Hawai‘i is set to launch the nation’s first statewide Road Usage Charge (RUC) program for light-duty electric vehicles (EVs) on July 1, marking a significant shift in transportation funding mechanisms. This pioneering initiative, which follows a three-year federally funded research and demonstration project and subsequent 2023 authorizing legislation, aims to establish a more sustainable and equitable system for maintaining the state’s critical road infrastructure. The program replaces the existing $50 annual EV registration surcharge, addressing the declining revenues from traditional motor fuel taxes as EV adoption accelerates across the islands.

Under the new system, eligible EV owners renewing their vehicle registrations after July 1 will have two options: pay a state per-mile RUC of $8 per 1,000 miles, capped at $50 annually, or opt for a flat annual state RUC of $50. This choice provides flexibility for drivers based on their mileage, ensuring that contributions to road maintenance are directly proportional to vehicle usage. Hawai‘i Department of Transportation Director Ed Sniffen emphasized the fairness of the new approach, stating, “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.”

The transition to a mileage-based fee is a direct response to the evolving automotive landscape. As more residents embrace fuel-efficient, hybrid, and all-electric vehicles, the traditional funding model, heavily reliant on gasoline tax revenues, has become increasingly unsustainable. The Hawai‘i Road Usage Charge is designed to ensure a long-term, stable funding stream for the state’s roads, bridges, and broader transportation infrastructure. Mayor Derek S.K. Kawakami of Kaua‘i County highlighted the state's commitment to innovation, noting, “As more of our residents transition to electric vehicles, it’s important that we modernize the way we invest in the roads and bridges we all rely on.”

A key operational aspect of the program involves integrating odometer readings into the existing annual motor vehicle safety inspections. Vehicle odometers will be photographed during these safety checks, streamlining the data collection process and making it cost-effective for the state. Hawai‘i EV Association President Noel Morin expressed strong support for the initiative, stating, “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.”

Looking ahead, the state plans for the per-mile road usage charge to become mandatory for all EVs by 2028. By 2033, the program is projected to expand its scope to include all light-duty vehicles across Hawai‘i, signaling a comprehensive overhaul of the state’s transportation funding model. This phased implementation underscores Hawai‘i's proactive stance in adapting its fiscal policies to the realities of a rapidly electrifying vehicle fleet, setting a potential blueprint for other states grappling with similar infrastructure funding challenges.