Title: An act relating to mileage fees for diesel.

Brief Description: Concerning mileage fees for diesel.

Sponsors: Representatives Morris, Simpson, Wallace and Chase.

Brief History: Passed House: 2/10/06, 98-0.

Committee Activity: Transportation: 2/21/06, 2/22/06 [DP].

SENATE COMMITTEE ON TRANSPORTATION

Majority Report: Do pass.Signed by Senators Haugen, Chair; Jacobsen, Vice Chair; Poulsen, Vice Chair; Benson, Ranking Minority Member; Berkey, Esser, Finkbeiner, Mulliken, Oke, Sheldon, Spanel and Weinstein.

Staff: David Ward (786-7341)

Background: In addition to weight fees, airporter and commercial bus companies pay intrastate mileage fees. The fee for vehicles powered by gasoline is 15 cents per 100 miles traveled. The fee for vehicles powered by diesel, natural gas, electricity, steam, or other special fuels is 20 cents per 100 miles traveled. Revenue generated by the fees are collected by the Utilities and Transportation Commission (UTC) and distributed to the Motor Vehicle Account.

Summary of Bill: The higher mileage fee paid by vehicles using diesel or alternative fuels is lowered to the same rate paid by gasoline powered vehicles. The UTC estimates elimination of the rate differential will lower revenue distributions to the Motor Vehicle Account by approximately $10,000 per biennium.

Appropriation: None.

Fiscal Note: Not requested.

Committee/Commission/Task Force Created: No.

Effective Date: Ninety days after adjournment of session in which bill is passed.

Testimony For: Impacted companies are interested in using alternative fuels and would like to see the disincentive posed by the higher mileage rate eliminated.

Testimony Against: None.

Who Testified: PRO: David Danner, Washington Utilities and Transportation Commission.