Rep. DeFazio Introduces Bill to Create Oil Barrel Tax

Rep. Peter DeFazio (D.-Ore.) on June 11 introduced legislation that would eliminate the current fuel tax in lieu of a per-barrel levy on oil sales to fund federal transportation projects.

H.R. 4848, the Repeal and Rebuild Act, seeks to repeal the 18.4 cents per-gallon gas tax and instead impose a $6.75 per-barrel tax that Rep. DeFazio said would generate enough money to pay for a six-year $324 billion transportation bill.

The barrel tax would be indexed to the Department of Transportation’s National Highway Construction Cost Index and to CAFE standards. The bill also would index the diesel tax to construction cost inflation and fleet fuel economy.

Rep. DeFazio criticized House Republican Leaders proposal to pay for a one-year extension of surface transportation legislation by trimming Saturday postal services and transferring the balance of the Leaking Underground Storage Tank Trust Fund.

The current highway bill is set to expire Sept. 30. The Highway Trust Fund is projected to be insolvent by fiscal year 2015.

 

Tiffany Wlazlowski Neuman's photo

Tiffany Wlazlowski Neuman

Tiffany Wlazlowski Neuman develops and executes communications strategies to advance NATSO’s public relations and advocacy goals. Tiffany also develops and oversees partnerships related to the NATSO Foundation’s public outreach initiatives. Tiffany lives in the D.C. metro area with her husband and their two sons.More
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