Sacramento, California – As California witnesses a surge in electric vehicle adoption, the state is exploring a significant shift in how it funds road maintenance. The traditional gas tax, currently the nation’s highest at approximately 59 cents per gallon, is facing a looming decline in revenue, prompting lawmakers to consider a mileage-based user fee , known as the California Road Charge.
The current gas tax, which generates millions for road repairs, is becoming increasingly unsustainable as more drivers switch to zero-emission vehicles that do not require gasoline. Caltrans estimates that Californians with gas-powered vehicles pay around $300 annually in state gas taxes. However, with electric vehicles accounting for roughly a quarter of new car sales in 2023, this revenue stream is projected to dwindle significantly.
To address this, Caltrans initiated a pilot program in August 2024 to test the feasibility of a road charge system, which would replace the gas tax with a fee based on miles driven. The pilot program, which concluded in January, aimed to evaluate the practicality and potential impact of charging drivers by the mile rather than by the tank. The results of this pilot are expected to be released later this year…