Understanding Electric Vehicle Impacts on Arizona Fuel-Tax Revenue

Arizona Department of Transportation's (ADOT’s) Financial Management Services (FMS) division would like to understand how the increasing use of electric vehicles (EVs) on Arizona’s roadways will affect fuel-tax revenue in the state. State taxes on gasoline and diesel sales are a major source of funding for maintaining and expanding Arizona’s transportation network, but fuel tax receipts are expected to decline on a per-vehicle basis as more and more people choose to drive EVs on Arizona roadways. For instance, new fast-charging stations under development as part of the National Electric Vehicle Infrastructure (NEVI) program are expected to increase the use of EVs both in Arizona and nationally. Because Arizona does not assess a fee equivalent to lost fuel taxes, EVs do not contribute to road-maintenance costs in the same way that internal combustion engine (ICE) vehicles currently do. This study will explore where, when, and how much EVs are driven in Arizona and project changes to this baseline in the future. The study also will develop future scenarios of varying levels of EV use on Arizona’s roadways that will facilitate FMS’s analysis of how EV adoption and use could affect fuel-tax receipts.

Language

• English

Project

• Status: Programmed
• Contract Numbers:

  SPR-796

• Sponsor Organizations:

  Arizona Department of Transportation Research Center

  206 S. 17th Avenue
  ADOT Research Center
  Phoenix, AZ  United States  85007
• Project Managers:

  Proffitt, David

• Start Date: 20240401
• Expected Completion Date: 20241031
• Actual Completion Date: 0

Subject/Index Terms

• TRT Terms: Electric vehicles; Forecasting; Fuel taxes; Revenues
• Geographic Terms: Arizona
• Subject Areas: Economics; Energy; Finance; Highways; Planning and Forecasting; Vehicles and Equipment;

Filing Info

• Accession Number: 01912058
• Record Type: Research project
• Source Agency: Arizona Department of Transportation
• Contract Numbers: SPR-796
• Files: RIP, STATEDOT
• Created Date: Mar 18 2024 4:13PM