On February 7, 2025, Maryland lawmakers introduced House Bill 1457, a legislative proposal aimed at establishing a Mileage-Based User Fee (MBUF) system for motor vehicle owners in the state. The bill seeks to address the growing need for sustainable funding for transportation infrastructure, particularly as traditional fuel tax revenues decline due to the increasing adoption of electric and fuel-efficient vehicles.

The key provisions of House Bill 1457 outline a framework for calculating the MBUF, which will be determined annually by the Maryland Department of Transportation. The fee will be based on the number of miles driven by a vehicle, calculated by dividing the existing highway use fee by the estimated average mileage of Class A vehicles in Maryland. Importantly, the bill stipulates that the total MBUF paid by any vehicle owner cannot exceed the annual highway use fee they would have otherwise paid.

To ensure privacy and data protection, the bill includes several provisions regarding vehicle location and data tracking. It mandates that any data collected for the MBUF program be used solely for its administration, prohibits the disclosure of individual participant data, and establishes a limited data retention period. Additionally, any research utilizing aggregated data must receive approval from an institutional review board.

While the bill allows vehicle owners to opt into the MBUF program, participation is not mandatory. The Department of Transportation is tasked with establishing a fully operational MBUF program by July 1, 2028, with the law set to take effect on July 1, 2025.

The introduction of House Bill 1457 has sparked discussions among lawmakers, transportation advocates, and the public. Proponents argue that the MBUF system could provide a more equitable funding mechanism for road maintenance and infrastructure improvements, as it aligns fees with actual road usage. However, concerns have been raised regarding potential privacy issues and the administrative burden of tracking mileage.

As the bill progresses through the legislative process, its implications for Maryland's transportation funding and the broader conversation about sustainable infrastructure financing will be closely monitored. The outcome of this bill could set a precedent for similar initiatives in other states, reflecting a shift towards user-based funding models in response to changing transportation dynamics.