*Amend Private For-Hire Transportation Code to clarify uses of Transportation Network Company fees (amend Code Section 16.40.910)

The proposed ordinance seeks to expand the allowable uses of Transportation Network Company (TNC) fees, originally defined in Ordinance No. 187472, passed on October 27, 2015. Under that ordinance, TNC fees were intended primarily to fund the “adequate administration” of the Private for-Hire Transportation (PFHT) program. This emergency ordinance will remove that restrictive language, updating Code Section 16.40.910 to allow TNC fee revenue to be allocated toward broader transportation-related needs beyond PFHT regulation. Background Information The City’s TNC code framework was established in 2015 as part of a significant overhaul of Chapter 16.40 of the Portland City Code. This allowed TNCs such as Uber and Lyft to operate legally within Portland. At the time, the City Council set a $0.50 per-ride fee and directed that revenue exclusively to the administration and regulation of the PFHT program. Since then, TNC usage has grown significantly, generating fee revenue well in excess of what is needed for PFHT regulatory functions. More recently, Ordinance No. 191724 (adopted May 22, 2024) increased the TNC fee from $0.50 to $0.65 and introduced an additional $0.11 surcharge to support the operation of wheelchair-accessible vehicles (WAVs). Impact of This Legislation In a separate ordinance, Council approved an increase in the TNC fee to $2.00 per ride, projected to generate approximately $10.2 million annually in additional transportation revenue. The Portland Bureau of Transportation (PBOT) currently faces an estimated multi-billion-dollar backlog in deferred maintenance. Without major new investments, Portland’s streets will continue to deteriorate—some to the point of reverting to gravel conditions. While this ordinance does not directly generate new revenue, it enables broader use of Portland's existing and anticipated TNC fee revenue. This change will allow PBOT to use these funds for critical infrastructure needs, such as street maintenance, safety improvements, and multimodal transportation projects. It is also necessary to pass the current FY 2025-26 budget, as it relies on the expanded usage of TNC fees to be balanced. All PFHT companies, including TNCs like Uber and Lyft, rely on Portland's road infrastructure. As the city's infrastructure degrades and the maintenance backlog continues to increase, finding and expanding revenue is critical to the continued safe, fair, and efficient provision of private for hire services.

Not applicable.

Expanding the allowable uses of TNC fee revenue will enable Portland to address long-standing transportation disparities across the city – many of which disproportionately impact communities of color, low-income residents, people with disabilities, and neighborhoods historically underserved by public infrastructure investment. By allowing these funds to support broader transportation initiatives—including sidewalks, safer crossings, lighting improvements, and expanded access to multimodal options—this ordinance promotes greater transportation equity and access citywide. Additionally, the continued funding for wheelchair-accessible vehicle (WAV) service ensures that Portlanders with mobility challenges can more reliably access transportation options. The broader flexibility created by this ordinance could support other targeted investments. As the City works to make its streets safer and more inclusive, the expanded use of TNC fees represents an important tool in closing infrastructure gaps and improving mobility for all Portlanders.

Pending City Budget Office review.

Not applicable.