RTC tells Reno council region needs $1.4 billion for 10‑year maintenance; EV adoption erodes fuel tax base

Reno City Council · November 12, 2025

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Summary

Regional Transportation Commission staff told the council the region faces a $1.4 billion 10‑year maintenance shortfall, urged preventative maintenance and outlined policy options for lost fuel‑tax revenue from electric and hybrid vehicles including state fees, mileage‑based charges and local sales‑tax measures.

The Regional Transportation Commission briefed the Reno City Council on two studies that argue the region faces a substantial infrastructure funding gap and an evolving revenue challenge from electric and hybrid vehicles.

RTC Executive Bill Thomas said a maintenance study, produced with a consultant, found the region needs roughly $1.4 billion over the next 10 years to bring preventative maintenance levels to desired standards. "We don't have enough money to keep up with the needs of this system holistically," Thomas said, summarizing the report’s conclusion that prioritizing preventative maintenance and focusing on high‑volume corridors can help slow decline.

The RTC also presented analysis by a nonpartisan policy group on the revenue effects of growing EV and hybrid vehicle adoption. As of 2024, EV/hybrid vehicles made about 5.5% of the fleet; as that share rises, the taxable gallons sold decline even while vehicle miles traveled increase, the study found. Recommended large‑scale responses would require state legislative changes, including an EV/hybrid fee or a mileage‑based user fee; local options discussed included the Supplemental Government Services Tax and a voter‑approved sales‑tax increment.

Deputy Executive Dale Keller described an Intelligent Transportation System pilot and upcoming capital projects, including Arlington Avenue bridge reconstruction, the "Biggest Little Bike Network" and West Fourth Street safety improvements. Councilmembers asked about the status of a $6 million congressional earmark for local street maintenance; RTC said the request passed an initial hurdle but final federal funding remains uncertain.

What’s next: RTC said it will continue to pursue state and local revenue options and pursue federal grants for bridges and capacity projects. Councilmembers signaled interest in pursuing legislative or local ballot options if statewide action stalls.