The Status of Transportation Funding, Road Charge and Vehicle Miles Traveled in California

The Status of Transportation Funding, Road Charge and Vehicle Miles Traveled in California Long-Term Policy Options for Sustainable Transportation Options NCSL State Transportation Leaders Symposium October 26, 2017 Jim Madaffer, Commissioner California Transportation Commission

Transportation in California California: 6 th largest economy in the world 394,000 lane miles of roadways 33 million registered vehicles 326 billion vehicles miles traveled 2

CALIFORNIA DAILY VEHICLE MILES OF TRAVELED (DVMT) Total DVMT (in million) 2013-2016 929.278 919.286 913.201 902.835 2013 2014 2015 2016 3

Factors Impacting VMT Population Growth California has lower per capita compared to the national average The Economy VMT increases in a strong economy and decreases in a stagnate economy Fuel Prices VMT increases or decreases with the price of fuel

California Efforts to Reduce VMT AB 32 (2006) - The California Global Warming Solutions Act of 2006 SB 375 (2008) - The Sustainable Communities and Climate Protection Act of 2008 SB 32 (2016) - Expands upon AB 32 to reduce GHG emissions 5

Evolution of Light-Duty Fleet Fuel Economy 60% Model Year 1975 50% 40% 30% 20% 10% 0% 5 to 10 10 to 15 15 to 20 20 to 25 25 to 30 30 to 35 35 to 40 40 to 45 45 to 50 50 to 55 Source: EPA, Light -Duty Automotive Technology, Carbon Dioxide Emissions, and Fuel Economy Trends: 1975 Through 2014

Evolution of Light-Duty Fleet Fuel Economy 40% Model Year 1995 35% 30% 25% 20% 15% 10% 5% 0% 5 to 10 10 to 15 15 to 20 20 to 25 25 to 30 30 to 35 35 to 40 40 to 45 40 to 50 50 to 55 Source: EPA, Light -Duty Automotive Technology, Carbon Dioxide Emissions, and Fuel Economy Trends: 1975 Through 2014

Evolution of Light-Duty Fleet Fuel Economy 40.00% Model Year 2014 35.00% 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00% 5 to 10 10 to 15 15 to 20 20 to 25 25 to 30 30 to 35 35 to 40 40 to 45 45 to 50 50 to 55 Source: EPA, Light -Duty Automotive Technology, Carbon Dioxide Emissions, and Fuel Economy Trends: 1975 Through 2014

California Infrastructure Report Card - Deferred Transportation Maintenance Source: Governor Brown s 2015 Five-Year Infrastructure Plan - State Ranking for Overall Highway Performance Source: Reason Foundation s 21st Annual Report on the Performance of State Highway Systems - Ten- Year Project Funding Shortfall Source: California Transportation Commission s 2011 Statewide Transportation Needs Assessment of California Roadways Require Rehabilitation or Pavement Maintenance of California s Counties have an Average Pavement Rating of At Risk or Poor of Local Streets and Roads will be in Failed Condition by 2022 under our Current Funding Levels of the Nation s 10 Worst Urban Area Pavement Conditions

Why California is Exploring a Road Charge? Aging Infrastructure Shrinking Funding Increased Requirements Fuel Efficiency 10

The Evolution of Road Charge in the United States 2006 & 2012 Researched and conducted two pilots 2015 OReGO launches first mileage-based program for light vehicles Oregon RUC West 2014 SB 1077 2013 The Western Road Usage Charge Consortium formed a voluntary coalition of 14 western state departments of transportation 2016 Launched largest live pilot with over 5,000 participants statewide 2017 Final Report to the Legislature California FHWA 2015 FAST Act signed into law by President Obama The strength of a Federal partner moving forward 11

The FAST Act Multiple Grants Awarded Demonstrate user-based alternatives 5 year - $95 million grant program Eligible to a state or group of states to test road charge design, acceptance and implementation 8 states awarded (FFY 2016) 4

The FAST Act What CA is Doing Round 1 Pay-at-the-pump/ charging station investigation Organizational structure and compliance program development Education and outreach Round 2 Pay-at-the-pump/ charging station demonstration 5

RUC West FAST Act Regional pilot 11 participating states Builds on RUC West funded projects Utilizes lessons learned from existing RUC projects Defines a regional system Investigating interoperability 6

Overview of Road Charge Pilot Program Findings Carrie Pourvahidi, Caltrans September 12, 2017

California Achieved Many Firsts The Road Charge Pilot Program: 5,000 participating vehicles over a 9-month period 4 account managers gathered mileage data and simulated payments 6 reporting methods offered to participants No tech, low tech and high tech options available for reporting miles driven Heavy commercial vehicles included in pilot study Total miles driven in the pilot! 8

All information is current as of March 31, 2017 Final Pilot Enrollment Overview The contents of this material reflect the views of the author who is responsible for the facts and accuracy of the data presented herein. 9

Preliminary Pilot Findings Certain demographic targets set by the TAC were unattainable Experience and education during the pilot lead to an increase in acceptance Most think a road charge funding model is more equitable System requirements were successfully developed, tested, implemented, and audited No privacy and data security breaches or complications Successful in studying the viability of using third-party vendors Demonstrated the ability to offer value-added features as an enhancement to the user experience 10

Preliminary Pilot Findings Cont. Mileage Options All reporting methodsworked Manual options Highest degree of privacy Most difficult to enforce Costly to administer compared to the gas tax Automated options Plug-in devices are most reliable; as technology advances could be obsolete by the time road charge is adopted Smartphone app with location & in-vehicle telematics show great promise, but need further refinement 11

Final Report Policy Perspectives Data Security Privacy Rural vs. Urban Other State Policies Fleet Parity Rate Setting Income Equity Admin Costs 20

Transition Alternative Road Charge Transition Alternatives Description Model Year New vehicles from a certain Model Year onward Older vehicles on a fuel tax Modest upfront investment Retention of a fuel tax system for a decade or more Fuel Economy and/or Fuel Type Vehicles above a specified fuel economy or fuel type Remaining vehicles on a fuel tax Allows for more smaller, controlled # of vehicles to enter the program in the early years Electric Vehicles (Evs) Similar to the previous Model year or the entire active EV fleet Smaller universe of vehicles to transition in early years Availability of mileage data will need to be standardized Autonomous Vehicles Limited pool of vehicles Allows for the development of efficiencies based on the advanced data and technology Vehicle Weight Heavy vehicles; starting with vehicles over 26,000 lbs. Adding a weight factor to the road charge Rapid Transition All of California s vehicles (or all light-duty vehicles, under 10,000 pounds) over a one year period Most difficult transition; high implementation costs 13

Next Steps Pay-at-the-Pump Investigation and Demonstration Revenue Collection In-Vehicle Telematics Technology Collaborative Organizational Considerations of a Road Charge 15

Role of Technology How will autonomous vehicles and other technological changes impact transportation? How will zero emission vehicles impact transportation in California? 23

EV s Are Here 24

SB 1 SB 1 (Beall, 2017) - The Road Repair and Accountability Act of 2017 Increased transportation funding and instituting muchneeded reforms. SB 1 provides the first significant, stable, and on-going increase in state transportation funding in more than two decades. 27

CA s Road Repair & Accountability Act Highlights Increases transportation funding by $54 billion over the next ten years Focuses on Fix ItFirst Calls for Accountability and Transparency Calls for a Constitutional Amendment to protect funds for transportation purposes Creates an Office of the Inspector General for Transportation 2

SB 1: Funding Programs Funding Amount (over 10 years) Funding Amount (per year) Program Name/Description Local Programs $15 billion $1.5 billion Local street and road maintenance and rehabilitation $7.5 billion $750 million Transit operations and capital $2 billion $200 million Local Partnership Program $1 billion $100 million Active Transportation Program $825 million $82.5 million State Transportation Improvement Program regional share $250 million $25 million Local planning grants State Programs $19 billion $1.9 billion State highway maintenance and rehabilitation $3 billion $300 million Trade Corridor Enhancement Program $2.5 billion $250 million Solutions for Congested Corridors Program $800 million $80 million Parks, off-highway vehicle, boating, and agricultural programs $275 million $27.5 million State Transportation Improvement Program interregional share $250 million $25 million Freeway service patrol programs $70 million $7 million California university transportation research programs 29