New e-bike rebate bill would give vouchers only to Oregonians on government assistance

A controversial bill that seeks to ban Class 3 electric bikes from bike lanes and bike paths isn’t the only e-bike bill filed by Oregon lawmakers in the new legislative session.

House Representative Mark Gamba, a Democrat from Milwaukie, is sponsoring a bill that would provide eligible Oregonians a rebate of $1,200 on the purchase of an electric bike and related equipment. House Bill 2963 is similar to a bill proposed in 2023, but there are key differences a few more co-sponsors.

HB 2963 would establish an Electric Bicycle Incentive Fund with $6 million in seed money from the General Fund. The voucher program would also be administered via a rule created by the Environmental Quality Commission (the policy arm of the Deparment of Environmental Quality, DEQ). Those elements are the same as the bill proposed in 2023. 

What’s new this time around is the bill no longer has two tiers of eligibility. When the 2023 bill, HB 2571, first came out, it had no provision for lower-income people. After a major rewrite to curry more support, its sponsors decided to give people making 80% of median family income the full rebate of $1,200. Folks with higher incomes would be eligible for a smaller $400 rebate.

In HB 2963, they’re taking a new approach. Gone are the income requirements, and now the rebates will be available only for people who receive State of Oregon “medical assistance” (or who have received it in the previous 12 months) as defined in ORS 414.025 (17)(18). The rebate system will be coordinated with the Department of Human Services and Oregon Health Authority. Instead of requiring voucher recipients and bicycle retail shop employees to manage the rebate process themselves, this bill seeks to use the existing Oregon Eligibility System (ONE), which is already used by one in three Oregonians to access government programs like food assistance and medical benefits.

I haven’t spoken to Gamba or other architects of this bill, but I’ll assume this change was made to build political support for the rebate idea and to streamline its implementation.

With each voucher valued at $1,200, HB 2963 would fund 5,000 new bikes if it received $6 million (compared to 10,000 new bikes in the 2023 bill).

Co-sponsors of the bill include Reps Tom Andersen (D-Salem), Willy Chotzen (D-Portland), Travis Nelson (D-Portland), Hai Pham (D-Hillsboro/Beaverton), and Jules Walters (D-Tualatin/Wilsonville). On the Senate side, the bill is co-sponsored by Senators Chris Gorsek (D-Gresham) and Khanh Pham (D-Portland).

Portland has a rebate program of its own that’s slated to begin this summer. That program, funded with $20 million from the City of Portland’s Clean Energy Fund (a tax on retail sales of large corporations) is expected to fund 6,000 bikes over five years. If the Oregon Legislature passes a statewide rebate, Portlanders who qualify for both would be able to stack the benefits on top of each other.

In 2023, HB 2571 passed out of a House committee by a 9-1 margin with bipartisan support but ultimately died in the Ways & Means Committee (where all bills with fiscal impacts must go), despite a push from advocates. Time will tell if the changes in HB 2963 will get it across the finish line.

This new bill has two big things going in its favor: this session lawmakers could pass a multi-billion dollar transportation package so there will be a lot of money flowing around for stuff like this. And its chief sponsor Rep. Gamba is a new member of the Joint Committee on Transportation, which gives him more sway than last time around.

E-bike rebates are a proven policy that have worked in many other states in recent years. With over half of all trips in Portland being less than three miles and research that shows even a small shift of trips from cars to e-bikes would reduce Portland’s transportation emissions by 12%, the environmental benefits are clear. And given the high cost of driving and other negative externalities created by cars, Oregon stands to reap many benefits by making e-bikes more accessible to more people.

If the bill passes it would go into effect in October of this year. Learn more about HB 2963 at the Oregon Legislative Information System.