Oregon 2025 Regular Session

Oregon House Bill HB3977

Introduced
5/22/25  

Caption

Relating to transportation; prescribing an effective date; providing for revenue raising that requires approval by a three-fifths majority.

Summary

HB 3977 would repeal Oregon’s motor vehicle pollution control system inspection program, but only after the Department of Environmental Quality secures approval from the U.S. Environmental Protection Agency for corresponding changes to the state’s Clean Air Act implementation plan. The bill removes the statutory framework for emissions inspection and related compliance certificates, abolishes the DEQ motor vehicle pollution account, and directs remaining funds and proceeds from the sale of surplus equipment to a new transportation account. It also makes conforming changes across multiple vehicle registration and enforcement statutes to remove references to the repealed inspection and certification requirements. In place of the inspection program, the bill creates a new Transportation Infrastructure and Congestion Reduction Fee for vehicles registered in areas that previously required emissions inspections. The fee would be $25 in areas that include a metropolitan service district and $20 in other affected areas, with several exemptions for certain vehicle types and uses, including electric vehicles, older vehicles in some areas, farm vehicles, special interest vehicles, ATVs, golf carts, and natural-gas-only OEM vehicles. Revenue would be deposited into a new Transportation Infrastructure and Congestion Reduction Account in the State Highway Fund and used for specified transportation projects, including the Interstate 205 Improvements: Stafford Road to Oregon Route 213 Project and other regional projects in the fee area. The bill also revises a number of vehicle code provisions to eliminate pollution-control compliance language tied to the repealed inspection program. It updates offenses involving pollution-control equipment, unlawful certification, and related repair requirements so they refer instead to approved retrofit technology where applicable. Several registration provisions for government vehicles, school vehicles, undercover law enforcement vehicles, disabled veterans, and fleets are amended to remove the old inspection-related compliance requirement. HB 3977’s impact on state law would be significant because it both dismantles a longstanding emissions inspection regime and replaces it with a new recurring vehicle fee dedicated to transportation funding. It would shift responsibilities from DEQ’s inspection-related administration to the Department of Transportation for fee collection, reporting, and project allocation, while also creating a new account and reporting requirements tied to future uses of the revenue. The bill is structured as revenue-raising legislation requiring a three-fifths majority and would not become operative until EPA approval is received. No committee transcript or vote history was provided, so there is no recorded public sentiment in the materials beyond the bill’s structure. Based on the text alone, the measure appears to combine a regulatory rollback with a transportation funding replacement, which suggests support from those favoring elimination of emissions testing and dedicated road funding, but potential concern from those opposed to a new vehicle fee or to the loss of air-quality enforcement tools. The main point of contention is likely the tradeoff between ending the inspection program and imposing a new fee, especially in affected metropolitan areas and among drivers who would pay the charge.

Impact

HB 3977 would repeal numerous Oregon statutes governing motor vehicle pollution control inspections and related compliance certificates, while amending vehicle registration and enforcement laws to remove references to those requirements. It would also create a new Transportation Infrastructure and Congestion Reduction Account in the State Highway Fund, direct fee revenue into that account, and authorize DOT to spend the money on specified transportation projects. The bill would change the administrative role of DEQ and DOT, abolish the DEQ motor vehicle pollution account, and require EPA approval before the repeal and fee provisions take effect.

Sentiment

No committee testimony or vote record was provided, so there is no direct evidence of support or opposition in the available materials. The bill’s text suggests a mixed policy approach: it eliminates an emissions inspection program that some may view as burdensome, while creating a new fee that would likely draw scrutiny from affected motorists and businesses. Overall, the measure appears designed to appeal to supporters of transportation funding and deregulation, but it also introduces a new cost that could generate opposition.

Contention

The central contention is the replacement of an emissions inspection program with a new vehicle fee. Supporters are likely to favor repealing the inspection requirement and redirecting the revenue to transportation projects, while opponents may object to the new fee, the targeted nature of the charge in former inspection areas, or the loss of an air-quality compliance mechanism. Additional likely points of debate include the exemption structure, the use of revenue for the I-205 project, and whether the bill’s changes should wait for federal EPA approval before becoming operative.

Companion Bills

No companion bills found.

Similar Bills

No similar bills found.