California explores new funding for transportation as EVs rise

California is facing challenges as it moves towards banning gas-powered cars by 2035. This plan aims to reduce emissions by shifting to electric and hydrogen vehicles. However, it raises concerns about how to replace the lost revenue from gasoline sales and gas taxes. Currently, California has the highest gas prices in the country, averaging $4.65 per gallon, partly due to its high gas tax. This tax ranges between 60 and 70 cents per gallon, also the highest in the nation. Despite raising over $5 billion a year for road maintenance, the state’s road conditions remain among the worst in the U.S. Political discussions around gas prices have been intense. Governor Gavin Newsom often blames oil companies for the high prices, while Republicans suggest lowering taxes to relieve costs. Recently, a bill to pause the expansion of a low carbon fuel program was rejected by the Democratic majority. They argued that the program could increase gas prices further. As California prepares to transition to zero-emission vehicles, lawmakers are concerned about future road funding. A recent report estimated that maintaining the state’s transportation system will cost $758 billion over the next decade, but projected revenues will only be around $541 billion due to declining gas sales. The Assembly is now considering new ways to generate revenue from electric vehicle owners. One idea is implementing a mileage fee, but this could raise privacy concerns regarding tracking vehicle use. Tolls are another possibility, although they have not been widely accepted in California. Finding a solution to fund transportation effectively will be complicated. California residents are sensitive to changes that can affect their commuting experience.