State lawmakers are considering legislation, HB 1921 and SB 5726, to create a Road Usage Charge (RUC) program. Drivers would pay a fee per mile driven. The RUC would eventually replace the gas tax, which has seen declining revenues due to increased electric vehicle usage and vehicle fuel efficiency, among other factors.
Bill Overview
Phased Approach
- Phase 1 (2027-2029): Voluntary for EV and hybrid drivers
- Phase 2 (2029-2031): Mandatory for EVs/hybrids, voluntary for fuel-efficient gas vehicles (20+ mpg)
- Phase 3 (2031-2035): Mandatory for all gas vehicles with 20+ mpg, phasing vehicles in from most to least fuel-efficient
Rate: $0.026 per mile, increased over time linked to fuel tax
Revenue used exclusively for highway preservation and maintenance (18th amendment protected)
Additional road usage assessment fee of 10% to support alternative transportation modes, such as rail, biking, walking and public transit
Joint Transportation Committee must conduct studies on:
- Effects of large and heavy passenger vehicles on road wear and safety to consider differentiated fees based on hood weight or height
- Impact of RUC fee collection on off-road vehicle infrastructure funding
- Potential local revenue-generating mechanisms to complement the RUC
Odometer reporting
Click here for a section-by-section summary of the bill.
The House Transportation Committee held a public hearing on HB 1921 on February 14 and the Senate Transportation Committee held a public hearing on SB 5726 on February 18.
This blog post has been updated with bill versions as of 2/19/2025.