Phase 1
1 July saw the launch of the fourth US state (following Oregon, Utah and Virginia) to implement an operational RUC system for light vehicles (as distinguished from the five states with weight-mileage taxes for heavy vehicles). Known as HiRUC, it follows two pilots and extensive consultation, and reflects the relatively high take-up of EVs in the state of Hawaii (3.5% of light vehicles are battery electric vehicles (BEVs) or plug-in hybrids (PHEVs).
HiRUC affects around 38,000 vehicles, being EVs with a gross vehicle weight of 10,000 pounds or less (around 4.5 tonnes).
Phase 1 of HiRUC provides a choice for owners of battery electric vehicles (BEVs) to either pay an annual fixed fee of US$50 or to pay per mile at a rate of US$0.008 (up to a cap of US$50). In effect, the RUC option means those who are likely to drive fewer than 6250 miles per annum can pay less.
The system will be implemented by odometers being checked at annual vehicle safety inspections and reported to the Department of Transportation. BEV owners will receive an invoice for RUC at the time of their annual registration renewal. The RUC invoice will be based on the vehicle safety inspection reading of the odometer. This will be the first US RUC system based on odometer readings at safety inspections. Vehicle at the time of re-registration will choose whether to pay the US$50 or go onto RUC.
Payment for RUC is collected at the same time as the registration renewal.
New BEVs will be placed on the flat fee at first registration, and owners can choose to remain on it, or switch to RUC after their first safety inspection.
It's important to note that this is meant to resemble the State Gas Tax, not the US Federal Gas Tax. Noting there is also County Gas Tax (and separate work underway to consider how counties could have their own RUC collected through the same means).
Vehicle owners that select a flat fee can change onto RUC at their next renewal (those on RUC have no need to, as their payments are capped at US$50).
Pilots
Before implementation, the Hawaii Department of Transportation undertook studies and two key pilots. The first was in 2019-2020 when 359,659 residents received Driving Reports comparing what they paid in fuel tax (based on miles driven and the average vehicle efficiency of their vehicle) to what they would have paid had there been RUC at the same level. This was an important start to engaging with the public on RUC as a replacement to the gas tax.
This was followed up by a pilot with 2,129 participants including a range of mileage reporting options. That included smartphone odometer imaging and plug-in devices (into OBD2 ports) with and without GPS location identification. Odometer image capture was most popular.
An archive of the previous work is available here, along with a factsheet about the new system and the relevant legislation.
Phase 2
From 1 July 2028, the fixed fee will be scrapped and all light BEVs will be required to be on HiRUC. Work on designing that transition is underway, as this will be the first mandated light RUC system in the United States (all others still have the choice of an annual flat fee or RUC). The obvious question will be whether the US$50 cap will remain in place, noting there is no such gap for the State Gas Tax.
Beyond 2028
Act 222 (the legislation introducing HiRUC) requires that HDOT to develop a Long-Term Transition Plan to transition all light-duty vehicles to RUC by 2033. So placing all BEVs on RUC is very much a step towards a much bigger shift. This will consider when and how to include PHEVs and other hybrid vehicles, but also all gasoline powered vehicles and the future of the State Gas Tax. Noting this is only for light vehicles, so medium and heavy vehicles will have to wait. The State Gas Tax can't be scrapped when those vehicles are paying it.
Still, no other US state has indicated a proposed deadline for transitioning ALL light vehicles to RUC. Only Iceland and New Zealand have such policies (albeit in both cases ALL vehicles), and almost certainly Iceland will be the first to achieve it.
Hawaii has a range of advantages. Its islands are small, there is not only no international nor inter-state traffic, there is very little inter-county traffic as there are no roll-on/roll-off ferries to enable people to take cars conveniently between the islands. Nevertheless, while there are stereotypes about Hawaii operating more slowly than the continental United States, that is all they are. Hawaii has shown that with some clarity of objectives, solid engagement with the public and stakeholders, and clear policy analysis around options, RUC can be implemented relatively swiftly and efficiently.
