Alternative Fuel, Fuel-Efficient, and Electric Vehicles - Highway Use Fees

HB 1457 replaces the existing annual surcharge ($100-$125) for zero-emission and plug-in electric vehicles with a new annual highway use fee for owners of alternative fuel vehicles (e.g., propane, natural gas), fuel-efficient vehicles (25+ MPG combined), and plug-in electric vehicles. The fee is calculated as 85% of the estimated motor fuel tax a comparable vehicle would pay annually, based on fuel efficiency and mileage. Owners may opt into a voluntary mileage-based user fee program administered by the Department of Transportation instead of paying the highway use fee. This bill directly affects owners of these specific vehicle types registered in Maryland, shifting the payment mechanism while maintaining revenue for the Transportation Trust Fund.