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Committee discusses mileage-based user fee rollout, DMV modernization and federal grant uncertainty

2340208 · February 19, 2025
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Summary

Lawmakers discussed plans to implement a mileage-based user fee (MBUF), the role of DMV modernization and inspection odometer data, the estimated $3.5 million programming and outreach cost, and the uncertainty around federal grant funding.

Committee members reviewed progress and obstacles for a mileage-based user fee (MBUF) and the supporting DMV modernization work required to implement it.

Michelle Boudenhauer of the Vermont Agency of Transportation described the technical approach the agency plans to use: linking the modernized DMV registration/payment system with inspection-station odometer data to verify mileage and allow an option for motorists to prepay estimated miles. Boudenhauer said the system will include a verification mechanism and a payment module for registration and fees, and that outreach will be needed to notify electric-vehicle owners about changes.

Committee members also discussed funding. Staff and members cited an implementation cost estimate in the range of $3.5 million for programming and outreach. Members reported uncertainty about whether a $3 million federal grant (referenced in testimony) had been awarded; committee discussion indicated one federal grant had not been received and that delay could push the implementation timeline beyond the planned period. Committee members asked for clearer language in the T bill identifying funding sources or fallback plans so the implementation timeline does not extend indefinitely.

Michelle Boudenhauer (Vermont Agency of Transportation) said the agency is working with the Agency of Digital Services to try to lower development costs and noted part of the program cost is for public education and outreach to EV owners. Committee members suggested bill language to keep implementation on schedule even if federal funding is delayed.

No formal action to adopt implementation funding was taken at the session; members requested follow-up from agency staff and JFO to clarify cost estimates, grant status and fallback funding language.