What happened: Tennessee Gov. Bill Lee (R) Dec. 2 announced a policy “blueprint” to address the state’s transportation funding shortfalls stemming from declining gas tax revenues and a growing number of electric vehicles (EVs). Lee’s “Build With Us” initiative outlines several possible funding solutions – most notably the use of Public-Private Partnerships (P3s) to build “Choice Lanes,” where drivers would pay to access High Occupancy Vehicle (HOV) lanes for faster travel times. The proposal also calls on EV drivers to pay their fair share for road use; currently, EV owners in Tennessee pay a $100 annual fee that goes into the highway fund. Notably, the initiative emphasizes that the Tennessee Department of Transportation (TDOT) will not explore options that raise the gas tax or implement the use of bonds to finance transportation projects.
Why it matters: Tennessee’s population growth is far outpacing roadway capacity investments, and TDOT estimates the state currently has $34 billion in unmet infrastructure needs. TDOT predicts gas tax collections, the state’s primary source for transportation infrastructure funding, will remain static over the next decade.
