California Considers Per-Mile Road Charge for Funding

California, September 20, 2025

News Summary

California transportation officials are contemplating a new per-mile road charge aimed at funding road repairs as gas tax revenues decline due to increased electric vehicle usage. The proposed system, tested in a pilot program, could replace the current gas tax, which is currently the highest in the U.S. Concerns regarding fairness, potential impacts on low-income families, and privacy risks are being raised. The pilot program’s findings will influence future funding decisions, with a community meeting scheduled to discuss the road charge proposal.

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

The proposed road charge would potentially replace the current gas tax, applying to all drivers in California. The California Department of Transportation (Caltrans) conducted a pilot program earlier this year to test a road charge system. This program explored various options, including a flat fee of 2.8 cents per mile and individualized fees based on a vehicle’s fuel economy. The current gas tax stands at 59 cents per gallon, the highest in the nation, which funds about 80 percent of the state’s road repairs.

As more drivers make the shift to electric vehicles, California anticipates a significant reduction in gas tax revenue allocated for road repairs. The pilot program evaluated different methods for reporting mileage, such as odometer readings and transponder devices. The data collected during these trials are poised to influence the state’s future decisions regarding transportation funding.

Concerns have been raised among local residents about the fairness of the proposed road charge. Various stakeholders, including San Diegan Giselle Manansale and El Cajon Mayor Bill Wells, have labeled the proposal as a potential “regressive tax”. Critics argue that a per-mile charge would disproportionately impact middle and lower-income families. Additionally, privacy issues associated with tracking travel data via transponder devices have been highlighted as a significant concern.

Currently, Hawaii is the only state that implements a mandatory per-mile road usage charge for electric vehicle drivers, at a rate of $8 per 1,000 miles driven. The findings from the Caltrans pilot program will be released later this year, and any implementation of the per-mile road charge will require approval from the state legislature. The legislature will also decide how the mileage will be measured.

In addition to the concerns surrounding fairness and privacy, some drivers are open to continuing discussions regarding the road charge to develop a system that is financially equitable. California’s gas tax revenue for 2023 was approximately $7.8 billion, but with a state mandate requiring all cars sold after 2035 to be zero-emission vehicles, the urgency to secure a sustainable funding source for road maintenance grows stronger.

Statistics predict that there could be 15 million electric cars on California roads by 2035, placing added pressure on the state’s infrastructure funding mechanisms. Previous trials for a mileage-based fee have occurred since 2016, with ongoing public education on the project continuing. The next community meeting pertaining to the Road Charge Project is scheduled for April 18 at the Fresno Government’s Transportation Office.

Key Features of the Proposed Road Charge

• Potential replacement for the existing gas tax.
• Flat fee option of 2.8 cents per mile.
• Individualized fee based on a vehicle’s fuel economy.
• Gas tax revenue contributes to 80 percent of road repairs.
• Current gas tax in California is 59 cents per gallon.
• Only Hawaii has a per-mile road usage charge in effect.
• Results of Caltrans pilot program expected later this year.
• Community meeting on April 18 regarding road charge discussions.

Background Context

The pilot program’s findings are crucial as California seeks alternatives due to anticipated declines in gas tax revenue linked to the increasing adoption of electric vehicles. Prior pilots have been part of California’s exploration of how to fairly fund road maintenance amidst changing vehicle technology and environmental goals.

FAQ

Deeper Dive: News & Info About This Topic

• CBS 8
• ABC 10
• KMPH
• Sierra Daily News
• ABC 7
• Wikipedia: Gas tax in the United States
• Google Search: California road charge
• Google Scholar: California gas tax
• Encyclopedia Britannica: Gasoline tax
• Google News: California per-mile road charge

Author: STAFF HERE HUNTINGTON BEACH

The Huntington Beach Staff Writer represents the experienced team at HEREHuntingtonBeach.com, your go-to source for actionable local news and information in Huntington Beach, 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 the Huntington Beach Surf City USA Marathon, the U.S. Open of Surfing, Fourth of July celebrations at the Huntington Beach Pier, and community festivals at Huntington Beach Central Park. Our coverage extends to key organizations like the Huntington Beach Chamber of Commerce and Visit Huntington Beach, plus leading businesses in retail, hospitality, and outdoor recreation that drive the local economy. As part of the broader HERE network, including HEREAnaheim.com, HERECostaMesa.com, HERESantaAna.com, and HERELosAngeles.com, we provide comprehensive, credible insights into Southern California's dynamic landscape.