Oregon lawmakers weigh EV road usage charge as gas tax revenue declines

In Oregon, lawmakers are deliberating a proposal that would make the state the second in the nation to implement a pay-per-mile fee for electric vehicle (EV) owners. This consideration arises amid decreasing fuel tax revenues attributed to the rising number of electric and hybrid vehicles. As lawmakers seek sustainable funding solutions for road maintenance, the proposal includes charging EV drivers approximately 2.3 cents per mile or providing an option for an annual flat fee of $340. This initiative is also linked to a wider trend as Hawaii has already implemented a road usage charge. The proposal aims to phase in starting in 2027 with certain electric vehicles, extending to hybrids by 2028. Importantly, EV drivers would have alternatives for reporting their mileage via smartphone applications or telematics technology integrated into their vehicles. However, there exist concerns about how the charge might discourage the purchase of electric and hybrid cars due to the increased costs compared to traditional vehicles, which aligns with existing worries about privacy and data security in road usage charges. Beyond Oregon's potential legislation, similar trends are manifesting across different regions, including Arizona, where voters will decide on a ballot measure to prohibit mileage-based taxation. This multifaceted issue encompasses the need for revenue generation with the imperative of encouraging the adoption of energy-efficient vehicles to mitigate transportation emissions. Various surveys indicate that public opinion is divided, with a significant number of respondents expressing apprehension regarding privacy and data collection linked to road usage programs. The push for an EV road usage charge continues to stir debate among stakeholders, including policymakers, environmental advocates, and the public. With the federal tax incentives for electric vehicles on the verge of expiring under a recent federal bill, the decisions made regarding road usage charges could have lasting implications on the transition towards a greener automotive landscape. As Oregon grapples with its unique challenges of funding and environmental responsibility, it stands at a crossroads that might influence future legislative actions in other states.