Oregon Gov. Kate Brown celebrates the new highway funding law at a ceremony in Portland (Photo: Flickr/Gov. Brown)
Oregon Gov. Kate Brown celebrates the new highway funding law at a ceremony in Portland (Photo: Flickr/Gov. Brown)
Oregon Gov. Kate Brown celebrates the new highway funding law at a ceremony in Portland (Photo: Flickr/Gov. Brown)
Oregon Gov. Kate Brown celebrates the new highway funding law at a ceremony in Portland (Photo: Flickr/Gov. Brown)
Oregon Gov. Kate Brown celebrates the new highway funding law at a ceremony in Portland (Photo: Flickr/Gov. Brown)

Oregon enacts $5.3 billion transportation funding law

Sept. 5, 2017
Tax increases, government accountability highlight new legislation

Oregon’s recently enacted $5.3 billion transportation funding legislation was met with a mostly positive assessment by the state’s trucking group for adding highway capacity while increasing accountability within the government.

The bill was officially signed into law in mid-August by Gov. Kate Brown. She then went on a five-city celebratory signing tour around the state to highlight different aspects of the law.

OTA's Jana Jarvis

“This is easily the most expensive package in Oregon’s history, but delaying this investment would have cost us significantly more,”  Jana Jarvis, president of the Oregon Trucking Associations, wrote in the latest edition of Dispatch magazine. “We will bear our share of the cost as it is phased in over the coming decade – but the added capacity, the accountability improvement at [the Oregon Department of Transportation] , and the cost containment provisions of the low carbon fuel standard should help offset a portion of that burden.

“Aside from the inevitable tax increases, it is a very good bill,” OTA said in its summary of the bill. “The accountability provisions for ODOT and local governments and the Legislature are numerous and significant, changing the relationship between the Legislature, the Oregon Transportation Commission and ODOT for the better.”

The increases include weight-mile tax rates, which are scheduled to increase by 25 percent in 2018, 5 percent in 2020, 10.2 percent in 2020, and 6 percent in 2024 - a total of about 9 cents a mile.

Motor fuel taxes will rise 10 cents a gallon in the coming years, provided that certain accountability requirements are met, starting with a 4-cent hike in January.

There are also increases to registration fees, new vehicle purchases, bicycles priced more than $200, and surcharges for electric vehicles and hybrids. At the same time, the bill includes an electric vehicle rebate program to accelerate sales.

ODOT estimated the average driver will pay about 0.8 cent per mile more under the plan. Half of the overall road funding will go to cities and counties to complete local communities’ top priority maintenance and improvements.

Oregon Gov. Kate Brown holds a signing ceremony in Medford. (Photo: Flickr/Gov. Brown)

Numerous highways that are key to freight movements are slated to receive upgrades, as will many rail and port facilities. Money is also being set aside for the construction of new intermodal rail facilities.

The bill also orders the OTC to develop a proposal for value pricing on portions of Interstates 5 and 205. OTC must seek approval from the Federal Highway Administration by the end of 2018.

The Transportation for America advocacy group wrote in a blog post that “big challenge for implementers of this bill is that it’s not big enough to address everything. While the bill includes substantial new funding for repair, many roads and bridges in the state will continue to deteriorate.”

About the Author

Neil Abt

Neil Abt, editorial director at Fleet Owner, is a veteran journalist with over 20 years of reporting experience, including 15 years spent covering the trucking industry. A graduate of American University in Washington, D.C., he began his career covering sports for The Washington Post newspaper, followed by a position in the newsroom of America Online (AOL) and then both reporting and leadership roles at Transport Topics. Abt is based out of Portland, Oregon.

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