Senate shifts mileage‑based user‑fee language: delay to 2027, focus on state fuel tax equivalence and federal grants pending

Committee members heard May 1 that the Senate edited the T bill’s mileage‑based user‑fee (MBUF) language to clarify intent, timing and funding expectations.

David Leonard, legislative counsel, said the Senate moved the implementation benchmark from July 1, 2026, to Jan. 1, 2027, giving more lead time for design and for anticipated federal grant awards. The Senate also changed draft language that had tied the MBUF to the amount “approximately equivalent to state and federal gas tax revenue” so that the measure refers only to the average amount collected by the state in fuel tax revenue. Counsel said that reflects a Senate preference to focus the MBUF discussion on the state fuel tax base rather than combined state and federal gas taxes.

The Senate added an intent clause that describes an interim MBUF for battery electric vehicles as a first step toward gradually expanding the mileage‑based fee to all motor vehicles. Committee staff noted that federal grants remain expected but not yet secured; the House had included a $1 million general‑fund appropriation to support MBUF design, which the Senate removed in expectation of pending federal grants.

Members asked for updates in the same Sept. 30 and Dec. 15 reporting windows used for other transportation funding language, and counsel included language requiring those status reports for the MBUF design and grants. Staff reiterated that the federal grant money is still uncertain and that the Senate’s budget decisions assume the federal funds will materialize.

Ending: the committee asked staff to follow federal grant progress and to confirm how the state‑only fuel tax comparison will be used in any rate‑setting or design work.