HB 1921
In CommitteeHouse
Transportation revenue
Establishing new sources of transportation revenue based on motor vehicle use of public roadways.
This status may be delayed. See Action History below for the latest updates.
How does a bill become law?
- Introduced: The bill is filed and assigned a number.
- Committee: A subject-matter committee holds hearings, takes public testimony, and decides whether to advance the bill.
- Floor Vote: The full chamber (House or Senate) debates and votes on the bill.
- Opposite Chamber: The bill repeats the committee and floor vote process in the other chamber.
- Governor: The Governor reviews the bill and decides whether to sign or veto it.
- Signed: The bill has been signed into law.
AI Analysis
This bill creates a new road usage-based funding system for Washington’s transportation infrastructure, replacing part of the fuel tax with a per-mile fee. It establishes a voluntary program starting in 2027 and a mandatory program starting in 2029, with fees phased in by vehicle type and fuel efficiency. Revenue from the per-mile fee goes to highway maintenance, while a separate 10% assessment funds rail, bike, pedestrian, and transit projects. The program includes strict privacy safeguards and waives certain existing fees for participants.
- Establishes a voluntary road usage charge program starting July 1, 2027, for electric and hybrid vehicles, later expanding to include high-fuel-efficiency internal combustion vehicles.
- Establishes a mandatory road usage charge program beginning July 1, 2029, with a phased-in schedule based on vehicle fuel economy, ultimately covering all vehicles by 2035.
- Imposes a road usage fee of 2.6 cents per mile, automatically adjusted with changes to the fuel tax rate, and a 10% road usage assessment on fees collected to fund multimodal transportation (rail, bike, pedestrian, transit).
- Requires odometer mileage reporting at registration or renewal for enrolled vehicles, with options for automated reporting and credits for fuel taxes already paid.
- Includes strong privacy protections, limiting collection of location data to general location only (with consent), and prohibiting collection of specific travel patterns, destinations, or times unless consent is given.
- Waives certain existing registration fees (e.g., $100 and $50 electric/hybrid fees, $75 electrification fee) for vehicles enrolled in the road usage charge program for the prior 12 months.
Who is affected
- Electric and hybrid vehicle owners — Electric and hybrid vehicle owners will be required to pay a per-mile fee instead of certain registration fees (e.g., $100 and $50 fees under RCW 46.17.323 and $75 under RCW 46.17.324), and may be exempt from those fees if they enroll in the program.
- All vehicle owners registering on-road vehicles — All vehicle owners will be required to report odometer mileage at registration or renewal if enrolled in the program, and may be charged road usage fees and assessments upon vehicle transfer.
- Public transportation providers and federally recognized tribes — Public transit agencies, tribes, and other exempt entities will be exempt from road usage fees for qualifying services, but must still comply with reporting requirements if enrolled.
- State and local government agencies (e.g., Department of Licensing, county auditors) — State and local governments will need to comply with new reporting and collection responsibilities and may face administrative costs related to implementation.
Pro/Con Analysis
Potential Benefits (5)
The waiver of existing $100/$50/$75 registration fees for enrolled vehicles directly reduces annual costs for EV and hybrid owners—especially beneficial for lower-income households who rely on fuel-efficient vehicles and would otherwise face higher per-vehicle fees under the current system.
FinancialPeopleRef: Sec. 2(c), Sec. 16(8), Sec. 17(5)The 10% assessment creates a dedicated, growing revenue stream for rail, bike, pedestrian, and transit infrastructure—critical for reducing congestion and improving mobility for non-drivers, including seniors, youth, people with disabilities, and low-income commuters who rely on alternatives to driving.
TransportationPeopleRef: Sec. 6(2), Sec. 24The 200-mile annual standard deduction and exemption for off-road use (e.g., farm equipment, off-highway vehicles) ensures the fee is fair and does not penalize drivers who use roads infrequently or for non-public purposes, protecting rural residents and seasonal workers from undue burden.
Public SafetyPeopleRef: Sec. 8(3), Sec. 9(f)The bill’s privacy safeguards—prohibiting collection of specific location, destination, or travel pattern data without explicit consent, and limiting odometer reporting to mileage only—represent one of the strongest state-level privacy frameworks for transportation data, protecting civil liberties from surveillance creep.
Rights & LibertiesPeopleRef: Sec. 18(1)-(4), Sec. 22(10)The phased-in mandatory program (2029–2035) gives businesses time to adapt, and the exemption for transportation network company drivers (Sec. 9(2))—though not yet detailed—suggests intent to avoid disrupting gig economy workers, potentially stabilizing employment in ride-hail and delivery sectors.
Business & EmploymentPeopleRef: Sec. 3, Sec. 29
Potential Concerns (5)
The 2.6 cents-per-mile fee, while designed to replicate current fuel tax revenue, will disproportionately burden low-mileage drivers and lower-income households who drive older, less fuel-efficient vehicles and may not qualify for fee waivers—effectively making them pay more per mile than the effective fuel tax rate they currently pay.
FinancialPeopleRef: Sec. 2(d), Sec. 4The waiver of existing $100/$50/$75 registration fees only applies to vehicles enrolled for the *prior* 12 months—meaning new EV/hybrid buyers in 2027 must pay both the new per-mile fee and the old registration fees for their first year, creating a front-loaded cost that discourages early adoption despite the bill’s stated intent to incentivize electrification.
FinancialPeopleRef: Sec. 2(c), Sec. 16(8), Sec. 17(5)The 10% assessment on road usage fees funds multimodal projects, but because it is *not* a motor vehicle license fee (Sec. 6), it lacks constitutional protection as transportation user-fee revenue, increasing the risk that future legislatures will divert these funds away from transportation safety priorities like bridge maintenance or crash mitigation.
Public SafetyLean peopleRef: Sec. 6(2), Sec. 24The bill mandates odometer reporting and per-vehicle fee collection but provides no dedicated funding for county auditors or local agents to implement the new system—shifting administrative costs to local governments without compensation, potentially straining county budgets and delaying implementation.
Local GovernmentPeopleRef: Sec. 10, Sec. 11(d)While privacy provisions are strong on paper, the requirement to report odometer mileage at registration *and* vehicle transfer (Sec. 15(3)(e)) creates a de facto mileage tracking system—even without location data, consistent odometer readings can reconstruct travel patterns over time, especially for vehicles with predictable routes (e.g., commuters), undermining privacy expectations.
Rights & LibertiesPeopleRef: Sec. 12(2), Sec. 28(1)(b)(ii)
Who Is Most Affected
Lower- and middle-income EV/hybrid owners benefit from fee waivers but may face higher net costs if they drive more than 7,700 miles/year (the break-even point where 2.6¢/mi exceeds current fuel tax burden). The $100/$50/$75 fee waivers only apply after 12 months of enrollment, hurting early adopters.
Rural residents and farmers benefit from the 200-mile standard deduction and off-road exemptions, but may face higher costs if they drive older vehicles with lower fuel efficiency that remain subject to the fee longer under the phased schedule.
Counties and local governments bear new administrative costs for mileage reporting and fee collection without dedicated state funding, straining budgets—especially in rural counties with limited resources.
Public transit agencies and tribes gain dedicated multimodal funding via the 10% assessment and are exempt from fees for qualifying services, strengthening transit access and tribal sovereignty in transportation planning.
Ride-hail and delivery drivers may benefit from the legislative directive to address their unique situation (Sec. 9(2)), but without specific rules, they risk being caught in a system that could increase per-mile costs if fees are not adjusted for platform-based driving patterns.