H.B. 501 Summary

• Beginning July 1, 2024, electric vehicles must pay a state mileage-based road usage fee instead of the current $50 annual registration surcharge, with the fee calculated based on miles traveled as measured by odometer readings from vehicle inspections.

• Vehicle inspection certificates must include the odometer reading at the time of inspection to enable calculation of miles traveled for the mileage-based fee.

• Vehicle registration applications must clarify that "type of fuel" includes batteries or electricity, and the $50 surcharge on alternative fuel vehicles (non-electric) continues.

• The Department of Transportation must develop a long-term implementation plan by 2026 for expanding the mileage-based road usage fee to all passenger vehicles and light duty trucks by 2033.

• Appropriates $5,000,000 from American Rescue Plan Act funds for fiscal year 2023-2024 to implement the state mileage-based road usage fee program and requires the Department of Transportation to seek federal funding under the Infrastructure Investment and Jobs Act.