What Happened: A Washington State Transportation Commission report submitted to Gov. Jay Inslee (D) and the state legislature Jan. 11 projects a $600 million drop in fuel tax revenues by 2050.
Why it Matters: The report cites several reasons for declining revenue, including stronger federal Corporate Average Fuel Economy (CAFE) standards; California law banning the sale of internal combustion cars by 2035 which Washington and a dozen other states plan to follow; and increased investment in the electric vehicle (EV) market.
The Commission recommends full implementation of a per-mile Road Usage Charge (RUC), requiring that all new vehicles be subject to the rule by 2028. The RUC is currently voluntary.
Washington drivers currently pay the third-highest fuel tax rate in the country at 49.1 cents per gallon. The flat tax was last increased as part of a 2015 transportation funding package. The state also charges additional annual registration fees of $75 for hybrid vehicles and $150 EVs.
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