Mileage Fees Make Inroads in California and Michigan

Vehicle-miles-traveled fees made inroads with a potential "no-fee" pilot program in California and a new academic study in Michigan concluding that the state should adopt them. VMT fees may even get some attention in the MAP-21 Reauthorization.

2 minute read

May 20, 2014, 8:00 AM PDT

By Irvin Dawid


Legislation to authorize a pilot program, authored by the chair of the California Senate Transportation Committee, Mark DeSaulnier, D-Concord, "gives the California Transportation Agency, the Department of Motor Vehicles and other agencies authorization to track vehicle miles traveled by motorists in a yet-to-be-determined city starting in January 2016, according to the language in the bill," writes Steve Scauzillo, about SB 1077, California's initial legislative step in what could eventually lead to a mileage-based user fee program.

If approved, the pilot would be the first in California but the third in the nation, behind similar test programs in Washington and Oregon, said Sharon Neely, transportation expert with the Southern California Association of Governments.

DeSaulnier clearly wants a "go-slow" approach in the pilot. In his FAQ webpage, he writes, "The bill does not allow the California Transportation Agency to even collect fees from volunteers participating in the study. The bill asks the California Transportation Agency to conduct what amounts to a hypothetical dry run of a mileage-based fee and report its findings to the Legislature."

In Michigan, a new report "prepared for the Michigan Environmental Council by Sustainable Mobility & Accessibility Research & Transformation (SMART) at (University of Michigan) proposes that the state move to a mileage fee funding program," writes Paul Egan of the Detroit Free Press.

“Instead of continuing to raise fuel taxes to pay for transportation infrastructure, a mileage fee could more fairly allocate costs based on the number of miles driven, the time of day, the route taken, and the weight of the vehicle,” the report says.

As we noted recently on MAP-21 reauthorization, "(v)ehicle-miles-traveled fees would almost certainly be on the list" of funding studies of revenue alternatives to the federal gas tax.

What's clear is that mileage fee advocates shouldn't expect rapid progress when it comes to transitioning away from state gas taxes, a proven, but what many say, is an unsustainable means of revenue collection due to increased fuel efficiency of vehicles, more electric vehicles on the road, declining miles traveled, and most important of all, the political unwillingness to raise fuel taxes.

Monday, May 19, 2014 in San Gabriel Valley Tribune

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Get top-rated, practical training

Concrete Brutalism building with slanted walls and light visible through an atrium.

What ‘The Brutalist’ Teaches Us About Modern Cities

How architecture and urban landscapes reflect the trauma and dysfunction of the post-war experience.

February 28, 2025 - Justin Hollander

Complete Street

‘Complete Streets’ Webpage Deleted in Federal Purge

Basic resources and information on building bike lanes and sidewalks, formerly housed on the government’s Complete Streets website, are now gone.

February 27, 2025 - Streetsblog USA

Green electric Volkswagen van against a beach backdrop.

The VW Bus is Back — Now as an Electric Minivan

Volkswagen’s ID. Buzz reimagines its iconic Bus as a fully electric minivan, blending retro design with modern technology, a 231-mile range, and practical versatility to offer a stylish yet functional EV for the future.

March 3, 2025 - ABC 7 Eyewitness News

View of mountains with large shrubs in foreground in Altadena, California.

Healing Through Parks: Altadena’s Path to Recovery After the Eaton Fire

In the wake of the Eaton Fire, Altadena is uniting to restore Loma Alta Park, creating a renewed space for recreation, community gathering, and resilience.

March 9 - Pasadena NOw

Aerial view of single-family homes with swimming pools in San Diego, California.

San Diego to Rescind Multi-Unit ADU Rule

The city wants to close a loophole that allowed developers to build apartment buildings on single-family lots as ADUs.

March 9 - Axios

Close-up of row of electric cars plugged into chargers at outdoor station.

Electric Vehicles for All? Study Finds Disparities in Access and Incentives

A new UCLA study finds that while California has made progress in electric vehicle adoption, disadvantaged communities remain underserved in EV incentives, ownership, and charging access, requiring targeted policy changes to advance equity.

March 9 - UCLA Luskin Center for Innovation