Bill > HB1161

This bill addresses declining transportation funding by establishing a mileage-based road usage charge system for electric vehicles in Hawaii. Beginning July 1, 2028, counties will be authorized to impose a per-mile charge on electric vehicles, calculated by multiplying miles traveled by a rate established by each county, with the goal of replacing traditional fuel tax revenues. The bill extends the existing state mileage-based road usage charge for electric vehicles, initially set at 0.8 cents per mile, and will include plug-in hybrid electric vehicles starting July 1, 2026. Rental car companies will be allowed to pass these charges directly to consumers, and the bill expands the allowable uses of state highway funds to include traffic safety measures and efforts to reduce vehicle miles traveled. The legislation requires public hearings before counties can implement their road usage charges and provides mechanisms for calculating miles traveled through vehicle inspection odometer readings. Additionally, the bill removes the previous requirement for the Department of Transportation to establish county subaccounts within the State Highway Fund and includes appropriations to support the implementation of the new road usage charge system. The overall purpose is to create a more sustainable and equitable transportation funding model as traditional fuel tax revenues continue to decline.

Budget and Finance, Business and Industry, Transportation and Infrastructure

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=HB&billnumber=1161&year=2026