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Oregon official shows how pay-by-the-mile program works as Montana considers funding options
Summary
An Oregon presenter outlined more than two decades of Oregon experience with road-usage charging, including its voluntary pilot and phased mandatory enrollment for electric vehicles, account-manager model, and privacy safeguards—offering a model Minnesota committee members flagged as informative for Montana's funding discussions.
A presenter identified in committee remarks as "Miss Bach," speaking about Oregon's program, walked lawmakers through Oregon's road-usage charging program and how it responds to declining fuel-tax revenue.
She described the program's development: early pilots in the 2000s, a voluntary program launched in 2015 and a legislative decision to phase mandatory mileage reporting for electric vehicles beginning in July 2027, followed by additional vehicle classes in 2028. In Oregon, account managers are third-party entities certified by the state; motorists select reporting methods (onboard device, odometer submission or other non-location options) and the account manager aggregates miles, deducts fuel-equivalent tax and remits the balance to the state. Oregon currently prices those miles at about 2¢ per mile in its example rate structure.
Privacy and jurisdictional questions were central to the presentation: Oregon's enabling statute required at least one non-location reporting option and limited law-enforcement access to travel-pattern data without a warrant. Bach said account-manager data are aggregated and, after a dispute is resolved or an account is settled, travel data must be destroyed.
Committee members pressed on administrative costs and the burden of program back-office operations; the presenter said initial setup costs were substantial and account managers initially retained a large share of revenue, but the program negotiated lower cost models and expects account-manager costs to fall (statutory caps and RFP-based negotiations were described). She also noted the state conducts a biennial highway cost allocation study and uses that information to adjust fee tables.
Members asked about weight-class treatment and whether the program imposes new burdens on counties; the presenter said Oregon shares revenue with cities and counties under formula allocations and treats any public road as subject to the program (private roads and out-of-state miles are exempt).
