Issue link: http://read.dmtmag.com/i/86182
Industry Beat ("Industry Beat" continued from page 14) States Offered $473 Million for Transportation Projects Governors and other state-level policymakers must decide by Oct. 1, 2012, how they will use the $473 million in transportation funding the Obama administration released in mid-August. The funding comes from the rescission of unobligated earmarks from past appro- priations bills. Every state except for Wyoming will be eligible to receive funding, which must be obligated by the end of the year. Using a formula established in an AED commissioned study by Professor Stephen Fuller of George Mason University, AED estimates the new funding could create approximately $30 million in construction equipment market opportunity. New Fuel Standards Released for On-Road Vehicles – Underscores Need for More Sustainable User Fees to Support Highway Trust Fund New standards will increase fuel economy to the equivalent of 54.5 mpg for cars and light-duty trucks by Model Year 2025. When combined with previous standards, this move will nearly double the fuel efficiency of those vehicles compared to new vehicle. According to the Department of Transportation, the program to improve fuel economy and reduce greenhouse gas emissions will save consumers more than $1.7 trillion at the gas pump and reduce U.S. oil consumption by 12 billion barrels. While increasing fuel economy is a laudable goal, by reducing per-mile fuel consumption the new standards will put additional pressure on the Highway Trust Fund (HTF). Gas tax and other highway user fees paid into the HTF are already insufficient to sustain current federal highway investment levels. AED is therefore urging Congress and the president to create additional HTF user fee revenues as part of the upcoming tax and budget reform debate. 16 | www.cedmag.com | Construction Equipment Distribution | October 2012