What happened:
Louisiana state lawmakers June 5 passed a bill that will charge annual fees of $110 for electric vehicles, and $60 for hybrid vehicles. Bipartisan support in the House and Senate provided House Bill 1031 (HB 1031) with the required two-thirds vote threshold.
Why it matters: Seventy percent of fee revenues would go to the constitutionally dedicated Transportation Trust Fund (for state roads and bridges) and the remaining 30 percent to the Parish Transportation Fund (for local roads and bridges). In 2019, the Louisiana Department of Transportation calculated a $14.8 billion backlog in maintenance projects for state highways and bridges. The new fees are estimated to generate around $236,000 annually. Currently, state road and bridge projects are primarily funded through the 20-cents-per-gallon state motor fuels tax, which last increased in 1990. HB 1031 ensures owners of electric vehicles and hybrids pay for their use of Louisiana roads.
What’s next: Gov. John Bel Edwards (D) has yet to sign the bill. If enacted the new fees would go into effect Jan. 1, 2023. Currently, 30 states impose fees on electric vehicles.
More information:
ARTBA-TIACs state legislative dashboard to monitor ongoing developments.