As the use of electric and hybrid vehicles increase, and the fuel efficiency of newer vehicles becomes better, states are finding that the per-gallon fuel tax is no longer generating enough income to fund road maintenance and operations. In response to the declining revenue, late last year California legislature approved a Bill to examine the implementation of a road usage charge.

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“Senate Bill 1077 would require the Chair of the California Transportation Commission to create a Road Usage Charge (RUC) Technical Advisory Committee in consultation with the Secretary of the Transportation Agency. The bill would require the technical advisory committee to study RUC alternatives to the gas tax and to make recommendations to the Secretary of the Transportation Agency on the design of a pilot program, as specified. The bill would also authorize the technical advisory committee to make recommendations on the criteria to be used to evaluate the pilot program. The bill would require the technical advisory committee to consult with specified entities and to consider certain factors in carrying out its duties. The bill would require the Transportation Agency, based on the recommendations of the technical advisory committee, to implement a pilot program to identify and evaluate issues related to the potential implementation of an RUC program in California by January 1, 2017. The bill would require the agency to prepare and submit a report of its findings to the technical advisory committee, the commission, and the appropriate fiscal and policy committees of the Legislature by no later than June 30, 2018, as specified. The bill would also require the commission to include its recommendations regarding the pilot program in its annual report to the Legislature, as specified. The bill would repeal these provisions on January 1, 2019. ” Read the FULL BILL HERE.

Some states that have already done tests on the use of a road usage charge with Oregon expected to implement it this summer as a new voluntary program. Oregon drivers with an installed electronic mileage tracking devices in their vehicles will be charged a per-mile fee on a quarterly basis or will receive a refund based on their miles traveled. The idea is seeing lots of support from environmental groups and transportation advocates, who see a future with even better fuel-efficiency, gas-free, and self-driving cars.

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