California, September 20, 2025
News Summary
California officials are considering a per-mile road charge as a potential replacement for the declining gas tax revenue, particularly with the rise of electric vehicles. The current gas tax, set at 59 cents per gallon, funds a significant portion of the state’s road maintenance. A recent pilot program has tested various mileage reporting methods, but concerns about fairness and privacy persist among residents. Discussions continue as California anticipates having 15 million electric vehicles by 2035, necessitating sustainable funding for road infrastructure.
California transportation officials are exploring a new funding method for road repairs, proposing a “per-mile road charge” as revenue from the state’s gas tax continues to decline. As electric vehicles gain popularity across the state, this innovative charge could potentially replace the current gas tax, which is currently set at 59 cents per gallon—the highest in the nation. This tax funds approximately 80 percent of California’s road repairs.
The decline in gas tax revenue has prompted the California Department of Transportation (Caltrans) to look for alternative funding options. Earlier this year, Caltrans conducted a pilot program to test the feasibility of a road charge system. The program included different options, such as a flat fee of 2.8 cents per mile and a fee based on the fuel economy of a vehicle.
With a projected 15 million electric cars expected on California’s roads by 2035, the urgency to find sustainable funding sources for road maintenance is increasing. As electric vehicle adoption grows, California anticipates further reductions in gas tax revenue, heightening the need for alternative funding mechanisms. In 2023 alone, gas tax revenue in California amounted to about $7.8 billion.
The pilot program utilized various methods to report mileage, including odometer readings and transponder devices. However, local residents, including individuals from San Diego, have raised concerns about the potential fairness of the proposed road charge. Critics argue that the proposal could act as a “regressive tax” disproportionately impacting middle and lower-income families.
Additionally, privacy concerns regarding the tracking of travel data using transponder devices have been noted. Currently, Hawaii is the only state that has implemented a mandatory per-mile road usage charge for electric vehicle drivers, charging $8 per 1,000 miles driven. The results of Caltrans’ pilot program are anticipated to be released later this year.
Before any per-mile road charge can be implemented in California, it must receive approval from the state legislature. The legislature would also determine how mileage would be measured under this new system. Some drivers have expressed their willingness to engage in discussions about the road charge to ensure fairness for all parties involved.
Previous trials for a mileage-based fee have been conducted since 2016, prompting public education on the project and its implications as traditional gas taxes are eroded by the growing prevalence of electric and fuel-efficient vehicles. The ongoing discussions about the proposed road charge will continue, especially in light of California’s executive order mandating that all cars sold in the state after 2035 must be zero-emission vehicles.
The next community meeting for the Road Charge Project is scheduled for April 18 at the Fresno Government’s Transportation Office. Officials remain committed to creating a financially equitable system as they navigate the future of road funding in California.
FAQ
What is the proposed “per-mile road charge” in California?
The proposed “per-mile road charge” is a new funding method for road repairs that could potentially replace the current gas tax in California.
Why is California considering this proposal?
California is considering the proposal due to a decline in revenue from the state’s gas tax resulting from the increasing adoption of electric vehicles.
What methods were tested in the pilot program?
The pilot program tested methods like odometer readings and transponder devices to report mileage.
What concerns have been raised about the road charge?
Concerns include the fairness of the proposed road charge, privacy issues regarding data tracking, and the potential impact on middle and lower-income families.
What is the current gas tax rate in California?
The current gas tax in California is 59 cents per gallon, which is the highest in the nation.
Key Features of the Proposed Road Charge
| Feature | Details |
|---|---|
| Current Gas Tax | 59 cents per gallon |
| Pilot Program Fees | Flat fee of 2.8 cents per mile or individualized based on fuel economy |
| Projected Electric Cars by 2035 | 15 million electric cars |
| Gas Tax Revenue (2023) | $7.8 billion |
| Only State with Mandatory Mileage Charge | Hawaii, $8 per 1,000 miles driven |
Deeper Dive: News & Info About This Topic
- CBS8: California Considers Per-Mile Road Charge
- ABC7: California Looks to Eliminate Gas Tax
- Kiplinger: States with the Highest Gas Taxes
- Wikipedia: Taxation in the United States
- Google Search: California Per-Mile Road Charge
Author: STAFF HERE SAN DIEGO WRITER
SAN DIEGO STAFF WRITER The SAN DIEGO STAFF WRITER represents the experienced team at HERESanDiego.com, your go-to source for actionable local news and information in San Diego, San Diego 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 Comic-Con International, San Diego County Fair, and San Diego Pride Festival. Our coverage extends to key organizations like the San Diego Regional Chamber of Commerce and United Way of San Diego County, plus leading businesses in biotechnology, healthcare, and technology that power the local economy such as Qualcomm, Illumina, and Scripps Health. As part of the broader HERE network, including HEREAnaheim.com, HEREBeverlyHills.com, HERECostaMesa.com, HERECoronado.com, HEREHollywood.com, HEREHuntingtonBeach.com, HERELongBeach.com, HERELosAngeles.com, HEREMissionViejo.com, and HERESantaAna.com, we provide comprehensive, credible insights into California's dynamic landscape.
