US electric car owners face new $250 road fee in proposed bill

US House Republicans are pushing forward a bill that would impose a $250 annual fee on electric car owners to apparently help fund road repairs. The proposal comes as part of a larger tax reform bill under consideration by the House Transportation and Infrastructure Committee. The committee, led by Representative Sam Graves, approved the proposal with a 36-30 vote.

The bill is designed to fix the $142 billion shortfall in the Highway Trust Fund (HTF) over the next five years. This fund is responsible for maintaining and repairing the nation's roads and bridges. Most revenue for this fund comes from gasoline and diesel taxes.

Initially, the bill proposed a $20 annual registration fee for all vehicles. This idea faced strong criticism from both Republicans and Democrats, including Senate Democratic Leader Chuck Schumer. As a result, the fee was dropped, and a $250 annual fee for EVs and a $100 fee for hybrid vehicles were introduced.

EV advocacy groups, such as the Electrification Coalition, argue that the $250 fee is unfair. They point out that the average gasoline-powered vehicle contributes approximately $88 annually in federal gas taxes. The proposed EV fee is significantly higher, more than double the average gas tax contribution. Even when compared to the Federal Highway Administration's estimation that the average American uses about 2,082 liters (550 gallons) of gasoline per year, which equates to about $101 in the federal gas tax (at $0.048 per liter or $0.184 per gallon), the $250 fee remains considerably higher. In fact, EV owners would be paying the equivalent of the gas tax on roughly 5,257 liters (1,389 gallons) of gasoline annually.

The bill suggests that these new EV and hybrid fees could generate around $40 billion for the Highway Trust Fund over the next decade. Consumer Reports highlights that seniors, who typically drive fewer miles, would end up paying a disproportionately high fee compared to their usage. Hybrid owners would also face a fee roughly double what they would pay in federal gas taxes with a less fuel-efficient gasoline car. For seniors driving hybrids, the annual fee would be three times that of a gasoline-powered car.

The proposed legislation includes inflation adjustments for the annual EV and hybrid fees but not for gasoline-powered vehicles. This means that over time, the financial burden on EV and hybrid owners for road maintenance could increase further.

The potential $250 annual fee on electric cars in the US is causing quite a stir on both sides of the EV revolution. Proponents argue it's a necessary step to ensure all drivers contribute to road maintenance, but critics contend that the fee is unfairly high compared to what owners of gasoline-powered vehicles currently pay. The debate over how to fund infrastructure in an era of increasing EV adoption won't be settled quietly.

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