Published on Feb 04, 2022

Washington’s first road usage charge program impacts city funding source

Contact: Brandy DeLange, Brianna Morin

HB 2026, introduced by Rep. Emily Wicks (D–Everett), would establish Washington’s first road usage charge (RUC) program. As introduced, the bill would eliminate critical funding for the Transportation Improvement Board (TIB).

Beginning in July 2025, the existing annual registration fees for fully electric vehicles (EVs) will be replaced by a RUC at the rate of 2.5 cents per mile. At this time, EV owners pay $225 in annual registration fees and the new usage charge is not permitted to exceed that amount. However, for participants in the RUC program, the fee will be waived and revenues will be diverted to the Road Usage Charge account established within the Treasury.

Currently, TIB receives 15% of the proceeds of the electric vehicle fee after the first $1 million is collected. As currently written, HB 2026 waives the electric vehicle fee and does not contemplate an adjustment to ensure that investments are maintained or not reduced because of the waiver. Cities rely heavily on TIB to help support and fund transportation projects like pavement preservation.

Identifying this concern, AWC has worked with Rep. Wicks and offered an amendment that would ensure TIB investments are maintained. Additionally, AWC will continue to engage with the bill sponsor and other stakeholders throughout the legislative interim.

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  • Public works & infrastructure
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