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

  • Poll: Americans would pay more gas taxes to fund road projects
    June 12, 2014
    Two-thirds of Americans (68 per cent) believe the federal government should invest more than it does now on roads, bridges and mass transit systems, according to a new American Automobile Association (AAA) omnibus survey of 2,013 adults. Only five per cent of respondents believe the federal government should spend less on transportation. These results come as AAA urges members of Congress to increase the fuel tax, which will address significant transportation safety and congestion issues nationwide. The
  • ATA president calls on Congress to address highway funding needs
    June 18, 2015
    American Trucking Associations (ATA) president and CEO Bill Graves has told members of the House Ways and Means Committee that Congress must act quickly to find a sustainable funding source for the Highway Trust Fund. "It is important for all to understand that the decisions made by this Committee over the next few months will have effects beyond the immediate solvency issues. The federal commitment to investment in transportation, if not properly addressed this year, could be placed in jeopardy for many
  • Smartphone - the next technology for charging and tolling?
    January 25, 2012
    With all the debates over the most suitable future technology or technologies for charging and tolling, is it not time for the industry to look at what the rest of ITS is doing and bring a rank outsider - the smart phone - closer into the fold? By Jack Opiola, D'Artagnan Consulting LLC
  • Measurement Specialties acquires Wema System
    June 4, 2014
    Measurement Specialties, designer and manufacturer of sensors and sensor-based systems, has completed the acquisition of the capital stock of Wema System, a leader in the development, manufacture and supply of fuel and AdBlue/DEF level and quality sensors for heavy duty on- and off-road vehicles, for approximately US$114.5 million.