SACRAMENTO, Calif — California lawmakers are considering a shift in how the state funds road and highway projects, potentially moving away from the traditional gas tax and toward a system of charging drivers based on the number of miles they drive.
Legislative Action and Proposed Study
On Thursday, the Assembly moved to direct the California Transportation Commission to study the potential effects of implementing a road charge. A road charge levies a fee based on mileage driven. This move has sparked debate, particularly among Republican lawmakers.
The proposal comes as the state anticipates a decline in revenue from the gas tax as more drivers transition to electric and other non-gasoline powered vehicles. According to an analysis by the California Transportation Committee, transportation revenue could decrease by $31 billion as reliance on gasoline and diesel declines.
Concerns and Potential Amendments
Republican lawmakers have voiced concerns that a road charge would place an additional financial burden on residents, especially those in rural areas or with long commutes. Assembly Republican Leader Heath Flora stated that Californians are “already getting crushed by the cost of food, housing, power, and gas.”
Assemblymember Wilson has indicated she will seek an amendment to the bill to ensure residents are not subjected to both a gas tax and a road charge. She clarified that the bill’s current purpose is simply to initiate a study of potential implementation models, not to enact a new charge.
Assemblywoman Lori D. Wilson (D-Suisun City) defended the bill, stating it is intended to facilitate a research-driven analysis of transportation funding models.
National Trend and Next Steps
California is not alone in considering this type of funding structure. In 2023, Hawaii became the first state to legally implement a road charge program, specifically for electric vehicle drivers, to begin in 2028.
The proposal has now been sent to the California State Senate. It is possible the Senate will amend the bill further before a vote. If passed by the Senate, the California Transportation Commission would then begin the study outlined in the legislation. The findings of that study could then inform future legislative decisions regarding transportation funding in the state.
Frequently Asked Questions
What is a road charge?
A road charge is a program that charges drivers a fee based on the number of miles they drive over a specified period.
Have road charges been tested in California before?
Yes, the state has been running road charge pilot programs since 2016. A pilot project concluded last year with mileage rates of 2.5 cents per mile for light-duty vehicles.
What is the current status of the proposal?
The proposal has been sent to the California State Senate after being approved by the Assembly.
As California considers this potential shift in transportation funding, how might a mileage-based system impact different drivers and communities across the state?
