Tag: energy policy

Ohio House Bill 546

Letter sent to my Ohio State Representative and Senator:

I am writing to encourage you to support GA133 HB-546 introduced on 10 March 2020. The bill alters the definition of hybrid and electric vehicles to reclassify plug-in hybrid vehicles. These are vehicles that will both plug into an external source to charge for a modest electric range AND use the gasoline engine when the charge is depleted. Examples of vehicles in this category are Chevy Volt, Toyota Prius Prime, Chrysler Pacifica PHEV, Kia Niro PHEV, Honda Clarity, and Ford Fusion Energi. These vehicles are not intended to run on electricity alone — they use a combination of electricity and gasoline.

Plug-in hybrid owners have been uniquely penalized by the latest gas tax bill. Plug-in hybrid vehicle owners pay tax on the gasoline used and pay the higher registration fee for fully electric vehicles. HB-546 accommodates said payment of the gasoline tax by halving the registration fee for plug-in hybrid vehicles. Without a system to account for electric miles driven (i.e. a system that taxes road use by electric vehicles the same way the gasoline tax does), reclassifying plug-in hybrids seems like the best way to accommodate the fact that plug-in hybrid drivers are already paying toward road maintenance through the gas tax.

 

Ohio House Bill 62

Letter sent to my Ohio State Representative and Senator:

I’m writing in reference to House Bill 62.

Pertaining to the definition of “Plug-in electric motor vehicle” and “Hybrid motor vehicle” (Sect 4501.01 DDD and EEE) and their additional respective registration fees, the wording in the bill as I read it leaves some ambiguity to a third segment: the “Plug-in Hybrid Electric Vehicle” or PHEV. These are vehicles that will both plug into an external source to charge for a modest electric range AND use the gasoline engine in a typical hybrid configuration when the charge is depleted. These vehicles are NOT designed to run indefinitely on electricity alone. My concern is that the current wording classifies certain PHEV’s as Plug-in electric motor vehicles. PHEV’s will still pay the gasoline tax, similar to hybrids, when they fill up at the pump *and* be charged a 200$ registration fee. Examples of vehicles in this category are the Chevy Volt, Toyota Prius Prime, Chrysler Pacifica PHEV, Kia Niro PHEV, Honda Clarity, and the Ford Fusion Energi. I would like to see the law amended to ensure PHEV owners, who generally pay some gasoline tax just like “Hybrid motor vehicle” owners, are not subject to the higher registration fee.

Beyond the classification of PHEVs, the gasoline tax is consumption and usage based. Heavier vehicles tend to have lower mpg ratings, thus their drivers accrue more tax. Individuals who drive a lot accrue more tax. The new registration fee is a fixed amount that has no bearing on an individual’s actual vehicle usage. I will be assessed the 200$ fee, and I drive maybe 2,500 miles a year. Someone with a pure electric Tesla who drives 300 miles a day pays the same 200$ fee but drives 75,000 miles in a year. If I convert an F-350 to a plug-in electric motor vehicle, that 7,000 pound truck is going to be assessed the same 200$ fee as my 3,800 pound PHEV.

I don’t have a problem being asked to pay for *my* usage of the roads. I wouldn’t complain about per-mile fee for electric and hybrid vehicles or an additional tax on electrical consumption to fund road repairs. I’d be less upset if the petrol tax were scrapped and everyone charge a registration fee based on the vehicle’s weight so infrequent drivers universally subsidize frequent drivers. But I vehemently object to being uniquely, financially penalized for low-milage usage of a PHEV.

GA133 HB 62 – Electric Vehicle Registration Fees

As the new transportation bill moves into the Senate, I wanted to calculate exactly how badly electric vehicle drivers are getting screwed. It depends, of course, on the MPG rating for the comparison vehicle. The best case for their assessment would be a vehicle with very bad mileage — say a big truck that gets 8 mpg. That truck has to drive 7,619 miles a year to pay the same amount of gas tax as the 100$ hybrid vehicle registration fee. It’s got to drive 15,238 miles in a year to achieve parity with the 200$ electric vehicle registration fee.

But how many vehicles get eight miles per gallon? The CAFE 2016 fleet average is 34.0 mpg. Comparing the electric vehicle registration fee to the fleet average, you’d have to drive 32,380 miles a year to hit parity on the 100$ registration fee. 64,761 miles to hit parity on the 200$ registration fee. There are plenty of cars that get better than 34 mpg — for a driver whose car gets 40 mpg to pay 200$ in gasoline tax, they’d be driving 76,190 miles a year!

According to the 2000 information from the Office of Highway Policy Information, Americans drive an average of 13,476 miles per year. An average driver needs to own a vehicle that gets worse than 8 mpg — 7.0749 mpg — to pay the same amount of gas tax as a driver who registers a Chevy Volt.

 

0.105 tax / gallon 0.105 tax / gallon 0.105 tax / gallon 0.105 tax / gallon 0.105 tax / gallon
8 mpg 15 mpg 25 mpg 34 mpg 40 mpg
0.013125 tax per mile 0.007 tax per mile 0.0042 tax per mile 0.003088 tax per mile 0.002625 tax per mile
fee Miles to pay same tax fee Miles to pay same tax fee Miles to pay same tax fee Miles to pay same tax fee Miles to pay same tax
200                          15,238.10 200                          28,571.43 200                          47,619.05 200                          64,761.90 200                          76,190.48
100                             7,619.05 100                          14,285.71 100                          23,809.52 100                          32,380.95 100                          38,095.24