ST. GEORGE — A bill modifying the state’s current road-use fees for electric vehicles passed the Legislature earlier this month. The purpose of the bill is to get the drivers of hybrid and electric vehicles to “pay their fair share” for the cost of road maintenance.
HB 186, titled “Vehicle Registration Amendments,” unanimously passed the Senate on Feb. 18 and is in the process of heading to the governor’s desk for signing. Prior to that the bill passed the House by a 61-11 vote.
Set to take effect in 2023, HB 186 will modify the state’s current Road User Charge (RUC) program as a way to help further maintain state funds going for road maintenance.
Revenue from the gas tax that traditionally has fueled the state’s road maintenance fund has decreased in recent years due to the use of more fuel-efficient vehicles and the adoption of alternative-fuel vehicles. In these cases, drivers are either buying less gas or no gas.
The Legislature passed a hike in the state gas tax in 2015 and Rep. Kay Kristofferson of Lehi proposed a bill addressing a change in road-use fees for hybrid and electric vehicles in 2021 to help add to dwindling gas tax revenues. That bill failed to pass and was seen by some environmental groups as potentially discouraging Utahns from buying alternatively-fueled cars.
Sen. Wayne Harper of Taylorsville, the Senate sponsor of HB 186, told the Senate on Feb. 17 that lawmakers had met with various stakeholders following the defeat of Kristofferson’s bill in an effort to create new legislation address the matter. This resulted in HB 186, which was brought forth by Rep. Raymond Ward of Bountiful.
“I think its a very responsible bill that Rep. Ward and a bunch of other people worked on to get through and ensure we adequately fund our transportation system while recognizing the fact EVs (electric vehicles) will become more and more a part of the fleet.”
Currently, electric vehicles are estimated to make up ½ of 1% of the vehicles used in Utah
Electric vehicle users currently 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 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.
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 during a Feb. 14 Senate committee hearing. He also said electric vehicles come with environmental benefits that shouldn’t be overlooked.
HB 186 also garnered the support of the Utah Taxpayers Association and Utah Clean Energy.
While the bill sailed through the Senate with no opposition, several members of the House who voted against it, including three legislators who represent parts of Southern Utah. They were Reps. Phil Lyman, Rex Shipp and Travis Seegmiller.
Lyman said he was concerned about the bill’s impact on rural Utahns since they drive farther to reach essential services than those in urban centers do. This led to his asking Ward for clarification about the road-use fee’s cap.
Ward said someone can either pay the set registration fee, or go through the RUC program. Annual road use fees will be capped at the set registration fee and not go above that. If someone drives less than that, they end up pay less, Ward said.
“I do worry about the rural communities,” Lyman said.
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