FAQs

A road charge is a system where all drivers pay to maintain the roads based on how much they drive, rather than how much gas they consume. 

As Californians switch to more fuel-efficient vehicles, they are buying less gas and paying less gas tax. This means less and less funding to maintain our transportation system. California is leading the way on developing new and innovative ways to move around the state; we need a modern transportation funding system that can adapt to and keep up with our state’s changing needs.

Raising the gas tax could be a short-term solution to the problem of funding roadway maintenance and repair. However, as California moves toward its goals of more fuel efficient and zero emission vehicle use, drivers will continue to buy less and less gas. Even if we keep increasing the gas tax, with Californians buying less and less gas the funding will eventually disappear. California needs a funding system that supports our state’s transportation future.

Through enactment of the state Senate Bill 1077 in 2014, the Legislature and Governor determined it important for the state to begin to explore alternative revenue sources that may be implemented in lieu of the antiquated gas tax structure now in place. They further required that any exploration of alternative revenue sources take privacy implications into account, especially regarding location data. Travel locations or patterns were not allowed to be reported, and legal and technical safeguards must be in place to protect personal information.

Initiated by Senate Bill 1077 law, the road charge pilot program was a comprehensive, four-year effort that included the study, design, testing, evaluation and reporting of all aspects of a road charge system. The ultimate goal of the road charge pilot program was to assess whether a road charge system is a viable option for replacing the gas tax as a source of revenue to maintain our roadways and bridges in California.

Volunteers throughout California tested various road charging methods to identify and evaluate issues related to the potential implementation of a road charge program and to assess the potential for mileage-based revenue collection for California's roads and highways as an alternative to the gas tax system. The pilot achieved the following:

  1. Analyzed alternative means of collecting road usage data, including at least one alternative that did not rely on electronic vehicle location data.
  2. Collected a minimum amount of personal information, including location tracking information, necessary to implement the road charge program.
  3. Ensured that processes for collecting, managing, storing, transmitting, and destroying data were in place to protect the integrity of the data and safeguard the privacy of drivers.
Senate Bill 1077, authored by Senator DeSaulnier, was signed into law by Governor Brown on September 29, 2014 (Chapter 835, Statutes 2014). This legislation requires the State of California to design, implement, and evaluate a road charge pilot.

The TAC consists of 15 volunteer members who are representative of the telecommunications industry, highway user groups, data security and privacy industry, privacy rights advocacy organizations, the equity community, regional transportation agencies, national research and policymaking bodies including, members of the Legislature, and other relevant stakeholders. The TAC is required to gather public comment on issues and concerns related to the road charge pilot program. Learn more about the TAC and upcoming meetings by clicking here to go to the TAC's website.

The 2017 Pilot tested a variety of collection methods that drivers could choose from to report mileage to private third-party account managers. This ranged from simple odometer reading to devices with GPS location information. Account managers then provided the state with only the number of miles and the road charge. No other information was provided to the state. Lean more about the collection methods tested in the final report here

In 2021, California will test collecting a road charge through emerging technologies: usage-based insurance, transportation network companies, autonomous vehicles, and pay at the pump. Learn more about the current project at on the road charge project page.

All vehicles, regardless of their fuel source, cause wear and tear to our roadways and contribute to roadway congestion. Because cars are increasingly more fuel efficient, we need to identify other revenue methods that are sustainable in the long-term and equitable across vehicle types. With a road charge, those who use the roadway network and benefit from it are also the ones to pay for it. The goal is to provide a system where all vehicles contribute to funding maintenance of our roadways in proportion to their roadway use, regardless of their fuel source.

California's roadway network is funded primarily by fuel taxes. Motor vehicle fuel taxes are protected by Article IX of the State Constitution for use on public streets, highways, and mass transit guideways. If in the future the state adopts a road charge system, similar protections can be applied to assure revenues from the road charge system go for transportation purposes.

In 2021, California will test collecting a road charge through emerging technologies: usage-based insurance, transportation network companies, autonomous vehicles, and pay at the pump. Learn more about the current project at on the road charge project page.

Research has shown that, in general, lower income families currently pay more gas taxes than others because they tend to drive less fuel-efficient vehicles. Thus, it is likely that lower income families will pay less under a road charge system. California is also studying how various aspects of a potential road charge program can be accessible, and not burdensome, to those who have been historically disadvantaged.

Studies have shown that rural drivers tend to drive longer distances. They also tend to own less fuel-efficient vehicles. This means that currently they pay more in gas taxes than others.  Should the state switch to a road charge, rural drivers would likely pay less than they are currently paying with a gas tax because, while they would still drive the same number of miles, they would now pay the same rate as everyone else.

For the 2017 pilot, SB 1077 required the state to ensure that processes for collecting, managing, storing, transmitting, and destroying data are in place to protect the integrity of the data and safeguard the privacy of drivers. The Road Charge Technical Advisory Committee members include some of the nation’s leading privacy advocates.

In 2019, the Legislature passed the California Consumer Privacy Protection Act, which laid out requirements for the protection of consumer data. A road charge program would be in compliance with the standards and requirements of this law. As technology advances, a program would remain in compliance with the highest industry standards shaping things like online banking and other secure transactions that American use every day.

Most states are heavily reliant on gasoline taxes to fund their roadway maintenance. Like California, the majority of those states are encountering revenue shortfalls and struggling to maintain their roadway systems. Though road charging is being considered by many states nationwide, there are 16 western states that have formed a consortium to pool resources and study road charging issues that are common to the member states. The coalition is called the Western Road Usage Charge Consortium (RUC West) click here to go to the RUC West website.  The state of Oregon has the first active road charge program called OReGo, which residents can sign-up for on a volunteer basis. In 2020, Utah launched a road charge program for zero emission vehicles only, with plans for full implementation in the next 10 years.