Appropriations panel advances H.944 after Ways & Means amends mileage fee, town highway transfer

The House Appropriations Committee on March 20 advanced H.944, the annual transportation bill, after agreeing to a Ways & Means amendment that replaced the bill’s original mileage‑based user fee language and adjusted several appropriations and transfers.

Damian Leonard of the Office of Legislative Council told the committee “the bill is H.944” and that “section one … adopts the whole 900 plus million dollar transportation program,” noting that several sections in the bill affect how the state appropriates transportation dollars. He described key changes in the Ways & Means amendment, including a simplified mileage‑based user fee (MBUF) calculation and technical adjustments to the EV infrastructure fee.

Under the amended proposal, the MBUF for battery electric vehicles would be assessed after a vehicle’s second inspection each year by reading mileage and sending a bill. The committee heard an estimate that an average battery electric vehicle owner would pay “about $154 a year,” a figure intended to track the typical amount a gasoline driver pays in gas taxes.

The amendment also redirects money previously dedicated to an EV infrastructure program administered by the Agency of Commerce and Community Development (ACCD) back to the Transportation Fund. The committee was told the EV infrastructure fee had been used to help build level‑1 and level‑2 charging capacity, but the change is framed as a short‑term transition tied to the rollout of the MBUF.

Members also heard that the Ways & Means amendment shifts a one‑time transfer of $2.22 million from the Transportation Infrastructure Bond fund (TIB) into the Transportation Fund, with $1.7 million designated for general state aid for town highways and $500,000 to general T fund purposes. Damian Leonard described the $1.7 million as a one‑time boost to town highway aid rather than an ongoing change to the pilot special fund formula that had been proposed earlier by the House Transportation Committee.

Joint Fiscal Office staff reviewed the fiscal picture and described the transportation program totals in the fiscal note. A JFO presenter said the program development line items — the bulk of the T bill — total approximately $463 million, with maintenance and town highway programs among the other large line items; the present year AOT program total was discussed at roughly $934 million.

The committee also approved smaller program adjustments included in the amendment: an increase in the Transportation Alternatives Grant per‑project cap from $300,000 to $600,000 (with a one‑year allowance up to $1.2 million to speed federal fund use) and a reduced appropriation for the Drive Electric Vermont program to $192,000 for the coming year (down from $325,000 last year).

Staff warned the panel that repealing parts of the EV infrastructure fee paired with the new MBUF would likely produce a near‑term net revenue decrease for the transportation fund before the MBUF reaches steady state; JFO estimated the rental‑vehicle EV charge in the amendment would generate only about $20,000. Committee members repeatedly emphasized the difference between one‑time transfers and ongoing revenue sources for town highways.

Matt Walker, House chair of the Transportation Committee, spoke in favor of the effort to secure more funding for town structures and bridges and characterized Vermont as moving “pretty quickly overall” on mileage‑based approaches compared with other states, while acknowledging technical and policy questions remain.

After discussion, Representative John moved and another member seconded that the committee support H.944 as amended by Ways & Means. The committee held a roll‑call vote and recorded unanimous support; the clerk announced an 11‑0‑0 tally in favor, and the committee advanced the bill to the next stage.

The committee recessed to take up the unclaimed property bill and other items later on the agenda.