Road usage charge imposed for all-electric vehicles, report required, and money appropriated.

2025-2026 Regular Session Introduced by Steve Elkins and 2 co-sponsors

Minnesota would impose a road usage charge on all-electric vehicles to fund transportation infrastructure, with a required report and allocated administrative funds.

Author added Kraft

#motorvehicles #transportationandtransportationdepartment

Purpose and intent

HF 1140 proposes imposing a road usage charge on all-electric vehicles (EVs) and requires a reporting component, along with an appropriation of funds. The bill appears aimed at creating a dedicated mechanism to finance transportation infrastructure by charging EVs for their use of the road, aligning with user-pay principles as an alternative or complement to fuel taxes.

Key provisions and changes

Road usage charge for all-electric vehicles: Establishes a new charge assessed for EVs as they use public roadways. The exact rate, structure (per mile, annual, or hybrid), and calculation methodology are not specified in the provided information, but the core change is imposing a charge on EV owners/operators.

Reporting requirements: Requires a formal report related to the road usage charge. This may include implementation plans, projections of revenue, impacts on EV owners, and administrative considerations. Details on reporting frequency or recipients are not provided here.

Appropriation of funds: Allocates or appropriates money in connection with the administration, collection, or use of the road usage charge and related activities. This likely covers administrative costs, data systems, and possibly improvements to transportation funding, though exact appropriation amounts and purposes are not specified in the summary.

Who is affected

All-electric vehicle owners/operators in Minnesota would be subject to the new road usage charge. The bill’s structure may target EV drivers specifically, and broader transportation funding impacts could affect the general public indirectly through budgetary decisions.

State transportation agencies would administer and collect the charge, manage reporting, and oversee allocations of the collected funds.

General public and road users may be affected indirectly through changes in transportation funding, potential shifts in vehicle ownership costs, and any accompanying policy or pricing adjustments.

Procedural and timeline aspects

Introduction and first reading: February 19, 2025.

Referral: Referred to the Transportation Finance and Policy committee for consideration.

Author and co-authors:

Original author (Chaired or primary sponsor not specified in the snippet)
Co-sponsors: Larry Kraft, Steve Elkins, Kari Rehrauer

Next steps: The bill would proceed through committee hearings, potential amendments, and floor votes in the Minnesota House of Representatives, followed by Senate consideration and gubernatorial action (not detailed in the provided information).

Notes and considerations

The summary does not specify the exact rate, calculation method (per mile, lump-sum, or hybrid), exemption criteria (e.g., for low-income EV owners or fleets), enforcement mechanisms, or transition timelines.

Financial and equity implications (including how the charge compares to current fuel taxes and whether it impacts EV adoption) would be central to stakeholders’ analysis once more detail is available.

The reporting requirement suggests a governance framework to monitor implementation and revenue outcomes.

If you’d like, I can incorporate any additional bill text or committee amendments to refine the summary further.

Bill