California, September 20, 2025
News Summary
California transportation officials are considering a per-mile road charge to replace the declining gas tax revenue impacted by the rise of electric vehicles. Currently, the gas tax, which stands at 59 cents per gallon, funds 80% of road repairs. A pilot program was conducted to assess various payment methods including mileage tracking options. Concerns regarding the charge’s impact on lower-income families and privacy issues have emerged, as officials work towards sustainable funding solutions for road maintenance.
California transportation officials are exploring a new funding method for road repairs known as a “per-mile road charge.” This initiative is primarily driven by a decline in revenue from the state’s gas tax, which has been significantly impacted by the increasing adoption of electric vehicles. As a result, California seeks to replace the current gas tax structure with a road charge that would apply to all drivers in the state.
Currently, California maintains the highest gas tax in the nation at 59 cents per gallon. This tax funds approximately 80 percent of the state’s road repairs. However, with the rise in electric vehicle usage, the revenue from gas taxes is anticipated to diminish sharply. Already in 2023, California’s gas tax revenue reached around $7.8 billion, and projections indicate that by 2035, there could be around 15 million electric cars on California roads.
Earlier this year, Caltrans, California’s transportation department, conducted a pilot program aimed at testing the feasibility of a road charge system. This program evaluated different payment methods, including a flat fee of 2.8 cents per mile and an individualized fee based on a vehicle’s fuel economy. Various techniques for reporting mileage were also examined, such as odometer readings and the use of transponder devices.
As the discussion regarding the per-mile road charge continues, concerns have been raised by local residents about its fairness. Individuals such as San Diegan Giselle Manansale have voiced worries that this new charge might disproportionately affect middle and lower-income families. Critics, including El Cajon Mayor Bill Wells, have indicated that this proposal could be seen as a “regressive tax.”
Moreover, privacy issues have emerged concerning the tracking of travel data through transponder devices that might be used to monitor daily mileage. Despite these challenges, some drivers are open to dialogue aimed at ensuring that the road charge is implemented equitably across all demographics.
Current discussions are influenced by a wider nationwide trend, with Hawaii being the only state that currently mandates a per-mile road usage charge, specifically for electric vehicle owners, at a rate of $8 per 1,000 miles driven.
The findings from Caltrans’ pilot program are slated for release later this year. Should the per-mile road charge be implemented, it would require legislative approval from the state government, which would determine the methods for measuring mileage.
The urgency for establishing a stable funding mechanism for road maintenance is growing as traditional gas tax revenues are challenged by advances in fuel efficiency and the rise of electric vehicles. Previous trials for mileage-based fees have been conducted since 2016, highlighting the need for ongoing public education surrounding this topic. A community meeting on the Road Charge Project is scheduled for April 18 at the Fresno Government’s Transportation Office.
Key Features of the Proposal
- Proposed funding method: per-mile road charge replacing gas tax
- Current gas tax: 59 cents per gallon
- Pilot program tested: fee options including flat fee and individualized fee
- Fiscal impact: 80 percent of road repair funding comes from gas tax
- Projected electric vehicles in California by 2035: 15 million
- Privacy concerns regarding mileage tracking methods
Conclusion
As California navigates the implications of these funding proposals, it is imperative to consider the diverse perspectives within the community. An equitable and transparent approach will be essential to build support for any changes to the current funding structure moving forward.
FAQ Section
What is the proposed per-mile road charge?
The proposed per-mile road charge is a new funding method for road repairs that California officials are considering as a replacement for the current gas tax. This charge would apply to all drivers in the state.
Why is California exploring a new funding method?
California is exploring a new funding method due to declining revenue from the gas tax, primarily attributed to the increasing adoption of electric vehicles.
How much is the current gas tax in California?
The current gas tax in California is 59 cents per gallon, which is the highest in the nation.
What were the results of the pilot program conducted by Caltrans?
The pilot program allowed for testing various payment methods for road usage, including a flat fee of 2.8 cents per mile and individualized fees based on fuel economy. The details of the program are expected to be released later this year.
What concerns have been raised regarding the per-mile road charge?
Concerns have been raised about the fairness of the per-mile road charge, particularly regarding its potential impact on middle and lower-income families. Privacy issues related to mileage tracking methods have also been highlighted.
How many electric vehicles are projected to be on California roads by 2035?
Statistics predict approximately 15 million electric cars could be on California roads by 2035, increasing the urgency to find a sustainable funding source for road maintenance.
When is the next community meeting for the Road Charge Project?
The next community meeting is scheduled for April 18 at the Fresno Government’s Transportation Office.
Chart of Key Features
| Feature | Description |
|---|---|
| Current Gas Tax | 59 cents per gallon |
| Pilot Program Fee Options | Flat fee of 2.8 cents per mile; individualized fee based on fuel economy |
| Projected Electric Vehicles | 15 million by 2035 |
| Funding Source Importance | Gas tax currently funds 80 percent of road repairs |
Deeper Dive: News & Info About This Topic
- CBS News: California Considers Per-Mile Road Charge
- Wikipedia: Transportation in California
- ABC7: California Looks to Eliminate Gas Tax
- Google Search: California Road Charge
- KMPH: California Continues to Debate Road Charge
- Encyclopedia Britannica: Gasoline Tax
- ABC10: California Road Charge Pilot Explained
- Google News: California Transportation Funding
Author: STAFF HERE COSTA MESA WRITER
COSTA MESA STAFF WRITER The COSTA MESA STAFF WRITER represents the experienced team at HERECostaMesa.com, your go-to source for actionable local news and information in Costa Mesa, 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 OC Fair, Concerts in the Park, and Fish Fry. Our coverage extends to key organizations like the Costa Mesa Chamber of Commerce and Boys & Girls Clubs of Central Orange Coast, plus leading businesses in retail, fashion, and technology that power the local economy such as Vans, Experian, and South Coast Plaza. As part of the broader HERE network, including HEREAnaheim.com, HEREBeverlyHills.com, HERECoronado.com, HEREHollywood.com, HEREHuntingtonBeach.com, HERELongBeach.com, HERELosAngeles.com, HEREMissionViejo.com, HERESanDiego.com, and HERESantaAna.com, we provide comprehensive, credible insights into California's dynamic landscape.
