The Republican-controlled House Transportation Committee is proposing an annual registration fee of $200 for electric vehicles.
The draft legislation—part of the GOP’s domestic policy bill—also includes a $100 fee for hybrids. Both fees would take effect immediately, Politico reported Tuesday.
The proposal comes amid troubled times for electric auto maker Tesla.
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Profits fell 71 percent in the first quarter of the year, as increasingly unpopular owner Elon Musk went to Washington to rip up the federal government as Donald Trump’s “first buddy.” Amid warnings of further “demand destruction” for his cars, Musk was forced to dramatically scale back his time in D.C.
Trump’s tariffs have also reportedly thrown a wrench into Tesla’s production plans, causing Musk to publicly break with the president on the issue.
And besides vandalism of Teslas, which Musk has called “terrorism,” the company has been imperiled by New York state lawmakers aiming to ban it from operating in-person dealerships.
Electric vehicles and hybrids aren’t alone in being slapped with fees, according to House Transportation Committee’s proposal.
All other passenger vehicles would see an annual $20 fee as well, though that would not take effect until 2031.
The fees are seen as a step towards retiring the federal gasoline tax, which has been at 18.4 cents per gallon since 1993 even as infrastructure costs have risen. Revenue generated is estimated to be $50 billion over the next ten years.
