California Poised to Lose Up to $4 Billion in Gas Tax Revenue

States must find other ways to fund transportation projects as the transportation sector moves toward decarbonization.

1 minute read

January 3, 2024, 12:00 PM PST

By Diana Ionescu @aworkoffiction


E-Z Trip gas station in Bakersfield, California with orange awning over regular gas pumps and Tesla superchargers with white Teslas charging in foreground.

Gas station with Tesla charging station in Bakersfield, California. | sheilaf2002 / Adobe Stock

As electric vehicles grow in market share, states like California that depend on gas tax revenue for much of their transportation funding must find other ways to make up for the loss.

According to Manola Secaira of Cap Radio, “A report from the state’s Legislative Analyst’s Office projects a net transportation funding decline of about $4.4 billion — or 31% — within the next decade.” Currently, California gets about one-third of its transportation funding from gas taxes and vehicle fees.

Proposed replacements for the gas tax include mileage-based road user fees and new electric vehicle fees. The report recommends diversifying transportation funding sources and considering mileage fees (also known as vehicle miles traveled or VMT), which make all road users responsible for the damage incurred to roads by driving based on how much they travel. “Regardless of whether or not this approach is adopted, the report makes it clear that California officials must think of solutions sooner rather than later.”

Thursday, December 28, 2023 in Cap Radio

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Cover CM Credits, Earn Certificates, Push Your Career Forward

Aerial view of town of Wailuku in Maui, Hawaii with mountains in background against cloudy sunset sky.

Maui's Vacation Rental Debate Turns Ugly

Verbal attacks, misinformation campaigns and fistfights plague a high-stakes debate to convert thousands of vacation rentals into long-term housing.

July 1, 2025 - Honolulu Civil Beat

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

July 9, 2025 - Diana Ionescu

Map of Haussmann's redesign of Paris in the 1850s through 1870s under Napoleon III.

In Urban Planning, AI Prompting Could be the New Design Thinking

Creativity has long been key to great urban design. What if we see AI as our new creative partner?

June 30, 2025 - Tom Sanchez

Red and white "Wildfire Evacuation Route" sign on signpost.

Cal Fire Chatbot Fails to Answer Basic Questions

An AI chatbot designed to provide information about wildfires can’t answer questions about evacuation orders, among other problems.

July 10 - The Markup

Protester at Echo Park Lake, Los Angeles holding sign that says "Housing is a human right"

What Happens if Trump Kills Section 8?

The Trump admin aims to slash federal rental aid by nearly half and shift distribution to states. Experts warn this could spike homelessness and destabilize communities nationwide.

July 10 - Shelterforce Magazine

Aerial of rainbow painted crosswalks at large intersection in Castro District, Sna Francisco, California.

Sean Duffy Targets Rainbow Crosswalks in Road Safety Efforts

Despite evidence that colorful crosswalks actually improve intersection safety — and the lack of almost any crosswalks at all on the nation’s most dangerous arterial roads — U.S. Transportation Secretary Duffy is calling on states to remove them.

July 10 - Streetsblog USA

Urban Design for Planners 1: Software Tools

This six-course series explores essential urban design concepts using open source software and equips planners with the tools they need to participate fully in the urban design process.

Planning for Universal Design

Learn the tools for implementing Universal Design in planning regulations.

Home and Land Services Coordinator

Appalachian Highlands Housing Partners

Associate/Senior Planner

Gallatin County Department of Planning & Community Development

Senior Planner

Heyer Gruel & Associates PA