Skip to main content

Road usage charge pilot under way

The Oregon Department of Transportation (ODOT) is undertaking a pilot project to test the next generation of a road usage charge system designed to address funding gaps caused by a rise in fuel efficiency and a decline in gas tax revenue. Around forty volunteers have begun testing the new system, where, instead of paying the gas tax, automatically added at the pump, pilot participants will pay a per mile charge based on the number of miles they drive. The charge is roughly equal to the amount of gas tax the
November 22, 2012 Read time: 4 mins
RSSThe 5837 Oregon Department of Transportation (ODOT) is undertaking a pilot project to test the next generation of a road usage charge system designed to address funding gaps caused by a rise in fuel efficiency and a decline in gas tax revenue.

Around forty volunteers have begun testing the new system, where, instead of paying the gas tax, automatically added at the pump, pilot participants will pay a per mile charge based on the number of miles they drive. The charge is roughly equal to the amount of gas tax they would have paid for a vehicle that gets twenty miles to the gallon; most participants will be refunded gas taxes paid during the pilot.

ODOT focused on choice, transparency, ease of use and protection of privacy as they worked with private firms to develop the pilot system. Participants have a choice of five different plans involving a range of technologies and methods for reporting and paying. Drivers choose the way miles are reported with in-vehicle technology, some without GPS capability and others able to use it, or could opt out of in-vehicle technology altogether by paying a flat annual charge in lieu of a per-miles-travelled basis.  For the pilot, ODOT contracted with a private company, Toll operator Sanef, as an alternative to ODOT, to process payments and provide mileage reporting devices.

“This pilot will offer a peek into a future system where motorists will be responsible for choosing how they report their miles, from certified options, and also their account management provider,” explained Jim Whitty, Office of Innovative Partnerships Manager at DOT. “It’s critical that we learn what’s needed to create an open system that can adapt and change as technology and the market change.”

Whitty also noted that ODOT gathered valuable information from the first Road User Fee Pilot Project, completed in 2007, and is responding to those findings in this pilot.  “We are addressing the public’s concern about government involvement in several ways,” he said. “For example, the new concept envisions the state outsourcing system functions to the private sector as an alternative to the government, and we are testing that in this pilot as well.”

For pilot participants paying by the mile, a mileage reporting device plugged into a diagnostic port, located under the dashboard, reports the distance travelled. The reporting device only reports the number of miles driven, not where they are driven. The device wirelessly reports the miles driven to ODOT or Sanef, depending on the plan; ODOT or 480 Sanef provides a monthly bill to participants based on their reported road use.

The pilot includes three mileage reporting device choices:

  • The basic mileage reporting device reports the total number of miles driven only. This device does not include GPS and does not report the location of miles driven.
  •  A Smartphone application and basic mileage reporting device uses the basic device to report the total miles driven and a participant can activate an app on an Android Smartphone to determine which miles are driven outside of Oregon, for which drivers are not charged. If the app is not turned on, only the total miles driven are reported.
  • The advanced mileage reporting device reports the total number of miles driven and uses GPS to determine which miles are driven outside of Oregon, for which drivers are not charged.
“People wanted choices, so for this pilot, participants are choosing from several options for reporting and paying their bill.  ODOT won’t make the choice for technologies; the participants will do that,” Whitty said.

For more information on companies in this article

Related Content

  • Why the US said ‘yes’ to public transportation on 8 November
    March 29, 2017
    Historic funding boost reflects America’s awareness of transit’s contribution to economic growth and quality of life. Something unexpected happened on Election Day 2016, a result nobody expected; public transportation was a clear winner. There were 49 transit-related funding initiatives on ballots across the nation, of which about 70% were passed.
  • Pricing practise for HOT lane operation
    May 11, 2017
    Timothy Compston weighs up the critical elements that keep the wheels of dynamic pricing schemes turning in today's high-occupancy toll (HOT) lanes. In the drive towards smarter tolling it is perhaps not surprising that sophisticated pricing algorithms are being rolled out to better reflect supply and demand on the roadway. This is the case with high-occupancy toll (HOT) lanes which a growing number of DoTs are seeing as a way of smoothing the operation of their existing, and planned, freeway infrastructure
  • Costing transit is complicated case
    August 19, 2015
    David Crawford welcomes fresh thinking from Canada. Public transit improvements can bring society “significantly more value” than conventional transport models normally indicate, argues Canadian researcher Todd Litman. “Traditional evaluation practices originally developed to assess roadway improvements, and focus primarily on vehicle travel speeds and operating costs. “They do not generally quantify or monetise basic mobility benefits, vehicle ownership and parking cost savings, or efficient land developme
  • Los Angeles Express Lanes links multiple modes of transportation
    January 25, 2012
    The Big Apple's loss is the City of Angels's gain, according to Ken Philmus