Heavy EVs among potential RUC changes

The Ministry of Transport is seeking feedback on potential changes to the Road User Charges (RUC) system which considers heavy EVs and mandating electronic RUC technology.

RUCs are paid by all vehicles that use fuels other than petrol or are heavier than 3.5 tonnes. Light electric vehicles (EVs) are exempt from RUC until March 31, 2024 and heavy EVs are exempt until the end of 2025.

The discussion document, Driving Change: Reviewing the Road User Charges System, covers a range of options, from simplifying compliance and making better use of technology to considering how to modify RUC to better address issues like climate change and other government priorities.

It’s expected some of the proposed changes could be in place as early as mid-2022 with more significant changes to legislation no earlier than 2023-2024. 

Secretary for transport Peter Mersi says New Zealand has a “pioneering system to recover the costs of wear and tear to our roads, especially that caused by heavy vehicles”. 

“This system remains world-leading but needs to evolve to adapt to changes in technology and in the transport sector. 

“Some of the proposals will also give us an opportunity to reduce the costs of administering RUC, improve compliance and the value for money delivered by this system,” Mersi says. 

Some of the questions considered in the document include:

• Whether the heavy EVs RUC exemption should end on December 31, 2025, and if the exemption should be widened to also exempt hydrogen powered vehicles or other new fuels?
• Should all heavy vehicles start using electronic RUC, and should we move away from paper labels for RUC and registration?
• Should the RUC system be able to charge for things like noise pollution and congestion, rather than just road wear and tear on the roads?
• Can RUC be used to support the government’s emission reduction commitments and the uptake of cleaner technologies?
• Should electric motorbikes or all-terrain vehicles (ATVs) used on the road pay RUC?
• Can we make other changes to improve the enforcement of RUC, like checking odometers at Warrant and Certificate of Fitness (WoF/CoF) inspections?

*Submissions on the document close on April 22, 2022.