Fair Share Act would require light-duty electric vehicles to contribute to the Highway Trust Fund
Washington – Today, the American Trucking Associations applauded Senator Deb Fischer (R-Nebraska) and Congressman Dusty Johnson (R-South Dakota) for introducing the Fair Share Act. The legislation would charge a one-time fee for light-duty electric vehicles to ensure that they are contributing to road maintenance.
“All Americans benefit from a robust and safe transportation system. When it comes to paying for the maintenance and expansion of our road network, no one should get a free ride,” said ATA Senior Vice President of Legislative Affairs Henry Hanscom. “The trucking industry makes up just 4% of the vehicles on our nation’s highways, yet we pay nearly half the tab into the federal Highway Trust Fund—all while moving over 70% of the domestic freight tonnage. Clearly trucks are doing their part to invest in the nation’s infrastructure, and it is reasonable to expect electric vehicles to do the same. As fuel efficiency rises and adoption rates for alternative fuels accelerate, we must find long-term, sustainable, and equitable sources of revenue for the HTF. We commend Senator Deb Fischer and Congressman Dusty Johnson for leading this effort to ensure that electric vehicles are paying their fair share.”
The Highway Trust Fund makes up over 90% of federal funds used for transportation projects and primarily receives its funding through the federal gas tax: 18.3 cents per gallon of gas and 24.3 cents per gallon of diesel. It faces impending insolvency. Since 2008, over $275 billion has been shifted from the general fund to sustain the HTF.
Although the previous Administration attempted to force the adoption of electric vehicles, light-duty EVs do not currently pay into the HTF.
By contrast, the trucking industry is the leading payer into the HTF, contributing almost half of all revenues while representing just 4% of road users. Heavy-duty electric trucks also contribute to the HTF through the Heavy Vehicle Use Tax, the tire tax, and the federal excise tax. The American Trucking Associations has long advocated for a long-term, stable revenue source for the HTF that is paid for equitably by all road users.
The Fair SHARE Act would require EVs to contribute to the HTF through a two-tier fee structure similar to and modeled after the current federal gas tax and the heavy vehicle use tax. The bill would: 1) Impose a one-time fee of $1,000 on all-electric vehicles at the manufacturer level and 2) Impose a one-time fee of $550 on each battery module with a weight greater than 1,000 pounds at the manufacturer level.
The legislation was cosponsored by Senators Cynthia Lummis (R-Wyoming) and Pete Ricketts (R-Nebraska).