House Bill 837 directs the Legislative Services Officer, working with the Joint Legislative Transportation Oversight Committee, to hire a consultant and study alternative ways to fund North Carolina highways. The study is intended to examine options that could supplement or replace the state’s current reliance on the gas tax, with a particular focus on how electric and hybrid vehicles should contribute to road funding.
The bill specifically requires the consultant to evaluate a fee structure for electric and hybrid vehicles, including a vehicle miles traveled (VMT) fee based on odometer readings or a flat annual mileage-based fee. It also asks the study to consider an annual State Highway "Access User Fee" for all non-diesel vehicles registered in North Carolina, which would replace state gas tax payments and existing electric and hybrid vehicle fees. The consultant must be selected through an RFP process and provide findings and legislative recommendations by May 1, 2026.
HB837 does not immediately change tax rates or impose new fees, but it does authorize and fund a legislative study that could lead to major changes in highway finance policy. It directs $125,000 from the Highway Fund to the General Assembly for consultant services, with any unused funds reverting to the Highway Fund. The bill would affect the Department of Transportation, the Legislative Services Officer, the Joint Legislative Transportation Oversight Committee, and potentially all vehicle owners if future legislation adopts one of the study’s recommended funding models.
The available context suggests the bill is procedural and exploratory rather than overtly controversial at this stage, with no recorded committee transcript debate or votes provided. Its focus on long-term highway funding and on ensuring electric and hybrid vehicles contribute to road maintenance likely reflects interest in updating transportation finance as fuel-tax revenue changes. The bill’s movement to transportation-related committees indicates it is being treated as a policy study with relevance to future infrastructure funding decisions.
The main point of contention is likely to be the proposed shift away from the gas tax toward broader user fees, especially the idea of charging electric and hybrid vehicles or imposing a fee on all non-diesel vehicles. Supporters may view this as a fairness and sustainability issue for highway funding, while opponents may argue it could create new burdens on drivers, raise privacy concerns if VMT fees rely on odometer or mileage tracking, or disadvantage owners of fuel-efficient and alternative-fuel vehicles. Because the bill only commissions a study, these disputes are prospective rather than reflected in recorded floor debate.