WASHINGTON, D.C. — The House Transportation and Infrastructure Committee published the BUILD America 250 Act to fund surface transportation over the next five years, introducing new annual federal registration fees on electric and plug-in hybrid vehicles. If passed, the legislation would require electric vehicle owners to pay a $130 federal registration fee each year to operate their vehicles.

Beginning in 2029, the electric vehicle fee would rise by $5 each year until it reaches $150. The annual registration fee for plug-in hybrid electric vehicles would start at $35 and increase by $5 each year until it reaches $50. If state departments of transportation do not collect the federal electric vehicle tax, the federal government would withhold an amount equal to 125 percent of the amount owed from the state's highway apportionment.

"I'm extremely proud of the historic level of investment in America's bridges—at more than $50 billion, it's the largest such investment in our history. And the BUILD America 250 Act ensures that electric vehicle owners begin paying their fair share for the use of our roads," said Committee Chairperson Sam Graves.

The federal gas tax, currently set at 18.4 cents per gallon, has not been increased since 1993. Adjusted for inflation since that year, the tax would be 42.34 cents per gallon. Electric vehicles make up 3 percent of the entire vehicle fleet in the United States.

Albert Gore, Executive Director of the Zero Emissions Transportation Association, objected to the proposed fee structure. "Drivers of gas-powered vehicles pay approximately $73 to $89 in federal gas tax each year. The proposed fee would charge an unfair premium on EV drivers at a time when all Americans are looking for ways to save money," he said.

Gore also pointed to the long-term trajectory of the fee. "This is particularly concerning as the EV fee will increase to $150 by 2035—nearly double what gas car drivers would pay in a year. This fee lands on top of the road use taxes that many EV drivers already pay at the state level," he said.

He also addressed changes to charging infrastructure funding in the bill. "In addition to the new EV fee, the bill makes major changes to federal investments for dedicated EV charging. A lack of dedicated EV funding could particularly impact EV drivers living in—and traveling to—more rural and remote locations in the United States, where federal funding is most needed to help fill gaps in existing charging infrastructure," Gore said.

Shruti Vaidyanathan, Director of Federal and State Transportation Advocacy at the Natural Resources Defense Council, said: "With Americans demanding more affordable transportation options as gasoline tops $4.50 a gallon, this bill would impose an onerous new fee on electric vehicles and plug-in hybrids while slashing investments in new EV chargers. Congress should be boosting investments in projects that cut costs, cut emissions, create jobs, and build a transportation system that works for all Americans. This bill largely ignores the need to build cleaner, more affordable transportation options."