(The Center Square) — Vermonters who drive electric vehicles will be hit with a new fee next year under a bill signed into law by Vermont Republican Gov. Phil Scott that aims to replace declining revenues of the state gasoline tax.
Under the new requirement, included in an omnibus transportation bill passed by lawmakers last month, electric vehicle drivers will be charged an annual fee equal to the amount they pay for their vehicle’s state registration ($98). ) as of January.
Lawmakers said the new fee is intended to offset lost revenue to state coffers from declining gas tax revenue as more people abandon their fossil fuel-powered vehicles for electric cars and trucks. .
“Vermont will continue to face transportation funding shortfalls due to declining motor fuel tax revenues on both gasoline and diesel due to increasing vehicle fuel efficiency and the continued adoption of plug-in electric vehicles.” “the bill’s authors wrote in a summary.
Legislative leaders plan to use the money generated by the new fee, projected at $915,000 in the next fiscal year and $1.7 million in fiscal 2026, to install electric vehicle charging stations at businesses and multifamily housing developments.
There are 12,754 plug-in electric vehicles registered in Vermont, 58% of which are all-electric vehicles powered solely by a battery, according to data from the Vermont Agency of Transportation. Plug-in hybrid models account for 42% of the total and can run on both electricity and gasoline, the agency said.
Plug-in electric vehicles accounted for about 10% of new light-duty vehicle sales in 2023, according to the Vermont Automotive and Vehicle Dealers Association.
Environmental groups rejected the fee proposal, arguing the measure would discourage people from switching to electric vehicles. They pressured Scott and legislative leaders to set a threshold of 15% electric vehicles on the roads before implementing the new fee. The threshold was established in Vermont’s 2021 Climate Action Plan, which calls for the expansion of electric vehicles to reduce the state’s greenhouse gas emissions.
“We understand that we could be close to that mark, but we are not there yet,” the Vermont Natural Resources Council, the Sierra Club and other environmental groups wrote to state lawmakers in April, when the measure was still being debated. “We all agree that electric vehicles should help pay their fair share for Vermont’s road and highway networks. “We urge enactment of a fee once that threshold is firmly established, not before.”
Vermont has been trying to convince drivers to switch to electric vehicles by increasing income eligibility for incentive programs, increasing the number of participating households, making electric vehicle model types available and offering higher incentive amounts. .
Under the state’s Replace Your Ride program, it offers $5,000 for those who switch from their gasoline or diesel vehicle to a cleaner alternative. The MileageSmart program offers a $5,000 incentive to Vermonters to replace a flood-damaged vehicle. The program launched in 2020 and currently offers up to 25% of the price of a vehicle to help low- and middle-income people purchase a fuel-efficient used vehicle.
Nearly half of the state’s greenhouse gas emissions come from trucks and personal vehicles, and state environmental officials have focused on vehicle emissions to meet climate change goals to reduce greenhouse gases that, According to scientists, they are contributing to a warmer planet.
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