AB 1421 Explained: California's Road Usage Charge Research Bill

By the GovBuddy team · Last reviewed July 24, 2026

Quick Answer

Assembly Member Wilson authored California AB 1421 in the 2025–2026 legislative session, with Assembly Member Aguiar-Curry as coauthor. The bill does not create a mileage tax, impose a per-mile fee, repeal the gas tax, or launch a statewide road usage charge program. It also does not require GPS tracking or an in-vehicle tracking device. As amended January 5, 2026, the current bill adds Section 3092.7 to the Vehicle Code. Section 3092.7 requires the California Transportation Commission, in consultation with the California State Transportation Agency, to consolidate research and prepare recommendations related to a road user charge or mileage-based fee system, and to consult with expressly listed stakeholder categories in doing so.

The commission must submit a report to the appropriate policy and fiscal committees of the Legislature by January 1, 2027. The current bill does not extend the existing Road Usage Charge Technical Advisory Committee framework to 2035; the January 5, 2026 amendment deleted that proposed extension. The Assembly passed AB 1421 on January 29, 2026 by a vote of 49 to 21. As of July 24, 2026, the last recorded action in the official bill history remains the Senate first reading and referral to Senate Rules Committee for assignment on January 29, 2026.

Table of contents

1. What AB 1421 does under the current amended version
2. The problem AB 1421 responds to
3. The history behind the introduced version
4. How the bill changed on January 5, 2026
5. The three required report topics
6. Who the California Transportation Commission must consult
7. What AB 1421 does not do
8. Why AB 1421 matters
9. The legislative journey

What AB 1421 does under the current amended version

California AB 1421 from the 2025–2026 legislative session is a research and reporting bill. It does not impose a per-mile charge. It does not create a mileage tax. It does not select a fee rate, require mileage tracking, or launch a statewide collection system.

Under the current version amended January 5, 2026, AB 1421 does the following:

• Adds Section 3092.7 to the Vehicle Code.
• Directs the California Transportation Commission, in consultation with the California State Transportation Agency, to consolidate existing research and prepare recommendations related to a road user charge or mileage-based fee system.
• Requires consultation with expressly listed stakeholder categories, described in more detail below.
• Requires the commission to submit a report to the appropriate policy and fiscal committees of the Legislature by January 1, 2027, in compliance with Section 9795 of the Government Code.

The research and recommendations must incorporate existing findings from state and academic sources, including the report previously prepared by the Transportation Agency pursuant to Section 3092.5.

The immediate legal requirement of AB 1421 is not a new charge on any driver's bill. It is the preparation of consolidated research, stakeholder consultation, recommendations, and a legislative report.

The problem AB 1421 responds to

California has traditionally asked drivers to help pay for roads when they purchase gasoline or diesel. That system becomes less dependable as vehicles become more fuel-efficient and more Californians move to electric vehicles.

A driver of a gasoline-powered vehicle contributes to road funding through the fuel tax each time the vehicle is refueled. An electric vehicle can travel on the same roads without contributing through the gasoline excise tax. Qualifying zero-emission vehicles do pay California registration-related charges, including the Road Improvement Fee at the time of vehicle registration renewal, but they do not contribute through fuel purchases in the same way gasoline-powered vehicles do. The equity effects of the current funding system across income groups are among the questions Section 3092.7 directs the California Transportation Commission to examine. In its own text, the statute would require the report to address “current and future inequities related to low-income drivers commuting farther in less efficient vehicles.”

That tension is behind AB 1421. The bill is part of California's longer-running examination of whether drivers could eventually contribute to road funding based on the miles they travel rather than the gallons of fuel they purchase. This concept is generally called a road usage charge, road user charge, mileage-based fee, or mileage-based user fee.

The history behind the introduced version

California previously created the Road Usage Charge Technical Advisory Committee to guide the development and evaluation of pilot programs examining mileage-based road funding as a possible alternative to the fuel-tax system. Existing statutory provisions governing this work are scheduled to be repealed on January 1, 2027. The current version of AB 1421 does not change that repeal date.

AB 1421 was introduced on February 21, 2025. The introduced version proposed extending those provisions until January 1, 2035 by amending Section 3093 of the Vehicle Code, and contained legislative findings and declarations describing why California was examining alternatives to fuel-tax revenue. The introduced-version findings and declarations included statements about:

• California transportation funding drawn from several fuel taxes and vehicle fees.
• Approximate 2023–2024 fiscal-year revenues, including gasoline excise tax revenue.
• Projected declines in future fuel-tax revenue as fuel efficiency and zero-emission vehicle adoption increase.
• Projections from the Legislative Analyst's Office regarding potential annual revenue reductions.
• Projections from the California Transportation Commission regarding potential fuel-excise-tax revenue impacts over a decade.
• California's earlier road usage charge pilot, operated from July 2016 through March 2017, involving more than 5,000 vehicles reporting over 37 million miles during a nine-month operational period, and simulating revenue collection through mock invoices rather than imposing actual mileage charges.

All of the above was in the introduced version. It is not part of the current amended bill. The January 5, 2026 amendment removed the 2035 sunset extension, removed the proposed amendment to Section 3093, and removed the introduced-version legislative findings and declarations.

How the bill changed on January 5, 2026

The January 5, 2026 amendment substantially changed AB 1421. Under the current amended version, the bill:

• Deleted the proposed amendment to Section 3093 of the Vehicle Code.
• Deleted the proposed extension of the Road Usage Charge Technical Advisory Committee provisions to January 1, 2035. As a result, the existing January 1, 2027 repeal date under Section 3093 is unchanged by this bill.
• Deleted the introduced-version legislative findings and declarations.
• Added Section 3092.7 to the Vehicle Code, containing the research, recommendation, consultation, and reporting framework described in this article.

In the official version comparison published by California Legislative Information, strikethrough text indicates language deleted by the amendment. Language shown in strikethrough is no longer part of the bill. The current operative content of AB 1421 is Section 3092.7.

The three required report topics

Section 3092.7(b) requires the California Transportation Commission's report to cover three specific topics, tracked closely to the statutory language below:

1. Equity for low-income commuters

The current and future inequities related to low-income drivers commuting farther in less efficient vehicles.

AB 1421 does not resolve this question. It requires it to be studied.

2. Weight-per-mile fees

The impact of a weight-per-mile fee for commercial and electric vehicles on the motor vehicle industry.

Vehicle weight matters to the policy conversation because heavier vehicles can produce greater road wear, and battery packs can make electric vehicles heavier than comparable gasoline-powered vehicles. A weight-based charge could affect commercial trucking companies, delivery fleets, small businesses, electric-vehicle owners, automobile manufacturers, zero-emission vehicle adoption, and shipping and consumer costs. AB 1421 does not establish a weight-per-mile fee. It requires analysis of how such an approach could affect the motor vehicle industry.

3. Regional and state implementation

Regional and state solutions for implementing a road user charge in California, including capturing out-of-state vehicles.

This topic encompasses operational questions the research may address. The commission will determine the scope of the research. It may study mileage reporting, distinguish in-state travel from travel elsewhere, and account for vehicles registered outside California. It may also compare statewide and regional approaches while evaluating administration and privacy. These are examples of the kinds of questions the required research could examine. They are not questions AB 1421 answers. They are also not questions the statute enumerates by name.

Who the California Transportation Commission must consult

The bill directs the California Transportation Commission to consult with expressly listed stakeholder categories in preparing the research, recommendations, and report. These categories are identified in Section 3092.7 and include:

• Appropriate state agencies, potentially including the California Department of Transportation, the Department of Motor Vehicles, the California Department of Tax and Fee Administration, and the State Controller.
• Representatives of local government.
• Regional transportation planning agencies.
• Privacy and data-security experts.
• Equity and environmental-justice organizations.
• Academic researchers.
• Transportation user groups.
• Organizations representing zero-emission vehicle owners and manufacturers.
• Other stakeholders the commission considers appropriate.

Only the final category provides broad residual discretion. The other categories are expressly identified by the bill. Any future road user charge or mileage-based fee system could touch transportation funding, taxation, vehicle registration, privacy, data collection, equity, environmental policy, local government administration, commercial fleets, technology providers, and interstate travel, which is why the enumerated consultation reaches across those areas of government and civil society.

What AB 1421 does not do

Because there is a natural tendency to describe research-authorizing legislation as though it created the system being studied, it is worth stating explicitly what AB 1421 does not do under the current amended version:

• Does not impose a per-mile charge.
• Does not create a mileage tax.
• Does not repeal the gasoline tax.
• Does not establish a payment rate.
• Does not require GPS tracking.
• Does not require an in-vehicle tracking device.
• Does not determine a final mileage-reporting method.
• Does not launch a statewide road usage charge program.
• Does not appropriate implementation funding.
• Does not create a state-mandated local program.

The current bill also does not extend the existing Road Usage Charge Technical Advisory Committee provisions to 2035. That extension was in the introduced version but was removed by the January 5, 2026 amendment.

The immediate legal requirements of AB 1421 under the current version are the research, stakeholder consultation, recommendations, and legislative report required by Section 3092.7.

Why AB 1421 matters

AB 1421 places California at an important decision point. The state wants more zero-emission and fuel-efficient vehicles. Those same policies reduce revenue from a transportation-funding system built around gasoline consumption. California must determine whether its long-term funding model can remain sustainable without disproportionately burdening people based on where they live, what vehicle they can afford, how far they commute, or whether they own an electric vehicle.

For policymakers, AB 1421 creates a defined research process before the Legislature considers any larger road usage charge proposal.

For organizations involved in transportation, privacy, logistics, equity, taxation, electric vehicles, local government, and infrastructure, the consultation and report process may shape the design of future California legislation.

For drivers, the most important distinction is that this bill is about developing the evidence and recommendations for a possible future system. It is not the legislation that begins charging Californians by the mile.

The legislative journey

AB 1421 was introduced on February 21, 2025 and referred to the Assembly Transportation Committee. The bill was substantially amended on January 5, 2026, with the amendment removing the introduced-version 2035 sunset extension, the proposed Section 3093 amendment, and the introduced-version findings and declarations, and adding Section 3092.7.

The Assembly Transportation Committee reported the bill “do pass and be re-referred to the Committee on Appropriations” on January 12, 2026 by a vote of 12 to 1. The Assembly Appropriations Committee reported the bill “do pass” on January 22, 2026 by a vote of 11 to 1. The Assembly passed AB 1421 on January 29, 2026 by a vote of 49 to 21. During that same floor session, a motion by Assembly Member Aguiar-Curry to lay Assembly Member DeMaio's proposed floor amendment on the table passed by a vote of 50 to 22.

AB 1421 was read for the first time in the Senate on January 29, 2026 and referred to the Senate Rules Committee for assignment. As of July 24, 2026, the last recorded action in the official California Legislative Information bill history remains the January 29, 2026 Senate referral. The California Air Resources Board tracker also lists AB 1421 with a “2-Year” classification; that is CARB's own tracker label and readers should rely on the official Legislative Information bill history for the authoritative status.

For context on how second-house committee timing affects bills at this stage, see our companion piece on why May 29 is a major California bill deadline.

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Section 3092.7 requires the California Transportation Commission to consult with a broad set of expressly identified stakeholder categories, including transportation agencies, local governments, regional transportation planning agencies, privacy and data-security experts, equity and environmental-justice organizations, academic researchers, transportation user groups, and organizations representing zero-emission vehicle owners and manufacturers. That is the scope of stakeholders whose input the required report must reflect, and whose engagement will shape any subsequent California legislation on this topic. Reaching the right people at the right offices at the right time is the day-to-day work of California government affairs.

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Frequently asked questions

Does AB 1421 create a mileage tax?

No. Under the current version amended January 5, 2026, AB 1421 does not create a mileage tax, does not impose a per-mile charge, and does not launch a road usage charge program. It adds Section 3092.7 to the Vehicle Code, which requires the California Transportation Commission to consolidate research, prepare recommendations, consult expressly listed stakeholder categories, and submit a report to the appropriate policy and fiscal committees of the Legislature by January 1, 2027.

What does the current AB 1421 actually require?

The current amended version adds Section 3092.7 to the Vehicle Code. Section 3092.7 requires the California Transportation Commission, in consultation with the California State Transportation Agency, to consolidate and prepare research and recommendations related to a road user charge or mileage-based fee system, to consult with expressly listed stakeholder categories. And to submit a report to the appropriate policy and fiscal committees of the Legislature by January 1, 2027.

Does AB 1421 extend the existing Road Usage Charge Technical Advisory Committee framework to 2035?

No. The introduced version proposed extending the framework to January 1, 2035 by amending Section 3093 of the Vehicle Code. The January 5, 2026 amendment deleted that proposed extension. The existing January 1, 2027 repeal date under Section 3093 is unchanged by the current bill.

Would AB 1421 require GPS tracking?

No. The bill does not require GPS tracking or an in-vehicle tracking device. It does not determine how mileage would be reported. Any future system could involve self-reporting, odometer inspection, registration-based reporting, optional technology, or other methods. The bill requires analysis of possible approaches, not adoption of any particular one.

Who authored AB 1421?

Assembly Member Wilson is the author. Assembly Member Aguiar-Curry is the coauthor.

When did the Assembly pass AB 1421?

The Assembly passed AB 1421 on January 29, 2026 by a vote of 49 to 21. The bill was read for the first time in the Senate the same day and referred to the Senate Rules Committee for assignment.

Is AB 1421 law?

No. AB 1421 is an active bill. As of July 24, 2026, the last recorded action in the official California Legislative Information bill history remains the Senate first reading and referral to Senate Rules Committee for assignment on January 29, 2026. It has not passed the Senate, has not been signed by the Governor, and is not existing California law.

What is the deadline for the required report?

The California Transportation Commission must submit its report to the appropriate policy and fiscal committees of the Legislature no later than January 1, 2027.

Who must the commission consult?

Under Section 3092.7, the California Transportation Commission must work in consultation with the California State Transportation Agency and must consult with expressly listed stakeholder categories, including appropriate state agencies (potentially including the California Department of Transportation, the Department of Motor Vehicles, the California Department of Tax and Fee Administration. And the State Controller), representatives of local government, regional transportation planning agencies, privacy and data-security experts, equity and environmental-justice organizations, academic researchers, transportation user groups, organizations representing zero-emission vehicle owners and manufacturers, and other stakeholders the commission considers appropriate.

How is AB 1421 different from previous California bills numbered AB 1421?

This article is about California AB 1421 from the 2025–2026 legislative session, authored by Assembly Member Wilson. Bills from previous sessions with the same number are unrelated to this measure.

Sources

• AB 1421, California Legislative Information, bill text and history
• AB 1421 bill status, California Legislative Information
• AB 1421 version comparison and redline, California Legislative Information
• California Vehicle Code Sections 3092.5, 3092.7 (as proposed by AB 1421), and 3093
• California Government Code Section 9795 (report submission requirements)
• California Department of Transportation, California Road Charge Pilot materials (dot.ca.gov)
• California Department of Motor Vehicles, Road Improvement Fee information (dmv.ca.gov)