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Committee presses for more testimony on mileage-based fee and proposed pilot‑fund transfer to towns

Appropriations Committee · April 23, 2026

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Summary

Committee members asked for technical briefings on a proposed mileage‑based usage fee (starting for EVs, with potential expansion to all vehicles) and discussed a plan to use pilot‑fund dollars for municipal roads; members voiced equity concerns for low‑mileage drivers and sought a fiscal revisit before voting.

The committee devoted substantial time to transportation provisions in the T‑bill, focusing on a mileage‑based usage fee and a proposed transfer of pilot‑fund money to municipal and local roads.

The chair said a proposal exists to move roughly $9 million from a pilot fund into an appropriation for municipal/local roads and that the proper vehicle for that language is the appropriations bill; members agreed a floor amendment could place the transfer into appropriations prior to a floor vote.

Committee members pressed for additional technical testimony on the mileage fee. Committee member 4 said the committee "didn't get the full, like, information" and asked the Agency of Transportation and the fiscal lead (referred to in the discussion as Patrick Murphy) to return to explain how the fee interacts with the gas tax, out‑of‑state travel and revenue forecasts. The chair agreed to request follow-up briefings and the Joint Fiscal Office to recheck the fiscal note.

Members debated design details and equity impacts. One committee member described the fee's structure as starting with a baseline "road usage" amount of about $89, with later adjustments based on measured mileage and a stated cap that could raise average payments to roughly $176 for some users. Supporters said mileage charging for EVs better aligns payment with road use; others warned that a cap-plus-credit design could unfairly burden low‑mileage drivers who rely on a car for essential trips.

Discussion also addressed the policy scope: some members supported a phased mileage fee limited to EVs and plug‑ins because those vehicles do not pay gas taxes, while several members had reservations about extending the system to all vehicles—saying that would effectively double‑count taxes for residents who already contribute at the pump. Multiple members noted the transportation fund needs "tens if not hundreds of millions" to maintain roads and cautioned the mileage fee alone is unlikely to bridge the full shortfall.

The committee set these items for additional technical hearings and said it will seek the fiscal office and AOT to provide clearer fiscal modeling before final committee action. No formal votes were taken on the mileage fee or pilot‑fund transfer during this meeting.