Vehicles miles-traveled tax in “five to ten years” as states run pilot studies

With more fuel efficient vehicles and higher federal government standards, several states are starting pilot programs to test a vehicles miles-traveled tax:

Minnesota and Oregon already are testing technology to keep track of mileage. Other states, including Washington and Nevada, are preparing similar projects.

The efforts are being prompted by the fact that gasoline taxes no longer provide enough money to pay for roads and bridges — especially when Congress and many state legislatures are reluctant to increase taxes imposed on each gallon. The federal tax of 18.4 cents a gallon hasn’t been raised in nearly two decades. More than half the states have not raised their gas tax this millennium. Fuel-efficiency also is behind the efforts. Electric-powered vehicles are growing in numbers. In 2009, President Obama set the nation’s most aggressive fuel-efficiency standards for new vehicles, ordering a 40% increase by 2016.

“As the (national vehicle) fleet becomes more fuel efficient … we’re going to lose a lot of revenue from the gas tax. If it’s not replaced, we’re going to see our transportation infrastructure deteriorate,” says Joshua Schank, president of the non-partisan Eno Center for Transportation in Washington, D.C. He expects to see a state vehicle miles-traveled (VMT) tax within the next five to 10 years…

The greatest obstacle to a miles-traveled tax has been privacy concerns. When Oregon ran a pilot program six years ago, motorists’ major objection was to in-vehicle boxes used to track miles driven, says James Whitty of the Oregon Department of Transportation. “They didn’t like the government boxes. They didn’t like the GPS mandate,” he says…

In Minnesota, 500 volunteers in largely urban Hennepin and mostly rural Wright counties have been testing a system using software installed on smartphones, says Chris Krueger, spokeswoman for the Minnesota Department of Transportation. “We can collect trip info and be able to simulate what it would be like to have a mileage-based user fee,” she says.

This blog has covered this issue before here, here, and here. This is a classic case of unintended consequences: trying to improve fuel efficiency may be a good goal but it has revenue ramifications.

Several thoughts about these pilot studies:

1. If citizens say they don’t like the programs, will that matter in the long run? States still need revenue whether drivers like the method of getting that revenue or not.

2. I haven’t seen this addressed: would drivers continue to pay a gasoline tax as well as a miles-driven tax? We are a long way from even a sizeable majority of people owning electric cars. How would you balance the two taxes to insure certain levels of revenue?

3. This is somewhat tongue in cheek but would you prefer to have the government tracking you by in-vehicle GPS or your smartphone? Or in Illinois and other similar states, by your toll transponder? Remember, you may not be able to answer “none of the above.”

4. Is a vehicles miles-traveled tax something that could get a politician voted out of office? Americans do like their freedom to drive…without considering how much it costs all-around.

h/t Instapundit

Economy down, traffic congestion down

A company that tracks traffic congestion suggests that congestion was down in a number of metropolitan areas in 2011 because of the economy:

Of the 100 most populous metro areas, 70 saw declines in traffic congestion while just 30 had increases, says Jim Bak, co-author of the 2011 U.S. Traffic Scorecard for Kirkland, Wash.-based INRIX…

Bak says the data show that the reduction in gridlock on the nation’s roads stems from rising fuel prices, lackluster gains in employment and modest increases in highway capacity because of construction projects completed under the federal stimulus program.

In some cases, the connection between job growth and increased congestion was clear. Cities that outpaced the national average of 1.5% growth in employment experienced some of the biggest increases in traffic congestion: Miami, 2.3% employment growth; Tampa, up 3%; and Houston, up 3.2%.

Cities that had big drops in congestion often were those that saw road construction slow considerably from 2010 to 2011 and those where gasoline prices were well above the national average at the peak in April 2011.

Does this fall into the small category of benefits of the economic crisis of recent years?

I would guess many metropolitan residents would be happy with less congestion but I would also guess they wouldn’t like the tradeoff of fewer jobs and higher gas prices. Of course, there have been discussions for years about how higher gas prices would limit driving. But does higher gas prices necessarily have to align with less growth?

Fuel efficiency goes up, gas tax revenues go down $50 billion (or so)

A new report from the Congressional Budget Office suggests that increasing standards for fuel efficiency will leave a large deficit in highway funding:

This week, the CBO issued a new report that looked at how the upcoming, higher CAFE fuel economy rules will affect the Highway Trust Fund. The short answer? Between 2012 and 2022, the Fund will see revenues that are $57 billion lower than they would be without the new CAFE rules. The slightly longer answer:

The proposed CAFE standards eventually would cause a significant reduction in in fuel consumption by light-duty vehicles. That decrease in fuel consumption would result in a proportionate drop in gasoline tax receipts: CBO estimates that the proposed CAFE standards would gradually lower gasoline tax revenues, eventually causing them to fall by 21 percent. That full effect would not be realized until 2040 because the standards would gradually increase in stringency (only reaching their maximum level in 2025) and because the vehicle fleet changes slowly as older vehicles are replaced with new ones.

To illustrate the effect that the standards would eventually have on the trust fund’s cash flows (in 2040 and beyond), CBO examined how a 21 percent reduction in gasoline tax collections would alter the agency’s current budget projections for the trust fund, which span the period from 2012 through 2022. CBO estimates that such a decrease would result in a $57 billion drop in revenues credited to the fund over those 11 years, a 13 percent reduction in the total receipts credited to the fund.

The CBO suggests three ways to deal with the shortfalls: do nothing (i.e., keep on transferring money from the general fund), spend less on highways and mass transit or raise the gas tax (or other taxes and direct them to the Fund). An increase to the gas tax wouldn’t have to be huge. Just five cents a gallon would be enough to offset the $57 billion, the CBO says. But until Congress can agree on this simple change, there’s always the voluntary gas tax.

This isn’t idle speculation. Joel noted some commentary about this in early February 2012.

This reminds me of a recent post about the possible unsustainability of suburbia. Under the current system, we either need more drivers overall (which could then be based on population growth plus more car ownership) or people to use more gasoline (which goes against a push to be more green). Are either of these options really optimal or even desirable? Of course, the gas tax could be increased by a small amount (perhaps just a few pennies?) and the deficit would disappear. However, would this simply lead to more gas tax hikes down the road compared to the option of resetting the system so that highways are funded through a more consistent mechanism? Which politicians want to tackle this? Perhaps we are closer to a tax per mile driven than we might know?

h/t Instapundit

How streets came to be for cars and not for pedestrians

There is little doubt that American streets and roads are typically made to optimize the driving experience. It wasn’t always this way:

According to Peter Norton, an assistant professor at the University of Virginia and the author of Fighting Traffic: The Dawn of the Motor Age in the American City, the change is no accident (so to speak). He has done extensive research into how our view of streets was systematically and deliberately shifted by the automobile industry, as was the law itself.

“If you ask people today what a street is for, they will say cars,” says Norton. “That’s practically the opposite of what they would have said 100 years ago.”

Streets back then were vibrant places with a multitude of users and uses. When the automobile first showed up, Norton says, it was seen as an intruder and a menace. Editorial cartoons regularly depicted the Grim Reaper behind the wheel. That image persisted well into the 1920s…

Norton explains that in the automobile’s earliest years, the principles of common law applied to crashes. In the case of a collision, the larger, heavier vehicle was deemed to be at fault. The responsibility for crashes always lay with the driver.

Public opinion was on the side of the pedestrian, as well. “There was a lot of anger in the early years,” says Norton. “A lot of resentment against cars for endangering streets.” Auto clubs and manufacturers realized they had a big image problem, Norton says, and they moved aggressively to change the way Americans thought about cars, streets, and traffic. “They said, ‘If we’re going to have a future for cars in the city, we have to change that. They’re being portrayed as Satan’s murdering machines.'”

A fascinating story: as the car became more popular and the auto industry banded together, understandings of streets changed. If you look at old pictures of streets before the 1920s, they often seem like the Wild West: there are carts big and small (plus animals providing the power), pedestrians, sometimes electric streetcars, and more.

This reminds me of the efforts of New Urbanists to redesign streets so that cars become less dominant. They typically suggest several changes: reducing the width of the road, allowing cars to park on both sides of the road (this makes drivers more cautious), and putting trees close to the edges of the road to create another barrier between cars and pedestrians.

The suburban critic James Howard Kunstler is also fond of showing pictures of barren intersections where multiple 4-6 lane roads come together and the scale dwarfs even the most hardy pedestrians.

It is amusing to think of cars being portrayed today as “Satan’s murdering machines” – even though car accidents are a leading cause of death.

The challenges of Going Solo in the suburbs

Sociologist Eric Klinenberg argues that it is particularly difficult to live alone in the suburbs:

Q: What do cities and the housing industry need to be thinking about in terms of homes for this wave of single people?

A: One thing I worry about is that we have built suburban areas that won’t fit our future lifestyles. I interviewed many older people who live alone in suburban areas who discovered that they weren’t good places to be when their children moved away because they tended not to have good areas for walking and often were far from public transportation. The houses themselves were too big, making them expensive to heat and cool; more house than most people need. And the suburbs are reluctant to retrofit. They don’t want to change their zoning laws to deal with reality.

The thing I’m most concerned about is housing for poor people of any age who wind up living alone. We need to rethink this whole idea of the single-room-occupancy building. I write in my book about one very successful SRO experiment in New York that had a mix of incomes, not just the otherwise-homeless people who today are associated with SROs. It became sort of a vertical village and ended up being replicated in other places.

We need to design more housing like that. But it’s expensive, and cities are strapped for resources. And it’s not like the group that needs it the most has any political clout; they’re the most vulnerable people in our society.

Klinenberg brings up an issue that has been raised for decades: certain age groups don’t do well in the suburbs. If I remember correctly, Herbert Gans brings this up in the classic study The Levittowners and these issues are also raised in Suburban Nation by Duany, Plater-Zyberk, and Speck. These observers suggest two groups are particularly disadvantaged: teenagers who can’t yet drive and who want freedom and the elderly who can no longer drive and are now more isolated in their single-family homes. Both of these groups are united by the necessity of driving in the suburbs and how driving is tied to completing daily subsistence tasks (such as getting food) as well as social interaction.

As Klinenberg suggests, building this kind of alternative housing in the suburbs (and cities) will be difficult. Not only is it expensive but I imagine many suburbanites would not desire such housing near their own houses. At the same time, this is a recognized problem in a number of communities: how can communities help the elderly live in the towns they have spent much of their lives in?

Fewer teenagers and young adults getting their driver’s license

The Financial Times cite some interesting statistics about the rise in the number of teenagers and young adults who are not getting their driver’s licenses. While a number of explanatory factors are cited such as economic conditions, not needing cars as much because of social media, and young adults rejecting direct advertising from car makers, I’m more interested in another issue: what does this say about driving as a rite of passage as part of the transition from being a teenager to becoming an adult? This is well ingrained in American culture and lore but if fewer young adults see it as worthwhile, it could practically wipe the genre of cliched high school movies by itself. Forget about emerging adults delaying marriage; some don’t even want to be able to drive!

There is no mention of this in the article but I would be interested to know the spatial distribution of 16-34 year olds in the United States. It is much easier to go without a car in a denser, more urban setting. Does this mean that compared to the general population, a higher percentage of this age group lives in such denser settings?

Ruminating on the American parking lot

Here is part of a review of a new book that discusses better ways to design large-scale parking lots:

Mr. Ben-Joseph does offer some parking-lot success stories, few that there are. He introduces us to the Herman Miller factory in Cherokee County, Ga., whose segmented, 550-car lot is sympathetically integrated into the surrounding woodscape. He also approvingly notes the canopied car plaza in front of the Dia:Beacon Museum in Beacon, N.Y. (a collaboration between American artist Robert Irwin and the architecture firm OpenOffice), where the angled planters separating the parking spaces point the way to the museum entrance. Renzo Piano, redesigning the old Fiat Lingotto factory in Turin, Italy, took a similar approach, creating dense and splendid colonnades of trees…

Mr. Ben-Joseph is also guilty of sociological overreach. “Parking lots are a central part of our social and cultural life,” he writes, calling them “a modern-day common.” Wait, what? They are? Yes, teenagers gather in parking lots for one rite of adolescence or another: fighting, racing, dancing. True, community farmers markets spring up over the weekend in business and municipal parking lots; tailgating is a ritualized feasting before sporting events; RV drivers form impromptu villages in Wal-Mart parking lots, a practice known as “boondocking.”

But these interactions happen despite the forbidding nature of open parking lots, not because of them. I find parking lots to be intensely anti-social. I do not engage with strangers on my way to or from the car, and because these tracts are typically shelterless, there is no architectural cue as to where to congregate even if you wanted to. One can’t let go of a child’s hand in a parking lot for even a second. If you’re in a car, a parking lot is an obstacle course to negotiate. If you’re on foot, it’s a place to escape unscathed.

Surface parking lots don’t have to be the minimalist slabs of nowhere-ness we’ve grown accustomed to, Mr. Ben-Joseph suggests. Maybe. And yet there are few signs that this aspect of our infrastructure will get much better anytime soon. For now, I was glad to reach my car and drive away.

I think you could make a case that parking lots really do matter beyond what kind of social activity takes place in them. Thinking more broadly, parking lots represent the American love affair with the car and development based around driving. The zoning laws about the required number of parking spots suggest that one of the worst things we can imagine in everyday life is the lack of an easily available parking space. Shopping malls and big box stores and fast food restaurants are dependent on these giant lots. In cities, parking lots are often profitable holding operations until the land is profitable enough to justify a large development. Overall, the big parking lot is emblematic of a whole lifestyle built around cars and trucks that took over America starting in the 1920s.

Argument in Ottawa, Canada for parking as a human right

Here is an overview of an argument made in Ottawa, Canada for the human right for a parking spot:

In a novel case before the Human Rights Tribunal of Ontario in Ottawa Monday, Ms. Howson argued that the city discriminated against her on the grounds of family status by not letting her build a parking pad in front of her house.

But city lawyers argued that Ms. Howson has never applied for a minor variance from the city’s committee of adjustment — the body legally able to consider her request — so she actually has never been denied anything…

Ms. Howson shares with a neighbour a narrow driveway that varies in width from 2.6 to 2.78 metres. It’s technically possible for her car — a 2.25-metre-wide Mazda 5 — to squeeze through the laneway.

But such manoeuvring is difficult at the best of times and impossible in winter because of snow and ice buildup, she said.

Under the current zoning, front-yard parking isn’t permitted on her street, which is in a heritage preservation district.

However, exceptions can be granted under certain circumstances.

Two years ago, Ms. Howson — a former investigator with the Ontario Human Rights Commission — approached the city to see if it would grant an exemption based of her family’s “special circumstances.”

The city’s refusal “constitutes discrimination on the grounds of family status,” she said.

While some might dismiss this quickly because it is a trivial application of the idea of human rights, this does seem like a bigger issue of zoning and who can grant exceptions. This woman may not win by casting this as a human rights issue but her argument does highlight how zoning and preservation districts can conflict with modern wants. Zoning may be an helpful tool for governments on a broad scale, but it also can lead to a large number of requests for variances and changes for specific properties and political accusations about who gets awarded variances and how long the process takes.

Also, this is a reminder of how important the car is in today’s society. In order to get around in many communities, a car is required and one needs a place to park a car. How much one should have to be inconvenienced or have to pay to park their car is another story but it does have to be factored into discussions about having and promoting an automobile society.

Driving today is much safer than in the past

An article (“Safer Passage”) in the latest issue of Time has shows that the fatality rate from driving has dropped a lot over the years. Here is a description of the issue:

America’s roadways are safer than ever. The latest data show that traffic fatalities are at their lowest level since 1949 and that the death rate based on miles traveled is the lowest in history. But technologies such as active safety systems and advanced air bags are being offset by auto safety’s newest enemy: distracted drivers using electronic devices behind the wheel.

“We lost over 3,000 in 2010 to distraction-related crashes,” National Highway Traffic Safety Administration chief David Strickland says. “It’s a heightened risk to the public, and it’s growing exponentially.”

Some of the statistics cited in the story:

1. In 1950, there were 7.2 deaths per 100 million vehicle miles traveled. In 2010, the rate is 1.1. While Americans might be driving more on average today than in 1950 (I couldn’t find figures on this), the fatalities while driving has dropped nearly sevenfold.

2. Here is what causes traffic fatalities: 32% killed by drunk driving, 31% by speeding, 16% by distraction, and 11% by bad weather. It is interesting that much of the current debate about making driving safer deals with cell phones and distractions (see a recent article from the Chicago Tribune about new efforts in Illinois) while it is the third biggest threat. Perhaps policymakers could argue that getting rid of distractions if the cheapest or easier route compared to dealing with the first two issues.

3. According to this CDC report, there were 36,216 deaths in 2009 in motor vehicle accidents for a death rate of 11.8 per 100,000 Americans.

Americans seem willing to accept some risk in driving and generally welcome efforts to make cars safer. And the numbers have gone down quite a bit since 1950: driving is safer. At the same time, the fight over cell phones in cars is just heating up and we need more data to know whether cell phones are more distracting than other features found during driving (passengers, fiddling with the radio/GPS devices, talking to passengers, tiredness). In the end, this may be an odd costs-benefits tradeoff: restricting cell phone use may limit deaths but some will argue that too much is being given up (assuming that only others get in accidents while using cell phones?). Of course, one solution is to simply go to driverless cars but there are other hurdles to overcome there.

Transit-oriented development in the Boston area

Transit-oriented development has been popular for years now and here is an update on this development strategy in the Boston area:

“We see a huge demand around Greater Boston. We’re working in communities from Winchester to Lawrence that are all working to develop vibrant urban villages around public transportation,” Leroux said. “An overwhelming number of people want to live in these types of places, and communities that don’t create them are less competitive for residents and jobs.”

Filling the need in Somerville, where the residential landscape consists mainly of three-decker homes, is Maxwell’s Green, which will feature 184 rental units with amenities to rival many downtown Boston luxury apartment buildings.

Near completion and ready for occupancy this September, the $52.5 million development sits on 5.5 acres and is located minutes from the Red Line stop at Davis Square and adjacent to the much- anticipated MBTA Green Line Extension’s Lowell Street station…

SouthField, one of the largest transit-oriented developments in Greater Boston, is on track for South Weymouth at the former naval air station.

The first phase of the project is already complete, with residents occupying both apartments and townhouses. The total cost of the project, including the homes already built, is targeted at about $2.5 billion, which includes 2,800 homes and 2 million square feet of commercial space.

The “urban village” concept has been around now for several decades. They are thought to be particularly attractive for young professionals who want to live in the suburbs or further away from the city core (partly because of cheaper prices), don’t yet want to buy a home (condos being easier to maintain), want mass transit access, and also want to be in more lively areas with some cultural and dining options.

These types of development are very popular in the Chicago suburbs are well, particularly along the railroad lines that radiate out from Chicago’s center. Many suburbs have sought to build multi-use developments (condos plus offices or small retail establishments) near their commuter train stations. While this means that the residents can access mass transit, it also provides more pedestrians and hopefully customers for the downtown. A number of suburbs have pursued these developments as part of a downtown revitalization strategy.

I would be interested to see how studies about how much these developments reduce traffic and congestion. Particularly in a suburban setting, a couple might be able to go down to one car (or none?) if both use mass transit a lot. However, while mass transit access to the city center might be great, there is often a lack of mass transit options across between suburbs.

I also wonder how much transit-oriented development succeeds because it is seen as trendy.