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HB 1457

Alternative Fuel, Fuel-Efficient, and Electric Vehicles - Highway Use Fees

2025 Regular Session Introduced by Kris Fair and 3 co-sponsors

Maryland bill establishes highway use fees on electric, alternative fuel, and fuel-efficient vehicles to replace declining gasoline tax revenue from transportation infrastructure funding.

Hearing 3/04 at 1:00 p.m. (Environment and Transportation)
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Bill Summary · HB 1457

Legislative bill overview

HB 1457 establishes highway use fees for alternative fuel vehicles, fuel-efficient vehicles, and electric vehicles in Maryland. The bill aims to create a revenue mechanism to offset the declining gas tax revenue as more vehicles shift away from traditional gasoline engines. This fee would apply to vehicles that currently avoid or minimize fuel tax contributions.

Why is this important

As electric and hybrid vehicle adoption increases, state transportation funding from gas taxes—historically the primary source for road maintenance and infrastructure—declines. Maryland needs alternative revenue sources to maintain highway systems. This bill directly addresses that fiscal challenge while raising questions about fairness to early EV adopters.

Potential points of contention

  • Economic burden on EV owners: Adds fees to vehicles already purchased with environmental incentives in mind; may discourage future EV adoption despite stated policy goals
  • Fee structure fairness: Unclear how fees differentiate by vehicle type, efficiency rating, or weight; concerns about disparate impact on different income levels
  • Revenue adequacy: Uncertain whether new fees will generate sufficient revenue to meaningfully support infrastructure, or if additional revenue sources will still be needed

Compiled from official sources — confirm details with the bill’s official record.

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