Legislators in multiple states pursue new revenue from electric vehicles

Pursuit is underway at statehouses around the country to supplement transportation funding via alternative-fuel vehicles.

As states continue to wait on the federal government to reach a transportation funding deal, state legislators are looking for solutions to help address funding needs. Among the trending options at statehouses in recent years is tapping alternative-fuel vehicles for additional revenue.

In an effort to encourage people to pursue more fuel-efficient options many states now offer financial incentives for hybrid and electric vehicle owners.

According to the National Conference of State Legislatures, only about 1 % of all light-duty car sales across the nation are for electric vehicles.

However, as popularity for such vehicles is anticipated to grow more and more state officials are concerned about the lost transportation revenue that results from fuel-efficient vehicles.

The NCSL reports that 28 states impose a special registration fee for plug-in electric and/or plug-in hybrid vehicles. Fees range from $32 annually for plug-in hybrid vehicles in Iowa to about $220 annually for plug-in electric vehicles in Georgia.

Florida

Sen. Jeff Brandes, R-St. Petersburg, has filed a bill to start collecting more money from owners of electric vehicles and vehicles that use a combination of fuel and electric power, or hybrids.

The bill, SB140, would apply a $135 flat fee to license an electric vehicle up to 10,000 pounds. The rate would increase to $150 in 2025.

Affected vehicles weighing at least 10,000 pounds would include a $235 license fee. The fee would be raised to $250 in 2025.

Hybrid vehicle owners would be responsible for paying a $35 licensing fee. The amount would increase to $50 in 2025.

Revenue raised via the licensing fees would be deposited into the state’s Transportation Trust Fund.

The bill awaits consideration in multiple Senate committees.

Texas

One Lone Star State legislator is trying again to impose an additional fee for the registration and renewed registration of electric and hybrid vehicles.

Rep. Ken King, R-Hemphill, has filed a bill, HB427, to collect an additional fee of $200 for electric vehicles and $100 for vehicles that use a combination of fuel and electric power, or hybrid vehicles.

In 2019, King introduced an identical bill.  The effort received a public hearing but the House Transportation Committee failed to advance the bill.

Collecting the additional fees is estimated to raise $55 million over the next two years for the state’s highway fund, according to a fiscal note.

The bill can be considered during the regular session that begins Jan. 12.

Pennsylvania

Meanwhile, an effort in Pennsylvania to collect additional revenue from owners of electric vehicles and hybrid vehicles will need to wait until next year.

A bill came up short of passage at the statehouse that included a requirement for affected vehicle owners to pay an additional fee for the registration and renewed registration of electric and hybrid vehicles.

Specifically, the legislation called for electric vehicle owners to pay $175 each year and commercial electric vehicle owners to pay $250. Hybrid vehicle owners would pay $75 annually.

Revenue would be deposited into the state’s motor license fund for highway maintenance and construction purposes.

The bill, SB845, awaited a final floor vote for clearance to the governor’s desk when the regular session ended last month.

The issue can be renewed once the 2021 regular session opens Jan. 5. LL

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