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.

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

Last week at the Pennsylvania State Capitol, Advanced Energy United was joined by state legislators and a coalition of stakeholders advocating for electric school buses and a bill that would allow more school districts in the state to buy them. Legislators experienced the benefits of electric school buses firsthand, riding along in one provided by Steelton-Highspire School District, which procured new buses with funding from the federal government for clean transportation.  

Electric vehicles (EVs) continue to soar in popularity and, as they become more commonplace, it’s increasingly important for businesses and decisionmakers to not only understand the benefits, complexities, and future use cases for EVs, but also implement policy solutions to better prepare for the widespread transition to electrified transportation.  

Kicking off today and running through October 6 is National Drive Electric Week (NDEW), which aims to heighten awareness and highlight the benefits of today's widespread availability of all-electric and plug-in hybrid vehicles. NDEW is a celebration of the transformative power of EVs to lower transportation costs for drivers, improve public health, and even improve electricity resilience for households and communities. During NDEW, there are several events hosted in various cities throughout the country, including EV showcases, test drives, presentations, and community engagement activities to educate the public about the advantages and positive economic and environmental impacts of EVs.