Oregon s Per Mile Road Usage Charge and Related Activity Across the US
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1 Oregon s Per Mile Road Usage Charge and Related Activity Across the US Jim Whitty, Partner Bridges & Tolls: Mobility Pricing & Bsiness Srrey Board of Trade Leadership Series April 8, 2016 Srrey, BC
2 Contents How it began in Oregon Why Charge by the Mile Development of the Per Mile Charge in Oregon Oregon s Per Mile RUC Program Top Concerns abot RUC What is happening elsewhere in the U.S. April 8, 2016 D Artagnan Consl0ng 1
3 It All Began When Oregon Legislatre Created the Road User Fee Task Force April 8, 2016 D Artagnan Consl0ng 2
4 Road User Fee Task Force To develop a design for revene collection for Oregon s roads and highways that will replace the crrent system for revene collection. April 8, 2016 D Artagnan Consl0ng 3
5 Why Charge by the Mile? April 8, 2016 D Artagnan Consl0ng 4
6 Transportation system in financial crisis becase vehicle fleet transitioning away from fossil fels while driving at new highs Vehicle Miles Traveled Gas Consmption with Increased Efficiency VMT Growth Revene Loss De to Increased Fel Economy and Alternative Fel Adoption Sorce: Caltrans CTC Presenta1on, Febrary 2014 April 8, 2016 D Artagnan Consl0ng 5
7 Transportation system in financial crisis becase vehicle fleet transitioning away from fossil fels while driving at new highs Sorce: IDDRI, Pathways to deep de-carbona0on in the USA, USA 2050 Report, California ARB Presenta0on, May 2015 April 8, 2016 D Artagnan Consl0ng 6
8 Reliance on gas tax for road fnding is increasingly ineqitable April 8, 2016 D Artagnan Consl0ng 7
9 Under per mile charge motorists pay for roads and bridges based on amont of se Everyone pays their fair share Average Annal Cost of Select Items Cable $1,032 A User Pays principle the more yo drive, the more yo pay Makes road system more like other tilities April 8, 2016 Cell Phone $852 Coffee $780 Internet $540 Gas Taxes $368 D Artagnan Consl0ng 8
10 Development of the Per-Mile Charge in Oregon April 8, 2016 D Artagnan Consl0ng 9
11 Oregon s First Per Mile Charge Pilot Program Road User Fee Pilot Program Mileage reporting at fel pmp GPS mileage reporting device selected by ODOT Payment at fel pmp with fel prchase April 8, 2016 D Artagnan Consl0ng 10
12 Redesign of Oregon s Per-mile Charge Concept Design program as open system Government shold not select technology Provide motorists choices Provide access to private sector accont management Make system flexible, scalable and geographically nlimited April 8, 2016 D Artagnan Consl0ng 11
13 Oregon s Second Per Mile Charge Pilot Program Road Usage Charge Pilot Program Mileage reporting wirelessly from machine to machine Commercial market offered three choices for mileage reporting Payment of periodic billing by check or card April 8, 2016 D Artagnan Consl0ng 12
14 Bilding Political Spport Legislative involvement in RUC policy and pilot program Testimony before legislatre Governor, Commission and DOT leadership Interaction with and spport from interest grops April 8, 2016 D Artagnan Consl0ng 13
15 Arond the State Road Usage Charge Edcation Tor St. Helens Portland Newberg Rfs La Grande Salem Albany Redmond John Day Egene Springfield Rosebrg Medford April 8, 2016 D Artagnan Consl0ng 14
16 Oregon s Per Mile Road Usage Charge Program April 8, 2016 D Artagnan Consl0ng 15
17 Sccessflly lanch on Jly 1, 2015 Volnteer light vehicles 1.5 cents per mile Fel tax credit as prepayment of road sage charge Mileage reporting choices GPS not reqired Private sector accont managers April 8, 2016 D Artagnan Consl0ng 16
18 Volnteer Experience Entry Entry Entry Select Provider April 8, 2016 D Artagnan Consl0ng 17
19 Volnteer Experience Sign Up Sing p Sign p and select mileage reporting method Install/activate mileage reporting device Drive April 8, 2016 D Artagnan Consl0ng 18
20 Volnteer Experience Payment Accont settlement (varies by accont manager) Natre of billing Timing of payment Method of payment April 8, 2016 D Artagnan Consl0ng 19
21 Volnteers by MPG Vehicle Program MPG Conts AcFve Pending Total Under 17 MPG to < 22 MPG and above MPG Totals: April 8, 2016 D Artagnan Consl0ng 20
22 The most enrolled vehicle type is a Toyota Pris, followed by the Sbar Otback and the Ford F-150 April 8, 2016 D Artagnan Consl0ng 21
23 OReGO Volnteer Experience Srvey Overall experience as a volnteer Excellent 34% Very Poor 2% Poor 5% SaFsfactory [PERCENTA GE] Good 37% April 8, 2016 D Artagnan Consl0ng 22
24 Tax reports are in Azga First to File Tax Report & Pay Verizon Telematics Filed Tax Report & Paid Sanef Filed Tax Report & Paid April 8, 2016 D Artagnan Consl0ng 23
25 Top Concerns abot Road Usage Charging April 8, 2016 D Artagnan Consl0ng 24
26 Pblic Concerns With Road Usage Charging Privacy Government breacracy Complexity Cost Fairness April 8, 2016 D Artagnan Consl0ng 25
27 Privacy protection bilt into the system Programs embrace ser choice offering several methods and technologies GPS not optional For those choosing GPS, location data never transmitted to state Providers reqired to not share mileage data withot express approval of motorist Miles-by-day data destroyed after 30 days with only mile smmaries by reporting period kept longer. Strong privacy policies and electronic secrity measres reqired. April 8, 2016 D Artagnan Consl0ng 26
28 The Fairness Isse Rral drivers ² Pay fel tax now ² More off-road driving Fel efficient vehicles ² Crrently not paying fair share ² Already avoid cost of fel ² Per mile charge not a large brden Non-resident driving ² Until regional system developed, still pay fel tax ² Western RUC Consortim addressing soltion April 8, 2016 D Artagnan Consl0ng 27
29 What is happening elsewhere in the United States on per mile charging? April 8, 2016 D Artagnan Consl0ng 28
30 Crrent stats of RUC activity by state April 8, 2016 D Artagnan Consl0ng 29
31 Western Road Usage Charge Consortim Arizona California Colorado Idaho Hawaii Montana Nevada New Mexico North Dakota Oklahoma Oregon Texas Utah Washington April 8, 2016 D Artagnan Consl0ng 30
32 California Road Charge Pilot Project Go-live mid-late smmer 2016 Will last 9 months participants from across the state in a mix of geographic and demographic grops Time Permit, Mileage Permit, Odometer Charge, Atomated Distance Charge (with and withot location) Will inclde OBDII devices, Smartphones, Telematics, Commercial Vehicle devices April 8, 2016 D Artagnan Consl0ng 31
33 Washington State Legislatre provided $500,000 for preparation of pilot project implementation plan ² Identify essential agency roles and responsibilities ² Select technologies and methodologies for inclsion ² Identify target nmber of participants and their characteristics ² Establish evalation criteria ² Estimate pilot test expenditre Conslt and coordinate with state agencies Engage RUC Steering Committee for gidance Write final report by Oct Seeks to test interoperability with neighboring states and Canada April 8, 2016 D Artagnan Consl0ng 32
34 FAST Act Section 6020 State or grop of states may apply $95M over 5 years for demonstrations" of ser-based alternative revene mechanisms First rond of grant applications for states will likely be de no later than Jly 50% state match reqired Langage is broad enogh to cover heavy as well as light vehicles April 8, 2016 D Artagnan Consl0ng 33
35 Other States Prsing Pilots Colorado Utah Hawaii Western RUCC Regional Pilot Plan I-95 Corridor Coalition April 8, 2016 D Artagnan Consl0ng 34
36 Road Usage Charging for Heavy Vehicles Important becase road damage proportionate to weight/axle Crrently in for states: Kentcky, New Mexico, New York, Oregon Widespread internationally: mch of Erope, New Zealand, etc. Increasing se of electronic collection Oregon s WMT for Heavy Vehicles now spports electronic collection. Electronic collection was implemented at no charge to state. April 8, 2016 D Artagnan Consl0ng 35
37 Thank Yo! Jim Whitty Partner
38 The Ftre How Will an Open Market Affect Road Usage Charge Operations? Minimizes Government Footprint Competition Improves Efficiency of Operations Competition Fosters Evoltion of Technologies Vale Added Services Redce Cost of Administration Options Provide Comfort to Payers April 8, 2016 D Artagnan Consl0ng 37
39 Recent History of Light Vehicle Per-mile Charging in USA The Kitz-o-meter (1996) 15 State Pooled Fnds Stdy (2000) Oregon s Road User Fee Task Force (2001) Oregon s First Pilot Program ( ) Nevada Stdies ( ) Texas Stdies ( ) University of Iowa Field Tests ( ) Minnesota Pilot Program ( ) Washington Steering Committee (2012) Oregon s Second Pilot Program with Washington and Nevada ( ) Colorado annonces pilot program (2014) California Road Charge pilot program lanched (2015) April 8, 2016 D Artagnan Consl0ng 38
40 and there was legislation Oregon enacts HB 3946 creating the Road User Fee Task Force and mandating a per-mile charge pilot (2001) Washington enacts legislation creating the Road Usage Charge Steering Committee (2012) Oregon enacts SB 810 creating the Road Usage Charge Pilot Program for 5,000 volnteers (2013) California enacts SB 1077 creating the Road Charge Technical Advisory Committee and mandating a per-mile charge pilot (2014) Utah passes legislation to research road sage charge (2015) Florida is reviewing road sage charge legislation (2015) April 8, 2016 D Artagnan Consl0ng 39
41 and states working together Western Road Usage Charge Consortim: 12 states ² Arizona ² California ² Colorado ² Idaho ² Hawaii ² Montana ² Nevada ² New Mexico ² North Dakota ² Oregon ² Texas ² Utah ² Washington I-95 Corridor Coalition: 17 states April 8, 2016 D Artagnan Consl0ng 40
42 Key RUC websites in Oregon and California Oregon Accont Manager ² Oregon Commercial Accont Managers ² Danlaw sbsidiary ² Verizon Telematics California Road Charge Program ² Caltrans pblic facing website for road charge program ² Facebook page ² Sb-section of CTC (California Transportation Commission) website ( April 8, 2016 D Artagnan Consl0ng 41
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