The Texas legislature has approved a bill that would impose a $200 annual fee on electric vehicle (EV) owners beginning in 2023. The bill aims to generate funds for road maintenance and repair since EVs do not pay gas taxes that typically fund these projects. However, critics of the bill argue that it is unfair, counterproductive, and shortsighted.
Opponents of the bill argue that it could discourage Texans from adopting EVs, which are more environmentally friendly and energy-efficient than conventional vehicles. EVs reduce greenhouse gas emissions, improve air quality, and decrease dependence on foreign oil. By imposing a high fee on EV owners, the bill could create a disincentive for people to switch to cleaner transportation options and undermine the state’s efforts to combat climate change.
Another criticism of the bill is that it would disproportionately affect low-income and rural drivers who rely on EVs to save money on fuel and maintenance costs. According to Consumer Reports, EV owners in Texas could save an average of $1,079 per year on fuel and $330 per year on maintenance compared to gas-powered car owners. The $200 fee would wipe out most of these savings and create a financial burden for many EV owners, especially those who drive less than average and do not benefit from the federal tax credit for EV purchases.
Furthermore, the bill does not address the long-term funding challenges for transportation infrastructure in Texas. The gas tax has not been raised since 1991, is losing its purchasing power due to inflation and improved fuel efficiency, and is generating a significant shortfall for transportation agencies in the state.
According to the Texas Department of Transportation, the $200 fee for EV owners would generate only about $37 million per year by 2025, a small fraction of the $5 billion annual shortfall faced by the agency. Moreover, the fee would not account for hybrid vehicles, which also use less gas than conventional vehicles.
Critics argue that a more sustainable and equitable solution would be to reform the gas tax system or adopt a vehicle miles traveled (VMT) fee that would charge drivers based on how much they use the roads.
