This is part 4 of a special blog series on transportation issues in the Puget Sound Region. These issues are under consideration by the Transportation Futures Task Force, a group of stakeholders convened to recommend solutions to ease our transportation woes and better support transportation options. Transportation Choices’ Deputy Director, Shefali Ranganathan, is a member of this task force.
PART 4: A DEEP DIVE INTO THE ROAD USAGE CHARGE
Written by an all-star TCC Volunteer
The PSRC assembled the Transportation Futures Task Force with goal of analyzing and developing new ways to fund Washington’s transportation system. As the Task Force rounds the corner into the second half of their one-year investigation, a few funding alternatives have started to filter to the top.
The road usage charge and carbon tax stand out for their potential to generate substantial and sustainable funds, as well as their ability to promote alternative mode use, equity, and environmental stewardship.
Today we’ll explore what a road usage charge in Washington could look like, and stay tuned for a post on the carbon tax alternative.
The Road Usage Charge
With a road usage charge, drivers pay for use of the transportation system based on distance traveled. While helpful in reducing emissions, fuel-efficient vehicles currently allow a significant (and rapidly growing) percentage of Washington drivers to dodge paying into the transportation system via the gas tax. As currently proposed, the road usage charge would initially co-exist with and eventually replace the gas tax, with drivers paying one or the other, but not both.
This July, after nearly a decade of impact studies and pilot programs, Oregon became the first state to implement a road usage plan in the United States, called OReGO. Participants’ mileage is tracked using a device that collects and wirelessly transmits real-time data. Drivers then periodically receive a bill by mail or email charging them for the distance driven.
Oregon’s program affirms that the road usage charge is a realistic funding mechanism—one for which the technology already exists. Many participants in Oregon’s pilot programs attested that the information collected was accurate, and that the system was simple and easy to use. This same technology is currently used by several insurance companies for pay-as-you-go plans, with easy-to-install devices that plug into vehicle diagnostic ports. Smart phones or cars with built-in mileage reporting capabilities could also be used to track miles traveled. Many new vehicles are already being manufactured with such technology.
One of the key selling points of Oregon’s program is its flexibility. Drivers decide how much information they are comfortable sharing by choosing between using a private provider and defaulting to a government-managed account. The government-managed account uses a basic, non-GPS device, while the private sector devices typically bundle mileage tracking with additional value-added features, such as driver scoring (allowing motorists to judge the safety of their driving) and fuel usage monitoring.
The first phase of OReGO is limited to 5,000 vehicles, which will be charged 1.5 cents per mile driven. If the program garners public support, there are plans to expand the program in 2017. In the meantime, the Washington State Transportation Commission has been conducting its own assessment of the road usage charge. You can read more about the work done to date here.
