Committee reviews transportation bill draft 7.1; mileage‑based user fee and retail delivery fee surface as focal points

The House Transportation Committee on March 18 walked through draft 7.1 of its transportation bill, reviewing multiple sections including new definitions for plug‑in vehicle categories, rail‑trail prohibitions, the mileage‑based user fee framework and exploratory language for a retail delivery fee.

Damian Leonard of the Office of Legislative Council summarized the new and revised sections and proposed edits; committee members asked detailed questions about fee mechanics, timing and potential impacts on municipalities. Leonard said section 1 adopts the transportation program as amended and that section 14 (the provision authorizing use of Electrify Your Fleet monies with Drive Electric Vermont) had been added. “Section 14 is just providing authorization to use monies that are appropriated for the Electrify Your Fleet program to continue the partnership with Drive Electric Vermont,” Leonard told the committee.

Key points discussed

• Definitions and technical corrections: The draft adds cross‑references and clarifies terms for plug‑in electric vehicle (PEV), plug‑in hybrid electric vehicle (PHEV) and battery electric vehicle (BEV). Drive Electric Vermont staff noted that regulators commonly use “battery electric vehicle” while the public often hears “all‑electric.”

• Rail‑trail prohibitions: Committee members debated language that originally used the phrase “harass or molest wildlife.” To reduce confusion and modernize the phrasing, counsel proposed — and the committee accepted during discussion — wording such as “harm or harass wildlife, except for fishing where otherwise allowed,” to make clear that routine fishing access along trails was not intended to be prohibited.

• Mileage‑based user fee (MBUF): The bill updates earlier statutory sections to set intent and framework for a mileage‑based user fee intended to replace some gas tax revenue as electric vehicle registrations rise. Committee discussion touched on how the fee would approximate gas tax revenue (with separate treatments for non‑plug‑in vehicles, plug‑in hybrids and BEVs), timing (committee language contemplates revenue collection beginning in 2026) and technical implementation details. Members asked for updated revenue estimates; staff said prior studies used a per‑mile assumption that should be recalculated with current registration and fuel‑use data.

• EV infrastructure fee and transfers: Draft language would move $1.4 million from the EV infrastructure fee to ACCD for level 1 and level 2 charging ports and establishes other implementation language tied to updated fee mechanics.

• Retail delivery fee: Several members raised the retail delivery fee concept as a potential new revenue source to help municipalities and roads. Committee members and staff repeatedly said the idea needs more vetting, including testimony from the tax commissioner, transportation secretary, utilities and business groups. The chair noted the committee had not yet taken sufficient testimony and said she would not put unvetted retail delivery fee language into the T‑bill at this time; other members urged at least a short “intent” or study directive so work can continue before next year’s session.

Committee process and next steps

Committee counsel said he will prepare a concise section‑by‑section summary for members and that the draft will be carried forward to appropriations. The chair said members had been given many opportunities for testimony across a wide set of transportation revenue proposals and that any retail delivery fee or other tax proposals would require additional hearings and input from ways and means and finance committees. No formal roll‑call votes were recorded on the bill text during the March 18 meeting; members signaled agreement on several technical edits and instructed counsel to prepare the T‑bill language for further committee and floor review.

What to watch next: updated revenue estimates for a mileage‑based user fee, testimony on a retail delivery fee if the committee elects to pursue it, and appropriation committee review of the transportation bill language.