Lifetime Citizen Portal Access — AI Briefings, Alerts & Unlimited Follows
Committee hears details of Senate’s mileage‑based user fee and phased rollout
Loading...
Summary
Legislative counsel outlined how the Senate transportation bill would phase in a mileage‑based user fee (1.4¢/mile), offer a temporary flat‑fee option with reporting and true‑ups, and require multiple reports and outreach before broad implementation in 2029–2031.
The House Transportation committee on April 21 heard a section‑by‑section briefing on the Senate version of the transportation bill, with legislative counsel Damien Leonard highlighting a proposed mileage‑based user fee and staged implementation plan.
Leonard, legislative counsel, said the fee is modeled at 1.4¢ per mile and that the Senate construct includes multiple payment pathways: annual payment, estimated payments, pay‑as‑you‑go and an initially capped flat‑fee option. "The fee is still 1.4¢ per mile," Leonard said, describing the payment choices and exemptions.
Why it matters: the Senate approach would create a transition that aims to include more vehicle types over time while retaining some credit for gasoline tax paid by less‑fuel‑efficient vehicles. Leonard said the Senate would exempt U.S. and state government vehicles and rental cars from the fee and removed a proposed rental‑car surcharge found in an earlier Ways and Means draft.
Key implementation details: the bill requires education and outreach and three reporting milestones. Leonard said the legislature will receive drafts of the AOT implementation plan and that the agency must submit a draft plan in July 2028 and a final plan to the Federal Highway Administration in September 2028; the September filing may include final recommendations for legislative action such as delaying effective dates.
Payments and true‑ups: under the Senate proposal, a flat‑fee option is capped initially (the transcript lists both $178 and $1.78 inconsistently); Leonard said the construct would allow an initial flat‑fee with later true‑ups and credits applied to future registrations. "If you pay the flat fee and later your odometer shows you owed less, we'll credit the difference towards your next mileage‑based user fee," Leonard said.
Phasing and scope: the Senate plan would bring plug‑in hybrids, hybrids and vehicles rated 25 mpg or better into the program in 2029 and all light‑duty vehicles (GVWR under 10,000 pounds) by 2031. Leonard said those later additions are subject to required reports and potential revision by the legislature.
Modeling and comparisons: members asked about revenue modeling. Leonard said rough EV estimates exist (for example, an EV traveling 11,000 miles could pay roughly $65 more annually under the modeled scenario) but that comprehensive revenue projections are limited before the Senate Finance process is complete. He cited other states' voluntary pilots — Virginia, Oregon and Utah — and noted Hawaii's progress toward a mandatory program as context for implementation options. He also described geofencing and in‑vehicle device options as technological approaches to distinguish in‑state and out‑of‑state miles.
Next steps: Leonard stressed the Senate language remains subject to change during Senate Finance and Appropriations review; the committee agreed to resume bill work the next day.
