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.

California is making enormous strides in its race to 100% clean energy, but rapidly rising energy prices are threatening to hold us back.

Electricity prices have surged 127% over the past decade, with some customers seeing increases of over 60% just in the last four years. These rising costs put a significant strain on household budgets, especially in disadvantaged communities, and pose a growing threat to the success of California’s clean energy and electrification goals.