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Is A Tax On Electricity (kWh) Consumed The Best Way to Supplement the Fuel Tax for Electric Vehicles?

EV Adoption

As sales of electric vehicles begin to reach significant numbers across the US, states are exploring approaches to replace lost tax revenue since EV drivers don’t pay fuel taxes as drivers of gas-powered cars do at gas stations. Unfortunately there is currently no simple and agreed upon best replacement for the fuel tax.

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UC Davis report proposes mileage fee for EVs, maintaining fuel tax for ICEs to support road repairs

Green Car Congress

Lastly, we examine alternative funding mechanisms include a fuel tax for hydrogen and electricity, as well as a road user charge (RUC). Jenn, Alan (2018) “ Assessing Alternatives to California’s Electric Vehicle Registration Fee.” We find that a ZEV exclusive RUC is the most promising alternative to the ZEV registration fee.

Davis 268
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California Governor signs $52B fuel tax and vehicle fee bill for transportation infrastructure; $100 ZEV fee

Green Car Congress

billion over the next decade through an increase in fuel taxes and vehicle fees—including on zero emission vehicles (ZEVs)—to fix roads, freeways and bridges in communities across California and put more dollars toward transit and safety. . California Governor Edmund G. The bill will raise $52.4

Fuel Tax 170
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California ARB mods to ZEV regulations for IVMs would result in ~1.9% drop in total ZEV/TZEV units 2018-2025; no impact on air quality requirements

Green Car Congress

In addition, although many experts say that the solution to our energy and climate problems is sending the correct price signals to industry and consumers, the transport sector’s behavior is highly inelastic in that it does not change significantly in response to changes in fuel prices, at least in the range that is politically acceptable.

2018 257
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Next 10 report finds California will meet or exceed original target of 1.5M ZEVs by 2025

Green Car Congress

Based on 12,330 miles driven per year, the pure battery electric Nissan Leaf has lower five-year and 10-year life cycle costs than the internal combustion Hyundai Elantra and the plug-in hybrid Chevrolet Volt, even without the federal government incentive. The average Californian drives 14,435 miles every year. This works out to 0.05

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UC report to CalEPA outlines policy options to decarbonize California transportation by 2045

Green Car Congress

Vehicle miles traveled: the demand for travel and mode selection that defines total vehicle use. Fuels: liquid petroleum fuels that dominate transportation today and renewable and alternative fuels that can act as substitutes. However, a key tracking report in 2018 found that VMT is increasing, not decreasing.