California, September 20, 2025 News Summary California transportation officials are exploring a per-mile road charge to replace declining gas tax revenue, primarily due to the rise of electric vehicles. With an anticipated drop in gas tax income and a push for zero-emission vehicles by 2035, state officials are seeking alternative funding for road maintenance. While the proposal has potential advantages, concerns regarding fairness and privacy have been raised by local residents and officials. The proposed charge would apply to all drivers and could potentially transform the funding model for road repairs in the state. California transportation officials are weighing a proposal for a “per-mile road charge” as a solution to fund road repairs amid declining gas tax revenue. The reduction in this revenue is primarily due to the increased adoption of electric vehicles throughout the state, prompting state officials to explore alternative funding methods. The proposed road charge would be applicable to all drivers in California and could potentially replace the existing gas tax. Currently, California has the highest gas tax in the nation at 59 cents per gallon, which covers around 80 percent of the state’s road repairs. However, as electric vehicles become more prevalent, the state is preparing for a significant drop in gas tax income. Earlier this year, Caltrans, the state’s transportation department, conducted a pilot program to assess a road charge system. This program tested different pricing options, including a flat fee of 2.8 cents per mile and an individualized fee based on a vehicle’s fuel economy. The pilot also experimented with various methods of reporting mileage, such as odometer readings and transponder devices. In 2023, California’s gas tax revenue reached around $7.8 billion. With projections indicating that approximately 15 million electric cars could be operating on California roads by 2035, the urgency for a sustainable funding model for road maintenance is increasing. An executive order mandates that all cars sold in California from 2035 must be zero-emission vehicles, further aligning with the shift towards electric mobility. Despite the potential benefits of a per-mile road charge, concerns have surfaced from local residents and officials. Individuals, such as Giselle Manansale from San Diego, have raised questions about the fairness of implementing such a charge. Critics, including El Cajon Mayor Bill Wells, have labeled the proposal as a “regressive tax,” suggesting it will disproportionately impact middle and lower-income families. Furthermore, privacy issues regarding mileage tracking through transponder devices have also been highlighted, raising apprehension among the public. Hawaii is currently the only state with a mandatory per-mile road usage charge, which applies only to electric vehicle drivers and costs $8 per 1,000 miles driven. The results from California’s pilot program are anticipated to be released later this year and would need approval from the state legislature to be implemented. The legislature will also determine how mileage would be accurately measured. While some drivers are open to discussing the potential road charge, aiming for a fair system for all, recent findings from the pilot program may compel California to continue seeking other funding options as gas tax revenues diminish due to increased fuel efficiency and the growing prevalence of electric vehicles. Community engagement is ongoing, with the Road Charge Project’s next meeting scheduled for April 18 at the Fresno Government’s Transportation Office. Key Features of the Proposed Per-Mile Road Charge Feature Details Applicable Drivers All drivers in California Current Gas Tax 59 cents per gallon Gas Tax Revenue 2023 Approximately $7.8 billion Projected Electric Cars by 2035 15 million Flat Fee Option 2.8 cents per mile State with Mandatory Road Charge Hawaii FAQ What is the proposed per-mile road charge? The proposed road charge would potentially replace the current gas tax and would apply to all drivers in California. What prompted California to explore a per-mile road charge? The move is prompted by the decline in revenue from the state’s gas tax due to the increasing adoption of electric vehicles. What were some options tested in the pilot program? The pilot program included options like a flat fee of 2.8 cents per mile and an individualized fee based on a vehicle’s fuel economy. How much is California’s current gas tax? 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. How much gas tax revenue did California collect in 2023? California’s gas tax revenue in 2023 amounted to approximately $7.8 billion. What are some concerns about the proposed road charge? Some local residents have expressed concerns about the fairness of the proposed road charge, and critics have labeled the proposal as a “regressive tax,” arguing it would disproportionately affect middle and lower-income families. Deeper Dive: News & Info About This Topic CBS 8: California Considers Per-Mile Road Charge ABC 7: California Looks to Eliminate Gas Tax ABC 10: California Road Charge Pilot Explained Kiplinger: States with the Highest Gas Taxes Wikipedia: Transportation in California Google Search: California gas tax Google Scholar: California road charge Encyclopedia Britannica: Gasoline Tax Google News: California per-mile road charge
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