Minnesota lawmakers are considering increasing fees or levying a new charging tax for electric vehicles in an effort to shore up funding for road and bridge repairs.

Among the proposals is collecting $.05 per kilowatt-hour at public charging stations or increasing the EV surcharge from $75 to as much as $200. A separate bill would create a formula to charge individuals for the miles they traveled in Minnesota. 

But supporters of all of the legislation discussed this session aim to solve the same problem of declining gas tax revenue, which supports transportation maintenance and construction.

Those dollars are just one source of funding dedicated to these purposes. But revenue is decreasing by 1-2% per year, according to the Minnesota Department of Transportation, due to increased fuel efficiency in vehicles. 

More electric vehicles on the roads—having 20% of all cars be electric is the state's goal for 2030—will further slash those revenues. Republicans and Democrats both have brought forward ideas this session to account for the growing funding gap. 

"There's always the conversation of damage to the roads versus the environment and all that, but we really do need—as we're seeing the gas tax go down as vehicles become more efficient and electric vehicles—we have to address this somehow,"  said Sen. John Jasinski, R-Faribault, during a committee hearing this week. 

But some clean energy and EV advocates hope lawmakers pump the brakes on making any changes, arguing that electric vehicle owners already pay their fair share because of the high cost of buying those cars. 

Carolyn Berninger with the Drive Electric Minnesota Coalition noted that because of their market price, customers are paying higher sales taxes which contribute to the Highway User Tax Distribution Fund where gas tax revenues are also deposited for transportation projects. 

Registration fees also cost more if a car is more expensive. 

"We do have concerns that we could be discouraging adoption at this point, at a time when the state has said it really wants to support electrification and get more EVs on the roads," Berninger said in an interview Friday.

Meanwhile, The Coalition of Greater Minnesota Cities and the Minnesota Chamber of Commerce endorse increased fees to ensure sustained funding for years to come. Only 1% of cars in Minnesota are electric today, Berninger said, but sales are increasing. 

Seven percent of cars purchased in 2023 were electric, according to the Minnesota Department of Commerce. 

The Legislature could include some of the proposals in a broader transportation package at the end of session as lawmakers begin sorting out the details of the next two-year budget proposal. 

Complicating that process is a projected $6 billion deficit looming in future years.

If any of the EV fee ideas are adopted, it wouldn't be the first time lawmakers tried to plug funding gaps for transportation. Two years ago, Democrats in charge of the capitol approved a new retail delivery fee of $0.50 on packages worth $100 or more with some exceptions. 

There is an effort this year to repeal it.