HARRISBURG — A member of the Pennsylvania House says lawmakers in the General Assembly are working toward agreement on an electric vehicle fee, however, the head of the Senate Transportation Committee held firm that there’s little more to discuss.
Members of the House Transportation Committee were slated to vote Monday on advancing a fee schedule proposed by Rep. Ed Neilson, D-Philadelphia, the committee’s chair. However, Neilson announced the vote would be put on hold as negotiations resumed around a Senate bill that had stalled after gaining some momentum in the House.
They’re seeking consensus on a plan to charge a road user fee for electric vehicles to supplement lost gas tax revenue used to maintain roadway infrastructure.
“Those talks have resumed, I can report that here today. And, hopefully, between the House and Senate leadership teams we can come up with a reasonable electric vehicle bill that is fair to everybody across the commonwealth,” Neilson said during the committee meeting.
Electric vehicle ownership in Pennsylvania and the nation is growing year over year. The U.S. Energy Information Administration cites data showing that in 2023, electric vehicles and hybrids accounted for 16% of the light-duty vehicle market with steady growth since at least 2019. There were more than 66,100 vehicles registered in Pennsylvania entering April that solely operate by battery compared to less than 43,000 at the close of 2022, according to PennDOT.
Senate Bill 656 introduced by Sen. Greg Rothman, R-Cumberland/Dauphin/Perry, proposes a $290 annual fee on electric vehicles, excluding hybrids and plug-in hybrids. Owners would pay the fee rather than the existing alternative fuels tax if they power up their vehicles exclusively at home.
Reached Monday afternoon, Sen. Wayne Langerholc, R-Cambria/Centre/Clearfield, said the Republican majority’s position on the committee is unchanged. As to negotiations, Langerholc said, “if that involves other bills or other aspects, I’m not aware.”
“We laid forth a perfect path to address this issue. Every day we wait we leave money on the table,” Langerholc said. “I’ve expressed to (Neilson) that this is our position, this is where we’re at.”
The fee would top the nation if implemented. New Jersey adopted an annual fee of $250 that begins in July and rises to $290 in 2028. At least another 32 states charge such a fee ranging from $50 to $225, according to the National Conference of State Legislatures.
“Pennsylvania should not have the highest fee in the country,” Neilson said.
Neilson’s own bill, House Bill 2184, calls for gradual implementation across five years with step increases beginning at $125 and ending at $225. After that, the fee rate would be tied to inflation. It hasn’t yet been brought to a vote.
The Senate bill advanced to the house on a 41-9 vote. That bipartisanship extended to the House Transportation Committee which advanced the bill toward a floor vote by a count of 22-3.
Though Neilson voted in favor, he said he remains opposed to the Senate bill’s current terms.