Audio clip
Ed Cole
Higher gas prices have caused the Tennessee Department of Transportation to refocus its thinking on providing transportation, said Ed Cole, the department’s chief of environment and planning. Rural areas face the most pressures as gas and diesel prices continue climbing, he said.
Q: How will higher gas prices affect revenue?
A: The effects are going to be major. There are two ways.
One is as people make the choice to drive less or combine trips. (State and federal taxes are assessed on each gallon of gasoline sold.) With people choosing to conserve, it affects our revenues. It is bittersweet. It does have an impact, but it’s forcing the right decisions as far as the impact on greenhouse gas emissions and the dependence on foreign oil.
The other major impact is that it is putting demands on transportation providers. In Chattanooga you’ve seen the debates about route cancellations and fare increases (on the city’s bus service). The same thing’s happening in Nashville; it’s happening in every city where people are saying, “We want public transit.” There’s a lot of pressure to start responding. The public is saying, “We want to see a shift in investments.”
Q: The gas tax revenue has been flat. Could it decrease?
A: We’ve seen the first ever in decades decrease in daily vehicle miles traveled. I think that’s something that’s not temporary.
Two, there’s incredible pressure now for more fuel-efficient vehicles. I don’t think you can escape the conclusion that we’re going to see certainly the continuation of level revenue from gas tax and at some point a decrease. We haven’t seen it yet.
Q: Are rural areas sometimes handicapped by a lack public transportation?
A: That’s a really important point. The impact of fuel prices in rural areas is really significant because the distances are greater, the options are fewer.
We have a great rural transit resource. But primarily that’s been targeted to special populations because of the funding sources. For that person who says, “I just can’t afford that five-mile trip anymore to get to the store,” the choices are limited.
Also, the intercity choices are virtually nonexistent. In the old days, Greyhound and Trailways kind of crisscrossed the country. Now we have very, very few choices. If I’m in a rural part and need to get to Nashville, Jackson or Chattanooga, I really don’t have a choice but a car.
Q: Do rising gas prices make the study of Interstate 75 more critical?
A: Yes. There’s a couple of impacts. One, what is the impact? In a study like this, I think we have to see what the pressures are of freight travel as much as passenger. We’re going to use this study to see how we forecast this.
I’ve got studies all the time that say truck travel is increasing as much as car travel. The data we’re getting now say that’s just not accurate.
First of all, the number of cars might not grow because of the higher fuel prices. It’s much more elastic. There’s Fourth of July trips that probably just won’t be made.
On the other hand, freight doesn’t have that elasticity. Let’s make assumptions that diesel (prices) will double in five years and see how that impacts it.
We’ll look at the cost of adding an extra lane from Kentucky to Georgia, but that’s not going to happen. So we have to look at truck-only lanes, improving interchanges.
Q: How can fuel prices affect improving U.S. Highway 64, or Corridor K?
A: It’s hard to tell. It gets back to, is there an impact on demand, and when we actually look at traffic forecasts along the corridor, what impact does the price of fuel play on that? Does it change anything?
The other part will be the ability for us to afford, even though we have Appalachian Regional (Commission) money in the mix. The ability to afford solutions is going to be somewhat compromised with the revenue situation.
Q: The state is looking at buyouts for employees. Will TDOT be affected?
A: Of course. We each looked at business areas where the buyout offers could be made. We’ve been reviewing that.
Q: Any indication of how many employees that could affect?
A: None at all. They have until the fourth or fifth of August to respond, so anything before that is just conjecture.
Cliff has worked for the Times Free Press for five years and covers Chattanooga city government. He previously covered Rhea County, as well as transportation and growth and development in Southeast Tennessee. A native of Maryville, Tenn., Cliff graduated in 2003 from the University of Tennessee with a bachelor’s degree in communications with an emphasis on journalism. Before coming to Chattanooga, he was a crime reporter with Hernando Today, a supplement of The Tampa (Fla.) ...
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