mileage fees primer vmt fees are in your future

mileage fees primer vmt fees are in your future

background vmt fees

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

fuel taxes/mile (Colorado) diesel fuel gasoline @ 10 mpg 4.49 3.64 @ 20 mpg @ 40 mpg 2.25 1.12 1.82 0.91

general fund infusions federal highway trust fund balances

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

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

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

the downside of gas taxes indexed to fuel price

objectives vmt fees

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

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

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

2015 Ford 150 2017 Ford 150 aluminum chassis need to reduce carbon emissions

need to reduce road wear

need to support congestion pricing

need better data

technology & systems vmt fees

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

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

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

pilot projects vmt fees

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

Oregon pilot

12 months, 2006-2007 285 vehicles (299 volunteers) 2 service stations proof of concept solve technical issues test public acceptance Oregon vmt tax first pilot study

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 2006 2007 study

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

do Oregonians support a mileage fee? Mason-Dixon poll telephone, May, 2015 Oregonian poll on-line, June, 2015 32% 56% 27% 73% 12% favor oppose undecided favor oppose

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

OBD-II port

alternative tech providers

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

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

implications vmt fees

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

wrap up update on vmt fees

University of Iowa, http://ppc.uiowa.edu/tvs/study/national-evaluation-mileagebased-road-user-charge 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, https://download.nap.edu/cart/download.cgi?record_id=23401 Minnesota DOT, http://www.dot.state.mn.us/funding/mileage-based-userfee/opinionstudyreport.pdf Oregon Pilot, http://transweb.sjsu.edu/project/2909.html suggested resources

back up slides

CAFE standards & electric vehicles

two factors mix of vehicle types mpg for vehicle type

fuel tax rates diesel fuel gasoline federal 24.4 18.4 Colorado 20.5 22.0 total 44.9 36.4

Congressional Budget Office