Texas House Passes Bill for $200 Annual Fee on Electric Vehicles

Tesla Model S in Ultra Red

The Texas House has passed a bill proposing a $200 annual fee for electric vehicle (EV) owners, sending it to Gov. Greg Abbott for approval. The bill’s authors and anti-toll road group leaders argue that the increased vehicle registration fees will ensure EVs contribute fairly to highway costs.

However, a national consumer group and a prominent Texas environmentalist claim that the $200 fee is excessive and may hinder the adoption of less-polluting vehicles, reports The Dallas Morning News.

Senate Transportation Committee Chairman Robert Nichols, the bill’s author, has advocated for higher registration fees on electric vehicles for at least three sessions. Nichols asserts that motor fuel taxes, which EVs don’t contribute to, finance a significant portion of the state’s road system.

Terri Hall, founder and director of Texans Uniting for Freedom and Reform, supports Nichols’ bill, stating, “We’re trying to come up with a way to help capture some of that road usage from EVs, especially since there’s been such a push for EVs and we’re seeing a lot more.”

However, Dylan Jaff of Consumer Reports and Luke Metzger, executive director of Environment Texas, believe the proposed fee is too high. They argue that a fee above $71 a year, the average state gas tax paid by owners of new gas-powered vehicles, cannot be justified. Metzger says, “If there’s a $200 fee, the driver of a Nissan Leaf might be paying as much as a driver of a gas-powered Hummer, which is ridiculous.”

Hall counters that EVs are typically heavier than gas-powered vehicles, adding, “those people that can afford a Tesla can afford a $200 a year registration fee.” Metzger acknowledges the fee won’t destroy the EV industry but warns it “will dampen the opportunity and slow the transition.”

It doesn’t make sense for EV owners to pay the same annual road fees as a gas guzzling car, especially when electric vehicles aren’t polluting. Let’s hope lawmakers change their minds on this.