The headlines will scream about higher gas taxes and vehicle fees, but there’s much more than that in Governor Kulongoski’s brand new plan for transportation in the state.
There’s a lot of green ideas in it too. The Governor wants to move the state in the direction of more electric vehicles, reducing congestion, and making people pay for fees and insurance based on how many miles they drive.
Let’s look at each of these areas.
Electric Vehicles: The plan calls for spending $8 million a year on infrastructure for electric vehicles. He wants to phase out tax credits for hybrids and increase them on vehicles that produce less carbon. He also wants to create a new category for EV’s. Right now, so called low-speed neighborhood vehicles can’t go faster than 25-mph. He wants to create a medium speed category which would make these kinds of cars more practical for people who want to travel beyond the neighborhood.
Pay Per Miles Driven: Imagine that someday you won’t have to pay a gas tax. Instead, you’ll be charged a fee based on how many miles you drive each year. ODOT tested a pilot program not too long ago. Kulongoski wants the state to work with automakers to develop the technology that’s needed to put such a program into place. The governor says the state can’t rely on gas taxes forever, and wants to replace it with a pay per miles program.
He wants to extend tax credits for pay-as-you-go car insurance. Instead of paying a flat fee for the year, your premiums could rise and fall based on how many miles you drive. Kulongoski says that people with these types of insurance plans reduce their miles an average 5%-15% a year. They end up saving an average 25% on premiums.
Other Ideas: The plan calls for setting up a pilot program to test congestion pricing. In other words, you’ll have to pay higher fees for driving during rush hours.
It sets aside money for non-highway funding, such as light rail.
You’ve probably seen his proposals for raising vehicle registration fees. Among them, a $100 charge for the first time a car gets an Oregon title. That would be reduced to $50 if the car gets more than 30 miles-per-gallon.
It also calls for planning to reduce miles driven by people in metropolitan areas, but cuts rural areas some slack because often have to drive farther for goods, services and jobs.
For more details about the plan visit this link, it opens up a PDF file.
Jobs and Transportation Act 2009