If they do, Oregon will soon make history. If all goes to plan, it will soon become the second U.S. state to implement a pay-per-mile program for electric vehicle (EV) owners. This new effort is a direct response to a $300 million shortfall at the Oregon Department of Transportation. Basic municipal services, such as snow-plowing and road repair suddenly become viable during an emergency. Second, the proposed program shifts focus from the problem of declining gas tax revenues. Beyond that, it moves to address the growing inflation that has compounded the state’s fiscal difficulties.
The Oregon transportation department has suggested a road usage charge as an option for electric vehicle drivers. This fee is meant to create sustainable income to keep the state’s transportation grid up-to-date and healthy. This new charge would be the equivalent of 5% of today’s gas tax. This would in turn lead to an average effective rate of just under 2.3 cents per mile for EV drivers. Or, instead, they could choose to pay an annual bubble fee which would be a flat $340.
By 2028, all EV drivers will be required to participate in this pay-per-mile scheme. On their annual inspections, each year, the officials will get odometer readings. The program will launch its phase-in process in 2027, beginning with a small percentage of EVs. In 2028, it will grow to cover hybrids, too. As of May, Oregon had more than 84,000 electric vehicles (EVs) registered. This remarkable number represents nearly 4% of all vehicles statewide.
The $7 billion budget shortfall come from a perfect storm of inflation, projected decreases in gas tax revenue, and overall spending caps. Financial pressures have forced Governor Tina Kotek to temporarily put a hold on the proposed road usage charges. She has now called a special session to discover possible solutions.
Privacy concerns have been raised over the deployment of road usage charges. Surveys commissioned by the Oregon transportation department highlighted apprehensions surrounding GPS devices and the potential risks associated with data collection. Here’s how Oregon’s voluntary program has moved the needle. This directly answers these criticisms by extending the 30-day deletion of mileage data post payment to all users.
“We are definitely supportive of a road usage charge that has EVs paying their fair share, but they should not be paying extra or a penalty,” – Morgan.
Brett Morgan, an advocate for transportation reform, noted that “both your vehicle and your cellphone capture immense amounts of data about your personal driving habits already.” As this claim demonstrates, the fight between privacy and the provision of sustainable, dependable, recurring funding for mobility-as-a-service providers rages on.
In 2023, Hawaii became the first state to pass a law making a road usage charge mandatory rather than voluntary. This important initiative comes in response to the expected drop in fuel tax revenue, as more citizens adopt electric and hybrid vehicles. As Oregon considers similar measures, it seeks to balance financial necessities with public sentiment regarding privacy and data security.
