Oregon Considers Mandatory Pay-Per-Mile Program for EV Owners

As of 2025-08-29T06:22:09+00:00, Oregon is poised to become the second U.S. state to require electric vehicle owners to enroll in a pay-per-mile program. Lawmakers in the state have begun a special session to address a $300 million transportation budget hole that threatens basic services like snowplowing and road repairs.

Earlier this year, legislators failed to approve a transportation funding package, leaving hundreds of state workers' jobs in limbo. The proposal for a road usage charge for EV drivers was left on the table. Now, with the budget shortfall stemming from inflation, projected declines in gas tax revenue, and other spending limits, the state is revisiting the idea.

The Democratic governor has proposed an EV road usage charge equivalent to 5% of the state's gas tax, as well as a 6-cent increase in the gas tax. This would mean EV drivers would pay around 2.3 cents per mile or choose an annual flat fee of $340. The program is set to phase in starting in 2027 for certain EVs and expand to include hybrids in 2028.

While the concept of a road usage charge has promise as a long-term funding solution, experts warn of privacy concerns and the potential to discourage people from buying electric and hybrid vehicles, which can help reduce transportation emissions. Some Republican lawmakers also argue that the transportation department's mismanagement of funds is a main issue.

As of May 2025, Oregon had over 84,000 EVs registered, about 2% of the state's total vehicles. The state's voluntary road usage charge program has sought to address privacy concerns by deleting mileage data 30 days after a payment is received.