Odometer “user fee” for electric vehicles

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Today’s OC Register raises an interesting point on automobiles. It has been reported that at $.65 per gallon of gasoline California pays the highest state and federal taxes at the pump. In fact, consuming 50-75 million gallons of gasoline (and diesel fuel) per day (or 20 billion gallons per year) we consume more gasoline than any country in the world. Those fees are allegedly used to provide for our road and bridge infrastructure that trickles down to every county and city. i.e. Any CA city with population of 100,000 receives $10,000 to offset the cost of wear and tear and related maintenance of local streets.

President Obama is urging the auto industry and motorists to purchase electic vehicles (EV’s) and higher MPG passenger cars and light trucks. The CAFE plan calls for passenger cars to meet or exceed 39 MPG by 2016 and light trucks to achieve 30 MPG in the same timeframe. Note: According to the EPA those numbers translate into 29 MPG and 23 MPG respectfully. By 2025 the federal dream sheet elevates passenger cars to 60 MPG. Reaching those milestones will result in billions of lost user taxes at all levels of government. Let’s see. This is a win for motorists but may result in further decay of our roads due to the shortfall in tax revenue. I guess we can label this “cause and effect”

To make matters worse the federal government effort to encourage purchase of electric vehicles is a double edged sword. While gasoline or diesel powered vehicles pay towards road maintenance every time we fill up the same is not true for drivers of EV’s.

Recognizing the future loss of use taxes our northern neighbors in Oregon and Washington are currently promoting legislation to impose a mileage usage fee on all vehicles.  Following is part of the proposed Oregon House Bill HB 2328. In this proposal they are suggesting a EV charge of six cents per metered mile when traveling on Oregon highways.

76th OREGON LEGISLATIVE ASSEMBLY–2011 Regular Session

NOTE:  Matter within  { +  braces and plus signs + } in an amended section is new. Matter within  { –  braces and minus signs – } is existing law to be omitted. New sections are within { +  braces and plus signs + } .

LC 1440

House Bill 2328

Ordered printed by the Speaker pursuant to House Rule 12.00A (5).
Presession filed (at the request of House Interim Committee on Transportation for Road User Fee Task Force)

SUMMARY

The following summary is not prepared by the sponsors of the measure and is not a part of the body thereof subject to consideration by the Legislative Assembly. It is an editor’s brief statement of the essential features of the measure as introduced.

Requires persons operating electric motor vehicles and plug-in hybrid electric motor vehicles to pay vehicle road usage charge. Becomes operative January 1, 2014.

Permits person paying vehicle road usage charge to apply for refund of motor vehicle fuel tax.
Directs Department of Transportation to develop technology for reporting vehicle miles traveled.
Provides penalty for violation of laws related to payment and reporting of vehicle road usage charge. Punishes by maximum fine of $720.
Creates offense of tampering with vehicle metering system.
Punishes by maximum fine of $720.
Permits person to seek refund for miles driven on private property.
Modifies definition of ‘transportation project’ to allow department to enter into agreements under Oregon Innovative Partnerships Program for collection of vehicle road usage charge.

A BILL FOR AN ACT
Relating to motor vehicles; creating new provisions; amending ORS   319.280, 319.831 and 367.802; and providing for revenue raising   that requires approval by a three-fifths majority.
Whereas a significant number of highly fuel-efficient vehicles are entering the marketplace; and
Whereas the fuel tax has become a less viable revenue source for funding Oregon’s road system over the long-term; and   Whereas it is vital that we transition to an alternative revenue source, augmenting the fuel tax to provide the means to support the state’s system of roads and highways; and   Whereas the solution is to charge users of certain fuel-efficient vehicles based on measured road use to augment the fuels tax as a revenue source for funding the road system; now, therefore, Be It Enacted by the People of the State of Oregon:
SECTION 1.  { +  Definitions. + }  { + As used in sections 1 to 22 of this 2011 Act:
(1) ‘Electric motor vehicle’ means a motor vehicle that uses electricity as its only source of motive power.

(2) ‘Highway’ means every public way, road, street, thoroughfare and place, including bridges, viaducts and other structures within the boundaries of this state, open, used or intended for use of the general public for vehicles or vehicular traffic as a matter of right.
(3) ‘Lessee’ means a person who leases a motor vehicle that is registered in Oregon and who is subject to the vehicle road usage charge under section 2 of this 2011 Act.
(4) ‘Plug-in hybrid electric motor vehicle’ means a motor vehicle that uses electricity and another source of motive power and is designed for electric plug-in charging.
(5) ‘Registered owner’ means a person who is the registered owner of a motor vehicle that is registered in Oregon and who is subject to the vehicle road usage charge under section 2 of this 2011 Act. + }
SECTION 2.  { +  Vehicle road usage charge. (1) Except as provided in subsection (2) of this section, the registered owner of an electric motor vehicle or plug-in hybrid electric motor vehicle shall pay a vehicle road usage charge.
(2) A lessee of an electric motor vehicle or plug-in hybrid electric motor vehicle shall pay a vehicle road usage charge.
(3) A person subject to the vehicle road usage charge shall pay 0.6 cents per mile for metered use of the highways in Oregon.
(4) This section does not apply to a vehicle dealer that holds a certificate issued under ORS 822.005. + }
SECTION 3.  { +  Methods of reporting vehicle miles traveled.
(1) The Department of Transportation shall establish methods for identifying the motor vehicles that are subject to the vehicle road usage charge established in section 2 of this 2011 Act and establish the methods for reporting the number of miles the motor vehicles traveled on the highway system.
(2) The department shall take into account at least the following when taking action under subsection (1) of this section:
(a) The accuracy of the data collected;
(b) Privacy options for persons paying the vehicle road usage charge;
(c) The adaptability of the technology used;
(d) The installation of the technology;
(e) The safety of the installation; and
(f) Tamper-resistant technology.
(3) The department shall establish at least one method of collecting and reporting the number of miles traveled by the motor vehicle that does not use vehicle location technology.
(4) The department may require that a vehicle subject to the vehicle road usage charge be capable of electronically reporting the odometer reading or be equipped with technology approved by the department that is capable of electronically reporting the odometer reading.
(5) The department shall establish standards for vehicle location technology that is capable of reporting the motor vehicle’s geographic location for the purpose of differentiating between miles traveled within this state and miles traveled outside of this state. + }

 

 Gilbert note. As a conservative I am not promoting any legislation to impose taxes or fees  on motorists. In fact the Oregon story is over a month old. Based on today’s article I am adding my above commentary and postat this time.

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About Larry Gilbert