Heppner Gazette-Times, Heppner, Oregon Wednesday, June 25, 2025 -- SEVEN
HB 2025 divides Oregon
Is the state taxing its way to better roads or
burdening the public?
By Andrea Di Salvo
Oregon’s legislature
is moving forward with
House Bill 2025, a sweep-
ing transportation measure
that could reshape how
drivers across the state pay
for road maintenance and
infrastructure. The bill still
sits in committee, where it
has already seen significant
backlash.
The measure is part of a
broader push to modernize
Oregon’s transportation
funding model as tradition-
al gas tax revenues decline.
The bill, currently un-
der review by the Joint
Transportation Committee,
proposes expanding fuel-re-
lated fees and introducing
a new per-mile road usage
charge, particularly target-
ing electric vehicles (EVs).
While specific dollar
amounts weren’t set forth in
the 175-page draft, Ryann
Gleason of CFM Advocates
told the Port of Morrow
Commission at a recent
meeting that Democrats
“let slip” that revenue from
the bill would be about a
billion dollars a year. The
money would fund repairs
and upgrades to Oregon’s
highways, bridges and pub-
lic transit systems.
At the heart of the bill
is a transition toward a ve-
hicle miles traveled (VMT)
system, where drivers—
particularly those with elec-
tric and fuel-efficient vehi-
cles—would begin paying
based on the number of
miles they drive rather than
the amount of fuel they
consume. This change is
set to begin on July 1, 2026,
for certain EV owners, with
optional flat annual fees
offered as an alternative in
the early stages.
Also included in the
package is a 15-cent in-
crease in Oregon’s gas tax.
Gleason said the increase
would come in stages—10
cents in 2026 and another
five cents in 2028.
While the state already
has a vehicle transfer fee for
new vehicles, HB 2025 will
likely implement a similar
fee for used vehicles.
The bill will also au-
thorize performance audits
of the Oregon Department
of Transportation (ODOT)
to ensure efficient use of
funds and create a new
oversight mechanism for
how infrastructure dollars
are allocated.
Proponents argue the
bill levels the playing field
between gas-powered and
electric vehicles, ensuring
all drivers contribute fairly
to the upkeep of public
roadways.
The League of Oregon
Cities (LOC) says that pass-
ing a “multimodal, robust
transportation package”
was a high priority for its
241 member cities. The
organization says HB 2025
fits the bill.
“In the years ahead, the
collective cost of invest-
ment in Oregon’s statewide
transportation system will
only go up. If the Legisla-
ture does not pass a trans-
portation package this year,
communities across the
state can expect more pot-
holes, reduced road safety
for citizens, and less ability
to respond to the challenges
of maintaining transporta-
tion infrastructure in their
communities,” said an LOC
statement. “The time to
respond to transportation
investment is now.”
Irrigon City Manager
Aaron Palmquist agreed.
“As a small city, the
city of Irrigon has and will
continue to benefit from
improved public transit,
consistent funding for the
SCA (Small City Allotment
program), and ongoing
funding for maintenance
and operations,” said Palm-
quist. “Maintaining the
distribution of state high-
way revenue to all cities is
critical for ensuring small
cities can invest in local
streets.”
Not everyone is in fa-
vor of the bill, which would
hit rural communities espe-
cially hard. During a series
of public hearings held
between June 10 and 12,
more than 750 comments
were submitted. Opposition
outpaced support by ap-
proximately two to one on
the first day, with many cit-
izens expressing concerns
about privacy, fairness and
the rising cost of vehicle
ownership.
Critics—ranging from
everyday drivers to or-
ganized advocacy groups
like the Oregon Citizens
Lobby—argue the bill dis-
proportionately affects rural
residents and low-income
families who rely heavily
on driving long distances.
“This is just another
tax increase disguised as
innovation,” one resident
testified. “People in rural
areas will be punished sim-
ply for living far from urban
centers.”
Privacy concerns have
also been raised regarding
how vehicle miles would be
tracked and reported. While
the bill allows for a flat fee
alternative, opponents fear
the VMT system could
open the door to increased
government surveillance.
HB 2025 passed out of
the Transportation Rein-
vestment Committee on a
party line vote. As of this
writing, the bill remains
under active review by
the Joint Transportation
Committee, where law-
makers are considering
amendments and preparing
for a formal vote. If the bill
advances, it would go to the
full House and Senate for
debate. Final passage would
require a signature from
Governor Tina Kotek, who
has so far expressed cau-
tious support for innovative
infrastructure solutions.
The work session and
vote schedule will be an-
nounced in the coming
weeks. Until then, HB 2025
remains one of the most
closely watched—and de-
bated—bills of the 2025
legislative session.
Taylor retires from Port
-Continued from PAGE ONE
few dollars left over than
be trying to figure out how
to find additional dollars.”
Smith also said Umatil-
la County was asking “more
and more questions” about
the property line adjustment
on the Umatilla County
side of the line. The neigh-
boring county has most re-
cently asked for additional
monuments placed on the
property.
“Barring any additional
requirements from Umatilla
County, this should be our
last step in the application
process,” said Smith.
The property line ad-
justment, which will turn
419 acres over to the Con-
federated Tribes of the
Umatilla Indian Reserva-
tion, is a requirement with
the base realignment and
closure team.
There continues to be
an ongoing legal question
between Irrigon and Board-
man fire departments, both
of whom want to be the
primary emergency service
provider on the Morrow
County portion of CDA
property. Smith said the
consensus was to allow
things to be settled through
legal channels.
“So as director of the
CDA, I’m stepping back
and seeing if those two par-
ties can reach resolution,”
he said. Morrow County
has also stepped out of the
dispute for the moment,
waiting to see what resolu-
tion can be reached between
the two fire departments.
Smith also told the
Port commissioners that
the CDA spent just over
$94,000 in the last year
complying with public re-
cords requests.
“This came as policy
from the board that they
wanted public records pro-
vided free of charge,” he
said. “So now we’re work-
ing with our legal counsel to
see if there’s a better way to
do this to save those types
of resources.”
In an interesting side
note, Smith said the CDA
has been receiving informa-
tion requests from members
of the film industry, includ-
ing a firm that is interested
in leasing several of the old
Army igloos for filming.
Finally, he said Uma-
tilla County’s litigation
against other members of
the CDA is ongoing, though
he believed Umatilla Coun-
ty and the POM were close
to an agreement. As far as
the CDA was concerned,
though, he said there was
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Some of the most important stories in the Pacific Northwest are happening
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concern about who would
be responsible for the legal
fees.
“I’ve directed our legal
counsel to take the position
that Umatilla County needs
to reimburse the CDA,”
Smith said, adding that
he could not speak for the
other parties involved.
At the end of the meet-
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executive sessions to dis-
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actions, consult with legal
counsel regarding current
or potential litigation, and
to review employment-re-
lated performance of the
CEO.
After returning to open
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Learn more about Morrow County groundwater
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