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4w ago

House Panel Approves $250 Annual Fee for Electric Vehicles in Transportation Bill

The revised proposal increases EV fees, retains hybrid charges, and removes a universal vehicle fee as it moves to the full House for consideration.

Heavy traffic moves along I-5 in Los Angeles, California on November 23, 2022.
Tesla cars sit parked in a lot at the Tesla factory on April 20, 2022 in Fremont, California.
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Overview

  • The House Transportation and Infrastructure Committee advanced a reconciliation provision imposing a $250 annual fee on electric vehicles and a $100 fee on hybrid vehicles.
  • An initial $20 universal fee for all passenger vehicles was removed from the proposal following internal concerns among Republicans.
  • The fees aim to address declining gas tax revenues that fund the Highway Trust Fund, which has faced shortfalls due to increased vehicle efficiency and EV adoption.
  • The committee projects the new fees will raise $50 billion over the next decade for road repairs and infrastructure projects.
  • The measure now awaits full House consideration, with its fate uncertain as debates continue over its fairness and potential impact on EV adoption.