Highways

Demonstration to focus on operational considerations for transition to a mileage based user fee for highway maintenance

HONOLULU – The Hawaii Department of Transportation (HDOT) Highways Division, in partnership with the four county governments, is planning to test a statewide mileage based user fee as a potential source of revenue for the State Highway Fund.

HDOT Highways Division is pursuing a mileage based user fee as a possible replacement to the fuel tax, which currently makes up 33 percent of State Highway Fund revenue. A statewide mileage based user fee demonstration would allow HDOT Highways Division to test operational considerations in the assessment and collection of a sustainable source of funding to maintain and build Hawaii roadways.

Details of the planned test, or demonstration, are available in a grant proposal sent by HDOT Highways Division to the Federal Highway Administration (FHWA). The grant proposal may be downloaded at https://hidot.hawaii.gov/administration/library/publications/

HDOT Highways Division was awarded a $3.988 million grant from FHWA based on the grant proposal. A total of $14.2 million was awarded to eight states on a competitive basis. Hawaii received the largest Surface Transportation Funding Alternatives grant award for this grant cycle. HDOT is working with a consortium of states, such as Oregon, Washington, California, and Colorado, who have or are in the process of performing their demonstration project.

The mileage based user fee demonstration will include outreach and ample opportunities for public feedback. HDOT Highways Division will make updates on the demonstration to Hawaii drivers through mailings, news releases, and through the department website at https://hidot.hawaii.gov/

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