Transportation package survives in committee, heads to House floor
Published 3:44 pm Saturday, July 1, 2017
SALEM — Rep. Caddy McKeown, co-chair of the joint transportation committee, summed up 18 months of work, and a bill of steep compromises, with this: “We aimed for the sun and landed on the moon.”
The Joint Committee on Transportation Preservation and Modernization on Saturday passed the state’s transportation bill on a 12-2 vote, sending House Bill 2017 to the House floor next week. It’s expected to pass there, head to the Senate for a successful run, before going to the Governor’s Office.
All this, within days of the end of a long and contentious session.
The bill raises $5.3 billion over a 10-year period through increases in the gas tax, registration fees and new taxes on payroll, new vehicle purchases and bicycles priced more than $200.
However, the new plan excludes several congestion-busting projects in the Portland area that would have been funded through a state-local match, including projects to widen Interstate 205 from Stafford Road to Oregon City and to replace the Abernathy Bridge on I-205 between Oregon City and West Linn.
The original bill also would have raised the gas tax even more in the Portland area to raise funds for the metro congestion projects.
Instead, the proposal directs the Oregon Transportation Commission to establish a tolling program on I-205 and I-5. The program would be used to fund projects on Interstate 205 and Interstate 5 from the Washington state line to where the two interstates cross south of Portland.
The bill survived a stressful four-hour meeting on a rare Saturday session, with Sen. Betsy Johnson of Scappoose getting into heated disputes in the corridor at least twice.
Rep. Richard Vial of Scholls — not a member of the committee but a longtime advocate for transportation funding on the county level — praised the bill.
“As painful as it is, the process works,” he said Saturday.
Legislative leaders and Gov. Kate Brown negotiated an agreement between Democrats and Republicans to trim the size of the package and to place a cost cap on the state’s low carbon fuels standard. Republican opposition to the fuels standard is what scotched another transportation deal in 2016.
This year’s deal was intended to win enough GOP votes to reach the constitutionally required three-fifths majority in each chamber for raising taxes.
The deal includes:
• Reducing the gas tax increase and an excise tax on the sale of new vehicles, from 1 percent to 0.5 percent. About $12 million of the revenue from the proceeds of the vehicle excise tax would be used for rebates on the purchase of electric vehicles.
• A $15 flat fee would be charged on the purchase of new adult bicycles with a price tag of more than $200. The proceeds would go toward paying for commuter bicycle and pedestrian paths.
• A 4-cent gas tax increase that would be triggered in 2018, with subsequent 2-cent hikes every other year.
• A payroll tax of less than 0.1 percent, to raise money to fund public transit.
A sticking point in negotiations was Republicans’ request for changes to state’s low-carbon fuels standard, which calls for greenhouse gas emission reductions by 2025. In the agreement, the GOP won a cost cap of $200 per subsidy for efforts such as alternative fuel production and electric vehicles, a concession Republicans wanted to control the cost of the program. The deal also allows temporary suspension of parts of the program when there are fuel shortages.
The bill also will see improvements of outer Powell Boulevard — roughly from Interstate 205 east. The street, now owned and maintained by the Oregon Department of Transportation, will be handed over to Portland for subsequent maintenance and improvements.
Conversely, Cornelius Pass Road will revert to ODOT control under this bill.
Dana Haynes is a reporter for Pamplin Media Group.