Informer: Hybrid, electric vehicles will soon pay road fee

Published 7:50 am Sunday, August 7, 2022

One huge concern about electric vehicles that nobody ever mentions is since they don’t consume gasoline, they pay no road-maintenance tax, which is part of the cost of gasoline at the pump. Yet they will be tearing up our roads and bridges just like gasoline and diesel powered vehicles. That will also mean a huge loss of revenue for the state. How will this be addressed?

Hybrid and electric vehicle owners in Louisiana will soon have to pay an annual road fee to cover the state’s shrinking fuel tax revenue as automotive manufacturers continue phasing out the internal combustion engine. The new fees are $60 for each hybrid and $110 for each electric vehicle registered in the state.

The road usage fee is the product of House Bill 1031, sponsored by Rep. Barbara Freiberg, R-Baton Rouge. Gov. John Bel Edwards signed the bill into law, though it will not take effect until Jan. 1, 2023.

Email newsletter signup

According to the bill, 70 percent of the tax proceeds will go toward road and bridge projects slated in the Department of Transportation’s Highway Priority Program. The remaining 30 percent will be deposited into the Parish Transportation Fund for use by local governments.


What is this “friendshoring” I keep hearing about?

Many of the companies that embraced offshoring — cutting costs by shifting manufacturing to countries with cheaper labor — have been encouraged by tariffs and pandemic supply chain disruption to bring production back to their home country, in a trend known as “onshoring” or “reshoring.”

U.S. Treasury secretary Janet Yellen has proposed the nation now move toward “friendshoring” — manufacturing and sourcing components and raw materials within a group of countries with shared values.

Yellen touted “friendshoring” as a tool that will deepen relationships and “diversify our supply chains with a greater number of trusted partners.” It will also protect households from inflation and disruptions caused by geopolitical and economic risks, she said.

She said the move would allow the U.S. and its allies aim to safeguard supply chains by reducing their dependence on authoritarian regimes for materials, such as rare earth and other minerals, and on Russia for commodities like gas, foodstuffs and fertilizer.

“We do not want a retreat from the world, causing us to forgo the benefits it brings to the American people and the markets for businesses and exports. (Rather), we can continue to strengthen the international system we’ve all benefited from, while also protecting ourselves from the fragilities in the global trade networks,” Yellen said.

Informer is written by Crystal Stevenson, American Press executive editor. To ask a question, call 494-4098 and leave voice mail, or email