Neilson applauds passage of fair and equitable EV fee legislation

Pennsylvania House Democratic Caucus    July 10, 2024 | 4:23 PM

State Rep. Ed Neilson, D-Phila., chair of the PA House Transportation Committee, said he was happy to work on a bipartisan agreement for legislation (S.B. 656) passed by the state House today that would require electric vehicle owners to pay their fair share to help upkeep Pennsylvania’s massive network of roads and bridges.

“Everyone who uses Pennsylvania roads should have to pay their part to help keep our roads safe and our bridges in top shape,” Neilson said. “I’m happy to implement a solution that is fair, equitable and accommodating for Pennsylvania’s electric vehicle owners.”

Currently, electric vehicle owners are supposed to be paying the Alternative Fuel Tax on electricity. However, most owners do not do this because they are unaware that they must and because the process is too cumbersome, with owners having to self-report the tax to the Department of Revenue monthly based on how much electricity they use to charge their vehicles at home.

Neilson said the bill would repeal the impractical Alternative Fuel Tax on electricity for residential charging and replace it with an annual fee of $200 in 2025, then $250 in 2026. After that it would be adjusted annually based on the Consumer Price Index (rounded to the nearest dollar). Owners would have the option of paying the fee in full or in monthly installments. Owners of plug-in hybrid electric vehicles would pay a reduced fee of $50 in 2025, then $63 in 2026.

“We want to ensure fairness while making it easier for EV owners to pay the fee at their convenience,” Neilson said.

Neilson highlighted that the bill was developed based on feedback provided by various organizations with different viewpoints on the issue and that multiple environmental organizations, including PennFuture, support the bill.

“The electric vehicle industry, car manufacturers, and environmental advocacy organizations, including PennFuture, came together to help make this bill better,” Neilson said.    

The bill now returns to the Senate for concurrence.