mileage fees primer vmt fees are in your future

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1 mileage fees primer vmt fees are in your future

2 background vmt fees

3 traffic growth (esp trucks) CAFE + battery cars + efficient trucks = declining $$$ gas tax inflation vs. /gallon taxes system management needs

4 fuel taxes/mile (Colorado) diesel fuel 10 mpg mpg

5 general fund infusions federal highway trust fund balances

6 2013 Wyoming 10 fuel tax increase California 3.5 fuel tax increase Maryland phased fuel tax increases/indexing 4 so far Massachusetts 3 fuel tax, $1 cigarette tax $500M/yr Pennsylvania wholesale fuel tax $2.3B/yr Vermont 5.9% increase in fuel taxes, phased Virginia multiple tax sources $1.3B/yr the pressure is on the states

7 2014 New Hampshire 4 + increased borrowing Rhode Island 1 + indexing the pressure is on the states

8 2015 Iowa 10 fuel tax increase Idaho 7 fuel tax increase, registration fee increase Utah 5 fuel tax increase, future wholesale price taxes Georgia 6 fuel tax, $200 EV fee, $5/room night hotel tax Nebraska 6 fuel tax, passed, vetoed, veto overridden Kentucky new floor under indexed tax North Carolina future fuel tax increases from indexing Utah convert from 24.5 /gal to 12% Vermont new floor under indexing the pressure is on the states

9 the downside of gas taxes indexed to fuel price

10 objectives vmt fees

11 additional investment required to meet performance objectives (roads and bridges only all levels of government) at 1.0% annual growth in vehicle miles of travel: $120 B at 1.4% annual growth in vehicle miles of travel: $144 B current annual expenditure: $83 B source: 2015 AASHTO Bottom Line Report

12 92% 74% 77% 78% 77% 39% cars pickups & vans single unit trucks tractor trailer bus ALL (average) cost responsibility by vehicle type direct revenues vs. direct roadway costs source: FHWA 1997

13 85% 59% 62% 64% 63% 24% cars pickups & vans single unit trucks tractor trailer bus ALL (average) cost responsibility by vehicle type direct revenues vs. all roadway costs source: FHWA 1997

14 2015 Ford Ford 150 aluminum chassis need to reduce carbon emissions

15 need to reduce road wear

16 need to support congestion pricing

17 need better data

18 technology & systems vmt fees

19 odometer simple on-board unit gps on-board unit cell + gps on-board unit photo credit: Rand Corp. metering options

20 privacy protection role of private sector reporting and billing enforcement key operational considerations

21 administrative cost of collecting mileage fees cost of collecting gas taxes < 1 % of revenues cost of collecting mileage fees 5 6 % of revenues public resistance to mileage fees key challenges

22 pilot projects vmt fees

23 Oregon DOT California Road Charge Washington DOT Minnesota DOT I-95 Coalition early pilot projects FHWA $ 14.7 M Hawaii DOT Delaware DOT Washington DOT Oregon DOT Caltrans Minnesota DOT Missouri DOT

24 Oregon pilot

25 12 months, vehicles (299 volunteers) 2 service stations proof of concept solve technical issues test public acceptance Oregon vmt tax first pilot study

26 peak charge households: 10 /mile for travel in congested zones during peak periods, 0.43 /mile otherwise flat rate households: 1.2 /mile for travel anywhere, anytime Oregon study

27 1 peak charges do reduce driving in congested zones during peak periods 2 peak charges do not encourage more driving in off-peak periods 3 peak charges have greater effect in higher-density, mixed-use, transit served neighborhoods outcomes 1 st Oregon pilot

28 do Oregonians support a mileage fee? Mason-Dixon poll telephone, May, 2015 Oregonian poll on-line, June, % 56% 27% 73% 12% favor oppose undecided favor oppose

29 Oregon vmt tax expanded pilot OreGo began July 1, 2015 fee = 1.5 / mile user pays bill monthly credited against gas tax at pump trying to get 5,000 volunteers (unsuccessfully) vehicles < 10,000 lbs volunteers choose between tech options

30 OBD-II port

31 alternative tech providers

32 OreGo pilot sample pump receipt state gps satellite $ wholesaler $ retailer $ consumer point of sale systems zones time & location data stored on vehicle

33 OreGo works well doesn t work well taxes electric/hybrid vehicles supports congestion pricing uses existing taxing system avoids centralized data hack-resistant flat fee rewards gas guzzlers requires special equipment on board computer gas station wi-fi requires point of sale software double taxation on toll routes

34 implications vmt fees

35 interoperability across state lines interface strategies with toll road entities potential for corridor applications need time- & location-specific data long-term challenges

36 wrap up update on vmt fees

37 University of Iowa, Mileage-Based User Fees For transportation Funding A Primer for State and Local Decisionmakers, Rand Corporation, 2012 Public Perception of Mileage-Based User Fees. NCHRP, Minnesota DOT, Oregon Pilot, suggested resources

38 back up slides

39 CAFE standards & electric vehicles

40 two factors mix of vehicle types mpg for vehicle type

41 fuel tax rates diesel fuel gasoline federal Colorado total

42 Congressional Budget Office

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