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

  • Portuguese toll expertise for US toll system
    October 12, 2015
    The Southern Connector Toll Road in South Carolina, US, has awarded a five-year contract to BIT Mobility Solutions, a subsidiary of Portuguese group Brisa, to implement anew back office system for improved effectiveness and efficiency in revenue collection and to minimise toll violations. The US$2 million contract involves integration of legacy components and supply of new subsystems and includes: integration services, digital cameras, vehicle classification system, lane controllers, licence plate recog
  • Meeting the challenges of smartcard fare payment
    July 4, 2012
    David Crawford monitors a growing trend in contactless smartcard ticketing The north east United States has become a hive of activity in the smart fare payment arena. In October 2011, the New York Metropolitan Transportation Authority (MTA) published, as a preliminary to an imminent procurement process, the detailed concept of its New Fare Payment System (NFPS). Based on open payment industry standards, this is designed to be implemented on all MTA bus and subway services operated by New York City Transit (
  • Q-Free pioneers next-generation road user charging (RUC) for private vehicles
    April 24, 2025

     

    Since 1984, Q-Free has been a leader in tolling solutions, and now the company is driving innovation in road user charging (RUC) — a smarter, more flexible way to pay for road usage. Unlike traditional tolling, RUC calculates fees based on distance driven, with dynamic pricing for factors like rush hour congestion or urban vs rural travel. It also shifts revenue focus, covering external costs like accidents, noise, and delays rather than just infrastructure.

  • ODoT targets transportation funding solutions and alternatives
    March 22, 2012
    Jerry Wray, Ohio Department of Transportation (ODoT) director, has officially announced the Division of Innovative Delivery, a move he says is critical to identifying innovative and alternative funding solutions and advancing the agency’s goal developing long-term, sustainable solutions to fund future transportation construction projects. By reducing agency costs, commercialising non-interstate rest areas and seeking sponsorship and naming rights for certain infrastructure projects, the Ohio Department of T