LAO Report: Declines in Gas Tax Revenue from EVs Will Reduce Transportation Funding

Climate initiatives could reduce the current $14.2 billion in state fuel tax and vehicle fee revenue by $4 billion over the next decade.

State initiatives to reduce greenhouse gas (GHGs) emissions from the transportation sector will reduce state transportation tax revenue by more than $4 billion, according to a December 2023 report from the Legislative Analyst’s Office (LAO). “[P]olicies aimed at increasing the adoption of [zero-emission vehicles (ZEVs)] will decrease the consumption of …