**NEW JERSEY DEPARTMENT OF TRANSPORTATION INCREASE IN FUEL TAX**  **, STATEWIDE**

**RACM Analysis Control Measure:**  Increase in Fuel Tax **Description:** The current fuel tax is raised in order to provide a negative economic incentive, which is expected to alter commuter behavior, encouraging commuters to use alternative modes of transportation. Accordi ng to the American Petroleum Institute’s most recent reports at the time of this analysis (July, 2005) the gasoline excise tax in the state of New Jersey was 14.5 cents per gallon (cpg). **Documentation:**
 American Petroleum Institute, State Motor Fuel Excis e Rates as of July 1, 2005. www.api.org  Department of Energy, Energy Information Administration (EIA), Retail Gasoline Prices: http://www.eia.doe.gov/oil_gas/petroleum/data_publications/wrgp/mogas_home_page.html  Center for Clean Air Policy Guidebook: www.ccap.org/guidebook  U.S. Department of Transportation. “Summary of Fuel Economy Performance,” National Highway Traffic Safety Administration, Washington, D.C., March 2005.  Victoria Policy Institute. “Fuel Taxes, Increasing Fuel Taxes and Fees,” May 9, 2005. www.vtpi.org/tdm/tdm79.htm **Methodology :**  The total annual and daily affected VMT were calculated. Emission factors, generated using MOBILE6.2, were then applied to obtain the emission benefits of increasing the fuel tax statewide. **Inputs/A ssumptions:** 
 A 50 cpg fuel tax incr ease will be applied.  According to studies conducted by the Victoria Transport Policy Institute, a fuel tax increase of 50 cpg can be expected to result in an average decrease in VMT of 4%.  MOBILE6.2 was used to generate emission factors and VMT.  An averag e fuel economy of 25 miles per gallon was assumed.  Retail gasoline price = $2.40/gallon. **Results:** Total Affected VMT: Daily: **5,116,135** miles/day Annual: **1,789,569,054** miles/year**NEW JERSEY DEPARTMENT OF TRANSPORTATION INCREASE IN FUEL TAX**  **, STATEWIDE**

**RACM Analysis** Statewide Benefits (Emission Reductions):

**Pollutant Ty**  **pe An**  **aly sis Year**  **2009**

tons/day tons/year **VOC** 3.06 NA **NOx** 2.89 1,167.97 **PM2.5** NA 140.03 **SO2** NA 4.50 *Statewide emission benefits include counties not included below Ozone Analysis
– Daily Benefits (tpd) in New Jersey:

**Benefits (Reductions)**  **Ozone Non -** **At tainment A**  **re a**  **NY -**  **NJ -**  **CT PA**  **- NJ**  **- MD**  **- DE**  **VMT** 3,644,892 1,181,392 **VOC (Tons/Day )**  2.09 0.98 **NOx (Tons/Day** **)** 2.07 0.83 PM 2.5 Analysis
– Annual Benefits (tpy) in New Jersey:

**Benefits (Reductions)**  **PM 2.5**  **Non -** **At tainment A**  **rea NY**  **- NJ**  **- CT**  **PA -**  **NJ -**  **DE VMT**  1,245,311,288 317,49 9,170 **NOx (Tons/Year)** 809.59 211.28 **PM2.5 (Tons/Year)** 113.57 4.32 **SO 2**  **(Tons/Year)** 1.72 2.60**NEW JERSEY DEPARTMENT OF TRANSPORTATION INCREASE IN FUEL TAX**  **, STATEWIDE**

**RACM Analysis Cost/Benefit A**  **naly sis**  Total costs were estimated as follows: Total VMT was divided by 25 mpg and multiplied by the $0.50 cent per gallon tax increase. Th is figure was subtracted from the total affected VMT (4%) divided by 25 mpg and multiplied by the total amount saved per gallon. The total amount saved per gallon was estimated at $2.40 plus the $0.50 increase. These calculations were performed using both daily and annual VMT. Cost Benefit Results:

**Nonattainment A rea**  **Ozone ($/tpd) VOC**  **NOx** NY- NJ - CT $ 670,824 $ 676,819 PA- NJ - MD - DE $ 464,340 $ 549,353 Statewide $ 604,972 $ 640,444 **Nonattainment A rea**  **PM2.5 ($/tpy )**  **NO x**  **PM2.5 SO2**  NY- NJ - CT $ 590,672 $ 4,211,192 $ 278,563,708 PA- NJ - DE $ 577,050 $ 28,222,246 $ 46,919,462 Statewide $ 587,853 $ 5,091,174 $ 139,072,627