NEW ANALYSIS: House EV Fee Would Add Climate Pollution Equivalent of 26 Coal-Fired Power Plants, Cost Families $40 Billion in Higher Fuel Costs

New modeling released ahead of Thursday’s Surface Transportation Reauthorization markup shows the fee would also eliminate 3,000 jobs per year and result in 3 million fewer EVs on the road

As the House Transportation & Infrastructure Committee prepares to mark up the Surface Transportation Reauthorization bill on Thursday, Evergreen Action is releasing new modeling showing the catastrophic climate and economic toll of the proposed $130-$150 electric vehicle (EV) fee. The analysis finds that the fee would generate 97 million metric tons of additional climate pollution—the equivalent of adding 26 coal-fired plants to the grid for one year—while costing American households $40 billion more in fuel costs compared to what they would save by driving electric.

Read the full analysis here.

The new modeling builds on Evergreen’s January report, which examined several EV proposals then under consideration and found that each would massively increase climate pollution, slow EV adoption, and raise costs for families during an affordability crisis. The full analysis finds the $130-$150 EV fee would:

• Generate 97 million metric tons of additional climate pollution between now and 2045 — equivalent to adding 26 coal-fired power plants to the grid for one year.
• Cost American households $40 billion more in fuel costs than they would have saved by driving an electric vehicle.
• Result in roughly 3 million fewer EVs on the road by 2045.
• Eliminate approximately 3,000 jobs per year across the electric vehicle manufacturing and supply chain.

“House T&I’s proposed EV fee is not fair, effective, or aligned with climate and economic goals,” said Evergreen Action Federal Affairs Director Dani Hupper. “This fee would pile $40 billion in extra fuel costs onto American households and drive a massive surge in climate pollution—at a time when families are already getting hammered by skyrocketing gas prices thanks to Trump’s illegal war in Iran. New federal EV fees would reward pollution and punish consumers who want to choose cleaner, cheaper alternatives.”

“EV drivers already pay more in taxes and fees than drivers of comparable gas-powered vehicles in most of the country. A new federal EV fee only deepens that disparity,” Hupper continued. “Especially in the midst of an affordability crisis, there’s no reason to support provisions that increase pollution, jack up household costs, eliminate thousands of jobs, and shut millions of Americans out of vehicles that could save them money for years to come. We urge every member of the committee to oppose this new tax on consumers. ”

The full updated analysis, “The Climate & Economic Impacts of House T&I’s Proposed EV Fee,” is available here, and the original January report, “Four Key Risks and Opportunities for Sustainable Transportation,” is available here. For more information or to speak with a policy expert, contact Evergreen Action Communications Director Seth Nelson at seth@evergreenaction.com. 

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