Fresh Energy opposes Minnesota's proposed $200 electric vehicle registration fee increase

The Minnesota Legislature's Conference Committee on the Transportation Omnibus Bill faced heated discussions on May 8, 2025, primarily centered around a proposed increase in electric vehicle (EV) registration fees. Advocates for EVs voiced strong opposition to the proposed hike from $75 to $200, arguing it would create financial barriers for low- to moderate-income drivers and undermine the state's climate goals.

Nick Hague, an Electric Vehicle Senior Associate at Fresh Energy, emphasized that the increase would not address the underlying roadway funding gap. He warned that nearly tripling the fee could reverse the progress made in making EVs more accessible, especially as federal lawmakers consider an additional $250 fee on EVs. This would mean a total annual fee of $450 for Minnesota EV owners, a significant jump from the current $75.

Hague's sentiments were echoed by other speakers, including Roger Klitsch and James Tucker, who highlighted that EV owners already contribute fairly to roadway funding. Klitsch pointed out that the environmental benefits of EVs should be recognized, arguing that the current system unfairly subsidizes fossil fuels while penalizing cleaner alternatives. Tucker proposed that instead of increasing fees on EVs, a more equitable solution would be to eliminate the gas tax altogether, suggesting that all vehicles should contribute equally.

The discussion also touched on the potential impact of reduced funding for public transit systems, with Mya Orbikowski sharing her personal connection to the North Star commuter rail service. She expressed concern that funding cuts could hinder access to essential transportation for her community, particularly for those relying on it for jobs and education.

As the committee deliberates, the future of EV registration fees remains uncertain, with advocates urging lawmakers to reconsider the proposed increase. The outcome could significantly influence the state's efforts to promote sustainable transportation and combat climate change.