WA lawmakers consider tax based on fuel efficiency to fund transportation

Yahoo

03-04-2025

The Brief
The state House passed a transportation budget proposing a "highway use fee" based on fuel efficiency to offset declining gas tax revenue, with efficient cars paying higher fees.
The fee targets drivers benefiting from fuel efficiency who contribute less to road maintenance, sparking affordability concerns.
Lawmakers debate using Climate Commitment Act funds for transportation, with ongoing discussions about the fee's impact.
OLYMPIA, Wash. - The state House passed their version of a transportation budget Wednesday afternoon, with lawmakers weighing a fee based on a car's fuel efficiency to pay for part of $15.2 billion in proposed spending over the next two years.
House Transportation Committee Chair Jake Fey, D-Tacoma, said legislators have to address the challenge of transportation project costs increasing as revenue from gas taxes is decreasing.
"The transportation system – a good, well conditioned transportation system – doesn't come for free," he said.
By the numbers
Aside from an increase in the gas tax and other car-related fees, Fey has proposed a new "highway use fee" to bring in more revenue for transportation projects.
The fee would be collected when a driver renews their registration and calculated using a formula based on a car's combined fuel economy rating, with more fuel efficient cars paying a higher fee. Fey estimated "very efficient" vehicles would pay anywhere between $75 and $100, while a car that gets 27 miles per gallon would pay "probably 10-15 bucks."
The fee is similar to Fey's previous "road usage charge" proposal, which intended to annually charge people based on how much they drive.
He argued with gas tax revenues falling because of how efficient cars have become, the highway use fee targets those who get to fill up less often and therefore pay less to preserve roads.
What they're saying
"It's basically a way to offset the losses from our gas tax revenue from the very people that are benefiting from the efficiency, but not paying their fair share of the cost of maintaining the transportation system," Fey said.
The fee would not apply to cars that get less than 25 miles per gallon and those that are electric or a plug-in hybrid. Instead, electric cars have their own registration and renewal fees that would now be increased by inflation under the House transportation revenue proposal.
The other side
Ranking Member Andrew Barkis, R-Olympia, said the highway use fee was a better alternative to a road usage charge. But while new revenue is needed, he argued costs like the fee and an increase to the gas tax come at a bad time for affordability.
"This fee would come on top of a 6- to 9-cent gas tax hike—further increasing the financial burden already placed on Washington drivers," he said in a statement. "Our priority must be advancing policies that keep our roads safe and well-maintained without placing additional financial strain on Washington drivers,"
Barkis has instead pushed for Climate Commitment Act revenues to be dedicated for transportation uses, but that has opposition from Democrats. While he is opposed to the revenue proposals, he previously expressed hope changes could be made before a final transportation budget is passed out of the legislature.
A committee vote for the House bill containing the revenue proposals has not yet been scheduled. A single transportation budget negotiated by the House and Senate must be passed onto the governor before the legislative session ends on April 27.
Albert James is a television reporter covering state government as part of the Murrow News Fellowship program – a collaborative effort between news outlets statewide and Washington State University.
The Source
Information in this story comes from original reporting by Murrow News Fellow Albert James.
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