History of the Per-Mile - CSG Knowledge Centerknowledgecenter.csg.org/kc/system/files/Road Usage Charge slides.pdf · Per-mile revenue from 49.4 cents/gallon fuel tax ... Azuga First

History of the Per-Mile

Charge in the United States

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What is a Per Mile Charge?

•  A VMT? •  An MBUF? •  A RUC? •  A Road Charge?

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A per mile charge is a light vehicle user fee based on the amount a motorist uses the road system

A per mile charge is policy flexible and can be based on distanced traveled or time traveled and can have varied factors based on location and time of day

Recent History of Light Vehicle Per Mile Charge in United States

•  15 State Pooled Funds Study (2000)

•  Oregon’s Road User Fee Task Force (2001)

•  Oregon’s First Pilot Program (2006-07)

•  Nevada Studies (2008-2011)

•  Texas Studies (2009-2011)

•  U of Iowa Field Tests (2010)

•  I-95 Corridor Coalition’s Operational Concept

•  Minnesota Pilot Program (2011-12)

•  Washington Steering Committee (2012)

•  Oregon’s Second Pilot Program with Washington and Nevada (2012-13)

•  Oregon enacts SB 810 for volunteer program (2013)

•  California enacts SB 1077 (2014)

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ReemaGriffithExecu0veDirector

WashingtonStateTransporta0onCommission

WASHINGTONSTATE’STRANSPORTATIONFUNDINGDILEMMA

GasTaxBreakdown

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Overthenext13years,approximately70%ofWashingtonState’scurrentnetpor0onoffueltaxrevenueisobligatedtopayforthelong-termdebt

associatedwithfinancingpasttransporta0onprojects

8NOTE:thisinforma0onreflectsdebtobliga0onspriortothe2015revenuepackage

Consideringthe2015revenuepackagecontains

bonding,thisredlinewillnolongerdrop

down.

TheFuelEfficiencyBarCon0nuestoRise

Ø  CurrentFederalCAFÉStandards:54.5MPGby2025

Ø  TheFederalEnergyInforma>onAdministra>onconserva>velypredicts:•  AllNEWcarsin2040=

48MPG•  Allcars(newandold)in2040=37MPG

Ø WashingtonState’sCurrentAverageMPG=19.5MPG

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ImprovingVehicleMPGThreatensOurGasTaxRevenues

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0

1

2

3

4

5

6

0

7

14

21

28

35

42

1990 2000 2010 2020 2030 2040

Centspermile

MPG

Statefueltaxrateincreasesin1990,2003,2005-2008,and2015-2016

At35MPG,revenuedeclines45%from

2016levels

TheRoadUsageChargeEmerges

Aroadusagechargeisapermilechargedriverswouldpayfortheuseoftheroads,ratherthanpayingforthembythegallonofgas.

Iden>fiedasaviablefuturefundingsourceinneedoffurtherexplora>on.

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RoadUsageChargeAssessment

TheStateTransporta0onCommissionleadtheworkandestablisheda25-membersteeringcommibeecomprisedoflegislatorsandvariousstakeholdersrepresen>ngavarietyofinterests.

ThreeCommissioners–OneServesasChairmanEightLegislators–fourfromSenateandfourfromHouseofRepresenta>ves

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Representa0vesfrom:•  Autoandlighttruck

manufacturers•  Ports•  Environmental•  Coun>es•  Truckingindustry•  Ci>es•  Publictransporta>on

•  Consumer/Public•  WSDOT•  DepartmentofLicensing•  Motoringpublic•  Business•  Userfeetechnology•  Treasurer’sOffice

Ø  Iden0fyanddevelopasustainable,long-termrevenuesourceforWashingtonState’stransporta0onsystem,andtotransi0onfromthecurrentmotorfueltaxsystem.

Ø  Ensurethereisconsumerchoiceonhowmileageinforma0oncanbecollectedandpaidfor.

Ø  Duringthetransi0onperiodofmovingfromthegastaxtoaroadusagecharge,driverswouldonlypayoneortheother,butneverboth.

Ø  Forpurposesofassessingthegastaxagainstaroadusagecharge,wehaveassumedrevenueneutralityandfocusedonnetrevenuepoten0alforboth.

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TheBasisoftheAssessment

FourWaystoCollectaRUCFromNoTech.toHighTech.

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Wehavefocusedonfouropera0onalconceptstoassessaroadusagechargesystem:

Ø  TimePermit:aflatfeetodriveanunlimitednumberofmilesforagivenperiodof>me(monthoryear).

Ø  OdometerCharge:Aper-milechargemeasuredbyodometerreadings.

Ø  AutomatedDistanceCharge:Aper-milechargemeasuredbyin-vehicletechnologythatcandis>nguishbetweenin-stateandout-of-statetravelwithperiodicbilling.

Ø  SmartPhoneApplica0on:asmartphoneapplica>onwouldbeusedfortotalmileagecollec>on.

KEYFINDINGSTODATE

TaxingGallonsHasRealFairness&EquityChallenges

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0.0

2.0

4.0

6.0

8.0

10.0

5 20 35 50 65

Centspermile

MPG

Per-milerevenuefrom49.4cents/gallonfueltax,byvehicleMPG

At19.8MPG,theaverageWashingtondriverwillpay

2.5cents/mileinstatefueltax

VehiclesbelowaverageMPGpaymorefueltaxpermiledriven

VehiclesaboveaverageMPGpaylessfueltaxpermiledriven

EvenWithAnnualGasTaxIncreasesRevenueWillNotKeepUpWithNeeds

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Thefueltaxwouldhavetoberaisedabout1.5centspergallon,peryearonallvehiclesfrom2019-2043inordertoequalnetrevenuesfromaroadusagechargeof2.5centspermile.Thises>ma>onwouldnotaddressgrowingneedsforimprovementsormaintenance–itwouldjustkeepfundingatstatusquolevels.

$8less/month

$1less/month

$7more/month

$15more/month

$25more/month

15MPG

20MPG

30MPG

45MPG

Doesnotpaygastax

WHATYouDriveWillDetermineRUCCostImpacts

∞MPG

OutofStateDrivers

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Todis0nguishbetweentravelonWashingtonpublicroadsandotherroads(e.g.,outsidetheState&privateroads),theuseofloca>onbasedtechnologywillbeneeded.

Needtobeabletochargepeoplefromoutofstateforuseofroads.

•  Keepthegastaxinplaceasaparallelsystemtotheroadusagecharge.

•  Driverswillpayeitherthegastaxortheroadusagecharge–butnotboth.

Toachievetaxequityandlong-termrevenuesustainability,roadusagechargingisnotanop0onbutrather,isanecessarynextstepintheevolu0onoftransporta0onfunding.

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OverallConclusion:RoadUsageChargingMakesSense

THANKYOU

CONTACTINFORMATIONReemaGriffith,Execu>veDirector

WashingtonStateTransporta>[email protected]

360-705-7070

Oregon’s Per Mile Road Usage Charge OReGO Program

James Whitty, Office of Innovative Partnerships Manager Oregon Department of Transportation

Successfully launched July 1, 2015

Can support up to 5,000 vehicles

1.5 cents per mile

Fuel tax credit as prepayment of road usage charge

Mileage reporting choices

GPS not required

Private sector account managers

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MyOReGO.org

ODOT contracted with three private sector firms to provide OReGO account management to volunteers

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Volunteer Experience Entry

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Select Provider

Volunteer Experience Sign Up

Sign up and select mileage

reporting method

Install/activate mileage reporting

device

Drive

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Volunteer Experience Payment Account settlement (varies by account manager)

Nature of billing

Timing of payment

Method of payment

Volunteers by Account Manager

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ApprovedVehiclesbyAccountManager

AccountManager Ac0veVehicleCountAzuga 522Sanef(OregonAccountManager) 281Verizon 202Total 1005

Volunteers by MPG

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VehicleProgramMPGCounts

Ac0ve Pending TotalUnder17MPG 237 0 23717to<22MPG 326 0 32622andabove

MPG442 0 442

Totals: 1005 0 1005

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The most enrolled vehicle type is a Toyota Prius, followed by the Subaru Outback and the Ford F-150

VeryPoor2%

Poor5%

Okay22%

Good37%

Excellent34%

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OReGO Volunteer Experience Survey

Note: OReGO Program retention rate is 89.26%.

Overall experience as a volunteer

Tax reports are in

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Azuga First to File Tax Report & Pay

Verizon Telematics Filed Tax Report

& Paid

Sanef Filed Tax Report & Paid

National Review & Support

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What’s next for OReGO?

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