VTrans briefs TAC on Transportation Bill: EV mileage fee, bond shifts to paving, TAP increases

Patrick Murphy, State Policy Director at VTrans, outlined key provisions of the 2026 Transportation Bill to the Chittenden County Regional Planning Commission’s Transportation Advisory Committee on July 7, 2026. He said the legislature adjusted purchase-and-use revenue allocation (via H 933) to shift more resources toward transportation projects while changing parts of the sales formula intended to offset education fund impacts.

The bill adopts the agency’s project list (the "White Book"), reallocates some transportation infrastructure bond proceeds to increase the paving budget, and directs the agency to study expanded bonding for projects with life spans longer than 10 years. Murphy described several programmatic and regulatory changes: a phased-in mileage-based user fee for electric vehicles, expanded authority for public-private partnerships, updates to EV charging regulation consistent with NEVI standards, and temporary increases to discretionary grant limits.

Why it matters: The changes touch revenue streams and project delivery at the regional level. For Chittenden County, increased paving funding and higher TAP awards could accelerate local resurfacing and multimodal projects; changes in EV charging rules and NEVI alignment may affect local charging deployment and data-sharing with third-party platforms.

Details from the briefing: Murphy said the legislation sets an initial EV mileage-based fee of 1.4 cents per mile, effective Jan. 1, 2027. The rate is intended to approximate the per-mile fuel tax contribution of a 23 miles-per-gallon conventional vehicle. The fee includes a cap of $178 and initially applies to EVs under 6,100 pounds; VTrans anticipates expanding the fee to additional electrified vehicle types in later years. The measure is framed as a way to replace fuel tax revenue lost as vehicles become more efficient.

The Transportation Alternatives Program (TAP) saw two notable changes: the typical maximum award rises from $300,000 to $600,000, and the statutory 50% set-aside for salt/sand sheds was removed so salt/sand shed projects and bike/ped projects compete on the same priorities. Murphy also said the legislature temporarily raised certain grant limits to $1.2 million this fiscal year to expedite federal fund delivery.

Murphy described ongoing and continued studies in statute language: an examination of speed-limit statutes, support for Drive Electric Vermont, work on recruiting and retaining volunteer drivers for non-emergency medical trips, and a DMV report on intelligent speed assistance. The bill also contemplates expanded use of bonding for multi-decade infrastructure and greater ability for HOAs/common interest communities to install EV charging.

Committee reaction and next steps: Committee members asked clarifying questions about revenue projections, the equity impacts of an EV mileage fee, and how the cap and vehicle-weight threshold were determined. No formal action was taken; the update was informational. The DMV report and statutory studies mentioned in the bill were noted as future deliverables that could shape implementation.

Sources and provenance: Presentation and Q&A with Patrick Murphy and Matthew Arancio at the CCRPC TAC meeting, SEG 044–SEG 099. No formal vote or policy adoption occurred at this meeting.