i-95 corridor coalition mbuf research for the i-95 corridor coalition gary w. euler
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I-95 Corridor Coalition
MBUF Research for the I-95 Corridor Coalition
Gary W. Euler
I-95 Corridor Coalition
Multi-State MBUF Initiative
Focus on institutions – who should (could) do it?
Focus on multi-state perspective – can states work together with or without a federal lead?
Focus on cost – what are the administrative costs?
Focus on legal and regulatory constraints – what changes would be needed?
Advanced two projects to address administrative elements
Focus on functionality – what needs to be done?
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Approach: Based on results of NCHRP 20-24(69) RAND #1 Extensive interviews Guided by Member Advisory CommitteeIdentified required administrative functions:
System functionality associated with three broad options: simple, complex and advanced
• Estimated cost based on available information• Investigated institutional issues and models such
as IRP and E-ZPass® IAG• Assessed Federal/State legal and regulatory
issues
I-95 Corridor Coalition
Phase 1 Project Study Approach
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Level of customer service and communication
Level of monitoring, including identifying unregistered or newly registered vehicles and identifying delinquent accounts
Enforcement and auditing to minimize evasion and to assure collections and revenue distribution
Ability to leverage existing systems such as the IRP, E-ZPass® IAG, etc.
I-95 Corridor Coalition
Administrative Cost Drivers
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Enrollment is a critical requirement that may be integrated with state vehicle registration processes Interaction, involvement, and coordination among state
motor vehicle agencies are essential
Potential institutional models range from DMV, IRP/IFTA and E-ZPass® to new operating entities and private sector roles Sole government institutional arrangements are unlikely
without private sector involvement
Collection of federal charges may be done via the states where the registration information resides
I-95 Corridor Coalition
Key Findings: Institutional
No “show stopping” legal or constitutional issues
Would benefit from authorizing legislation that would address:
Characterization of MBUF chargesAdministrative authorityRate setting and use of revenuesEnforcement provisionsAdjudication processes and mechanismsUser privacy protections
I-95 Corridor Coalition
Key Findings: Legal
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Prepared a Concept of Operations for administering an “advanced” multi-state mileage-based user fee system
Worked with 3 states: Delaware, Maryland and Pennsylvania
Provided a foundation for a potential multi-state field trial
I-95 Corridor Coalition
Phase Two Project
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I-95 Corridor Coalition
Project ContextLong range vision Suspend privacy concerns Start with a “fresh sheet of paper”
Must be multistate in nature, i.e., provide at least for cross-reporting of miles driven by state
Must provide for all charges on all roads, including local roads, priced-facilities and time of day (congestion) pricing – i.e., a single integrated system
Must provide for implementation flexibility Handling of state responsibilities Outsourcing User payment choices Rates and rate structures
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I-95 Corridor Coalition
Assumptions• Continuing evolution of system/technology
trends– Communications networks
– Per mile toll rate structures
– Availability of devices on/in vehicles
– Prevalence of electronic billing/collection
• Continuing evolution in institutional policy– Adoption of MBUFs by all states
– Enabling legislation
– Cooperative agreements
– Electronic registration and titling
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Concept of Operations
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I-95 Corridor Coalition
Cost Estimate Approach
Data compiled for NCHRP Report #689, “Costs of Alternative Revenue-Generation Systems,” including cost estimates submitted for a proposed system in the Netherlands, was used as the basis
Analyzed MBUF functions, considered cost ranges and identified costs that could potentially be offset
Assembled cost information for current revenue systems from the states and toll authorities
Solicited private sector views on costs
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I-95 Corridor Coalition
Cost Conclusions
MBUF collection is more costly than fuel tax collection
MBUF collection costs compare more favorably if the cost of collecting tolls and registration fees are also considered
Equipment costs were excluded from consideration
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I-95 Corridor Coalition
Key Transition ConsiderationsMany challenges especially in multistate environment.
All-electronic tolling, toll interoperability, and electronic titling and registration provide promising foundations
Important that each state/authority retain autonomy in any transition
Administrative structures developed early on will carry forward
Federal leadership would be helpful