december2023 - 31

solution is to push renting and leasing as options.
" We're working to help franchises and our
customers identify, apply for, and obtain grant
funding to lower their capital investment as they
transition to [EVs], " said Andrew Keane, PacLease
director of franchise operations.
When leasing, a fleet will likely end up paying
more in the long run but with fewer headaches.
Lingering issues
This is all just scratching the
surface of major problems
with electrifying too soon.
Since EVs are equipped with
heavy lithium-ion batteries,
they weigh more than their
conventional counterparts.
This could put more stress on
roadways and speed up the
development of potholes.
The Indiana Department
of Transportation (INDOT)
designs pavements based
on the current average daily
truck traffic to last approximately
50 years, according to
Natalie Garrett, INDOT strategic
communications director.
" If heavier legal loads are
approved through federal
regulations, " Garrett explained,
" then design standards for
pavement and bridges would
need to be updated to account
for those heavier loads. " She
added that unless standards
are changed, CEVs will have
to abide by the existing limits
and find another route.
Many states rely on fuel
taxes to repair potholes and
crumbling roads. In Indiana,
about 82% of the agency's state
revenue is derived from motor
fuel taxes, which accounts for
61% of INDOT's total revenue,
with the remaining 39% being
federal, Garrett said.
" INDOT is projecting a shortfall
in the future due to EV
adoption, " said Garrett, who
added the agency is providing
data to the state legislature to
figure out a solution.
A vehicle-miles traveled
(VMT) tax may be in order,
but that itself comes with problems.
According to Jana Jarvis,
Oregon Trucking Association
president and CEO, her state's
weight-mile tax has issues,
among them tax evasion and
the cost of collecting the taxes.
" I have a pretty good idea
it's well in excess of 20%, "
Jarvis said. " The cost of a
collection for a fuel tax is
0.5%, which means you have
eCash Rewards
Drive Savings
Your FleetPride Team
is always working
hard to keep you on
the road.
to raise the rates higher to get the same revenue
and to support whatever it is you're supporting. "
ATRI's analysis of VMT concluded that evasion
and noncompliance will exceed $7.87 billion annually,
and collection costs would be 300 times higher
than for the federal motor fuel tax.
" It's going to cost 40 cents to collect $1 based on
VMT compared to 3 cents now, " explained Paul
Enos, CEO of the Nevada Trucking Association.
" So where does that 37 cents go? It goes to Silicon
Valley, it goes to banks-instead of going to our
roads, instead of going to those things that we want
the government to do in an efficient way. We're now
giving it to people who are taking this grift, and
that isn't going to benefit us as citizens. "
Additional reporting from Cris Beaulieu.
with
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