House File 189, introduced to the Transportation Finance and Policy Committee on Feb. 17, 2025, would raise annual registration fees for electric vehicles to align with per-vehicle contributions from gasoline taxes. Representative Zalesnikar (author) said the change is intended to maintain road and bridge funding as vehicle fuel sources shift.

Representative Zalesnikar described the proposal as a parity measure, citing calculations based on average annual driving in Minnesota and the existing gas-tax framework. "It's a $62 increase for people that have EV vehicles. That's it, on an annual basis," Zalesnikar said, and estimated the change would raise about $3,000,000 annually.

Representative Kraft offered the A1 amendment to reduce some of the proposed fees (for example, lowering an EV fee from $150 to $125 and plug-in hybrid from $75 to $50), exempt motorcycles, place part of the revenue into a greenhouse-gas mitigation account established by prior law, and alter the frequency of inflation adjustments. "Green transportation is our number 1 source of greenhouse gas emissions in Minnesota," Kraft said while explaining the amendment's intent to fund mitigation for projects that increase vehicle miles traveled.

Representative Olson and others debated the amendment's equity and efficacy. Olson argued the amendment added cost to EVs at an early stage of adoption and said fees should be viewed in context of other registration costs; Representative Lesnar and supporters emphasized parity with users of gasoline-powered vehicles and the need to maintain highway funding.

The committee called a roll call on the A1 amendment. The tally was 7 ayes and 8 nays; the amendment failed and was not adopted. The recorded votes on the amendment were: Chair Kosnick (No); Vice Chair Myers (No); Representative Anderson (No); Representative Berg (Yes); Representative Fogelman (No); Representative Green (Yes); Representative Jones (Yes); Representative Joy (No); Representative Kraft (Yes); Representative Murphy (No); Representative Olson (No); Representative Ream (Yes); Representative Sensory Murrow (Yes); Representative Scrabba (No); Representative Tabke (Yes).

Fresh Energy testified in opposition to raising EV fees, arguing that higher sales taxes and tab fees already offset lost gasoline tax revenue and that EVs accounted for about 1% of vehicles in Minnesota; Fresh Energy said increasing the EV registration fee to $150 would add only about $3,100,000 annually and could hinder adoption. After debate the committee laid House File 189 over for future consideration.