Skip to main content

Oregon debuts road user charging to fund transportation projects

Sanef ITS and connected car company Intelligent Mechatronic Systems (IMS) have been awarded a road usage charge contract by the Oregon Department of Transportation (ODOT). Debuting on Oregon's roadways in July 2015, this voluntary distance-based road usage charging program is said to be North America's first implementation of a mileage-based charging solution. Diminishing fuel tax returns led Oregon decision-makers to look for a fair, reliable source of revenue to fund transportation projects for the state.
March 5, 2015 Read time: 2 mins
RSS480 Sanef ITS and connected car company 6954 Intelligent Mechatronic Systems (IMS) have been awarded a road usage charge contract by the 5837 Oregon Department of Transportation (ODOT).

Debuting on Oregon's roadways in July 2015, this voluntary distance-based road usage charging program is said to be North America's first implementation of a mileage-based charging solution.

Diminishing fuel tax returns led Oregon decision-makers to look for a fair, reliable source of revenue to fund transportation projects for the state. The result is the OReGO road usage charging program.  While OreGO is open to all cars and light-duty trucks in Oregon, ODOT can only enrol 5,000 vehicles initially and will evaluate vehicles for participation based their miles per gallon rating.

OReGO volunteers will pay a road usage charge of 1.5 cents per mile for the amount of miles they drive, instead of the fuel tax. They will also get a credit on their bill to offset the fuel tax they pay.

The IMS DriveSync telematics platform will be used in connection with Sanef ITS’ road charging infrastructure to track driver mileage. The platform has been used in connected car services such as usage-based insurance and young driver coaching according to IMS.

"We are seeing a growing trend in the number of electric and hybrid vehicles on our roads, which has led to a significant fall in critical gas tax revenues being collected for road maintenance," said François Gauthey, president of Sanef ITS. "To improve and maintain America's roadway infrastructure, the transition from a gas tax to a distance-based road usage charge solution is a critical evolution. Moving forward, creating a sustainable but fair system for collecting revenues is essential for future sustainability of critical transportation networks."

For more information on companies in this article

Related Content

  • IBTTA Joins transportation secretaries in call for adequate infrastructure funding
    July 24, 2014
    The International Bridge, Tunnel and Turnpike Association (IBTTA) has joined US Department of Transportation (DOT) secretary Anthony Foxx and 11 former DOT secretaries in supporting a call for Congress to find consensus on a long-term solution to funding our nation’s infrastructure. Patrick D. Jones, executive director and CEO of IBTTA, echoed the call for long-term action by stating: “The joint letter released yesterday by our nation’s transportation chiefs is a profile in courage and should serve as an
  • Why Netflix could overcome road pricing resistance
    October 28, 2019
    As the US moves towards a national road usage charging trial, education is paramount – and subscription services like Netflix might help people understand why the money is needed, writes Bill Cramer
  • Connecticut mulls toll roads
    May 17, 2012
    In a bid to narrow the state's budget gap, lawmakers in Connecticut are considering the reintroduction of toll roads. The state is facing a budget shortfall of US$3.5 billion – around 18 per cent of its total spending, and the proposal would see the introduction of electronic tolls around the state's entry points. According to a Cambridge Systematics study, annual toll revenue could reach $600 million with a fee of $5 to cross tolling points. It is thought that the move may be accompanied by a gas tax reduc
  • Revolutionising Roads: Why Road Usage Charging is the Future of Transportation
    February 18, 2025

    Join us in exploring the vital world of Road Usage Charging (RUC) - also called Road User Charging or Pay-Per-Mile. The need for RUC is clear worldwide: for example, fuel tax revenues in Europe dropped over 50% from 1995 to 2020 due to improved fuel efficiency and electric vehicles.