Hawaii to Embark on Nation's Largest Mileage Fee Demonstration Program

Unlike the more limited Oregon and California road usage charge programs currently in operation, Hawaii's program envisions over one million motorists participating in the demonstration program.

2 minute read

September 30, 2016, 9:00 AM PDT

By Irvin Dawid


Hawaii

cleanfotos / Shutterstock

The Hawaii Department of Transportation (HDOT), in partnership with the counties of the state of Hawaii (County of Kauai, City and County of Honolulu, County of Maui, and County of Hawaii), received nearly $4 million, the largest of eight grants [selist in Sept. 6 post on the eight projects] awarded by the Federal Highway Administration on August 30 under its Surface Transportation System Funding Alternative Program

"Although representing a small state, HDOT proposes to directly measure road use and provide prototypical billings and direct communications about the objectives of this program to over 1 million motorists across all four counties of the state," according to the 'project description' of the Hawaii Road Usage Charge Demonstration [PDF]

"The department said a tax on motor fuels now provides 33 percent of State Highway Fund revenue, but the demonstration project will test whether mileage-based fees could provide a sustainable source of funding to maintain and build Hawaii roadways," reports AASHTO Journal.

[HDOT's Highway Division] said its pilot program will build on an existing system in which Hawaii records odometer readings annually on all vehicles as part of their yearly registration inspections

Hawaii sees mileage fees, more specifically, the road usage charge (the term also used by OReGO) as a possible replacement for the gas tax because it aligns with its energy and environment goals of weaning off fossil fuels while allowing HDOT to maintain its road network."

From project description:

Transitioning Hawaii’s ground transportation vehicles from internal combustion engines to high miles per gallon (MPG) and alternative fuel vehicles is an important strategy for supporting Hawaii’s statewide energy policy goals, which include reduction or elimination of fossil fuel use.  Changing the structure of transportation funding, to ensure that system maintenance and energy policy are aligned, is integral to achieving the State’s goals.

"The first demonstration activities will launch in the first half of 2017 with manual reporting and feature continuous feedback from motorists over 18 months," according to the grant application description.

HDOT is a member of the Western Road Usage Charge Consortium.  Project Manager Gerald Dang has participated in WRUCC since March 2014. 

Related Planetizen coverage:

Friday, September 23, 2016 in AASHTO Journal

Young Professional

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban and Environmental Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban and Environmental Planner

Get top-rated, practical training for planners

Overlapping highways

The state-sanctioned urbicide of Austin

People don’t kill cities. Freeways do.

September 8, 2026 - Benjamin Schneider

The Hoover Dam blocking the Colorado River. The river's water level is noticeably low. The cliffs surrounding the blue water are brown and jagged.

US to reduce Colorado River water deliveries to Mexico

A new Colorado Treaty amendment reduces Mexico’s Colorado River water allocation by 250,000 acre feet.

September 11, 2026 - The Arizona Republic

Skyscrapers in Jersey City.

New Jersey’s second-largest city bans standalone data centers

Jersey City will continue to allow co-location facilities, such as those meant for research institutions that store their own data.

September 4, 2026 - The Cool Down

A New Jersey train approaches people waiting at the station.

Amtrak not solely to blame for New Jersey commuter rail's unreliability, report finds

A new study from the Garden State Initiative found that NJ Transit’s budget grew 20% across a 4 year period, but reliability declined significantly over the same period.

September 15 - Mass Transit

A tall, gray power plant billows smoke into a blue sky.

EPA erases limits on planet-warming pollution from power plants

Under Monday’s plan, power plants would still have some limits on how much mercury, arsenic and other contaminants they can emit.

September 15 - New York Times

A white RAPID bus. The lower half is light blue, and says RAPID in purple text. The bus is half visible, appearing from the left side of the image.

Phoenix announces new on-demand transit service, more frequent RAPID buses

Both new services will launch in October, and are part of Phoenix's Project Effective Access Solutions for Easing Congestion.

September 15 - KJZZ

FREE Course: Walkable City 1: Why Walkability?

After describing his path towards focusing on walkability as the essence of good planning, Jeff Speck marches through his five principal reasons for making more walkable places.

Reinventing Malls: Planning Alchemy—Turning Gray Fields Into Gold

The course focuses on the opportunities and imperatives that shape reinvention of mall sites.