Special Session Update: The Path Ahead for Transportation
Editor’s note: On Monday, September 29, 2o25, the transportation stopgap passed out of special session.
Happy National Week Without Driving! 🚲🚶‍➡️♿🚆🚍
A lot has happened in transportation the past few months: the transportation package met its demise during the Oregon legislature’s long session, then was revived as a budget band-aid during the special session to keep the lights on at the Oregon Department of Transportation, cities, counties, and transit agencies. The bill was delayed, but ultimately was passed in the House, and then was delayed again in the Senate. (We wish Senator Gorsek well on his road to recovery). We expect the Senate to vote on the bill at the end of the month, to quickly pass and make its way to the Governor’s desk.
For all the work that was done in the past two years to push a safety-first, climate-forward, fiscally sustainable, and accountable transportation package, this outcome was a letdown. Transportation is still the #1 source of climate pollution in Oregon and climate rollbacks at the federal level made investments in the state’s climate programs even more essential. That didn’t happen. Instead, the bill that moved forward would make driving an electric vehicle just as expensive as driving a less efficient gas powered vehicle.
The stakes of this special session aren’t lost on us. The band-aid bill will help avoid a worst case scenario for transit, avoiding near-term cuts to bus and train frequency, and the elimination of routes in already limited service areas in rural communities. The proposed funding will help keep working class people and those on fixed incomes connected to their jobs, family and friends. It will also save many jobs held by dedicated public servants who drive our buses and keep our roads and bridges repaired, including our local streets. But it falls short of investments that will cut climate pollution and expand transit, biking, and safety improvements.
$4.3 billion Over the Next Decade
So what ended up in the bill? Here’s a breakdown::Â
- 6 cents – increase to the state’s gas tax. Fifty percent, 30 percent and 20 percent of the revenues will go to the state, counties and cities respectively. Â
- $42 – vehicle registration fees increased
- $30 – supplemental fee for electric vehicles, which now cost $316 to register for two years.
- $139 – increase to the state’s title fee, which now ranges from $101 to $116 for gas cars or $192 for electric vehicles.
- .01% – temporary increase to the payroll tax going to funding public transit throughout the state.
- A mandatory per-mile charge for electric vehicles and hybrids to go into effect in 2027 and 2028
Funding For Transit, but only until 2028
In the lead up to session, OEC and our coalition partners in Move Oregon Forward led outreach to Oregonians across the state to learn about their transportation priorities. From large urban centers to smaller rural communities, we heard one thing over and over again: for the roughly 30% of people who can’t drive, investments in transit, bicycling and walking are critical. The transit funding in the band-aid bill is a stopgap—and an essential one, including for medical transport for older adults. But even with the doubling to transit funding, some transit agencies were still expecting cuts. Now with the sunset, money that agencies could have planned for long term investments will end in two years, making the need to fix the transit funding deficit even more urgent. OEC strongly opposed sunsetting transit funding in 2028.
Electric Vehicles Payments
Electric vehicles don’t pay a gas tax, but do need to contribute to paying for roads. Historically that has meant higher registration and other fees. In addition, the state’s voluntary OReGO program has tested out a “per mile, or road user charge” fee. Many national transportation experts think ALL vehicles should move to this model. However, in the band-aid bill, the voluntary program will finally become mandatory—but unfortunately not for all vehicles. Electric vehicles and Plug-In Hybrids were singled out in the pay-by-mile fee, and would end up paying the equivalent to a 20 mile-per-gallon vehicle, well more per mile than 30 mpg national average.Â
Electric vehicle drivers are happy to pay their fair share to fix the roads they drive on. Yet, the band-aid bill penalizes zero emission vehicles rather than achieving parity. With electric vehicle credits already being zeroed out back at the federal level, this move by the Oregon legislature will seal the deal in making EVs one of the most expensive ways to drive.Â
The Path Ahead
Oregon Environmental Council has been a key negotiator in transportation packages for decades. We have consistently been a committed stakeholder willing to collaborate with a wide variety of partners on equitable and innovative solutions.
The band-aid bill did not solve the foundational issues holding back our transportation system. It notably lacks dedicated action to address safety investments and climate pollution, and leaves out funding for key safety projects near schools, off-street paths, and main streets. The result is risking our communities with more dangerous roads, fewer options to move and travel, and slower economic growth. Not to mention: increasing school closures from extreme weather events, and other detrimental impacts on future generations. Addressing climate at the source not only safeguards transportation investments—it also safeguards the future we’re leaving for our children.
We also successfully opposed – and will continue to oppose – any measures to sweep funding sources for walking, biking, safety or zero emission vehicles into fixing our roads and highways. These are essential for affordable, safe and clean ways to get to school, work, and recreation, and these areas are already underfunded.
We need to come back to pass a transportation package that meets the needs of all Oregonians: one that invests in safety and climate, is affordable, and includes ODOT accountability and transparency in order to give Oregonians the complete system they deserve.
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