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From Rep. Pat Grassley’s newsletter:


The increased use of electric vehicles has had an impact on the infrastructure in the state of Iowa. Electric vehicles pay either reduced or no fuel tax because they either use much less gas than normal vehicles (in the case of plug-in hybrid electric vehicles) or no gas (in the case of battery electric vehicles). The fuel tax funds are directed to the road use tax fund (RUTF) and the money is then distributed to infrastructure projects across the state. In 2018 the reduction to the RUTF was estimated at just under $320,000 and is expected to quickly grow as electric vehicles become more popular by up to $45M by 2030.

This week the House Transportation Committee passed legislation that would require all vehicles using the road to pay for the wear and tear they contribute. HSB 197 has three main parts to ensure all vehicles pay their share based on recommendations from the DOT.

First, there is a supplemental registration fee for electric vehicles that will be initially phased in over a three year period. The registration fee also differentiates between battery electric vehicles ($130/yr), plug-in hybrid electric vehicles ($65/yr), and electric motorcycles ($9/yr), recognizing that they all impact the infrastructure and RUTF in different ways. Second, a 2.6 cents per kilowatt hour (kWh) excise fee is imposed on commercial electric fuel charging stations to ensure an equitable contribution from commercial and out of state electric vehicles using our road system. Finally, there is a 65 cents per gallon excise fee on hydrogen fuel, so commercial vehicles powered by hydrogen fuel contribute their share to the RUTF.

All vehicles driving on the road should contribute to construction and repair of our infrastructure. HSB 197 creates an equitable solution to ensure funding remains for Iowa roads and bridges.

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