A proposal contained in the Surface Transportation Reauthorization Bill, also known as the BUILD America 250 Act, could increase costs for owners of electric vehicles.

Under the bill pending before Congress, drivers would pay a $130 federal road-use fee for electric vehicles and $35 for hybrid vehicles, with those fees increasing over time.

The Texas Electric Vehicle Alliance cautions that this would amount to double taxation because Texas already charges electric vehicle owners a $200 annual registration fee. Combined with the federal fee, if enacted, Texas electric vehicle drivers would pay $330 per year.

Mario Bravo, executive director of the Texas Electric Vehicle Alliance, said the legislation would require the administrator of the Federal Highway Administration to impose an annual fee to be collected by each state of $130 for electric vehicles and $35 for hybrid vehicles. Starting in 2029, the administrator would be required to increase both fees by $5 every two years, with the fee capped at $150 for electric vehicles and $50 for hybrids.

The administrator would be directed to withhold an amount equal to 125% of the amount owed from a state’s highway apportionment if the state does not comply.

“This proposal would require Texas EV owners to pay 69% more today than the amount of fuel taxes that the average driver avoids by switching to an electric vehicle, and that higher percentage will increase over time,” Bravo said in a statement. “We call on Congress and the Texas Legislature to provide credit for fees already collected and to create a more equitable system that also reflects actual vehicle miles traveled.”

A December 2020 study conducted by the Texas Department of Motor Vehicles found that replacing a gasoline-powered vehicle with a fully electric vehicle would reduce annual state gasoline tax collections by approximately $100 per vehicle and federal gasoline tax collections by approximately $95 per vehicle. Those findings were used to help justify Texas’ current $200 annual EV registration fee.

The alliance is calling on Congress to reject the proposed fee or amend the legislation to provide credit for state fees drivers have already paid. Failing that, the alliance calls on the Texas Legislature to revise state law during its next session to prevent double taxation.

The alliance found that a majority of the state’s approximately 500,000 registered electric vehicles are located in Republican congressional districts, meaning many of the affected drivers are constituents of Republican members of Congress.