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SD 2227

An Act imposing an in-state mileage-based road usage charge on the use of clean energy vehicles

194th Legislature (2025-2026) Introduced by Mike Barrett

Summary of SD 2227: In-State Mileage-Based Road Usage Charge for Clean Energy Vehicles Purpose and IntentThis proposed bill, SD 2227, aims to implement a mileage-based road usage c

House concurred
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Bill Summary · SD 2227

Summary of SD 2227: In-State Mileage-Based Road Usage Charge for Clean Energy Vehicles

Purpose and Intent

This proposed bill, SD 2227, aims to implement a mileage-based road usage charge for owners of clean energy vehicles (EVs and hybrids) registered in the state. The primary goal is to ensure these vehicle owners contribute their fair share towards the maintenance and improvement of the state's road infrastructure, which has traditionally been funded by gasoline taxes paid by drivers of conventional internal combustion engine vehicles.

Key Provisions

  • Establishes a per-mile road usage charge of $0.02 for all clean energy vehicles registered in the state
  • Requires clean energy vehicle owners to self-report their mileage annually and submit payment of the road usage charge
  • Provides for enforcement mechanisms, including potential penalties, to ensure compliance
  • Creates a dedicated "Clean Energy Road Fund" to direct the collected revenue towards road projects
  • Includes provisions to potentially adjust the per-mile rate over time based on factors like inflation and changing infrastructure needs

Affected Parties

  • Owners of all-electric vehicles (EVs) and plug-in hybrid electric vehicles (PHEVs) registered in the state
  • State transportation agencies responsible for road maintenance and improvements
  • Taxpayers who may benefit from improved road infrastructure funded by the new revenue source

Timeline and Procedure

  • The bill was introduced in the state legislature on February 27, 2025
  • It has since passed the Senate and been concurred by the House, indicating it is nearing final passage
  • If enacted, the mileage-based road usage charge would take effect starting January 1, 2026, with the first payments due from clean energy vehicle owners by April 15, 2027

Overall, this bill represents an effort to ensure owners of clean energy vehicles contribute equitably towards the state's road network, which they utilize but do not currently pay for through traditional gasoline taxes. The revenue generated would be dedicated to supporting critical road infrastructure projects across the state.

Compiled from official sources — confirm details with the bill’s official record.

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