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California Considers Per-Mile Road Charge for Sustainable Funding

Electric vehicles on a highway in California depicting a road charge system

California, September 20, 2025

News Summary

As California faces declining gas tax revenues due to a rise in electric vehicles, transportation officials are proposing a per-mile road charge to fund road repairs. This charge could replace the current gas tax and would affect all drivers. Caltrans has already conducted pilot programs testing fee structures, including 2.8 cents per mile. Local residents express concerns about equity, privacy, and the economic impact on lower-income families. The state aims for a balanced funding solution as electric vehicle adoption is projected to surge.

California transportation officials are considering a new funding method for road repairs known as a “per-mile road charge.” This proposal arises in response to declining revenue from the state’s gas tax, largely due to the increasing adoption of electric vehicles.

The suggested road charge could potentially replace California’s current gas tax and would apply to all drivers in the state. As gas tax revenues decrease, the proposal aims to ensure sustainable funding for road maintenance and improvements.

The California Department of Transportation, or Caltrans, recently conducted a pilot program earlier this year to test several road charge options. This pilot program included a flat fee of 2.8 cents per mile and an individualized fee based on a vehicle’s fuel economy, providing valuable data on potential implementations.

California’s current gas tax stands at 59 cents per gallon, the highest in the nation, funding about 80 percent of the state’s road repairs. However, as more drivers transition to electric vehicles, the anticipated reduction in gas tax revenue has prompted state officials to explore alternative funding solutions for road maintenance.

The pilot program evaluated various methods for reporting vehicle mileage, including odometer readings and the use of transponder devices that collect real-time travel data. The results of Caltrans’ pilot program are expected to be published later this year, which will influence the direction of the proposed road charge.

Local residents have voiced concerns regarding the fairness of the proposed road charge. Some, such as El Cajon Mayor Bill Wells, have criticized it as a “regressive tax,” arguing that it would disproportionately impact middle and lower-income families. In addition to economic concerns, privacy issues have emerged, particularly regarding the tracking of vehicle data through transponder technology.

Currently, Hawaii is the only state mandating a per-mile road usage charge for electric vehicle drivers, who are charged $8 for every 1,000 miles driven. California’s ambitious plans for sustainable road funding will require approval from the state legislature, which will determine how mileage is measured and fees are implemented.

With projections suggesting that 15 million electric cars could be on California roads by 2035, the urgency for a dependable funding source for road maintenance continues to grow. This urgency is compounded by an executive order specifying all cars sold in California after 2035 must be zero-emission vehicles.

Previous trials for mileage-based fees have been explored since 2016, and public education on the project is ongoing. The Road Charge Project’s next community meeting is scheduled for April 18 at the Fresno Government’s Transportation Office, where discussions about fairness and equitable funding systems for road repairs will continue.

The anticipated decline in gas tax revenues has led California to reassess its transportation funding strategies. While the pilot project aims to create a financially equitable system, concerns about the implications for residents and whether the proposal effectively addresses the needs of all drivers persist.

Key Facts: Charges and Concerns

  • Current Gas Tax: 59 cents per gallon, highest in the nation
  • Projected Electric Vehicles: 15 million on California roads by 2035
  • Proposed Road Charge: Initiatives with fees such as 2.8 cents per mile
  • Next Community Meeting: April 18 at the Fresno Government’s Transportation Office
  • Current Electric Vehicle Tax in Hawaii: $8 per 1,000 miles driven

Forthcoming Developments

As California moves forward with potential shifts in its vehicle funding mechanisms, active public discourse will be essential in shaping a fair and sustainable solution for all residents.

Frequently Asked Questions

What is the proposed per-mile road charge in California?

The proposed per-mile road charge aims to replace the current gas tax and would apply to all drivers in California.

Why is California considering a per-mile road charge?

The consideration for a per-mile road charge is prompted by the decline in revenue from the state’s gas tax due to the increasing adoption of electric vehicles.

What did Caltrans’ pilot program test regarding the road charge?

Caltrans’ pilot program tested various options like a flat fee of 2.8 cents per mile and an individualized fee based on a vehicle’s fuel economy, along with methods for reporting mileage.

When is the next community meeting regarding the road charge project?

The next community meeting for the Road Charge Project is scheduled for April 18 at the Fresno Government’s Transportation Office.

What are the concerns regarding the proposed road charge?

Concerns about the proposed road charge include its fairness, potential as a regressive tax impacting low to middle-income families, and privacy issues from tracking travel data.

Key Features of the Proposed Road Charge

Feature Description
Current Gas Tax 59 cents per gallon
Potential Road Charge Rate 2.8 cents per mile
Electric Vehicle Projections 15 million by 2035
State with Existing Per-Mile Charge Hawaii – $8 per 1,000 miles
Next Community Meeting Date April 18, Fresno

Deeper Dive: News & Info About This Topic

California Considers Per-Mile Road Charge for Sustainable Funding

Anaheim Staff Writer
Author: Anaheim Staff Writer

Anaheim Staff Writer The Anaheim Staff Writer represents the experienced team at HEREAnaheim.com, your go-to source for actionable local news and information in Anaheim, Orange County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as major conventions at the Anaheim Convention Center, including NAMM and VidCon, exciting games at Angel Stadium and Honda Center, and developments at Disneyland Resort Our coverage extends to key organizations like the Anaheim Chamber of Commerce and Visit Anaheim, plus leading businesses in hospitality, entertainment, and innovation that power the local economy As part of the broader HERE network, including HERECostaMesa.com, HEREHuntingtonBeach.com, HERESantaAna.com, and HERELosAngeles.com, we provide comprehensive, credible insights into Southern California's dynamic landscape.

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