A new study does a deep dive on a complex topic -- how to pay for future road repairs in an era of declining fuel tax revenue devoted to that purpose -- and offers up recommendations on a path forward.

The study was commissioned by CalAPA-supported Transportation California, a coalition of transportation advocates, and was conducted by NEWROAD Consulting. It was released publicly on April 1. A Transportation California news release about the study is HERE. The full study can be downloaded HERE.

Lawmakers, transportation policy experts and others are increasingly concerned about how to pay for maintaining California's vast transportation infrastructure as revenues are entering a period of steady decline. The state's fuel tax devoted to transportation, which has been in place for a century, is projected to fall far behind what is needed to maintain the system due to the increasing popularity of electric vehicles in the state. By one estimate by the California Transportation Commission, the state faces a $31 billion transportation funding shortfall over the next 10 years due largely to EV adoption. Currently owners of EVs only make nominal contributions to the State Highway Fund in the form of a $100 registration fee.

“More California drivers are shouldering an unfair financial burden to maintain and improve the transportation system,” said Kiana Valentine, executive director of Transportation California in a statement accompanying the release of the report. “While the looming funding crisis is an unintended consequence of the state’s success in reducing the carbon footprint of the transportation sector, it must be addressed or all Californians will pay the price." She noted that the study focused on developing alternatives that are "fair, affordable and accountable over the long term.”

Among the alternatives explored in the 50-page report that emerged as possible pathways forward included:

• An expanded fuel tax model that would build on the current system to include alternative fuel types, such as electricity and hydrogen.
• A pure "Road User Charge" (RUC) model that would replace all fuel taxes with a system that charges vehicles based on the distance they drive.
• A mixed model that combines the current fuel tax system with a road-user charge for alternative-fuel vehicles.

“Each pathway reflects a trade-off between simplicity, equity and practicality,” said Nina Elter, founder and CEO of NEWROAD. “The fuel tax model builds on familiar systems but struggles with equity and has more work to do to adapt to alternative fuels. The pure RUC model enables long-term equity and efficiency but requires significant systemic change. The mixed model offers a pragmatic transition to a sustainable funding system, balancing existing systems with evolving needs.”

The study authors conducted an extensive literature review on the topic, and looked at other states and countries that have moved toward other methods to pay for transportation. California has conducted its own pilot program to charge motorists based on mileage driven rather than fuel taxes. More information on that initiative is HERE.

Beyond studies and pilot programs, however, elected officials are increasingly worried that a transportation funding crisis will be upon us before a complex new system to collect revenue can be implemented. Assemblywoman Lori Wilson, D-Suisun City, chair of the Assembly Transportation Committee, sounded the alarm Jan. 16 during a speech at the CalAPA Annual Dinner in Los Angeles and proclaimed it was time to address "the elephant in the room."

“We must acknowledge the looming funding gap caused by declining gas tax revenues,” she said, adding that "our transportation needs are growing." Previous Asphalt Insider coverage of her remarks can be found HERE.

The Legislature held a joint informational hearing on the topic March 3. Following the hearing, Wilson told Asphalt Insider, "This is just the beginning -- there are no easy fixes, but inaction is not an option." Asphalt Insider coverage of that hearing is HERE.

Back by popular demand, the CalAPA Southern California Contractor’s Committee invites CalAPA members to a special contractor-focused dinner at the legendary Dal Rae restaurant in Pico Rivera for a memorable evening of delicious food and drink, solid-gold networking and sharing of timely information that is essential to the success of any paving contractor. Details and on-line registration is HERE.

The featured presentation for the dinnertime program will be delivered by Drew Delaney from Associates Environmental on the constantly changing air-quality regulations with regard to on-road and off-road construction equipment. His informative presentation will focus on changes to the Carl Moyer Grant Program for 2025 as overseen by the South Coast Air Quality Management District (SCAQMD). The voluntary grant program targets the replacement of older heavy-duty diesel-powered vehicles and equipment. Delaney will also provide valuable insight into strategies and best practices for complying with the various new emissions laws with regard to construction equipment. This is a highly interactive experience, and attendees are encouraged to bring their questions, insights and experiences to contribute to the discussion.

The program will also include a "technical tidbit," risk-management tips and an association update that will focus heavily on the asphalt market, trends, threats and opportunities.

All this takes place at the legendary Dal Rae restaurant, which originally opened in 1958 and is home to arguably the best steak in Southern California. The Dal Rae was recently inducted into the Los Angeles Times Restaurant "Hall of Fame." The entry noted that "L.A. is blessed with many throwback restaurants; Dal Rae's savoir faire and exuberance distinguish it from the pack."

Information about other CalAPA events can be found on the association's on-line calendar HERE.

The National Asphalt Pavement Association, a CalAPA partner, has released a toolkit of publicity and educational resources in advance of national Work Zone Awareness Week April 21-25. NAPA's "Watch for Us" campaign, now in its 9th year, is meant to call attention to the problem of distracted driving and other behaviors by motorists that put highway workers in danger. Each year hundreds of lives are lost in roadway work zone crashes.

The toolkit includes links to graphics, promotional ideas, social media guidance and educational materials. There are links to videos and fliers and other campaign material. The toolkit is HERE.

Although targeted to national Work Zone Awareness Week, the materials can be used all year long to highlight the importance of driving safely in work zones.

The official National Work Zone Awareness Week website is HERE. Caltrans will hold various events around the state aligned with work zone safety week with a special emphasis on remembering the 194 Caltrans workers who have been killed on the job since 1921. Details about those events, including a memorial service to take place April 17 in West Sacramento, can be found HERE.

Elevating women in the asphalt pavement industry often involves helping them polish skills to advance their careers. The Women of Asphalt California Branch volunteers delivered another professional development webinar last week focusing on presentation skills that earned high praise from attendees.

Part of the "Empower-Her Leadership Series," the April 4 educational session was presented by Rachael Luciak of Strategic G Advisors. The title of the free session was, "Presentation Skills to Boost Your Confidence, While Maximizing Your Impact."

Cathrina Dmytrow, former chief of the Caltrans Office of Asphalt Pavements who is now running a consultancy, PavementACES, said the session was well done and featured "some really good tips to improve your presentation skills." Although Dmytrow has delivered many presentations at conferences and other events in her career, she said she learned helpful techniques to elevate her game.

Another attendee was Mimi Le with MCK Services, who delivered a presentation at the Spring Asphalt Pavement Conference earlier this year in Pomona. She said she also found the session to be informative as she polishes her own presentation techniques. Karen Bonnetti-Ramirez with Caltrans said she found the session worthwhile and "admires how Rachael interacts and engages with each person and yet stays on track and finishes on time."

Feedback from other attendees was similarly effusive. The Women of Asphalt California Branch leadership are planning another educational webinar in the Fall focusing on effective conflict resolution. To learn more about the Women of Asphalt California Branch and to sign up to receive notifications of future events, click HERE.

Each week we highlight a word, acronym or other term commonly used in the asphalt pavement industry in California.

FLEXIBLE PAVEMENT: A pavement structure that maintains intimate contact with and distributes loads to the sub-grade and depends on aggregate interlock, particle friction, and cohesion for stability. Asphalt or bituminous concrete pavements are often referred to as flexible pavements; while concrete pavements are generally referred to as rigid pavements. 

Each week we highlight a key point or best practice of interest to asphalt paving crews, inspectors and others working in the field. We welcome suggestions. More tips can be found in our "Asphalt Parking Lot Construction Checklist" HERE. Information on the CalAPA "Quality Paving Certificate" program is HERE.

PAVING OPERATION: Ask yourself: Is the equipment properly maintained and in proper working order? Does the foreman have a paving plan (i.e., the paving lanes and passes are painted out and a roller pattern has been established)?

Each week we highlight a term that is specific to climate-change issues related to the asphalt pavement industry. This feature is intended to raise awareness of the asphalt industry's climate-change initiatives and the specialized terminology that goes with them. More information on "The Road Forward" asphalt industry climate initiative can be found HERE. A recent CalAPA magazine story on the topic is HERE.

WILDLIFE HABITAT: Wildlife areas that provide opportunities for food, water, and nesting.

"When it is obvious that the goals cannot be reached, don't adjust the goals, adjust the action steps."



– Confucius

We hope you enjoy CalAPA's Asphalt Insider newsletter. We are committed to providing you with the most up-to-date information on technical issues, regulation, news, analysis, people, events and trends in California that is of interest to the asphalt pavement industry and our various agency partners. To subscribe to the newsletter, click HERE. For comments, questions or to suggest a story idea, click HERE. We are committed to promptly notifying our readers of any errors in this publication. Please click on the comment link above to alert the editor of any errors or omissions.

Sincerely,

Russell W. Snyder, CAE

Executive Director

The California Asphalt Pavement Association (CalAPA)®