An Arizona State Senator is proposing a sort of a gas-guzzler penalty, with registration fees based in part on potential gas consumption, reported The Arizona Daily Sun on January 16. Arizona State Senator Slade Mead (R-Phoenix) said bill SB1060 will encourage the purchase of fuel-efficient vehicles by placing a higher registration fee on high gas consuming vehicles to offset lower fees for fuel-efficient compacts and hybrid vehicles. Mead's bill will likely be opposed by the Arizona Automobile Dealers Association. Industry lobbyists argued that people and companies that need larger vehicles should not be financially penalized. Mead's position is that the vehicles most impacted by the bill are the heaviest, least fuel efficient vehicles, which cause more wear on roads, consume more fuel, and produce more emissions, and therefore "should pay their way." Mead last year proposed allowing hybrid-electric vehicles to use the high-occupancy vehicle (HOV) lanes along with alternative-fuel vehicles. Some opponents point to the state's previous debacle with subsidies for the purchase of alternative-fuel vehicles, but Mead says his proposal is revenue neutral.

Originally posted on Fleet Financials

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