SB 5726
In CommitteeSenate
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 establishes a new road usage-based funding system for Washington’s transportation infrastructure, replacing part of the fuel tax with a per-mile fee for vehicle use. It starts with a voluntary program for electric and hybrid vehicles in 2027, transitions to a mandatory program by 2035, and adds a 10% assessment to fund rail, bike, pedestrian, and public transit. The program includes strong privacy safeguards and is designed to maintain current revenue levels while adapting to more fuel-efficient vehicles.
- Creates a voluntary road usage charge program starting July 1, 2027, for electric and hybrid vehicles, and expanding to higher-efficiency internal combustion vehicles in 2029.
- Establishes a mandatory road usage charge program beginning July 1, 2029, phasing in by vehicle fuel efficiency over time, fully applying to all vehicles by July 1, 2035.
- Imposes a road usage fee of 2.6 cents per mile, automatically adjusted with changes to the fuel tax rate, with credits applied to offset fuel taxes already paid.
- Imposes a road usage assessment of 10% of the road usage fee, dedicated to multimodal transportation (rail, bike, pedestrian, and public transit) and deposited in a separate account.
- Requires odometer reporting for enrolled vehicles, with options for automated reporting, and includes strong privacy protections limiting location data collection to general (not specific) locations and requiring explicit consent.
- Waives certain existing fees (e.g., electric/hybrid vehicle registration fees and transportation electrification fees) for participants 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, and may be exempt from specific electrification fees if they enroll in the program.
- Internal combustion engine vehicle owners — Internal combustion engine vehicle owners with higher fuel economy ratings will be phased into the mandatory program starting in 2031, based on their vehicle's fuel efficiency.
- Public transportation agencies and federally recognized tribes — Public transportation agencies, tribes, and other exempt entities will continue to be exempt from the road usage fee unless they enroll voluntarily, but must still comply with reporting requirements if enrolled.
- Vehicle dealers and county auditors — Vehicle dealers and county auditors will be responsible for collecting road usage fees and assessments during vehicle transfers and renewals, and must verify odometer readings.
- State agencies (Department of Licensing and Department of Transportation) — The state Department of Licensing and Department of Transportation will implement, administer, and report on the new programs, including developing privacy safeguards and reporting to the legislature.
Pro/Con Analysis
Potential Benefits (5)
Low- and middle-income EV/hybrid owners benefit from waived registration and electrification fees ($100 + $50 + $75 = $225/year) if they enroll in the voluntary program starting in 2027. This creates a strong near-term financial incentive for early adopters, especially those who would otherwise pay the highest registration fees under current law. The fee cap in Sec. 2(1)(d) ensures they never pay more than the old fees, providing predictability.
FinancialPeopleRef: Sec. 2(1)(a), Sec. 2(1)(b), Sec. 2(1)(c-d), Sec. 16(8), Sec. 17(5)The 10% assessment ($0.26/mile) dedicated to rail, bike, pedestrian, and public transit infrastructure directly benefits everyday Washingtonians by expanding multimodal options, reducing congestion, and improving safety. This addresses a long-standing gap in transportation funding and supports climate goals—especially for low-income and non-drivers (e.g., seniors, youth, people with disabilities) who rely on transit, walking, or biking.
TransportationPeopleRef: Sec. 6, Sec. 24, Sec. 23The bill includes strong, specific privacy safeguards: (1) prohibition of specific location data collection without explicit consent; (2) limitation of personally identifying information to odometer readings and basic registration data; (3) requirement for operational, administrative, technical, and physical safeguards; and (4) statutory exemption from public records disclosure for odometer and location data. These provisions exceed typical state privacy standards and reflect lessons from other states’ mileage-based charging pilot programs.
Rights & LibertiesPeopleRef: Sec. 18(1-6), Sec. 22(10)The phased mandatory rollout (2029–2035) and tiered implementation by fuel efficiency protect lower-income drivers with older vehicles from immediate financial shock. Vehicles below 20 mpg are exempt until 2035, giving time for vehicle turnover and policy adjustments. Exemptions for public transit agencies, tribes, and government vehicles also ensure equity in implementation.
TransportationPeopleRef: Sec. 2(1)(a), Sec. 3(1)(a-vi), Sec. 4, Sec. 9(1)(a-f)The bill establishes a framework for ongoing legislative oversight (semiannual reports, task force on enforcement, tribal consultation) and stakeholder input, which helps ensure the program remains responsive to real-world impacts. This iterative approach—combined with a 2028 sunset—allows for mid-course corrections before full implementation, reducing the risk of unintended consequences.
TransportationLean peopleRef: Sec. 9(1)(a-f), Sec. 10, Sec. 11
Potential Concerns (5)
Low- and middle-income vehicle owners—especially those with older, lower-efficiency internal combustion vehicles—will face higher effective transportation costs as the per-mile fee replaces declining fuel tax revenue, while wealthier EV/hybrid owners benefit from fee waivers and reduced registration fees. The phase-in schedule (2029–2035) means many middle-income drivers of 2015–2020 model vehicles (20–30 mpg) will pay significantly more per mile than current fuel tax equivalents, especially if they drive frequently for work or caregiving.
FinancialPeopleRef: Sec. 2(1)(a), Sec. 3(1)(a-vi), Sec. 4The 2.6¢/mile fee is designed to match current fuel tax revenue, but the *structure* shifts burden toward lower-income drivers: those with older vehicles (lower fuel economy), longer commutes, or multiple vehicles—often low- and moderate-income households—will pay more per mile than they paid in fuel taxes, while high-income households with newer, more efficient vehicles (or EVs) pay less or receive net savings. This is reinforced by the 10% assessment on top of the base fee, which funds multimodal transit but does not offset the regressive effect of the base fee.
FinancialPeopleRef: Sec. 2(1)(a), Sec. 3(1)(a-vi), Sec. 4The bill includes a fuel tax credit that offsets the road usage fee by the amount of fuel tax already paid, which mitigates double taxation but does not change the *relative* burden across income groups. Since the credit is based on fuel consumption (not income or ability to pay), it preserves the regressive nature of the fee: low-mileage drivers (often wealthier) benefit more from the credit than high-mileage drivers (often lower-income), but the overall system remains regressive because the fee is flat per mile, not progressive.
FinancialRef: Sec. 2(1)(a), Sec. 3(1)(a-vi), Sec. 4, Sec. 5The bill requires local jurisdictions and state agencies to implement reporting and collection responsibilities (e.g., odometer verification, fee collection at vehicle transfers), which could strain local resources without guaranteed additional funding. While the bill tasks the Department of Licensing and Department of Transportation with administration, it does not specify dedicated funding for county auditors or local agencies to absorb new administrative duties, potentially shifting costs to local governments.
Local GovernmentRef: Sec. 10, Sec. 11(a-d)Privacy provisions are robust on paper—prohibiting specific location data collection without explicit consent, limiting personally identifying information to odometer readings and basic registration data—but the requirement to report odometer mileage at vehicle transfers and renewals creates a new data collection infrastructure that could be expanded later without legislative oversight. The bill allows automated reporting through third-party providers, and while fees cannot be assumed by the state, those providers could charge users, creating a potential privacy risk if users opt for cheaper or free services with less stringent data practices.
Rights & LibertiesRef: Sec. 18(1-6), Sec. 22(10)
Who Is Most Affected
EV and hybrid owners—especially those with newer, more expensive vehicles—benefit from waived registration and electrification fees ($225/year) if they enroll in the voluntary program. This creates a strong near-term financial incentive, particularly for middle- and upper-income households who can afford newer EVs. However, low-income EV owners may not qualify for the most generous models and may still face higher per-mile costs if they drive frequently.
Internal combustion engine vehicle owners, especially those with older, lower-efficiency vehicles (e.g., pre-2015 models averaging 18–22 mpg), will face higher effective transportation costs starting in 2031–2035. The per-mile fee (2.6¢) may exceed their current fuel tax burden, particularly for high-mileage drivers (e.g., delivery drivers, ride-hail drivers, rural commuters). This disproportionately affects low- and moderate-income households who cannot afford newer, more efficient vehicles.
Public transit agencies and tribes are exempt from the fee unless they voluntarily enroll, but must comply with reporting requirements if enrolled. The 10% assessment funds multimodal transit, which benefits agencies that serve low-income and non-drivers. However, agencies that do not enroll may lose the option to participate in revenue-sharing if the program expands, and tribal consultation is required but not guaranteed to result in favorable agreements.
Vehicle dealers and county auditors face new administrative burdens: verifying odometer readings, collecting fees at vehicle transfers, and enrolling vehicles in the program. While the bill allows third-party service providers to handle reporting, dealers may still bear costs for compliance (e.g., staff time, software integration). These costs are likely passed to consumers, especially in rural areas with fewer service options.
The Department of Licensing and Department of Transportation will implement and administer the program, requiring new staff, technology, and outreach. While this creates some new state jobs, the long-term cost is uncertain. The bill does not specify dedicated funding for implementation beyond administrative expense allocations, and the 2028 sunset creates uncertainty about program continuity.