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Senate committee hears detailed plan to charge electric vehicles per mile and set phased expansion
Summary
A Senate Transportation working draft would impose a mileage-based user fee (MBUF) on battery electric vehicles starting Jan. 1, 2027, set a 1.4-cent-per-mile rate, offer multiple payment options and require a phased expansion plan to include other light-duty vehicles by 2031; agency implementation, outreach and federal grant timing were key concerns.
The Senate Transportation Committee spent the bulk of its session reviewing a House-passed transportation bill’s proposal to replace the EV registration "infrastructure fee" with a mileage-based user fee for battery electric vehicles and to plan a phased expansion to other light-duty vehicles.
Damian Leonard of the Office of Legislative Council told the committee the draft’s core purpose is to "impose a mileage user fee for battery electric vehicles" so that vehicles contribute to the transportation fund in proportion to the miles they travel. The draft sets an initial mileage rate at 1.4 cents per mile and proposes multiple payment methods: an annual lump-sum reconciliation at the end of a mileage reporting period, a pay-as-you-go installment option based on periodic odometer reporting, estimated payments (paid at registration, with year-end reconciliation), or a flat-rate payment that would require no reporting.
Why it matters: declining fuel-tax receipts as vehicles become more fuel-efficient and the growth of electrified vehicles have reduced a…
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