Federal And State Gas Taxes Help Fund Infrastructure Projects, So What Happens As More Cars Become Electric?

Rhea-AI Summary

Rekor is collaborating with the Oregon Department of Transportation (ODOT) to address the loss of gas tax revenue due to the rise in electric vehicles (EVs). As EVs make up about 8% of new car sales in Oregon, traditional gas taxes are declining. ODOT contracted Rekor to develop a sustainable funding model that includes a Connected Vehicle Ecosystem (CVE) aimed at collecting data from millions of vehicles. This initiative supports President Biden's goal of electrifying two-thirds of new passenger cars and a quarter of heavy trucks by 2032 as outlined in the Infrastructure Investment and Jobs Act. Rekor utilizes its Rekor One platform to analyze data and enhance transportation systems. Their data capture devices, Rekor Edge Max and Rekor Edge Flex, will play a crucial role in this data collection effort.

Positive

• Rekor is contracted by Oregon to create a sustainable funding model for infrastructure amid declining gas tax revenues.
• The partnership supports the broader U.S. initiative to transition towards electric vehicles, aligning with governmental electrification goals.
• Rekor's technology, including Rekor One and data capture devices, enhances infrastructure investment decision-making.

Negative

• The shift towards electric vehicles may lead to significant long-term reductions in gas tax revenues, impacting infrastructure funding.

COLUMBIA, MD / ACCESSWIRE / April 25, 2023 / In the United States, gas taxes are an instrumental part of infrastructure projects. The federal government and all 50 U.S. states impose gas taxes; the average state gas tax is about 31 cents a gallon. These taxes then get funneled into projects that help with road maintenance costs and other roadway-related infrastructure projects. However, the rise of electric vehicles and the governmental push towards electrification is causing legislators to think of alternative ways to levy taxes and support economic needs.

Recently in April, President Biden and the Environmental Protection Agency outlined plans to ensure that two-thirds of new passenger cars and a quarter of new heavy trucks sold in the US are all-electric by 2032. This proposal would help support the $1.2 trillion Infrastructure Investment and Jobs Act (IIJA) that was passed in November 2021. While this is great news for the environment, electric vehicles do not generate federal and state gas tax revenue.

One state is ahead of the curve and working with technology company Rekor (NASDAQ:REKR) to outline solutions to make up for the decrease in gas tax revenue. Oregon has been a pioneer in the shift towards vehicle electrification, with more than 50,000 electric vehicles registered - making up around 8% of the state's new car, truck, and SUV sales. Because of this, the Oregon Department of Transportation (ODOT) has needed to find innovative ways to finance road maintenance, preservation and improvements.

In early 2023, ODOT contracted Rekor and its partners to collect data and help establish a sustainable funding model that addresses the growing adoption of electric and hybrid vehicles.

Rekor is an AI-driven data company that uses its digital infrastructure operating system, Rekor One^TM, to ingest billions of data points from multiple sources to transform data into knowledge that can be used to improve transportation systems into fully functioning and safe roadways. Rekor is able to obtain data from third-party data sources like Waze, proprietary data capture, and existing infrastructure information and then processes those data points through Rekor One^TM, which can then be used by customers to make the best decisions for infrastructure investment.

The ODOT has been working hard to develop a state-wide Connected Vehicle Ecosystem and Rekor's technology is assisting in this goal. Rekor will deploy an innovative Connected Vehicle Ecosystem (CVE) that will collect data from millions of vehicles to create a foundation of connectivity to support road usage charges across various states and jurisdictions. This solution, developed to support the needs of the ODOT, can be expanded and utilized by states across the US, leveraging a growing network of partners, multiple automotive OEMs, and connected vehicle data and technology providers. The company's proprietary data capture devices, Rekor Edge Max and Rekor Edge Flex, will be instrumental in this data collection.

As consumer behavior continues to shift towards vehicle electrification and governmental programs support this adoption, the need for CVEs and creative solutions to changing systems will be crucial for success. Companies like Rekor are instrumental in this success.

Featured photo by Andreas Dress on Unsplash.

Contact:

Charles Degliomini
ir@rekorsystems.com

SOURCE: Rekor Systems

View source version on accesswire.com:
https://www.accesswire.com/751075/Federal-And-State-Gas-Taxes-Help-Fund-Infrastructure-Projects-So-What-Happens-As-More-Cars-Become-Electric

FAQ

What is Rekor's role in Oregon's transportation funding?

Rekor is working with the Oregon Department of Transportation to develop a sustainable funding model in response to declining gas tax revenues due to increased electric vehicle adoption.

What is the Connected Vehicle Ecosystem Rekor is developing?

The Connected Vehicle Ecosystem (CVE) aims to collect data from millions of vehicles to support road usage charges and improve infrastructure financing.

How many electric vehicles are registered in Oregon?

Oregon has over 50,000 electric vehicles registered, representing around 8% of new car sales in the state.

What technology does Rekor use for data collection?

Rekor uses its Rekor One platform and proprietary data capture devices, Rekor Edge Max and Rekor Edge Flex, to collect and analyze transportation data.

How does Rekor's work align with federal electrification goals?

Rekor's efforts support President Biden's plan for two-thirds of new passenger cars and a quarter of new heavy trucks sold in the U.S. to be electric by 2032.