An act relating to the fiscal year 2027 Transportation Program and miscellaneous changes to laws related to transportation
What changed between versions
New Legislative Findings section (Sec. 1) documenting that FY2025 Transportation Fund revenues came in nearly $7.4M below forecast, the July 2025 revenue forecast was downgraded for FY2026-2030 due to declining fuel tax revenues from EV adoption and improved fuel efficiency, construction costs rose 62% since 2020, and the Agency eliminated 62 permanent positions to address shortfalls.
Entirely new Chapter 43 of Title 23 (Sections 7-11) establishes a Mileage-Based User Fee (MBUF) for battery electric vehicle pleasure cars effective January 1, 2027. The fee is $0.014 per mile with a cap of $178 per reporting period. Three payment options are available: annual lump sum based on odometer readings at inspections, pay-as-you-go installment payments, or a flat rate of $178 with no mileage reporting required.
New Section 3 provides a detailed summary of FY2027 transportation investments intended to reduce greenhouse gas emissions: Park and Ride ($1,976,211), Bike and Pedestrian Facilities ($24,576,873), Transportation Alternatives ($4,514,362), Public Transit ($57,855,144), and Rail ($60,289,410).
Paving construction funding increased by $1,700,000 (from $144,812,226 to $146,512,226) and Statewide District Leveling increased by $1,700,000 (from $7,000,000 to $8,700,000), both funded by additional State monies.
Funding sources for four state highway bridge projects were reallocated from State general funds to Transportation Infrastructure Bond (TIB) funds: Shaftsbury STP ($521,000), Sunderland BM20102 ($415,057), Sunderland NH Culv 122 ($266,950), and Topsham BF ($546,993), totaling $1,750,000 shifted from State to TIB.
New provision in 23 V.S.A. section 361 adds an annual EV infrastructure fee for plug-in hybrid electric vehicle (PHEV) pleasure cars equal to one-half the standard registration fee (or a biennial fee equal to the full annual fee), with proceeds deposited in the Transportation Fund for workplace and multiunit dwelling EVSE charging programs.
New Section 6 requires the Agency of Transportation to report to legislative committees by February 1, 2027 on priority projects eligible for Transportation Infrastructure Bond funding that could be advanced to construction in FY2028 or 2029 if bonds were authorized, including a cost-benefit analysis comparing bond financing to pay-as-you-go.
Section 11 requires the Agency of Transportation and DMV to develop a public outreach and education strategy for the MBUF program, including direct mailings to registered BEV owners before implementation, describing the program goals, timeline, compliance options, and how to obtain additional information.
The MBUF applies only to battery electric vehicle pleasure cars registered in Vermont. Exemptions are provided for vehicles owned by the U.S. federal government, the State of Vermont, and vehicles used for short-term rentals.
Transition provisions (Sec. 10) specify that during calendar years 2027 and 2028, BEV owners pay a one-time road usage charge of $89 (one-year registration) or $178 (two-year registration) at initial registration or renewal before the first full mileage reporting period concludes. The initial mileage reporting period begins with the first annual inspection on or after January 1, 2027.
The MBUF chapter includes enforcement mechanisms: a default rate of $178 applies if the owner fails to file required mileage reports or obtain inspections; the Commissioner may suspend or refuse to renew vehicle registration for non-compliance, intentional misrepresentation, or delinquency, with 15 days notice and opportunity for hearing.