Conferees advance mileage-based user fee language, leave broader coverage undecided

Senate and House conferees on the transportation bill moved forward on the section governing a mileage-based user fee (MBUF), agreeing to the senate’s later default implementation date and several technical changes while postponing debate on broader coverage and intent language.

The MBUF discussion matters because it is a proposed replacement for declining gas-tax revenue streams and could change how drivers — including electric vehicle owners — are charged for use of Vermont roads.

Conferees said the principal differences involved timing and the base for setting the fee. The House version set a target implementation date of July 1, 2026; the Senate text used an “on or before Jan. 1, 2027” date. The Senate language also substituted “fuel tax” for “gas tax” to include diesel, and added that the MBUF would not be collected until the General Assembly enacts and makes effective implementing legislation that establishes the fee and any necessary authorization language. The two sides also differed on whether the fee should approximate combined state and federal gas-tax revenue (House language) or roughly the average amount collected by the state alone (Senate language). The Senate added intent language describing the MBUF as “an interim step” toward expanding the fee to all motor vehicles.

Members expressed policy and equity concerns during the discussion. Some conferees warned that charging EV drivers alone could be unfair while the MBUF remains limited to a subset of vehicles; others said delaying action reduces transportation revenues, which they estimated are falling by “$2 million to $3 million” and could grow to roughly $7 million annually when fully implemented. Conferees also flagged practical problems: capturing mileage from out‑of‑state plug‑in vehicles and the potential political framing of per‑mile charges as limiting mobility.

Michelle Bloomhower, representing the Vermont Agency of Transportation, said a pending federal proposal could affect state plans: “it looks like yesterday, they settled on a fee of $250 for all electric vehicles and a hundred dollars for plug in hybrids,” and federal reconciliation language could provide up to $2 million per state to set up collection systems, funds that Vermont might use to support state implementation.

Outcome: conferees indicated agreement to move forward with the senate version of the implementation timing and other technical edits for the section identified as 18 (senate) / 11 (house), while leaving the related section (19 in the senate / 12 in the house), which includes some coverage and intent language, on hold for further work.

Next steps: conferees said they will continue to reconcile the remaining language in follow‑up meetings and monitor federal developments that could provide funding or influence design choices.