Purpose of the Project:

Missouri has been the recipient of three consecutive Surface Transportation System Funding Alternative (STSFA) federal grants totaling $4.8M to explore non-traditional transportation funding sources and address the impacts of more fuel efficient and electric vehicles.

Initial work and deliverables from the MoDOT STSFA activities modeled how an miles per gallon-based fee could be used to supplement and/or replace the current registration fee schedule and showed the impacts on revenue as more fuel efficient, hybrid and electric vehicles become part of the system.  The project team began work with Missouri Department of Revenue in 2018 to explore existing system capabilities to collect innovative fees and identify gaps. This DOR-led study concluded in January 2019. In 2021, the Missouri General Assembly awarded funds to DOR for system modernization efforts. This cross-cabinet effort is ongoing.

Legislation was filed in the 2019, 2020 and 2021 to implement an MPG base registration fee. To this date, the Missouri General Assembly has not passed the proposal. In 2021, the General Assembly passed Senate Bill 262 to increase the gas tax by 12.5 cent over 5 years. Senate Bill 262 also increased the electric vehicle decal fee by 20% annually and establishes an Electric Vehicle Task Force under the Department of Revenue. This task force was established within the Department of Revenue with membership as specified in SB262. In 2022, the task force provided a written report to the General Assembly and Governor Parson on December 31, 2022.  Below are recommendations from the report regarding electric vehicle adoption and impacts on transportation funding:

1. Additional research surrounding electric vehicles and new technologies is needed. Members recommend the Electric Vehicle Task Force continue to meet for at least another year. 
   1. It is further recommended that MoDOT be the overseer of the task force
2. Modify the Electric Vehicle decal:
   1. to ensure the decal pays for the usage of Missouri’s highway system
   2. to aligned with vehicle registration
   3. is purchasable online
   4. to find a better way for customers to display the decal
3. Replace the outdated registration method of using horsepower to figure the cost of registration.
4. Establish a motor fuel tax for a kilowatt hour (or similar policy through which declining gas tax revenues are replenished by electric vehicle operators).
   1. Additionally, the task force recommends simplifying the motor fuel tax with one rate for gallons and one rate for kilowatt hour
5. As the National Conference of Weights and Measurements implements new regulations on electronic vehicles and their chargers, the Department of Agriculture notify the General Assembly of any additional statutory changes needed to enforce these new electric charger safety and inspection requirements.
6. The General Assembly and Department of Agriculture discuss the current rolling compliance of the Division of Weights and Measures and whether it is better to decouple from the federal government.

The Department of Natural Resources research and report to the General Assembly requires a systematic plan for the recycling of the batteries from electronic vehicles. DNR also reviews the fee associated with batteries in the state of Missouri.