Overview of Potential Administrative Process

If California were to choose to replace the gas tax with a road charge, a transition to a road charge system would require careful planning and coordination to design and implement a simple, dependable, and accurate process for collecting road charges from taxpayers. Recognizing this requirement, the Legislature in SB 339 directed the California State Transportation Agency to design a process for collecting road charge revenue from vehicles. Multi-department discussions were held to determine the recommended administrative structure that could collect a road charge in California, which is outlined in this report.  The recommended structure could support the transition of all 33 million passenger and commercial vehicles to a road charge, or it could only apply to a subset of vehicles, such as only zero-emission passenger and commercial vehicles.

SB 339 Road Charge Collection Pilot Interim Pilot Report (July 2024)