History of the Per-Mile Charge in the United States 2 What is a - - PowerPoint PPT Presentation

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

• n 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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Reema Griffith

Execu0ve Director Washington State Transporta0on Commission

WASHINGTON STATE’S TRANSPORTATION FUNDING DILEMMA

Gas Tax Breakdown

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Over the next 13 years, approximately 70% of Washington State’s current net por0on of fuel tax revenue is obligated to pay for the long-term debt associated with financing past transporta0on projects

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NOTE: this informa0on reflects debt obliga0ons prior to the 2015 revenue package Considering the 2015 revenue package contains bonding, this red line will no longer drop down.

The Fuel Efficiency Bar Con0nues to Rise

Ø Current Federal CAFÉ Standards: 54.5 MPG by 2025 Ø The Federal Energy Informa>on Administra>on conserva>vely predicts:

• All NEW cars in 2040 =

48 MPG

• All cars (new and old) in 2040 =

37 MPG Ø Washington State’s Current Average MPG = 19.5 MPG

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Improving Vehicle MPG Threatens Our Gas Tax Revenues

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1 2 3 4 5 6 7 14 21 28 35 42 1990 2000 2010 2020 2030 2040 Cents per mile MPG State fuel tax rate increases in 1990, 2003, 2005-2008, and 2015-2016

At 35 MPG, revenue declines 45% from 2016 levels

The Road Usage Charge Emerges

A road usage charge is a per mile charge drivers would pay for the use of the roads, rather than paying for them by the gallon of gas. Iden>fied as a viable future funding source in need of further explora>on.

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Road Usage Charge Assessment

The State Transporta0on Commission lead the work and established a 25- member steering commibee comprised of legislators and various stakeholders represen>ng a variety of interests. Three Commissioners – One Serves as Chairman Eight Legislators – four from Senate and four from House of Representa>ves

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Representa0ves from:

• Auto and light truck

manufacturers

• Ports
• Environmental
• Coun>es
• Trucking industry
• Ci>es
• Public transporta>on
• Consumer/Public
• WSDOT
• Department of Licensing
• Motoring public
• Business
• User fee technology
• Treasurer’s Office

Ø Iden0fy and develop a sustainable, long-term revenue source for Washington State’s transporta0on system, and to transi0on from the current motor fuel tax system. Ø Ensure there is consumer choice on how mileage informa0on can be collected and paid for. Ø During the transi0on period of moving from the gas tax to a road usage charge, drivers would only pay one or the other, but never both. Ø For purposes of assessing the gas tax against a road usage charge, we have assumed revenue neutrality and focused on net revenue poten0al for both.

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The Basis of the Assessment

Four Ways to Collect a RUC From No Tech. to High Tech.

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We have focused on four opera0onal concepts to assess a road usage charge system:

Ø Time Permit: a flat fee to drive an unlimited number

• f miles for a given period of >me (month or year).

Ø Odometer Charge: A per-mile charge measured by

• dometer readings.

Ø Automated Distance Charge: A per-mile charge measured by in-vehicle technology that can dis>nguish between in-state and out-of-state travel with periodic billing. Ø Smart Phone Applica0on: a smartphone applica>on would be used for total mileage collec>on.

KEY FINDINGS TO DATE

Taxing Gallons Has Real Fairness & Equity Challenges

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0.0 2.0 4.0 6.0 8.0 10.0 5 20 35 50 65 Cents per mile MPG

Per-mile revenue from 49.4 cents/gallon fuel tax, by vehicle MPG At 19.8 MPG, the average Washington driver will pay 2.5 cents/mile in state fuel tax

Vehicles below average MPG pay more fuel tax per mile driven Vehicles above average MPG pay less fuel tax per mile driven

Even With Annual Gas Tax Increases Revenue Will Not Keep Up With Needs

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The fuel tax would have to be raised about 1.5 cents per gallon, per year

• n all vehicles from 2019-2043 in
• rder to equal net revenues from a

road usage charge of 2.5 cents per mile. This es>ma>on would not address growing needs for improvements or maintenance – it would just keep funding at status quo levels.

$8 less/ month $1 less/ month $7 more/ month $15 more/month $25 more/ month

15 MPG 20 MPG 30 MPG 45 MPG

Does not pay gas tax

WHAT You Drive Will Determine RUC Cost Impacts

∞ MPG

Out of State Drivers

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To dis0nguish between travel on Washington public roads and other roads (e.g., outside the State & private roads), the use of loca>on based technology will be needed. Need to be able to charge people from

• ut of state for use of roads.
• Keep the gas tax in place as a

parallel system to the road usage charge.

• Drivers will pay either the gas tax
• r the road usage charge – but not

both.

To achieve tax equity and long-term revenue sustainability, road usage charging is not an op0on but rather, is a necessary next step in the evolu0on of transporta0on funding.

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Overall Conclusion: Road Usage Charging Makes Sense

THANK YOU

CONTACT INFORMATION

Reema Griffith, Execu>ve Director Washington State Transporta>on Commission griffir@wstc.wa.gov 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

• f 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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Approved Vehicles by Account Manager Account Manager Ac0ve Vehicle Count Azuga 522 Sanef (Oregon Account Manager) 281 Verizon 202 Total 1005

Volunteers by MPG

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Vehicle Program MPG Counts Ac0ve Pending Total Under 17 MPG 237 237 17 to < 22 MPG 326 326 22 and above MPG 442 442 Totals: 1005 1005

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

Very Poor 2% Poor 5% Okay 22% Good 37% Excellent 34%

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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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Questions?

Please submit them in the question box

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