes, support for electric and hydrogen technologies, EU motorway speed limits and land transport’s inclusion in the EU’s emissions trading scheme (ETS).
The steady tightening of standards will first incentivize combustion efficiency and in parallel speed up the deployment of new low-carbon technologies and fuels, such as vehicles running on low-carbon electricity, hydrogen, compressed natural gas or sustainable biofuels.
This very rapid transition would need to be catalyzed by a combination of a more stringent ZEV mandate, buyer incentives, and deployment of public charging and hydrogen infrastructure. Transportation pricing: Gasoline taxes. Shift to VMT-based road fees as the number of ZEVs grows and fueltax revenues decline.
The obvious one is increased fueltaxes, but somehow governments need to make sure the benefits of better technology aren’t wiped out by increased demand for lower-priced fuel. hybrids, plug-ins, hydrogen) and at the same time leads to the diffusion of more efficient oil-powered vehicles. Jos Dings, T&E Director.
Going beyond improvements in conventional technologies and conservation measures, a long-term transformation of the transportation energy system to one or more alternative fuels and energy sources is the ultimate piece of the puzzle of reducing petroleum consumption and GHG emissions.
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