Relating To The Road Usage Charge Program.
The transition to a mileage-based charge is positioned as a fairer funding mechanism that aligns with the growing support for electric and alternative fuel vehicles. The implementation of the proposed charge represents a structural change in how the state collects revenue for road maintenance. By charging a rate of 0.8 cents per mile, the bill anticipates generating a consistent funding stream to sustain the states’ highways and roads, while also preparing for future enhancements to transportation infrastructure. Implementing this system requires a coordinated effort with the counties, which will be responsible for the collection of these fees in conjunction with existing vehicle registration costs.
SB1408 introduces a state mileage-based road usage charge program set to originate on July 1, 2025. This bill is designed to address the decreasing fuel tax revenues by implementing a charge that reflects the actual road use of vehicles rather than relying solely on fuel taxes. It aims to ensure that all drivers, especially those using electric and alternative fuel vehicles, contribute fairly to the costs of maintaining state road infrastructures. The bill seeks to replace the existing $50 annual registration surcharge for electric vehicles with this mileage-based charge, marking a significant shift in how road maintenance is funded in Hawaii.
While proponents argue that this approach is essential for equitable contributions to road maintenance, some stakeholders may raise concerns over the administrative complexity and the potential financial burden on drivers, particularly those who may not use their vehicles frequently. Furthermore, there may be debates regarding privacy concerns related to tracking mileage. The bill also allows electric vehicle owners a choice between the new road usage charge and a $70 annual registration surcharge until 2033, providing a transitional period that seeks to balance new charges with existing costs.