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Oregon Aviation Industries
House Bill HB 2075 Background

The State of Oregon economic analyst assigned to this bill projects that funds will be available as follows:

2015 - 2017  $5.25 million
2017 - 2019  $7.61 million
2019 - 2021  $7.61 million
Total          $ 20.47 million

ORAVI views HB 2075 as the best way to ensure that Oregon's aviation infrastructure stays maintained and useful.  We lobbied and made testimony at all the hearings along with many other aviation supporters including OPA, EAA, AOPA, Oregon State Chamber of Commerce, airports, pilots and businesses.

We had requested 4 cents per gallon for both avgas and jet aviation fuels.  Due to strong opposition from Alaska Airlines, the Port of Portland and the Eugene airport, a compromise was reached at 2 cents per gallon.  During the hearings and work sessions several legislators went on record that they desired 4 cents per gallon and made strong supportive statements.  There was excellent bipartisan support.

In summary the bill states that the funds will be allocated as follows:

5%

● Oregon Department of Aviation program administration

                The remaining 95% ($19 million) as follows:
50% ● Federal Aviation Administration (FAA) Airport Improvement Program (AIP
    grant match assistance
● Emergency preparedness per Oregon Resilience Plan
● Fuel, sewer, water and weather equipment
● Economic Development, hangars, facilities, marketing
25% ● Rural commercial air service assistance
25% ● State owned airports (28 total)
● Safety
● Infrastructure

 See details of the Enrolled Final Bill at  HB2075  .   

You can view information and videos of the committee and chamber sessions, read submitted testimony and see the list of committee members at the following links:
    

 Documents submitted in favor and opposed


Major milestones and videos

1/12/2015 HB 2075 submitted by ORAVI.  First reading
1/16/2015 HB 2075 Referred to House Revenue Committee
4/14/2015 House Revenue Committee   Hearing   

5/20/2015

House Committee on Transportation and Economic Development - Aviation briefing.
5/26/2015 House Revenue Committee  Work Session / Vote
6/15/2015 Joint Ways and Means Trans & Econ Dev Subcommittee - Hearing
6/22/2015 Joint Ways and Means Trans & Econ Dev Subcommittee - Work Session / Vote
6/26/2015 Joint Ways and Means Full Committee - Work Session / Vote
6/29/2015 House Vote  Ayes 53 Nays 5
7/1/2015 Senate Vote  Ayes 26 Nays 3
7/20/2015 Signed into law by Governor Kate Brown


Committee Members
House Revenue Committee members     
Joint Ways and Means Subcommittee Members      
Joint Ways and Means full committee


HB 2075 House vote on Monday June 29th was 53 in favor and 5 opposed.
The 5 opposed were:
Rep. Knute Buehler, (R) Bend
Rep. Paul Evans, (D) Monmouth
Rep. Mitch Greenlick, (D) Portland
Rep. Susan McLain, (D) Hillsboro
Rep. Clara Piluso, (D) Gresham

HB 2075 Senate vote Wednesday July 1st was 26 in favor and 3 opposed.
The 3 opposed were:
Sen. Tim Knopp, (R) Bend
Sen. Kim Thatcher, (R) Keizer
Sen. Chuck Thompson, (R) Hood River

Chronological history of HB 2075  on the Oregon Legislative Information website.

Most of the opposition came from Alaska Airlines, the Port of Portland and the Eugene airport, stating that some of the fuel tax they pay would provide funding that goes to rural airports. They were also concerned that it may make them less competitive.  However, jet fuel tax in Oregon has been one cent per gallon which is much lower than any state in the region. And it has been one cent per gallon for the last fifty years.  Per HB 2075 avgas tax will increase from 9 cents/gal to 11cents/gal and jet fuel from 1 cent/gal to 3 cents/gal.
Tax Fairness Oregon analysis  (Oregon compared to other states)  www.taxfairnessoregon.org

With the constantly fluctuating cost of fuel, and especially in light of the recent major fuel price decreases, the additional 2 cents per gallon tax is not a major concern.  It would increase the average commercial airline ticket by only 44 cents if the cost is passed along to the customer.  The bill sunsets 1/1/2022 and it may be possible to extend it at that time if good results are shown.

Thanks to all who participated in supporting this important aviation bill.

For further information, contact:

Mary Rosenblum, ORAVI Aviation Funding committee chair rosenblummary@gmail.com
Jake Jacobs, ORAVI Executive Director. jake@oravi.org
Aron Faegre, ORAVI Board Chair  faegre@earthlink.net
Joe Smith, ORAVI Board Member joe@smithcompound.com
 

Oregon Aviation Industries www.oravi.org

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