California Considers Per-Mile Road Charge for Road Repairs

California, September 20, 2025

News Summary

In response to declining gas tax revenue due to the rise of electric vehicles, California transportation officials are exploring a per-mile road charge. This proposal aims to replace the state’s current 59-cent gas tax, which funds a significant portion of road repairs. A pilot program by Caltrans tested various pricing models, sparking concerns over fairness and privacy among residents. The state anticipates even lower gas tax revenues as we move towards a future with more zero-emission vehicles. A community meeting is scheduled for April 18 to discuss this charge and its implications.

California transportation officials are considering a “per-mile road charge” as a new funding method for road repairs. This proposal comes in response to a decrease in revenue from the state’s gas tax, attributed to the rising number of electric vehicles on the roads. The potential implementation of this charge would replace the current gas tax, affecting all drivers across California.

The current gas tax in California is 59 cents per gallon, the highest in the nation, and it funds approximately 80 percent of the state’s road repairs. However, as more individuals switch to electric vehicles, the state anticipates a further decline in gas tax revenue, which necessitates exploring alternative funding options for essential road maintenance.

Earlier this year, Caltrans, California’s transportation department, conducted a pilot program to evaluate the feasibility of a road charge system. This program included various options such as a flat fee of 2.8 cents per mile and a fee tailored to a vehicle’s fuel economy. The study also experimented with different methods for reporting mileage, including odometer readings and transponder devices that track travel data.

Despite the potential benefits, local residents have voiced concerns regarding the fairness of the proposed road charge. Some critics, including El Cajon Mayor Bill Wells, describe the proposal as a “regressive tax”, suggesting it would disproportionately impact middle and lower-income families. Moreover, privacy concerns have also surfaced about tracking travel data through transponder devices shared with the state.

Currently, Hawaii is the only state with a mandatory per-mile road usage charge, imposing an $8 fee for every 1,000 miles driven by electric vehicle drivers. The findings from the Caltrans pilot program, expected to be released later this year, will significantly influence California’s decision on how to proceed with this road charge proposal. Implementation of the per-mile charge would require approval from the state legislature, which will also determine how mileage would be measured.

In 2023, California’s gas tax revenue totaled approximately $7.8 billion. The urgency to find a long-term funding source for road maintenance has heightened with an executive order mandating that all cars sold in California after 2035 must be zero-emission vehicles. Given current statistics correlate to potentially 15 million electric cars on California roads by 2035, the state’s need to reassess its funding structure for road repair is more pressing than ever.

California has been exploring mileage-based fee trials since 2016, with ongoing public education on the project. As part of this initiative, the Road Charge Project’s next community meeting is slated for April 18 at Fresno Government’s Transportation Office, inviting further discussions on ensuring equity and fairness in the proposed road charge.

Key Features of the Per-Mile Road Charge Proposal

• Potential replacement for California’s gas tax due to decline in revenue.
• Pilot program including flat and individualized fee options based on vehicle fuel economy.
• Current gas tax at 59 cents per gallon, the highest in the U.S.
• Funding approximately 80 percent of road repairs in California.
• Privacy and fairness concerns raised by residents and officials.
• Implementation would require state legislature approval.
• Next community meeting scheduled for April 18 in Fresno.

Frequently Asked Questions

Deeper Dive: News & Info About This Topic

• CBS8: California Considers Per-Mile Road Charge
• Google Search: California road charge
• ABC7: California Looks to Eliminate Gas Tax
• Wikipedia: Taxation in the United States
• Kiplinger: States with the Highest Gas Taxes
• Encyclopedia Britannica: Transportation
• KMPH: California Debates Road Charge Project
• Google News: California gas tax
• ABC10: California Road Charge Pilot Explained
• Sierra Daily News: California Considers Mileage-Based Road Charge

Author: STAFF HERE MISSION VIEJO WRITER

MISSION VIEJO STAFF WRITER The MISSION VIEJO STAFF WRITER represents the experienced team at HEREMissionViejo.com, your go-to source for actionable local news and information in Mission Viejo, 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 Oso Fit 5K Fun Run and Community Health Fair, Walk Against Drugs & Community Fair, and National Night Out. Our coverage extends to key organizations like the Mission Viejo Chamber of Commerce and Providence Mission Hospital Mission Viejo, plus leading businesses in retail and education that power the local economy such as The Shops at Mission Viejo, Capistrano Unified School District, and Amazon Delivery Station. As part of the broader HERE network, including HEREAnaheim.com, HEREBeverlyHills.com, HERECostaMesa.com, HERECoronado.com, HEREHollywood.com, HEREHuntingtonBeach.com, HERELongBeach.com, HERELosAngeles.com, HERESanDiego.com, and HERESantaAna.com, we provide comprehensive, credible insights into California's dynamic landscape.