Oregon state officials are developing a comprehensive road usage charge program targeting electric vehicle owners as a solution to a $300 million transportation budget deficit caused by declining fuel tax collections. The proposed system would phase in mandatory participation beginning in 2027 for battery electric vehicles, expanding to include hybrid vehicles by 2028, with fees equivalent to 5% of the state gasoline tax structure.

Under the proposed framework, electric vehicle drivers would pay approximately 2.3 cents per mile driven or select an annual flat fee of $340, with multiple reporting options available through private contractors including smartphone applications and vehicle telematics systems. The program design eliminates supplemental registration fees for participating drivers while creating a usage-based revenue stream to replace lost gasoline tax income.

The initiative follows Hawaii's 2023 implementation of the first mandatory road usage charge program in the United States, which requires EV drivers to pay $8 per 1,000 miles driven with a $50 annual cap. Several other states including Utah and Virginia operate voluntary programs, while Arizona voters will decide whether to ban such systems in upcoming elections.

Transportation funding experts view road usage charges as necessary long-term solutions to infrastructure financing challenges as vehicle fuel efficiency improvements and electric vehicle adoption reduce traditional revenue sources. However, implementation faces significant obstacles including privacy concerns about location tracking, data security issues, and potential impacts on electric vehicle adoption rates.

The Oregon proposal addresses growing infrastructure maintenance needs while navigating complex policy considerations around fairness and environmental objectives. Success or failure of the program could influence similar initiatives across other states facing comparable transportation funding pressures as the vehicle fleet composition continues evolving toward electrification.