SB394: SB394 Motor Vehicles; operation of alternative fueled vehicles and make conforming changes; remove a fee

Georgia currently charges owners of alternative fueled vehicles, those running on electricity, natural gas, or propane, an extra annual registration fee under O.C.G.A. § 40-2-151. This bill would eliminate that fee entirely by repealing paragraph (19) of that section. To keep the rest of the law consistent, the bill also updates the sections governing special manufacturer and distributor plates (O.C.G.A. § 40-2-38) and the special alternative fueled vehicle license plate (O.C.G.A. § 40-2-86.1), which still reference the fee structure being repealed. It also touches the Transportation Trust Fund section (O.C.G.A. § 40-2-151.2), which currently directs money collected from that fee, along with other sources, into the trust fund through June 30, 2032. The bill does not change the ability of alternative fueled vehicles with the special plate to travel in designated preferential lanes.

• Repeals paragraph (19) of subsection (a) of O.C.G.A. § 40-2-151, eliminating the annual fee charged specifically for alternative fueled vehicles.
• Revises O.C.G.A. § 40-2-38 governing manufacturer, distributor, and dealer plates to keep its language consistent with the fee's removal.
• Revises O.C.G.A. § 40-2-86.1 covering the special alternative fueled vehicle license plate, including its definitions of 'alternative fuel' and 'alternative fueled vehicle.'
• Revises O.C.G.A. § 40-2-151.2, which sets rules for the Transportation Trust Fund that currently receives money collected from the fee being repealed.
• Repeals all prior laws that conflict with the changes made by the bill.

Owners of vehicles that run on electricity, natural gas, or propane; the Georgia Department of Revenue and the state commissioner responsible for vehicle registration and license plates; and the state's Transportation Trust Fund, which currently receives revenue tied to the fee being removed.

Drivers of electric, natural gas, and propane vehicles would no longer pay the extra annual registration fee tied to their vehicle type, lowering their yearly cost of vehicle ownership, while the Transportation Trust Fund would lose one of the revenue sources it currently counts on for road and transit funding.

• Section 1 revises O.C.G.A. § 40-2-38 concerning manufacturer, distributor, and dealer plates, keeping references to the special plate's lane-access privilege for alternative fueled vehicles.
• Section 2 revises O.C.G.A. § 40-2-86.1, keeping the special alternative fueled vehicle plate and its definitions of 'alternative fuel' and 'alternative fueled vehicle' as electricity, natural gas, or propane.
• Section 3 repeals paragraph (19) of subsection (a) of O.C.G.A. § 40-2-151 in its entirety, eliminating the alternative fuel vehicle registration fee.
• Section 4 revises subsection (b) of O.C.G.A. § 40-2-151.2, the law governing the Transportation Trust Fund, which references money collected under the fee being repealed.
• Section 5 repeals all other Georgia laws that conflict with the bill's changes.

1. 2026-01-14Senate Read and Referred (Senate)
2. 2026-01-13Senate Hopper (Senate)

• Elena Parent (D, SD-044)Primary sponsor
• Nan Orrock (D, SD-036)
• Sheikh Rahman (D, SD-005)
• Kim Jackson (D, SD-041)
• Sally Harrell (D, SD-040)
• Harold Jones (D, SD-022)
• RaShaun Kemp (D, SD-038)
• Gail Davenport (D, SD-017)
• Sonya Halpern (D, SD-039)
• Nikki Merritt (D, SD-009)

• motor vehicle fees
• electric vehicles
• license plates
• transportation funding