20250AB__142198AMD INTRODUCED 2025-02-21 AMENDED_ASSEMBLY 2026-01-05 REVISED 2026-01-13 2025 AB AMD Introduced by Assembly Member Wilson (Coauthor: Assembly Member Aguiar-Curry) LEAD_AUTHOR ASSEMBLY Wilson COAUTHOR ASSEMBLY Aguiar-Curry

An act to add

Section 3092.7 to the Vehicle Code, relating to vehicles. vehicles Vehicles: Road Usage Charge Technical Advisory Committee. Existing law requires the Chair of the California Transportation Commission to create a Road Usage Charge Technical Advisory Committee in consultation with the Secretary of Transportation to guide the development and evaluation of a pilot program assessing the potential for mileage-based revenue collection as an alternative to the gas tax system. Existing law additionally requires the Transportation Agency, in consultation with the commission, to implement the pilot program, as specified.

Existing law repeals these provisions on January 1, 2027. This bill would extend the operation of the above-described provisions until January 1, 2035. The bill would also make related findings and declaration.</xhtml:p>"?> This bill would require the commission, in consultation with the Transportation Agency, to consolidate and prepare research and recommendations related to a road user charge or a mileage-based fee system.

The bill would require the commission to submit a report, as specified, on the research and recommendations described above to the appropriate policy and fiscal committees of the Legislature by no later than January 1, 2027. The bill would require the commission to consult with appropriate state agencies and other stakeholders, as specified, in preparing the research and recommendations and report described above. MAJORITY NO YES NO NO NO NO NO NO NO NO The people of the State of California do enact as follows:

SECTION

Section 3092.7 is added to the Vehicle Code , to read: 3092.7. (

a) The California Transportation Commission, in consultation with the Transportation Agency, shall consolidate and prepare research and recommendations related to a road user charge or a mileage-based fee system. The research and recommendations shall incorporate existing findings from state and academic sources, including the report prepared by the Transportation Agency pursuant to

Section 3092.5. (

b) By no later than January 1, 2027, the commission shall prepare and submit a report in compliance with

Section of the Government Code to the appropriate policy and fiscal committees of the Legislature on the research and recommendations described in subdivision (a). The report shall cover all of the following topics:

(1) The current and future inequities related to low-income drivers commuting farther in less efficient vehicles.

(2) The impact of a weight-per-mile fee for commercial and electric vehicles on the motor vehicle industry.

(3) Regional and state solutions for implementing a road user charge in California, including capturing out-of-state vehicles. (

c) In preparing the research and recommendations specified in subdivision (

a) and the report described in subdivision (b), the commission shall consult with all of the following:

(1) Appropriate state agencies, which may include, but are not limited to, the Department of Transportation, the Department of Motor Vehicles, the California Department of Tax and Fee Administration, and the Controller.

(2) Representatives of local governments.

(3) Regional transportation planning agencies.

(4) Privacy and data security experts.

(5) Equity and environmental justice organizations.

(6) Academic researchers.

(7) Transportation user groups.

(8) Organizations representing zero-emission vehicle owners and manufacturers.

(9) Any other stakeholders the commission deems appropriate. <caml:Num>SECTION 1.</caml:Num><caml:Content><xhtml:p>The Legislature finds and declares all of the following:</xhtml:p><xhtml:p>(a)<xhtml:span class="EnSpace"/>State funding for transportation comes mainly from six different fuel taxes and vehicle fees dedicated to specific purposes. These sources generated about $14,000,000,000 in the 2023–24 fiscal year.</xhtml:p><xhtml:p>(b)<xhtml:span class="EnSpace"/>The gasoline excise tax is by far the largest of these charges.

The tax is 57.9 cents per gallon and generated about $7,800,000,000 in fiscal year 2023–24.</xhtml:p><xhtml:p>(c)<xhtml:span class="EnSpace"/>California relies on gasoline and diesel tax revenue to build and maintain its highways, public transit, and other transportation infrastructure, which is a problem in a state aggressively pushing a transition to electric vehicles (EVs).</xhtml:p><xhtml:p>(d)<xhtml:span class="EnSpace"/>Since the passage of Senate Bill 1 (Chapter 5, Statutes of 2017), gas taxes have begun to lag, in large part due to Californians adopting lower emission vehicles.

The state’s climate goals, including the switch to zero-emission vehicles (ZEVs) and reductions in statewide per capita vehicle miles traveled for light-duty vehicles, are projected to reduce fuel tax revenues in the coming years.</xhtml:p><xhtml:p>(e)<xhtml:span class="EnSpace"/>California’s gas revenues have steadily increased over the last decade as lawmakers hike tax rates, but that curve is projected to turn downwards as more drivers switch to EVs.</xhtml:p><xhtml:p>(f)<xhtml:span class="EnSpace"/>Californians have purchased more than a million EVs in the last four years, according to the California Energy Commission.

Those numbers will continue to increase as a result of the state’s mandate for all new car sales to be ZEVs by 2035.</xhtml:p><xhtml:p>(g)<xhtml:span class="EnSpace"/>The Legislative Analyst’s Office projects revenues will decline by as much as $2,000,000,000 annually by and up to $4,000,000,000 annually by 2035.

A study by the Mineta Transportation Institute estimated a reduction in revenues of between $4,800,000,000 and $12,100,000,000 by 2040.</xhtml:p><xhtml:p>(h)<xhtml:span class="EnSpace"/>The California Transportation Commission projects that the state will collect $31,300,000,000 less in fuel excise tax revenue due to increased fuel efficiency and the proliferation of ZEVs over the next decade.</xhtml:p><xhtml:p>(i)<xhtml:span class="EnSpace"/>Collectively, various states and the federal government have undertaken research and exploration of possible revenue mechanisms to supplement or replace the fuel excise tax.</xhtml:p><xhtml:p>(j)<xhtml:span class="EnSpace"/>In 2014, the Legislature passed Senate Bill 1077 (Chapter 835, Statutes of 2014) which created the Road Usage Charge Technical Advisory Committee (RUC TAC).

The RUC TAC was charged with the development and evaluation of an authorized pilot program to assess the potential for a mileage-based financing mechanism for California’s roads and highways as an alternative to the fuel excise tax system.</xhtml:p><xhtml:p>(k)<xhtml:span class="EnSpace"/>In 2017, California completed the SB pilot program, which enrolled more than 5,000 vehicles that reported more than 37,000,000 miles over a nine-month period.

Importantly, the collection of revenue was simulated in the pilot program through mock invoices and payments.</xhtml:p><xhtml:p>(l)<xhtml:span class="EnSpace"/>The final pilot program report found further testing of the revenue collection processes should be the next step to undertake in order for California to evaluate revenue flows and identify challenges, efficiencies, and synergies for possible road user charge implementation.</xhtml:p><xhtml:p>(m)<xhtml:span class="EnSpace"/>Presently, the state is analyzing the financial impacts of a road user charge on supercommuters, as well as additional engagement with rural communities and tribal nations to better inform constituencies on a road charge concept.</xhtml:p><xhtml:p>(n)<xhtml:span class="EnSpace"/>The benefit of a road use charge is that it could be structured to provide gas tax relief to low-income drivers.</xhtml:p><xhtml:p>(o)<xhtml:span class="EnSpace"/>Implementing a road use charge in a way that appeals to both low- and moderate-income households and urban and rural communities across the state’s diverse geography will require significant education, negotiation, and compromise.</xhtml:p></caml:Content></caml:BillSection><caml:BillSection id="id_2C71914E-D728-4262-A9D9-EBDFB0790C74"><caml:Num>SEC. 2.</caml:Num><caml:ActionLine action="IS_AMENDED" xlink:href="urn:caml:codes:VEH:caml#xpointer(%2Fcaml%3ALawDoc%2Fcaml%3ACode%2Fcaml%3ALawHeading%5B%40type%3D'DIVISION'%20and%20caml%3ANum%3D'2.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'CHAPTER'%20and%20caml%3ANum%3D'7.'%5D%2Fcaml%3ALawSection%5Bcaml%3ANum%3D'3093.'%5D)" xlink:label="fractionType: LAW_SECTION" xlink:type="locator">Section of the <caml:DocName>Vehicle Code</caml:DocName> is amended to read:</caml:ActionLine><caml:Fragment><caml:LawSection id="id_EDFECEB5-52D4-420A-8BAA-CE72169591FA"><caml:Num>3093.</caml:Num><caml:LawSectionVersion id="id_D3D70C17-926F-4267-853A-0873229D7A25"><caml:Content><xhtml:p>This

chapter shall remain in effect only until January 1, 2035, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2035, deletes or extends that date.</xhtml:p></caml:Content></caml:LawSectionVersion></caml:LawSection></caml:Fragment></caml:BillSection>"?> REVISIONS: Heading—Line 2.