In Oregon, EV Owners May Soon Be Paying by the Mile

Oregon could become the second US state to require electric vehicle owners to enroll in a pay-per-mile program as lawmakers begin a special session Friday to fill a $300 million transportation budget hole that threatens basic services like snowplowing and road repairs. Legislators failed earlier this year to approve a transportation funding package. Hundreds of state workers' jobs are in limbo, and the proposal for a road usage charge for EV drivers was left on the table, per the AP.

• A proposal by Democratic Gov. Tina Kotek includes an EV road usage charge equivalent to 5% of the state's gas tax. It also includes raising the gas tax by 6 cents, to 46 cents per gallon, among other increases. The usage charge would phase in starting in 2027 for certain EVs and expand to include hybrids in 2028. Should the gas tax increase be approved, EV drivers either would pay about 2.3 cents per mile or choose an annual flat fee of $340.
• In 2023, Hawaii became the first state to create a mandatory road usage charge program to make up for projected decreases in fuel tax revenue due to the growing number of electric, hybrid, and fuel-efficient cars. Many other states have studied the concept; Utah and Virginia currently have voluntary programs like Oregon.
• Oregon's DOT says the budget shortfall stems from inflation, projected declines in gas tax revenue, and other spending limits. Over the summer, it sent layoff notices to nearly 500 workers and announced plans to close a dozen road maintenance stations. Kotek paused those moves and called a special session to find a solution. Republican lawmakers say the department mismanaging its money is a main issue.

• The concept has promise as a long-term funding solution, experts say. Others, however, worry the concept will discourage people from buying EVs, which can help reduce transportation emissions. In past surveys commissioned by the DOT, respondents also cited privacy and data security as concerns about road usage charges. Oregon's voluntary program has sought to respond to privacy concerns by deleting mileage data 30 days after a payment is received, said Scott Boardman, a policy adviser for the state's DOT.