Senate Bill 2 would authorize $1.5 billion in transportation bonds and raise truck, registration and EV fees to pay debt service

Lawmakers on the House Transportation committee heard an overview of Senate Bill 2, the transportation bonding measure, which would grant the State Transportation Commission new bonding authority and create revenue changes intended to pay bond debt service.

Rebecca Roos, senior infrastructure adviser in the governor’s office, summarized the bill as “essentially, it's a proposal to give the State Transportation Commission $1,500,000,000 of new bonding authority,” and said the bill includes guardrails to prevent bonding proceeds from being used to pay off existing debt.

Roos described an amendment adopted in Senate Finance requiring the Department of Transportation to publish an annual list, beginning in January 2027, of projects eligible for bonding that year and up to three alternate projects. She emphasized the list is intended to increase transparency and that the amendment does not create a legislative approval step for projects; it binds the department to the submitted list for that calendar year.

To pay expected debt service, Roos said SB 2 includes three revenue provisions estimated to generate roughly $70 million in the first year: a 35% increase to the weight‑distance tax affecting commercial trucking; a rise in vehicle registration fees (described in committee as a roughly 25% increase); and a new surcharge on electric vehicles and plug‑in hybrids. She said the EV surcharge schedule “start[s] out in 2027 at $70 for a full EV, $35 for plug in” and steps up to $90 and $45 in later years.

Committee members sought clarity on how bond proceeds would interact with STIP projects funded by the road fund and federal dollars. DOT staff said bond proceeds would replace the state road fund portion on identified STIP projects — freeing state road fund dollars for other uses — unless a federal match required otherwise. One staff estimate under a 25‑year term suggested an additional $30,000,000 of road fund resources could be directed to debt service in FY27 if bonds were sold quickly.

Members asked for charts and a packet showing which STIP projects would be prioritized for bonding and how the money would flow; Roos agreed to compile and deliver that material. Several members signaled support for additional revenue sources but asked for the packet and methodology that underlie the revenue and EV surcharge estimates before endorsing final language.

Roos and staff said they had consulted stakeholders during drafting and will provide methodology documentation, a project list and cash‑flow charts to the committee ahead of future deliberations.