Oregon is advancing consideration of a vehicle miles traveled fee for electric vehicle owners, addressing the revenue gap created when EV drivers pay no fuel taxes despite using the same road infrastructure that the gas tax was designed to fund.
The fuel tax has funded highway construction and maintenance for decades, with drivers effectively paying for road use proportionally through every gallon they purchase. EVs bypass this mechanism entirely, contributing nothing to road funding through the fuel tax system while imposing the same or greater wear on road surfaces.
A mileage-based fee would restore that proportional relationship, charging EV owners based on how much they actually drive rather than on a flat registration fee that does not reflect usage. Oregon has been a pioneer in exploring road usage charge programs and already operates a voluntary mileage-based program called OReGO.
Privacy concerns have been the primary objection raised by critics of mileage-based systems, since tracking miles driven implies tracking vehicle location. Proponents argue that privacy-preserving implementations are achievable through odometer reporting without GPS monitoring.
As EV adoption grows, the fuel tax revenue problem will become more acute for states across the country. Oregon’s approach is being watched by other state transportation departments as a potential model for addressing the long-term funding challenge.