Panel debates mileage-based user fee language, proposes 2027 start date and private-grant option

Committee staff presented proposed language and options for the mileage-based user fee during the Senate Transportation Committee meeting.

Damian Leonard, counsel with the Onslow Legislative Council, summarized several drafting points: adding a clause permitting the Agency of Transportation (AOT) to seek or accept private grant funding for a pilot (but not requiring it), clarifying that fees would be set following legislative review, and proposing a Jan. 1, 2027, start date to provide additional lead time for rate-setting.

Leonard said the intent language should link the interim mileage fee to “the average fuel tax revenue collected by the state for a non plug in electric vehicle pleasure car,” and described the proposal as an interim step that would expand eventually to other vehicle types. He noted operational timing issues — for example, there may be a 30–45 day window after a bill is signed during which rates would need to be imposed — and argued more lead time would be beneficial.

Senator Harrison had previously asked staff to consider language allowing AOT to accept private funding. The chair and staff also discussed updating intent language to reflect phased implementation and clarifying that the fee-setting process would include legislative review.

No formal committee vote was recorded at the meeting on the mileage-based provisions. Staff said they will draft the proposed statutory language and circulate it to stakeholders for review.

Ending: Staff will draft language reflecting the committee’s guidance and circulate the text to AOT and senators for comment ahead of next week’s meeting.