Sean Duffy, the DOT nominee under President-elect Donald Trump, put forward an intriguing proposal during his confirmation hearing with the Senate Commerce Committee. His idea? Have owners of electric vehicles pay for road usage.
Getting such a policy change through, would undoubtedly present significant challenges. It’d directly impact owners of EVs, from popular manufacturers like Tesla, Rivian, and Lucid. Federal road repair costs have traditionally been funded by diesel and gas taxes. Since EVs bypass fuel usage – they don’t add to this revenue stream, which Duffy sees as a funding imbalance.
Implementing changes within the DOT alone wouldn’t suffice. Collaboration with Congress to pass new legislation authorizing such fees or taxes would be crucial. Options include amending the Highway Revenue Act, which established a federal fuel tax back in 1956. Lawmakers would then need to devise a way to track and report EV electricity usage or mileage.
The policy will undoubtedly face staunch opposition from environmentalists and car manufacturers. Privacy considerations in any tracking system would present further hurdles.
Many states already demand road usage fees from EV owners to compensate for the lack of fuel tax contribution. Some states impose a flat fee, while others base the charge on weight or mileage.
This startling statement by Duffy is part of the wider Trump administration’s politicization of EVs. Trump has often depicted EVs as symbolic of liberal ideals, even threatening to revoke the EV tax credits introduced in President Joe Biden’s Inflation Reduction Act.
In stark contrast, Trump’s focus lies with traditional energy sources such as coal and oil. His “Drill, baby, drill” slogan encapsulates this priority.
Original source: Read the full article on TechCrunch
