The House Transportation and Infrastructure Committee on Wednesday, April 30 approved a budget reconciliation proposal that includes a $250 annual fee on electric vehicles.
The overall proposal, which now will be sent to the House Budget Committee, aims to reduce the national deficit while stabilizing revenue sources for the Highway Trust Fund. The proposal advanced by a party-line vote of 36-30.
“Today the Committee took decisive action in support of the president’s America First agenda,” T&I Chairman Sam Graves, R-Mo., said in a news release on Wednesday. “We approved historic investments in the United States Coast Guard to strengthen our national and border security, and we took equally important strides towards finally modernizing the nation’s outdated air traffic control system. We more than covered these critical provisions by cutting wasteful Green New Deal spending, ensuring that electric vehicles begin contributing to the Highway Trust Fund, and more. I want to thank the members of the Committee for their efforts throughout today’s markup.”
The Highway Trust Fund, which is the main funding source for highway and bridge projects, generates revenue through fuel taxes. Electric vehicles have not been contributing to the fund. Graves’ original proposal called for a new annual fee of $200 on electric vehicles, $100 on hybrid vehicles and $20 on most other passenger vehicles.
On Wednesday, Graves proposed an amendment to increase the electric vehicle fee to $250 and to remove the $20 fee. The amendment, which was approved, retained the $100 fee on hybrid vehicles.
According to a news release from the Transportation and Infrastructure Committee, the new user fees are expected to increase Highway Trust Fund revenue by $38 billion over 10 years.
Opposition to fee on motor carriers
Although the Owner-Operator Independent Drivers Association supports efforts to make sure that all road users pay their fair share into the Highway Trust Fund, the group opposes a provision that would impose a new $100 annual fee on small motor carriers.
OOIDA said the new fee would be used to duplicate freely accessible U.S. Department of Transportation data.
“Motor carriers should not be forced to pay $100 a year to access a website that tells brokers and other industry professionals whether or not they are permitted to operate,” OOIDA President Todd Spencer wrote in a letter to committee leaders sent ahead of Wednesday, April 30 vote. “If FMCSA has determined that a carrier isn’t fit to operate, then the agency should notify carriers directly and take appropriate action. Furthermore, this system is designed to provide liability protections to brokers. In essence, carriers will be footing the bill to protect brokers from lawsuits.” LL
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