Congress Proposes $130 Annual EV Road-Use Fee — What Fleet Operators Need to Know
Key figures at a glance:
- Proposed annual fee (BEV): $130 per vehicle, starting 2029
- Annual fee (PHEV): $35 per plug-in hybrid
- Fee cap: $150, increasing by $5 per year after 2029 until cap is reached
The Legislation
The BUILD America 250 Act, introduced with bipartisan support, would impose a flat annual road-use fee on electric and plug-in hybrid vehicles starting in 2029. The bill is designed to replace revenue that EV drivers do not contribute through the federal gas tax — currently 18.3 cents per gallon, unchanged since 1993.
The legislation must still be formally introduced and pass both chambers before becoming law. Its sponsors aim to have it signed by September 30, 2026, when the current highway funding authorization expires.
Fleet cost implications
For fleet operators managing hundreds or thousands of electric vehicles, this fee can add up fast. A fleet of 500 BEVs would face an additional $65,000 per year in road-use fees at the initial $130 rate — rising to $75,000 once the fee reaches its $150 cap.
Critically, consumer advocacy research indicates that the $130 flat fee is significantly higher than what the average gas-powered driver contributes in federal fuel taxes annually — estimated at $70–$90. The flat structure also fails to account for actual mileage, meaning a high-utilization fleet vehicle is taxed at the same rate as a lightly used personal car.
Analysts note that delivery vans, service vehicles, and other commercial EVs — which may drive up to 10 times more than personal vehicles — would bear a disproportionately light per-mile burden under a flat fee structure, while still adding to your fleet’s fixed cost base.
What fleet managers should do now
- Model the cost impact - Run your current and projected EV fleet count against the $130–$150 fee range to quantify exposure in your TCO forecasts and budget planning.
- Review state-level registrations - If your fleet operates in states with existing EV surcharges, stack those costs against the proposed federal fee to understand your total annual obligation per vehicle.
- Monitor the bill’s progress - The legislation is not finalized. Track its movement through Congress ahead of the September 30 deadline and adjust EV fleet acquisition planning if it advances.
- Engage your EMKAY fleet consultant - EMKAY’s advisors can help you update your EV policy, refresh lifecycle cost models, and navigate the shifting regulatory environment across your fleet’s operating states.
This article is adapted from reporting on the BUILD America 250 Act. The legislation has not yet been formally introduced and is subject to change. EMKAY will continue to monitor developments and provide fleet-specific guidance as the bill progresses.
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