Purpose of the Bill

The bill aims to establish a task force to explore alternative road funding solutions due to the growing adoption of electric and plug-in hybrid vehicles, which reduces revenue from traditional fuel taxes. It seeks to ensure sustainable funding for Minnesota's transportation infrastructure.

Main Provisions

• Task Force Creation: The bill establishes a Road Funding Alternatives Task Force composed of legislators, state agency representatives, public appointees, and industry experts.

• Membership: The task force includes members from the Minnesota Senate and House of Representatives, commissioners from the Departments of Transportation, Public Safety, Management and Budget, public representatives, and experts from both electric vehicle industries and electric utilities.

• Duties and Responsibilities:

  • Evaluate Existing Assessments: Analyze current assessments for all-electric vehicles to see if they are adequate.
  • Develop Legislative Proposals: Propose alternative road funding methods, such as road user charges, increased surcharges, and taxes on electric vehicle charging.
  • Review Other States: Study how other states handle electric vehicle assessments to identify best practices.
  • Performance Analysis: Assess potential user discounts for taxes and how economic conditions might impact revenue stability.

• Reporting and Expiration: The task force is required to submit a report by March 15, 2026, detailing their activities and recommendations. The task force will expire after submitting this report.

Significant Changes to Existing Law

• The bill proposes exploring new tax structures such as road user charges and fees on electric fuel consumption to replace traditional fuel tax revenues.
• It introduces the idea of a mileage-based user fee and adjustments to existing tax rates linked to the Highway Construction Cost Index.

Relevant Terms

• Road user charge
• Mileage-based user fee
• Electric vehicles (EVs)
• Plug-in hybrid vehicles
• Fuel tax
• Electric vehicle charging tax
• Infrastructure funding
• Legislative report