Hawai‘i Implements Nation-Leading Road Usage Charge for Electric Vehicles to Ensure Sustainable Transportation Funding
Key Insights
Hawai‘i will implement its pioneering Road Usage Charge (RUC) program for light-duty electric vehicles starting July 1, replacing the existing EV registration surcharge.
EV owners can choose between an $8 per 1,000 miles charge, capped at $50, or a flat annual $50 fee, with the per-mile option becoming mandatory by 2028.
The program aims to establish a sustainable funding mechanism for road maintenance as declining fuel tax revenues impact infrastructure budgets due to increasing EV adoption.
This initiative positions Hawai‘i as a national leader in modernizing transportation funding, with plans to expand the RUC to all light-duty vehicles by 2033.
HONOLULU – The Hawai‘i Department of Transportation (HDOT) is set to implement its Hawaiʻi Road Usage Charge (HiRUC) program for light-duty passenger electric vehicles (EVs) effective July 1. This initiative follows a federally funded, three-year research and demonstration project and subsequent 2023 authorizing legislation, marking a pivotal shift in the state’s approach to transportation funding amidst the growing adoption of electric vehicles.
Upon their next registration renewal after July 1, eligible EV owners will be presented with two options: a state per-mile road usage charge (RUC) of $8 per 1,000 miles, capped at $50 annually, or a flat annual state RUC of $50. Both options will supersede the state’s current $50 EV registration surcharge. The per-mile RUC is slated to become mandatory for EVs by 2028, with the program projected to expand to encompass all light-duty vehicles across the state by 2033.
“Instead of paying based on what type of car you drive – or can afford – a road usage charge means vehicle owners will pay only for how much they actually drive. It’s a much fairer way for everyone to contribute to keeping our roads and bridges safe and operable,” stated Hawai‘i Department of Transportation Director Ed Sniffen. Sniffen emphasized the program’s practicality, noting, “Hawaiʻi is fortunate since we can use our annual safety inspection program, making the process easy and cost-effective.”
The impetus for HiRUC stems from the observable decline in revenues generated from motor fuel taxes and other vehicle registration fees. As more drivers in Hawaiʻi transition to fuel-efficient, hybrid, or all-electric vehicles, the traditional funding streams for maintaining the state’s vital road, bridge, and infrastructure networks have diminished. The Hawaiʻi Road Usage Charge is designed as a proactive measure to ensure long-term, sustainable funding for these critical transportation assets.
Noel Morin, President of the Hawaiʻi EV Association, voiced strong support for the transition. “EV drivers have long led our journey to a sustainable transportation future. As we move away from gas vehicles, we must modernize how we fund our roadways and bridges. The Hawaiʻi Road Usage Charge is a fair and forward-looking solution that ensures everyone contributes to the infrastructure we all rely on,” Morin commented, highlighting the collaborative effort between the association and HDOT.
The registration renewal process for EV owners will remain largely consistent, with the primary procedural change being the mandatory photography of vehicle odometers during periodic motor vehicle safety inspections. This data will facilitate the accurate calculation of the per-mile charge. EV owners can utilize the HiRUC Program’s online RUC Estimator to determine the most cost-effective option for their specific usage patterns. Renewals can be completed through existing county Department of Motor Vehicles (DMV) channels, including online portals, DMV Now Kiosks, mail, or in-person services.