Bo Tefu and Antonio Ray Harvey | California Black Media
Calif. Sec. of Transportation: State on Course to Future Without Gas-Powered Cars
As California pushes toward a zero-emissions future by 2035, petroleum use is expected to decline significantly over the next decade.
But Secretary of Transportation Toks Omishakin said a decline in transportation revenue is currently not an “urgent” matter.
Omishakin explained how the state is projected to handle a $4 billion-plus shortfall in gas tax revenue at the “Funding the Future: California’s Transportation Transformation” seminar, held on June 18 at the Kimpton Sawyer Hotel in Sacramento.
“I would say that we are not at a place where we’re losing gas tax funding yet,” Omishakin said to moderator Debra Kahn, California Policy Editor at Politico.
“Some people say that we are, but we’re not,” Omishakin continued. “We’re going to be up 57.9 to 59.7 cents (after July 1). That’s going to be the gas tax but we’re not losing revenue,” he added.
According to a December 23 report by the Legislative Analyst Office (LAO), in the next 10 years, Californians could see a decline of $5 billion or 64% from the state’s gasoline excise tax, $290 million or 20% from the diesel excise tax and $420 million or 20% from the diesel sales tax.
“We estimate that these declines will be partially but not fully offset by projected increases in revenues from an existing annual registration fee levied on battery-electric and hydrogen-fueled cell vehicles ($1 billion),” the LAO report stated.
The projected revenue shrinkage is expected to affect some transportation programs that support state and local transportation projects and activities, according to LAO. The California Department of Transportation’s highway maintenance and rehabilitation programs, subsidized by state fuel taxes, could also be affected by cuts.
LAO’s report states that the existing annual registration fee attached to battery-electric and hydrogen-fueled cell vehicles should increase revenues to $1 billion. However, the report also projects an estimated decline of $4.4 billion in annual state transportation revenues.
“I haven’t had a lot of time to look at the LAO’s projections but (it’s) possibly accurate on many fronts,” Omishakin said. “So far, we’re not at a place where we are losing revenue. That is a key thing to keep in mind.”
Hosted by Politico and presented by California Alliance For Jobs, the event explored the future of transportation infrastructure, transit, pedestrians, bike lanes, local streets, highways, bridges, overpasses, and electric vehicles.
Other participants included Assemblymember Lori D. Wilson (D-Suisun City), chair of the Assembly Transportation Committee and the California Legislative Black Caucus; Emily Cohen, California High-Speed Rail Authority Executive Vice President of United Contracts; Michael Pimentel, Executive Director of California Transit Association; and Sen. Dave Cortese (D-Campbell).
As part of the Advanced Clean Cars II regulations, all new passenger cars, trucks, and SUVs sold in California will be zero-emission vehicles by 2035.
Omishakin said, across California there are up to 1.9 million “light-duty” EVs, 400,000 “medium-to-heavy duty” EVs (50% are public transportation buses), 105,000 charging stations, and 500,000 home chargers.
“On one side, we’re doing extremely well. The rest of the world is following our steps in leadership. Thanks to the leaders of the state, Gov. Newsom, the legislature, and key staff – we are leading the way on EVs,” Omishakin said. “We’re hitting the ball out of the park.
