California, September 20, 2025
News Summary
California officials are considering a per-mile road charge to address falling gas tax revenues due to the rise of electric vehicles. Currently, the gas tax, the highest in the U.S. at 59 cents per gallon, funds a significant portion of road repairs. A pilot program tested various charge structures, reflecting the need for a sustainable funding model as state mandates push for zero-emission vehicles. While some residents support the discussion around this system, concerns regarding fairness and privacy persist.
California transportation officials are exploring a new funding method for road repairs known as a “per-mile road charge.” This proposed system aims to counteract declining gas tax revenues, which are being affected by the state’s increasing adoption of electric vehicles. The potential shift to a per-mile road charge would replace the existing gas tax and apply to all drivers in California.
The current California gas tax stands at 59 cents per gallon, the highest in the United States, and funds approximately 80 percent of road repair costs in the state. However, as more drivers switch to electric vehicles, there is a significant expectation of revenue decline from the gas tax, prompting transportation officials to assess alternative funding options.
This year, Caltrans, California’s transportation department, conducted a pilot program to experiment with various road charge systems. The program tested different payment structures, including a flat rate of 2.8 cents per mile and individualized charges based on each vehicle’s fuel economy. Additionally, the pilot examined several methods for reporting mileage, including odometer readings and transponder devices.
California’s gas tax revenue in 2023 reached about $7.8 billion. However, with projections indicating that there could be 15 million electric cars on California roads by 2035, the urgency to find a sustainable funding model for road maintenance is increasing. An executive order mandating that all cars sold in California after 2035 be zero-emission vehicles aligns with these projections and the need for new funding sources.
Despite some drivers’ willingness to engage in discussions about a fair road charge system, concerns persist among local residents. Critics of the proposal, such as San Diegan Giselle Manansale and El Cajon Mayor Bill Wells, have labeled it a “regressive tax,” arguing it may disproportionately impact middle and lower-income families. Furthermore, privacy issues surrounding the potential use of transponder devices to track travel data and report mileage have been raised.
Hawaii is currently the only state with a mandatory per-mile road usage charge for electric vehicle drivers. They charge $8 per 1,000 miles driven. Following the pilot program, the results will be released later this year, and any potential implementation of the per-mile road charge will require approval from the state legislature. This legislature will also decide the methods for measuring mileage.
Previous trials for a mileage-based fee in California have been conducted since 2016, with ongoing efforts to educate the public about this project. The Road Charge Project has scheduled its next community meeting for April 18 at the Fresno Government’s Transportation Office, where residents can learn more about the proposed system and provide input.
Key Features of the Proposed Per-Mile Road Charge
- Potential replacement for current gas tax.
- Flat fee of 2.8 cents per mile proposed.
- Individualized fees based on fuel economy may be considered.
- Concerns raised about fairness and privacy.
- Discussion ongoing regarding implementation and measurement methods.
Background Information
Since 2016, California has explored various methods of a mileage-based fee to adapt to shifting transportation landscapes and funding needs. The ongoing transition to electric vehicles necessitates fresh funding strategies, and public involvement remains crucial for fair implementation. Community engagement sessions continue to play a vital role in shaping the proposed system.
FAQ
What is the proposed per-mile road charge in California?
The proposed per-mile road charge aims to replace the current gas tax, which is declining due to the increasing adoption of electric vehicles.
What are the current gas tax rates in California?
The current gas tax in California is 59 cents per gallon, the highest in the nation, funding about 80 percent of the state’s road repairs.
What were some options tested in the pilot program?
The pilot program tested a flat fee of 2.8 cents per mile and an individualized fee based on a vehicle’s fuel economy.
When is the next community meeting for the Road Charge Project?
The next community meeting is scheduled for April 18 at the Fresno Government’s Transportation Office.
Deeper Dive: News & Info About This Topic
- CBS 8: California Considers Per-Mile Road Charge
- Wikipedia: Gas Tax
- ABC 7: California Looks to Eliminate Gas Tax
- Google Search: California gas tax
- KMPH: California Debates Road Charge Project
- Encyclopedia Britannica: Transportation Funding
Author: STAFF HERE BEVERLY HILLS WRITER
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