[PPT] - Road Usage Char ging in Or e gon Gove rnors T ra nsporta tion PowerPoint Presentation

SLIDE 1

Road Usage Char ging in Or e gon

Gove rnor’s T ra nsporta tion Vision Pa ne l

No ve mb e r 10, 2015

SLIDE 2

Legislative Mandate “To develop a design for revenue collection for Oregon’s roads and highways that will replace the current system for revenue collection.”

Pur pose of Road Use r F e e T ask F

r

c e

2

SLIDE 3

Histor y of the Pe r

Mile

Char ge in Or e gon

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SLIDE 4

Or e gon’s F ir st Pe r Mile Char ge Pilot Pr

gr

am

Road Use r F e e Pilot Pr

gr

am 2006- 07

Mile a g e re po rting a t fue l pump
GPS mile a g e re po rting de vic e

se le c te d b y ODOT

Pa yme nt a t fue l pump with fue l

purc ha se

4

SLIDE 5

Na tiona l Re vie w & Support

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SLIDE 6

Or e gon’s Se c ond Pe r Mile Char ge Pilot Pr

gr

am

Roa d Usa g e Cha rg e Pilot Prog ra m 2012- 13

Mile a g e re po rting wire le ssly fro m

ma c hine to ma c hine

Co mme rc ia l ma rke t o ffe re d thre e

c ho ic e s fo r mile a g e re po rting

Pa yme nt o f pe rio dic b illing b y

c he c k o r c a rd

6

SLIDE 7

Ca te g orie s of Mile a g e Re porting

1. Re por ting all mile s dr ive n (b a sic ) 2. Re por ting mile s by loc ation (a dva nc e d) 3. Change able r e por ting of mile s (switc ha b le ) 4. Assume maximum annual mile s (simplifie d)

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SLIDE 8

ORe GO Or e gon’s Road Usage Char ge Pr

gr

am

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SLIDE 9

Or e gon Pe r

Mile Road Usage Char

ge L aw

Se na te Bill 810 dire c ts Ore g o n DOT to imple me nt a 1.5 c e nt pe r-mile ro a d usa g e c ha rg e fo r up to 5,000 vo lunte e r lig ht ve hic le s a s a n o pe ra tio na l pro g ra m o n July 1, 2015

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SLIDE 10

Or e gon’s Road Usage Char ge Pr

gr

am

We ll, No . Will ORe GO b e a g o ve rnme nt o pe ra te d, sing le te c hno lo g y, c lo se d syste m tha t will b e e xpe nsive to o pe ra te a nd e xtre me ly diffic ult to c ha ng e ? Ore g o n is e sta b lishing a n o pe n Ma rke t fo r ro a d usa g e c ha rg ing .

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SLIDE 11

Str ate gic Obje c tive for Or e gon’s Pe r Mile Road Usage Char ge “Cre ate a sustainab le ro ad usag e c harg e marke t that is simple and e asy fo r paye rs, fle xib le and e nc o urag e s e vo lutio n o f mile ag e re po rting te c hno lo g ie s and b usine ss syste ms into e ffe c tive , affo rdab le , c o nve nie nt and attrac tive o ptio ns fo r the mo to ring pub lic .”

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SLIDE 12

Or g a nizing Cha r a c te r istic s for Or e g on’s Pe r Mile Cha r g e Syste m

De sig n pro g ra m with o pe n a rc hite c ture T e c hno lo g y a g no stic Pro vide mo to rists c ho ic e s Pro vide a c c e ss to priva te se c to r a c c o unt ma na g e me nt I nte ro pe ra b le , sc a la b le a nd g e o g ra phic a lly unlimite d

12

Po lic y Ne utra l

SLIDE 13

Road Usage Char ge T r ansac tions

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SLIDE 14

Roa d Usa g e Cha rg e Ac c ount Ma na g e me nt

Cre a tio n o f a Co mme rc ia l Ma rke t

Comme r c ial Ac c ount Manage r s

Re c ruit a nd c ho o se vo lunte e rs
All mile a g e re po rting te c hno lo g ie s

tha t me e t sta nda rds

Ca n se ll va lue a dde d se rvic e s
With e xpre ss a ppro va l o f RUC

pa ye r, c a n se ll mile a g e da ta DOT Ac c ount Manage me nt

Must a c c e pt a ny vo lunte e r
Only b a sic re po rting (no GPS)
No va lue a dde d se rvic e s
Ca nno t se ll mile a g e da ta

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SLIDE 15

Volunte e r E xpe r ie nc e - E ntr y

1. Se le c t Pr
vide r

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SLIDE 16

Volunte e r E xpe r ie nc e – E nr

llme nt
2. Sign up and se le c t

mile age r e por ting me thod

3. Install or

ac tivate mile age r e por ting de vic e

4. Dr

ive

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SLIDE 17

Volunte e r E xpe r ie nc e - Payme nt

5. Ac c ount se ttle me nt
Na ture o f b illing
T

iming o f pa yme nt

Me tho d o f pa yme nt

Va rie s b y a c c o unt ma na g e r

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SLIDE 18

E ar ly Re sults for ORe GO

Contr ac ting with ac c ount manage r s Ce r tific ation of ac c ount manage r s E nr

llme nt pr
c e ss

Billing pr

c e ss

Ac c ount manage r r e por ting Payme nt pr

c e ssing

Custome r satisfac tion Public ac c e ptanc e

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Suc c e ss Suc c e ss Suc c e ss Suc c e ss

T BD T BD

Suc c e ss Suc c e ss

SLIDE 19

ORe GO E nrollme nt Sta tus a s of Nove mbe r 10

 950 Ore g o nia ns ha ve sig ne d up fo r ORe GO  Be lo w 17 MPG

= 228 (24%)

 Be twe e n 17 a nd 22 MPG

= 300 (32%)

 22 MPG a nd a b o ve

= 422 (44%)

 T

ype o f mile a g e re po rting de vic e s c ho se n b y vo lunte e rs

 No n-GPS re po rting de vic e s

= 28%

 GPS re po rting de vic e s

= 72%



Mo st e nro lle d ve hic le type is T

yo ta Prius



Se c o nd mo st e nro lle d ve hic le type is F

rd F
150

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SLIDE 20

How Doe s An Ope n Ma rke t Affe c t Roa d Usa g e Cha rg e Ope ra tions?

Va lue Adde d Se rvic e s Re duc e Cost of Administra tion Compe tition Improve s E ffic ie nc y of Ope ra tions Compe tition F

ste rs E

volution

f T

e c hnolog ie s Minimize s Gove rnme nt F

otprint

Options Pa ye rs to Choose Pre fe re nc e s

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SLIDE 21

Major Issue s for Imple me ntation of Pe r Mile Char ge in the Unite d State s

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SLIDE 22

Ke y Issue s Impe ding Adoption of Roa d Usa g e Cha rg ing in the Unite d Sta te s

Priva c y pro te c tio n
E

vo lutio n o f te c hno lo g ie s

Sc a la b ility o f syste ms
F

le xib ility o f syste ms fo r po lic y a da pta tio ns

Co mple xity o f imple me nta tio n
Diffic ulty o f o pe ra tio ns
Ma king c o mplia nc e simple a nd e a sy
Da ta se c urity
I

nte ro pe ra b ility a mo ng sta te s

Co st o f a dministra tio n
E

q uity b y inc o me , g e o g ra phy a nd ve hic le type

E

nfo rc e me nt

T

ra nsitio n

22

SLIDE 23

 Ke y Issue s E

sse ntially Re so lve d in Or e go n

 Priva c y pro te c tio n  E

vo lutio n o f te c hno lo g ie s

 Sc a la b ility o f syste ms  F

le xib ility o f syste ms fo r po lic y a da pta tio ns

 Co mple xity o f imple me nta tio n  Diffic ulty o f o pe ra tio ns  Ma king c o mplia nc e simple a nd e a sy  Da ta se c urity  I

nte ro pe ra b ility a mo ng sta te s

 Co st o f a dministra tio n  E

q uity b y inc o me , g e o g ra phy a nd ve hic le type

 E

nfo rc e me nt

 T

ra nsitio n

 Ke y Issue s Re quir

ing Co ntinual De ve lo pme nt

 Ke y Issue s No t Ye t Re so lve d

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SLIDE 24

 Co st o f a dministra tio n  E

q uity b y inc o me , g e o g ra phy a nd ve hic le type

 E

nfo rc e me nt

 T

ra nsitio n

 Ke y Issue s Not Ye t Re solve d

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SLIDE 25

 Co st o f a dministra tio n  E

q uity b y inc o me , g e o g ra phy a nd ve hic le type

 E

nfo rc e me nt

 T

ra nsitio n

 Ke y Issue s Cr

itic al to Re ve nue s for Roads

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SLIDE 26

0% 20% 40% 60% 80% 100% 120% 1 2 3 4 Percent of RUC Revenue Millions of Accounts

Estimated Cost of Administration

Total CAM ODOT

*Estimated prior to passage of SB 810

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SLIDE 27

Why T

E

xpe c t Administra tive Cost Re duc tions with a Siza ble Prog ra m?

E

c o no mie s o f sc a le with hig he r le ve ls o f pa rtic ipa tio n

L

e ve ra g ing o f priva te se c to r e xpe rtise in te c hno lo g y a nd a c c o unt ma na g e me nt

Ro a d usa g e c ha rg e syste m de sig n a llo ws fo r b undling

with o the r se rvic e s

T

e c hno lo g y c o sts de c re a se o ve r time a nd/ o r vo lume

Additio nal po te ntial e c o no mie s o f sc ale asso c iate d with

the r state s ado pting a pe r-mile c harg e and c o mmo n

administratio n syste m

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SLIDE 28

 T

ra nsition: the F ina l Sta g e of De ve lopme nt for Roa d Usa g e Cha rg ing Polic y In Ore g on

Stra te g ic pla nning fo r a ma nda to ry ro a d usa g e c ha rg e syste m:

What is the e nd state ?
What is r

e plac e d?

Whic h ve hic le s a re in the pro g ra m?
Wha t is r

ate str uc tur e ?

What is the tr

ansitio n plan?

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SLIDE 29

Funding Retained

SLIDE 30

Pote ntia l F utur e Polic y Applic a tions to ORe GO Platfo r m

Local Option Congestion Pricing Climate Change Policy

Other

SLIDE 31

Slide s Re se r ve d F

r

Q&A

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SLIDE 32

U.S. L ight- Duty Ve hic le E ne r gy Use (1995- 2040)

2 4 6 8 10 2012 History Projections 2 4 6 8 10 2012 History Projections

Sourc e : Annua l E ne rg y Outlook 2014 Re port; U.S. E ne rg y Informa tion Administra tion

1995 2000 2005 2010 2015 2020 2025 2030 2035 2040 Million Barrels of Oil Equivalent Per Day

21.5

mpg

37.2

mpg

32

SLIDE 33

Re c e nt History of L ig ht Ve hic le Pe r- mile Cha rg ing in U.S.

15 Sta te Po o le d F

unds Study (2000)

Ore g o n’ s Ro a d Use r F

e e T a sk F

rc e (2001)
Ore g o n’ s F

irst Pilo t Pro g ra m (2006-07)

Ne va da Studie s (2008-2011)
T

e xa s Studie s (2009-2011)

U o f I
wa F

ie ld T e sts (2010)

I
95 Co rrido r Co a litio n’ s Ope ra tio na l Co nc e pt
Minne so ta Pilo t Pro g ra m (2011-12)
Wa shing to n Ste e ring Co mmitte e (2012)
Ore g o n’ s Se c o nd Pilo t Pro g ra m with Wa shing to n a nd Ne va da

(2012-13)

Ore g o n e na c ts SB 810 fo r vo lunte e r pe r mile c ha rg e pro g ra m (2013)
Ca lifo rnia e na c ts SB 1077 (2014)

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SLIDE 34

Ore g on’s Syste m: Re quire me nts, Sta nda rds a nd Contra c tua l Provisions

Syste m re q uire me nts spe c ific a tio ns
Busine ss re q uire me nts do c ume nt
I

nte rfa c e c o ntro l do c ume nt

Pric e a g re e me nts
Wo rk o rde r c o ntra c t
Se rvic e le ve l a g re e me nt

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* All do c ume nts de sig ne d fo r a c c e ss to c o ntra c te d a c c o unt ma na g e rs b y o the r sta te s a nd pro vinc e s

SLIDE 35

 Priva c y prote c tion

De ploye d Solution:

Sta tuto ry dire c tive
Must pro vide c ho ic e s fo r re po rting me tho d a nd

te c hno lo g y

No ma nda te fo r GPS
Optio n fo r priva te se c to r a c c o unt ma na g e me nt
Must pro te c t pe rso na lly ide ntifia b le info rma tio n
Da ta o nly a c c e ssib le to spe c ifie d e ntitie s
Mo to rist c o ntro l o f da ta sha ring
Da ta de struc tio n within 30 da ys

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SLIDE 36

De ploye d Solution:

Ope n syste m de sig n with e sta b lishe d a nd pub lishe d

sta nda rds a nd re q uire me nts

Ve ndo r c o ntra c tua l pro visio ns e na b ling a da ptive

a pplic a tio ns to va rio us po lic ie s a nd g o ve rnme nts

Ce rtific a tio n pro c e ss fo r upg ra ding mile a g e re po rting

func tio na lity

 E

volution of te c hnologie s

 Sc alability of syste ms  F

le xibility of syste ms for polic y adaptations

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SLIDE 37

De ploye d Solution:

Outso urc e d a c c o unt ma na g e me nt
Ac c e sse s industry e xpe rtise in te c hno lo g y

a pplic a tio ns, da ta flo w a nd a c c o unt ma na g e me nt

E

a se s we ig ht o f o pe ra tio ns o n sta te

 Comple xity of imple me ntation  Diffic ulty of ope r

ations

37

SLIDE 38

 Making c omplianc e simple and e asy

De ploye d Solution:

Syste m de sig n e na b le s a uto ma tic e le c tro nic re po rting
Mo to rist c o ntro l c ho ic e s o f:
Pro vide r
Me tho d a nd te c hno lo g y fo r re po rting
Billing a nd pa yme nt me tho ds
Ac c o unt ma na g e r se rvic e le ve l a g re e me nts
Co mpe titio n b ring s do wn c o st o f mile a g e re po rting

e q uipme nt

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SLIDE 39

 Da ta se c urity  I

nte ro pe ra b ility a mo ng sta te s

 Ke y Issue s Re quir

ing Continual De ve lopme nt

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SLIDE 40

 Data se c ur

ity

Curre nt Sta tus:

ODOT

c urre ntly ma na g e s da ta se c urity a c c o rding to na tio na l b e st pra c tic e s

Ac c o unt ma na g e rs must fo llo wing b e st pra c tic e s

a c c o rding to ODOT re q uire me nts

ODOT

will c o ntinua lly mo nito r se c urity b e st pra c tic e s a nd upg ra de re q uire me nts a s a dvisa b le

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SLIDE 41

We ste rn Ro a d Usa g e Cha rg e Co nso rtium

13 ME MBE R ST AT E S

Arizo na Ca lifo rnia Co lo ra do I da ho Ha wa ii Mo nta na Ne va da No rth Da ko ta Okla ho ma Ore g o n T e xa s Uta h Wa shing to n

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 Inte r

pe r

ability among state s

SLIDE 42

Administr ative Costs Re duc e with Volume

*Estimated prior to passage of SB 810

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Number of Payers 10,000 100,000 1,000,000 4,000,000

CAM Admin Costs 1,231,200 3,752,400 13,368,000 27,776,000 CAM Admin Cost Per Payer $123.12 $37.52 $13.37 $6.94

Percentage of Revenues (CAM) 65.7% 20.0% 7.1% 3.7% Number of Payers 10,000 100,000 1,000,000 4,000,000

ODOT Admin Costs 900,000 1,450,000 5,550,000 ODOT Admin Cost Per Payer $90.00 $14.50 $5.55

Percentage of Revenues (ODOT) 48.0% 7.7% 3.0% 2.5% Number of Payers 10,000 100,000 1,000,000 4,000,000 Percentage of Revenues (Total) 113.7% 27.7% 10.1% 6.2%

Estimated* Commercial Account Manager (CAM) Administrative Costs Annually Estimated* ODOT Administrative Costs Annually Estimated* Total Administrative Costs Annually

 Cost of Pe r- Mile Cha rg e Administra tion

SLIDE 43

 E

nfor c e me nt

Curre nt sta tus:

Vo lunte e rs must b e tre a te d with se nsitivity
Ac c o unt ma na g e rs re po rt a no ma lie s to ODOT
Sta tuto ry pe na ltie s
T

a mpe ring

F

a lse re po rting

Co mme rc ia l a c c o unt ma na g e rs ma na g e no n-

pa yme nt fo r CAM a c c o unts

ODOT

ma na g e s no n-pa yme nt fo r OAM a c c o unts

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SLIDE 44

 E

nfor c e me nt

T

be de te rmine d:
Additio na l e nfo rc e me nt a utho ritie s de te rmine d b y

le g isla ture

Co nside ra tio ns:
Ma ke c o mplia nc e e a sy
Appro pria te fo r a mo unt in a rre a rs
Pub lic pe rc e ptio ns o f e nfo rc e me nt

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