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Is A Tax On Electricity (kWh) Consumed The Best Way to Supplement the Fuel Tax for Electric Vehicles?

EV Adoption

As sales of electric vehicles begin to reach significant numbers across the US, states are exploring approaches to replace lost tax revenue since EV drivers don’t pay fuel taxes as drivers of gas-powered cars do at gas stations. Unfortunately there is currently no simple and agreed upon best replacement for the fuel tax.

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Congressional Budget Office estimates US federal policies promoting EVs and other fuel-efficient vehicles will cost $7.5B through 2019; little or no impact on gasoline use and GHG in the short term

Green Car Congress

Tax credits and gasoline prices necessary for various electric vehicles to be cost-competitive with conventional vehicles at 2011 vehicle prices. The electric vehicles that are the focus of this study fall into two broad classes: plug-in hybrid electric vehicles and battery-electric vehicles. Source: CBO.

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New Zealand simplifies Road User Charges system, extends exemption for light electric motor vehicles from 2013 to 2020

Green Car Congress

In New Zealand, diesel and electric-powered vehicles pay for their road use through road user charges. Since some 36% of diesel is used off-road, such as on farms, by manufacturing, industrial and commercial ventures, and boats, a fuel tax for road use would impose an unfair burden onto these sectors, the government says.).

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kWh Billing and New EV Charging Tax Policies: What You Need to Know

Blink Charging

The electric car market is experiencing massive growth, exceeding 10 million in sales in 2022. As a result, regulations and guidelines related to electric vehicles are changing frequently, and consumers and charging station hosts must be aware of new developments. By the end of 2022, there were 2.7

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California ARB mods to ZEV regulations for IVMs would result in ~1.9% drop in total ZEV/TZEV units 2018-2025; no impact on air quality requirements

Green Car Congress

In addition, although many experts say that the solution to our energy and climate problems is sending the correct price signals to industry and consumers, the transport sector’s behavior is highly inelastic in that it does not change significantly in response to changes in fuel prices, at least in the range that is politically acceptable.

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UC report to CalEPA outlines policy options to decarbonize California transportation by 2045

Green Car Congress

Heavy-duty vehicles: medium- and heavy-duty vehicles, mostly used for goods movement and commercial and industrial use, as well as off-road equipment. Fuels: liquid petroleum fuels that dominate transportation today and renewable and alternative fuels that can act as substitutes. Transportation pricing: Gasoline taxes.