House proposes $130 annual fee on electric vehicle owners
Congress is considering a $580 billion bipartisan highway funding bill that would add an annual federal “registration fee” to electric vehicles to help pay for road repairs. Under the proposal, the Federal Highway Governance would require states to collect $130 per year from EV owners starting in 2029, with the fee increasing by $5 every two years until it reaches $150 annually for EVs and $50 for plug-in hybrid vehicles.
Supporters say the measure,part of the BUILD America 250 Act,ensures EV owners contribute to road maintenance since federal infrastructure funding relies heavily on the gas tax (18.4 cents per gallon for gasoline and 24.4 cents for diesel). Critics argue EV drivers may be paying too much relative to gas-tax amounts.
The bill’s proposed fees are also described as lower than some existing state surcharges-for example, Illinois currently charges EV owners an additional $100, and lawmakers have proposed raising it further.
Congress could soon impose a $130 annual fee on owners of electric vehicles to help pay for repairs to the nation’s roads.
The provision was tucked into a $580 billion bipartisan highway funding bill that Congress is aiming to pass before the end of September. If the bill becomes law as written, the Federal Highway Administration would be required to impose a $130 annual “registration fee” on electric vehicles collected by each state. It also imposes an annual “registration fee” of $35 for plug-in hybrid vehicles.
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Starting in 2029, according to a summary of the legislation, the fee would increase by $5 every two years until it hits $150 annually for electric vehicles and $50 or plug-in hybrids.
“The BUILD America 250 Act ensures that electric vehicle owners begin paying their fair share for the use of our roads,” said House Transportation Committee Chairman Sam Graves (R-MO), who helped author the highway funding bill.
Infrastructure experts have long warned that the increased use of electric vehicles could severely deplete funding for the nation’s roads and bridges. That’s because the federal government funds upkeep for infrastructure projects through the federal gas tax — 18.4 cents per gallon for gasoline and 24.4 cents per gallon for diesel.
Critics of electric vehicles have long argued that their owners use the nation’s roads and bridges, but don’t pay for the upkeep.
Supporters of electric vehicles, however, claim that the proposed annual fee is high compared to that paid by owners of regular cars via the gas tax.
“Drivers of gas-powered vehicles pay approximately $73 to $89 in federal gas tax each year,” Albert Gore, executive director of Zero Emission Transportation Association, said in a statement. “The proposed fee would charge an unfair premium on EV drivers, at a time when all Americans are looking for ways to save money.”
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Still, the fee the House is considering is lower than the surcharges some states have already imposed on electric vehicles.
Illinois currently charges electric vehicle owners an additional $100 on top of standard vehicle registration fees. Earlier this year, Democrats in the state legislature proposed raising that surcharge to $320.
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