Washington state transportation officials are gearing up to implement a new road usage charge (RUC) system, as the state's gas tax revenues continue to decline due to improving vehicle fuel efficiency.
Washington State Transportation Commission Executive Director Reema Griffith informed the Thurston Regional Planning Council that the commission has been studying the feasibility of transitioning from the gas tax to a per-mile fee since 2012. A legislative bill is expected to be introduced soon to begin RUC implementation.
"The gas tax is no longer reliable or equitable or sustainable to carry our funding needs into the future," Griffith said at the TRPC meeting on Friday, Feb. 7.
She highlighted the declining gas tax revenues due to improving vehicle fuel efficiency and the state's shift to electric vehicles.
Washington ranks second in the nation for EV market share. State law requires 100% of new vehicles to be zero-emission by 2035, reducing reliance on the gas tax.
Griffith said the state's gas tax collections are projected to fall from $1.3 billion annually to less than $300 million by 2050.
Griffith explained that the gas tax has faced fairness and equity challenges, noting the gas tax was originally fair when "cars all got about the same miles per gallon" and there were limited fuel options.
This allowed the gas tax to be based on a "simple user pay, user benefit principle."
Griffith emphasized that a RUC system would "return to the user pay, user benefits principle" by charging drivers based on miles driven rather than fuel consumption. This could address the equity issues that have emerged under the gas tax as vehicle technology has evolved.
The proposed RUC legislation outlines a phased transition, starting with a voluntary program for electric and hybrid vehicles in 2027.
During this initial voluntary phase, EV and hybrid drivers could opt into the RUC system, which would replace their current flat registration fees. The RUC charges for these vehicles would be capped at the current flat fee levels.
By 2029, RUC would become mandatory for all-electric and hybrid vehicles, while gas-powered vehicles getting over 20 miles per gallon could choose to opt into the voluntary program.
Then, starting in July 2031, the transition to mandatory RUC system would begin for gas-powered cars over 20 miles per gallon, with the least fuel-efficient vehicles prioritized first.
The proposed RUC rate is 2.6 cents per mile, and it would automatically adjust if gas taxes are increased in the future. All RUC revenues would be dedicated to highway funding.
During the discussion, William Ward of The Evergreen State College expressed concerns about the transparency and equity in how RUC revenues would be used, especially given Washington's already high gas taxes.
Griffith clarified that RUC is intended to replace, not add to, the gas tax. She emphasized that RUC should be revenue-neutral, replacing rather than adding to the existing tax burden.
Chris Stearns, of Thurston's Public Utility District (PUD), inquired about how the system would handle out-of-state drivers using Washington's roads without contributing to infrastructure funding.
Stearns said that, unlike the current gas tax, which collects revenue from all fuel purchases, including those made by nonresidents, the RUC would only charge registered Washington drivers based on miles traveled.
In response, Griffith clarified that out-of-state drivers account for only around 5% of Washington's total vehicle miles. Since the state is not a major "through state" like those in the Midwest, the financial impact of this group is relatively small.
Griffith added that the gas tax will remain in place despite implementing the RUC. This means out-of-state drivers, who refuel in Washington, will continue contributing to road maintenance funding through the gas tax.
Robert Vanderpool, of the Olympia City Council, asked about how the RUC revenues would be allocated.
He wondered if the funding would be limited to highways, and asked if it would also support active transportation, public transit and local needs.
Griffith stated the current proposal is to dedicate the RUC revenues to highway purposes, similar to the existing gas tax.
However, she noted discussions about potentially adding a small supplemental RUC charge that could be directed toward the state's multi-modal transportation fund to support a wider range of mobility options beyond just highways.
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hptrillium
How would you know how many miles are driven?
Tuesday, February 11 Report this
JWLynch
A device in your car will allow govt. to track the distance you drive as well as where you drive, when you drive, how fast you drive, etc.
Tuesday, February 11 Report this
HotTractor
Yearly disclosure of odometer reading?
Tuesday, February 11 Report this
Porter
Makes cents. Hahahaha
Tuesday, February 11 Report this
BillString
Good luck with that. I, for one, will never submit to state monitoring for the purpose of taxing me of more of my money to waste on frivolous initiatives.
Tuesday, February 11 Report this
JW
They'll get rid of the gas tax...yeah right. Circumventing this scam tax will hopefully be not too difficult.
Wednesday, February 12 Report this
Yeti1981
When this becomes mandatory, my cost to simply get back and forth to work five days a week will be $220. Currently, I can pretty much drive wherever I want in a week on $75 to $100.
Thursday, February 20 Report this