Utah Road Usage Charge Program

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Road User Charging Conference March 2019 Utah Road Usage Charge Program Cameron Kergaye, PhD, PE, PMP Director of Research & Innovation Utah Department of Transportation

Utah s RUC West Research Involvement RUC vendor certification Parameters for a RUC rate Plan for Regional RUC pilot Addressing out-of-state drivers Effects of RUC on rural residents Protection of privacy in a RUC system Public understanding of a RUC system Web-based cost transportation calendar Impacts of changing fleet fuel economy on state transportation funding March 12, 2019 2

2018 Legislature SB 136 RUC Study Recommendations Set up RUC Advisory Committee Provide RUC alternative to paying flat fee for: Electric vehicles Plug-in hybrids Gasoline hybrids Consider privacy, methods for reporting road usage, and options for administering the system Implement initial system by January 1, 2020 Submit annual report of findings Future pilot projects 3

Utah Vehicle Miles Traveled (VMT) Projection 60 50 More drivers are driving more miles creating more demand on the roadway system. Billions of Miles Driven Annually 40 30 20 29 Billion Miles 51 Billion Miles 10 21 Billion Miles Transportation choices, policies, and population growth will define Utah s future VMT. 0 2000 2005 2010 2015 2020 2025 2030 2035 2040 4

Gas Tax Revenue Decline Across the Nation 03 04 05 06 07 08 09 10 11 12 13 14 15 16 2017 0% -10% - 38% -20% -30% Utah efforts: Indexing -40% -50% -60% - 20% Road Usage Fees -70% -80% -90% Impact of Construction Cost Inflation Impact of Fuel-efficiency Gains 5

Size & Growth of Utah s Vehicle Fleet Total Registered Vehicles 2,594,746 (2019) 2% 0.2% 0.1% 1.5% 55% 50% 45% 40% Year-over-year Growth (%) 89.5% 8.5% 0.2% Gasoline Diesel EV PHEV Gas Hybrid Other Alt Fuel 35% 30% 25% 20% 15% 10% 5% 0% 2015 16 2016 17 2017 18 2018 19 EVs PHEVs & Gas Hybrids All Others 5,526 Vehicles ( Feb 2019 ) 42,770 2,546,450 6

Average Annual Gas Tax Payments EV DOESN T APPLY $0 Gas Hybrid 50 MPG $150 Sedan 25 MPG $301 Pickup 15 MPG $501/$564 Heavy Truck 6 MPG $1,409 1. Based on 30 cents/gal State tax (gasoline/diesel) and 15,542 miles driven annually by average Utah vehicle. 2. Based on Federal tax of 18.4 cents/gal for gasoline and 24.4 cents/gal for diesel. 3. Pickup truck costs listed for both gasoline and diesel values; heavy truck costs listed for diesel only. 7

US Alternative Fuel Vehicle Flat Fees National ANNUAL FEES RANGE AVERAGE EVs $50 $200 $112 PHEVs $30 $130 $72 Gas Hybrids $20 $100 $57 Utah ANNUAL FEES 2019 2020 2021* EVs $60 $90 $120 PHEVs $26 $39 $52 Gas Hybrids $10 $15 $20 * Fees are indexed to CPI after 2021 Considered annual fees (10 states) Adopted annual fees (19 states) Adopted one-time fees (1 state) 8

RUC Research & Pilot Projects across the US Delaware RUC West members (14 states) I-95 Corridor Coalition members (17 states) Completed pilot program (7 states) Ongoing program (2 states) 9

2019 Legislature SB 72 (Draft) Authorizes UDOT/DMV information sharing Allows EV/PHEV/Hybrid vehicles to participate in RUC Grants rulemaking authority for Utah Transportation Commission to set RUC rates Grants rulemaking authority for UDOT To hire CAM and administer program Implement enforcement mechanisms such as vehicle registration holds Establish yearly fee payment caps and other enrollment components 10

Integration with Department of Motor Vehicles Syncing of annual registration cycle (and flat fee payments) with RUC enrollment Confirmation that RUC applicants vehicles are eligible for program Ability to place registration holds for non-compliant RUC payers and clear the holds once they ve paid up 11

Integration with Annual DMV Registration Process 2019 alternative fuel vehicle owners receive notice to pay annual fee Annual fee Per-mile fee After Jan 1, 2020, owners will have two options for paying transportation fees 12

User and CAM Agreement Options RUC Per-mile Fee RUC payer is able to: View their collected data Dispute erroneous charges Be protected from public record requests Be protected from release of personal data except in criminal proceeding CAM is able to: Collect raw location data but not share w/state (except for disputes) Send mileage summaries to State Share aggregated anonymized data with the State Short-term data retention Long-term data retention Value-added Services CAM retains raw location data for current billing cycle only Additional Services CAM retains raw location data until enrollee leaves RUC system * CAM = Commercial Account Manager 13

Elements of a Utah RUC System Based on Advisory Committee Input Data Collection Tech OBD-II GPS Devices 16 Odometer Capture 2 Telematics 2 Smartphone Apps 15 Vehicle Types EV 16 PHEV 16 Gas Hybrid 16 Autonomous 0 Gas/Diesel 16 Heavy Truck 2 Systems/Processes DMV Registration 0 Out-of-state Detection 16 Public/Private Roads 16 Regional Interop. 14 Tolling Integration 12 Paved/Unpaved Roads 0 Federal/State Lands 0 # Element at launch Element under discussion Potential future element Number of other states considering or using element 14

Commercial Account Manager (CAM) Procurement Meetings with vendors Summer/Fall 2018 Request for Information (RFI) in process Posted: Oct 2018 Due: Nov 2018 Request for Proposals (RFP) coming up Draft: Dec 2018 Final: Feb 2019 Selection: Spring 2019 System Testing: Fall 2019 15

Federal STSFA Grant Surface Transportation System Funding Alternatives (STSFA) grants available annually for states to test RUC Requires 50% state match $10.2M of federal money awarded in February to seven states Utah awarded $1.25M towards its initial alternative fuel vehicle implementation 16

Questions? March 12, 2019 17