ST. GEORGE — A bill aimed at getting the drivers of hybrid and electric vehicles to “pay their fair share” for state road maintenance is making its way through the Utah Legislature.
Vehicle Registration Amendments, designated as HB 186 in the 2022 Legislature, creates a road-usage fee for non-gas powered vehicles that would start in 2023 if passed.
HB 186’s sponsor, Rep. Raymond Ward of Bountiful, told the Senate Transportation, Public Utilities, Energy and Technology Committee on Tuesday that the gas tax that traditionally fuels the state’s road maintenance fund has been eroding in recent years.
The reduction in funds has been due to people using more gas-efficient vehicles, so they aren’t buying as much gas, along with the growing adoption of hybrid and electric vehicles, Ward said.
While electric vehicles make up an estimated ½ of 1% of the vehicles used in Utah, Ward said a way needs to be found to maintain adequate road funding as the move toward non-gas-powered vehicles continues.
Currently, according to a handout Ward shared with committee members, electric vehicle users pay $120 per year when they register with the state. If they don’t drive that much, an electric vehicle driver may enter the state’s Road User Charge (RUC) program instead where they pay 1.5 cents per mile with an overall cap of $120. Drivers save money if they drive 8,000 miles or less.
Only about 1 in every 10 electric vehicles is registered with the RUC program, as most drivers choose to pay the $120 fee instead.
Under HB 186, starting Jan. 1, 2023, the road-use charge drops to 1 cent per mile road-use fee and caps at $130.25.
In 2026, road use goes to 1.25 cents per mile with a cap of $180 and stays there until 2032 when the RUC rate goes to 1.5 cents per mile and a $240 cap.
“This bill speaks to our long-term need to maintain sufficient funding for road maintenance,” Ward said during the Senate hearing on Tuesday. “We need some way that those (electronic) vehicles eventually pay their fair share.”
While the bill is designed to help maintain a stable level of road funding, it was also crafted in such as way as to not discourage people from buying a hybrid or electric vehicle, Ward said. He also said electric vehicles come with environmental benefits that shouldn’t be overlooked.
“We also want to acknowledge that those vehicles have important benefits to air quality here,” Ward said.
The bill is the result of multiple discussions with various stakeholders, Ward added. He and others wanted to make sure they came up with the best version of the bill so it didn’t fall short as previous attempts at placing use fees on electric vehicles had.
Among the parties Ward and others worked with were the Utah Taxpayers Association and Utah Clean Energy.
“This is a great way forward,” Rusty Cannon of the Utah Taxpayers Association said during the committee hearing.
“It balances the need to ensure that we’re not disincentivizing electric vehicles, which we support,” Josh Craft of Utah Clean Energy said.
HB 186 passed the Senate committee in a 4-0 vote with a favorable recommendation. It now heads to the Senate floor.
The bill was previously heard in the House and passed 61-11.
Among the Southern Utah lawmakers who voted in favor of the bill were Reps. Walt Brooks, Brad Last and Merrill Nelson. Reps. Phil Lyman, Travis Seegmiller and Rex Shipp voted against the bill, while Rep. Lowry Snow was absent at the time of the vote.
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