Congress may require electric vehicle and plug-in hybrids to serve up an annual fee to help fund highways and other infrastructure. It's often said that electric vehicles are cheaper to run than internal-combustion vehicles. They don't require routine oil changes, their brake pads can last longer, and owners who charge at home are able to avoid paying big bills at the pump.
But being able to skip out on paying for gasoline or diesel comes with an additional benefit: EV owners don't pay any gas tax to either the federal or state governments. Here in the United States, that federal gas tax helps to fund roads and highways nationwide. Now, lawmakers from both sides of the aisle want to change things.
A new bipartisan proposal in the U.S. House of Representatives would slap electric vehicles with a $130 annual fee and charge certain plug-in hybrids $35 a year as part of a broader effort to fund road repairs. The measure—Section 1129—is included in the massive five-year transportation bill known as the Build America 250 Act that is worth roughly $580 billion, as Congress works toward replacing the current highway law before it expires on September 30.
View Price on AmazonThe logic here is pretty straightforward: federal highway funding largely comes directly from taxes on gas and diesel; EV owners get to skip that tax, and hybrid owners end up paying less of it. As the industry shifts more and more towards electrified propulsion, it creates a growing funding gap. Many individual states have already moved in this direction, with some adopting their own annual EV registration surcharges that range as high as $260 in the case of New Jersey.
The current federal proposal doesn't include a fixed fee to solve the issue. Starting in 2029, the EV fee would rise by $5 per year until it reaches $150 annually, while plug-in hybrids would eventually climb to $50. Still, while it might be rising, it would be lower than one previously proposed alternative; earlier this year, a group of Republican senators proposed a $1000 tax on EVs to offset road-use costs.
Of course, there are those on the other side of the argument that say some of these fees are simply going too far. Last year, the Electrification Coalition claimed a $250 EV fee would be excessive because the average gasoline vehicle pays only about $88 annually in federal gas taxes. Environmental groups are also taking aim at the broader legislation; the Sierra Club criticized the proposal, saying it would reduce support for EV charging infrastructure while unfairly targeting electric vehicle owners.
Source: roadandtrack.com
