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Agency outlines phased mileage‑based user fee to address fuel‑tax shortfalls; committee weighs statutory mandates
Summary
The Agency of Transportation briefed Senate Finance on a phased mileage‑based user fee (MBUF) targeted first to battery electric vehicles, funded in part by a $3M federal grant; the committee debated whether later phases for hybrids and all light‑duty vehicles should remain statutory or be studied further.
The Agency of Transportation presented the committee with modeling and an implementation plan to address steady declines in fuel‑tax revenue attributable to electric vehicles, improving fuel economy and erosion of fuel‑tax purchasing power.
Patrick Murphy, the agency’s state policy director, told members the state currently has about 13,000 fully electric vehicles and estimated an annual loss to the transportation fund of roughly $1 million today. The agency outlined a phased approach that would: (1) enroll battery electric vehicles first (implementation target January 2027), (2) add conventionally more fuel‑efficient vehicles in a later phase (proposals discussed referenced 2029), and (3) bring all…
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