Senate introduces the American Power Act. Only a small portion of fees will be dedicated to transportation. Tell your Senator to dedicate all of motor fuel fees to transportation.

The Senate released their climate change and energy draft legislation, “the American Power Act” (APA) on Wednesday, May 12.  A significant portion of the revenue generated from the APA would come directly from fees imposed on the production of motor fuels.  These fees would likely be passed onto consumers at the gas pump, having the same impact on fuel prices as an increase in the motor fuels user fee, or gas tax.  The GCA is advocating for 100 percent of revenue generated from new fees on motor fuels in the bill should be returned to the transportation sector and invested under a multi-year authorization bill. 

The APA directs up to $6.25 billion per year for transportation investments from revenues generated from carbon fees and emissions auctions.  Based on an analysis of the legislation, a minimum of $19.5 billion in funds will be generated from motor fuels production in 2013 (the first year the bill would become effective), with that amount significantly increasing in subsequent years.  This means that at least 77 percent of revenue generated from pollution fees on gasoline and diesel is diverted away from investment in transportation in the first year.   In later years as the price of carbon increases, the percentage diverted could be as much as 91 percent. 

Call your Senator.  Tell them that 100% of the revenues from motor fuels should be dedicated to reauthorizing in the federal transportation bill.  Without such action the future of the federal transportation program is in jeopardy.

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