oregon mileage fee concept and road user fee pilot program presented to washto construction and...
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![Page 1: Oregon Mileage Fee Concept and Road User Fee Pilot Program Presented to WASHTO Construction and Materials Committee Portland, Oregon April 8, 2008 James](https://reader035.vdocument.in/reader035/viewer/2022062712/56649c945503460f94950694/html5/thumbnails/1.jpg)
Oregon Mileage Fee Conceptand
Road User Fee Pilot Program
Presented to
WASHTO Construction and Materials Committee
Portland, OregonApril 8, 2008
James Whitty, ManagerOffice of Innovative Partnerships
and Alternative Funding
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Road User Fee Task Force
Legislative Mandate:
“To develop a design for revenue collection for Oregon’s roads and highways that will replace the current system for revenue collection.”
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The Gas Tax – A Nearly Perfect Tax
Raises substantial revenue
Easy to pay
Easy to collect
Easy to administer
Minimal evasion
Protects privacy
Minimal burden on business
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The Gas Tax – A Not So Perfect Tax
Revenue erosion
Disconnected fromhighway system
LIGHT VEHICLE FUEL TAX REVENUE
350
400
450
500
550
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Fiscal Year
$ M
illio
ns
Revenue Without MPG Improvement Small Fuel Economy Increase
Medium Fuel Economy Increase Large Fuel Economy Increase
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Solution: A Mileage Fee
An electronically collected charge on in-state mileage
Replaces state fuel tax
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Steps Required for Electronic Collection
Data generation
Data upload
Data management
Payment
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Mileage Fee Collection Challenges
Start up and operations costs
Collection enforcement
Integration with current system
Seamless transition
System redundancy
Ease of use by motoring public
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Collection Possibilities for Data and Payment
Centralized collectionOperations costly
Collection enforcement problematic
No gas tax integration
Not motorist friendly
No system redundancy
Accommodates all vehicles
Accommodates small geographic area
Collection at fuel pump Integrates with fuel tax
Operations affordable
Enforcement simple
Motorist friendly
No Non-Liquid Fuel Vehicles
Large Geographic Area Required
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Oregon’s Mileage Fee Concept: Two Purposes
Create a reliable, broad-based charge to replace fuel tax as principal road funding mechanism
Create an electronically collected charge to assist management of road congestion levels
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2
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Creation of Zones
Charge on miles driven
within Oregon by zone
Zone 1 = in state
Zone 2 = out of state
Zone 3 = local option
Zone 4 = rush hour
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Technology Configuration
RFID Transmitter@ Fuel Dispenser
On-Vehicle Device
Payment type
VMT priceadjustment
Transactionauthorization
VMTdata
READCommands
XML Messages
DSLRouter
GPS Satellite
Location Information
POS SystemSoftware
RFID Reader@ C-Store
C-STORE
READ commandsvia RF
VMT datavia RF
RSSI Levels
`
`
XML Messages Current
VMT Data
DB Query (VIN)
Updated VMTData
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2
3
OSU Software
VB .NET
RFIDSoftware
XML Messages
DSLModem
Central DBMS@ OSU
EthernetConnection
WirelessConnection
InternetConnection
TransmitRSSI levelcommand
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Data Generation and Upload
On-Vehicle Device
GPS Satellite
GPS SatelliteSignals
mileage reader
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Data Processing and Fee Charging
CentralDatabase
Modem Modem
VMT fee
VMT Data
Central ComputerService Station Building
Point of Sale System
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Data Transferred:
1. Vehicle Device Identification2. Mileage Totals for Each Zone3. Amount of Fuel Purchased
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Payment and Receipt
Fuel tax deducted from fuel purchase price
Mileage fee imposed as part of fuel purchase
csr R# 1 S# 1 T# 882316 10:55 AM 06/09/06
Leathers Fuels11421 SE Powell BlvdPortland, OR 97266
Pump# 1 Unleaded 19.50 @ 2.549 49 .71ST Fuel Tax @ .24 (4.68)VMT Fee : 5.12Rush Hour : 40In-Oregon : 28.6Non-Oregon : 0No Signal : 0
Subtotal 50.15
Total 50.15
Cash 50.15
Thank You !
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What About…
Heavy trucks?
Non-equipped cars?
Integration with the gas tax?
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Integration with Fuel Tax
Bulk of mileage feespre-paid by distributors
Mileage fee gradually becomes predominant
Fuel tax retained to guard against system failure and tampering
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Estimate of Mileage Fee Revenue Shares over Time
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Vehicles
No retrofitting
Components installed in new vehicles prior to sale
Service Stations
Capital costs: $35 m
Annual operating costs: $1.6 m
Capital and Operating Costs for Full Implementation
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Privacy
No data transferred except mileage totals within zones
Data transferred only at time of fueling via short range radio frequency
No vehicle location data stored in vehicle
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Absolute Privacy• No records maintained• No ability to audit• No ability for customer validation
No Privacy• Detailed trip data maintained• Full ability to audit• Full ability for customer validation
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How Oregon Mileage Fee Compares with Gas Tax
Raises substantial revenue
Easy to collect
Easy to administer
Easy to pay
Minimal evasion potential
Protects privacy
Minimal burden on business
Directly connected to highway use
No revenue erosion for fuel efficiency
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Road User Fee Pilot ProgramApril 1, 2006 to March 25, 2007
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Pilot Program Field Test285 participant vehiclesCompensation $300 per vehicle Control phase & experiment phase
Three zonesIn OregonNot in OregonRush Hour
Three test groups
Control group paid state gas tax
VMT group paid 1.2 cents per mile but no state gas tax
Rush hour group paid 10 cents per mile within congestion zone and .43 cents per mile for regular travel but no state gas tax
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Pilot Test Technology Configuration
On-vehicle device
Service station readers
Service station communications
Data storage/retrieval
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Challenges of System Components
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On-vehicle device operation
Device compatibility with OBDII interface Consistency of device manufacturing Non-standard vehicle powering systems
System operation
Point-of-sale software system Fueling station management
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Lessons Learned #1Lessons Learned #1
Evasion potentialRetention of gas tax as default system
Ease of enforcement Comparison of mileage with estimated fuel efficiency
Auditing costs Comparable to gas tax system
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Lessons Learned #2Lessons Learned #2
Integration with Existing Systems Ability to run two systems simultaneously
Phasing or partial implementation Allows running two systems at once
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Lesson Learned #3Lesson Learned #3
Capital, Operating and Maintenance Costs
Service station costs
Point-of-sale system software
Telecommunications
True-up system
On-vehicle device
Maintenance and cost
Replacement
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Lesson Learned #4Lesson Learned #4
Adaptability to Congestion Pricing
Area pricing Higher mileage fee rates during peak periods in
defined geographic zones
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Additional Uses: Facility Pricing
Tolling new bridges or roads
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Additional Uses: Cordon Pricing
Point charges without cameras, back room operations or central billing
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Additional Uses: Pricing On-Ramps
Managing traffic flow on limited access highways without additional physical infrastructure
Point charge or distance charge
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Field Test Final Results
Successes Zone differentiation Mileage counting Vehicle identification with fuel pump Transmission accuracy Transaction administration Reduced Peak Driving 22% Acceptance by Participants
Needs More Work Perfect vehicle identification Improve cash transaction time
Fundamental Lessons
Retrofitting extremely difficult
Technical assistance to stations
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Options:
1. Flat Rate – No Subsidies
2. Variable Rate Based on Vehicle Characteristics
3. Flat Rate Combined with
Variable Rate
Key Mileage Fee Policy Issue – The Rate Structure
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Possibility # 1: Flat mileage charge
Key Policy Issue – The Rate Structure
FLAT VMT CHARGE VS. FUEL TAX
$0.00
$1.00
$2.00
$3.00
$4.00
$5.00
$6.00
$7.00
4 6 8 10 12 14 16 18 20 22 24 26 28 30 32 34 36 38 40 42 44 46 48 50 52 54 56 58 60 62 64 66 68 70
MPG
Flat VMT Charge
Gas Tax
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Possibility # 2: Add fuel inefficiency penalty to mileage charge
Key Policy Issue – The Rate Structure
VMT CHARGE & INEFFICIENCY PENALTY VS. FUEL TAX
$0.00
$1.00
$2.00
$3.00
$4.00
$5.00
$6.00
$7.00
4 6 8 10 12 14 16 18 20 22 24 26 28 30 32 34 36 38 40 42 44 46 48 50 52 54 56 58 60 62 64 66 68 70
MPG
VMT Charge &Inefficiency Penalty
Gas Tax
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Key Steps to Implementation
Refine technologies and investigate alternatives
Define manufacturing standards
Address concerns of fuel distribution industry
Integrate with collection system for all-electric vehicles
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Collection Possibilities for Plug-In All-Electric Vehicles
Centralized Collections
Utility Meter Collection
Vehicle Re-registration Collection
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Timeline to Implementation
Small state unlikely to implement mileage fee concept alone
Consortium of small states – ten to twelve years
Strong effort by USDOT or State of California – three to five years
Alternative: VMT estimate collected at fuel pump – two to three years
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Final Reportwww.oregon.gov/ODOT/HWY/RUFPP/docs/RUFPP_finalreport.pdf
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