Bill > HB1161

This bill addresses the declining fuel tax revenues by introducing a mileage-based road usage charge for electric vehicles in Hawaii, with several key provisions. Beginning July 1, 2028, counties will be authorized to impose a mileage-based road usage charge on electric vehicles, with each county responsible for establishing its own rate, which must be comparable to the existing county fuel tax. The charge will be calculated based on odometer readings during vehicle inspections, with a default fee if odometer information is incomplete. The bill extends the state's existing mileage-based road usage charge for electric vehicles (currently set at 0.8 cents per mile) and will include plug-in hybrid electric vehicles starting July 1, 2026. The legislation also expands the allowable uses of state highway funds to include traffic control, safety preservation, and measures to reduce vehicle miles traveled. Additionally, the bill allows rental car companies to pass the road usage charge costs directly to consumers and removes the previous requirement for the Department of Transportation to establish county subaccounts within the State Highway Fund. Rental companies, electric vehicle owners, and local governments will need to adapt to these new funding mechanisms, which aim to create a more sustainable transportation infrastructure 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=2025