Advanced Energy Perspectives

In 36 states, electric vehicle (EV) drivers pay more in annual fees and taxes than drivers of gasoline-powered vehicles. As EVs gain market share, many state policymakers have moved to offset declining gas tax revenues by layering on EV-specific fees. These typically include additional registration charges, sales taxes on public charging, and per-kilowatt-hour (kWh) electricity taxes. While these measures are often framed as efforts to ensure all drivers contribute to road upkeep, they are frequently used to compensate for the long-standing inadequacy of the gas tax—a system that has failed to keep pace with inflation, rising construction costs, and improved fuel economy. The result is a growing patchwork of policies that disproportionately burden EV drivers, often charging them more than their fair share and more than many gasoline vehicle owners. This inequitable treatment risks undermining state and federal electrification and emissions-reduction goals.

As the demand for electric vehicles (EVs) grows, so does the need for an energy ecosystem capable of supporting a fully electrified transportation future. In 2024, state legislatures made significant strides toward modernizing the electric grid for EVs, including streamlining charging station siting, refining permitting processes, and updating building codes to support America’s growing EV fleet. Together, these policies lay the groundwork for a more fair, efficient, and less polluting transportation system. To synthesize the EV action across the country, Advanced Energy United read and summarized hundreds of bills, which we have distilled down into this series that covers seven dominant trends:  

1. Grid Modernization: Building the Foundation for Electrification
2. Siting and Permitting: Clearing the Path for Infrastructure Expansion
3. Building Codes and Parking Requirements: Designing for an EV Future 
4. Leading by Example: State Fleet Policies 
5. Electric School Buses: Supporting Healthier Communities
6. Fees on EVs
7. Financial Incentives for EVs and Infrastructure