Law & Order

California Bill to Create “Road-Usage Fee” Pilot Program Approved by Legislature; Goes to Governor

By SEMA Washington, D.C., Staff

The California Assembly and Senate have approved legislation to establish an advisory committee to study a road-usage fee.

Legislation to establish an advisory committee to study a road-usage fee was approved by the California Assembly and Senate. The bill now goes to the governor for his approval or veto. 

Under the bill, the group would propose the fee as an alternative to the gas tax and make recommendations on the design of a pilot program. According to supporters, a road-usage fee has the potential to distribute the gas tax burden across all vehicles regardless of fuel source and to minimize the impact of the current regressive gas tax structure.

According to opponents, the bill seeks to penalize national efforts to create a more fuel-efficient vehicle fleet by taxing drivers based on vehicle mileage. As gas tax revenues decrease due to hybrid and electric vehicle ownership, states are looking for new sources of funding for pet projects. 

For more information, visit the SEMA Action Network website. For details, contact Steve McDonald at