Draft Bill Reveals Obama Admin's New Auto Safety Proposals

Relevant Connection: Electric Vehicles - Solution or Diversion?

Washington DC May 6, 2011; The AIADA newsletter reported that according to The Detroit News, the Obama administration considered studying the idea of imposing a tax on vehicle miles driven to raise road repair money, but backed away from the concept Thursday when it was leaked.

The idea was included with a series of new proposed auto safety measures. Congress is considering a six-year reauthorization of the highway bill, a measure that often includes significant auto safety and policy changes. A 500-page draft of a bill leaked on Capitol Hill proposed a Surface Transportation Revenue Alternatives Office at the Federal Highway Administration. The office would conduct a "study framework that defines the functionality of a mileage-based user fee system and other systems."

The proposal was harshly criticized Thursday by many Republicans. At least three states are considering similar proposals because states will lose revenue to repair roads as more electric vehicles are produced.

An administration official disowned the proposal. "This was an early working draft proposal that was never formally circulated within the administration," said Transportation Department spokeswoman Olivia Alair. "This is not a bill supported by the administration."

Click here to read the latest on possible proposals related to taxing vehicle mileage.