History of the Per-Mile Charge in the United States 2 What is a - PowerPoint PPT Presentation

History of the Per-Mile Charge in the United States 2

What is a Per Mile Charge? • A VMT? • An MBUF? • A RUC? • A Road Charge? A per mile charge is a light vehicle user fee based on the amount a motorist uses the road system A per mile charge is policy flexible and can be based on distanced traveled or time traveled and can have varied factors based on location and time of day 3

Recent History of Light Vehicle Per Mile Charge in United States 15 State Pooled Funds Study (2000) • Oregon’s Road User Fee Task Force (2001) • Oregon’s First Pilot Program (2006-07) • Nevada Studies (2008-2011) • Texas Studies (2009-2011) • U of Iowa Field Tests (2010) • I-95 Corridor Coalition’s Operational Concept • Minnesota Pilot Program (2011-12) • Washington Steering Committee (2012) • Oregon’s Second Pilot Program with Washington and Nevada (2012-13) • Oregon enacts SB 810 for volunteer program (2013) • California enacts SB 1077 (2014) • 4

Reema Griffith Execu0ve Director Washington State Transporta0on Commission

WASHINGTON STATE’S TRANSPORTATION FUNDING DILEMMA

Gas Tax Breakdown 7

Over the next 13 years, approximately 70% of Washington State’s current net por0on of fuel tax revenue is obligated to pay for the long-term debt associated with financing past transporta0on projects Considering the 2015 revenue package contains bonding, this red line will no longer drop down. 8 NOTE: this informa0on reflects debt obliga0ons prior to the 2015 revenue package

The Fuel Efficiency Bar Con0nues to Rise Ø Current Federal CAFÉ Standards: 54.5 MPG by 2025 Ø The Federal Energy Informa>on Administra>on conserva>vely predicts: • All NEW cars in 2040 = 48 MPG • All cars ( new and old ) in 2040 = 37 MPG Ø Washington State’s Current Average MPG = 19.5 MPG 9

Improving Vehicle MPG Threatens Our Gas Tax Revenues 42 6 35 5 28 4 At 35 MPG, revenue Cents declines 45% from MPG per 21 3 2016 levels mile 14 2 7 1 0 0 1990 2000 2010 2020 2030 2040 10 State fuel tax rate increases in 1990, 2003, 2005-2008, and 2015-2016

The Road Usage Charge Emerges A road usage charge is a per mile charge drivers would pay for the use of the roads, rather than paying for them by the gallon of gas. Iden>fied as a viable future funding source in need of further explora>on. 11

Road Usage Charge Assessment The State Transporta0on Commission lead the work and established a 25- member steering commibee comprised of legislators and various stakeholders represen>ng a variety of interests. Three Commissioners – One Serves as Chairman Eight Legislators – four from Senate and four from House of Representa>ves Representa0ves from: Auto and light truck • • Consumer/Public manufacturers WSDOT • Ports • Department of Licensing • Environmental • Motoring public • Coun>es • Business • Trucking industry • User fee technology • Ci>es • Treasurer’s Office • Public transporta>on • 12

The Basis of the Assessment Ø Iden0fy and develop a sustainable, long-term revenue source for Washington State’s transporta0on system, and to transi0on from the current motor fuel tax system. Ø Ensure there is consumer choice on how mileage informa0on can be collected and paid for. Ø During the transi0on period of moving from the gas tax to a road usage charge, drivers would only pay one or the other, but never both. Ø For purposes of assessing the gas tax against a road usage charge, we have assumed revenue neutrality and focused on net revenue poten0al for both. 13

Four Ways to Collect a RUC From No Tech. to High Tech. We have focused on four opera0onal concepts to assess a road usage charge system: Ø Time Permit: a flat fee to drive an unlimited number of miles for a given period of >me (month or year). Ø Odometer Charge: A per-mile charge measured by odometer readings. Ø Automated Distance Charge: A per-mile charge measured by in-vehicle technology that can dis>nguish between in-state and out-of-state travel with periodic billing. Ø Smart Phone Applica0on: a smartphone applica>on would be used for total mileage collec>on. 14

KEY FINDINGS TO DATE

Taxing Gallons Has Real Fairness & Equity Challenges Per-mile revenue from 49.4 cents/gallon fuel tax, by vehicle MPG 10.0 8.0 At 19.8 MPG, the average Washington driver will pay 6.0 2.5 cents/mile in state fuel tax Cents per 4.0 mile Vehicles below average 2.0 MPG pay more Vehicles above fuel tax per average MPG pay less fuel tax per mile driven mile driven 0.0 5 20 35 50 65 MPG 16

Even With Annual Gas Tax Increases Revenue Will Not Keep Up With Needs The fuel tax would have to be raised about 1.5 cents per gallon, per year on all vehicles from 2019-2043 in order to equal net revenues from a road usage charge of 2.5 cents per mile. This es>ma>on would not address growing needs for improvements or maintenance – it would just keep funding at status quo levels. 17

WHAT You Drive Will Determine RUC Cost Impacts 15 MPG $8 less/ month 20 MPG $1 less/ month 30 MPG $7 more/ month 45 MPG $15 more/month Does not pay gas tax ∞ MPG $25 more/ month

Out of State Drivers To dis0nguish between travel on Washington public roads and other roads (e.g., outside the State & private roads), the use of loca>on based technology will be needed. Need to be able to charge people from out of state for use of roads. • Keep the gas tax in place as a parallel system to the road usage charge. • Drivers will pay either the gas tax or the road usage charge – but not both. 19

Overall Conclusion: Road Usage Charging Makes Sense To achieve tax equity and long-term revenue sustainability, road usage charging is not an op0on but rather, is a necessary next step in the evolu0on of transporta0on funding. 20

THANK YOU CONTACT INFORMATION Reema Griffith, Execu>ve Director Washington State Transporta>on Commission griffir@wstc.wa.gov 360-705-7070

Oregon’s Per Mile Road Usage Charge ORe GO Program James Whitty, Office of Innovative Partnerships Manager Oregon Department of Transportation

Successfully launched July 1, 2015 MyORe GO .org Can support up to 5,000 vehicles 1.5 cents per mile Fuel tax credit as prepayment of road usage charge Mileage reporting choices GPS not required Private sector account managers 23

ODOT contracted with three private sector firms to provide ORe GO account management to volunteers 24

Volunteer Experience Entry Select Provider 25

Volunteer Experience Sign Up Sign up and Install/activate Drive select mileage mileage reporting reporting method device 26

Volunteer Experience Payment Account settlement (varies by account manager) Nature of Timing of Method of billing payment payment 27

Volunteers by Account Manager Approved Vehicles by Account Manager Account Manager Ac0ve Vehicle Count Azuga 522 Sanef (Oregon Account Manager) 281 Verizon 202 Total 1005 28

Volunteers by MPG Vehicle Program MPG Counts Ac0ve Pending Total Under 17 MPG 237 0 237 17 to < 22 MPG 326 0 326 22 and above 442 0 442 MPG Totals: 1005 0 1005 29

The most enrolled vehicle type is a Toyota Prius, followed by the Subaru Outback and the Ford F-150 30

OReGO Volunteer Experience Survey Overall experience as a volunteer Very Poor 2% Poor 5% Okay Excellent 22% 34% Good 37% Note: OReGO Program retention rate is 89.26%. 31

Tax reports are in Azuga First to File Tax Report & Pay Verizon Telematics Filed Tax Report & Paid Sanef Filed Tax Report & Paid 32

National Review & Support 33

What’s next for OReGO? 34

Questions? Please submit them in the question box of the GoToWebinar taskbar. 35