ASA Supports Electric Vehicle Fee in the House Reconciliation Package

Investing in the nation's infrastructure provides economic benefits. Recent congressional support for roads, bridges and public transportation systems has delivered projects to every congressional district across the country. These improvements have enhanced safety, mobility and efficiency nationwide. This is made possible by the continuity and predictability of funding supported by the Highway Trust Fund (HTF). Currently, HTF revenues are generated primarily through user fees on the sale of gas and diesel fuels, along with transfers from the General Fund to make up for insufficient revenues.

However, improvements to vehicle efficiency and the influx of hybrid and electric vehicles have resulted in a system where all users are not treated equally. Some users pay for the maintenance of the system, while others pay less or nothing at all. At the same time, user fee revenue has not met system needs.

Based on the above, ASA urged the House Transportation and Infrastructure Committee Leadership to include a fee on electric and hybrid vehicles in the committee’s upcoming reconciliation measure and dedicate the revenues solely to the HTF. While this solution would only partly enhance HTF revenues, it would help ensure all users contribute to the system.