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

  • Innovative road app delivers real time roads conditions
    March 3, 2015
    The Alberta Motor Association (AMA), IBI Group and GreenOwl Mobile have joined forces to deliver a big leap forward in keeping drivers in Alberta, Canada, informed of traffic issues. The next generation AMA Road Reporter app allows motorists to share their own reports, adding shared real-time road condition and traffic information to the already useful road condition data available. Available to both Android and Apple device users, the app is free and can be used to receive and share immediate, real-time ro
  • Iteris aids CDOT’s road weather forecasting
    February 19, 2015
    Iteris has again been selected by the Colorado Department of Transportation (CDOT) to provide state-wide road weather forecasting and maintenance decision support services using the Iteris ClearPath Weather service. The service agreement is renewable annually for up to three years, bringing the full potential revenue of a three-year contract to approximately US$1.4 million. ClearPath Weather is based on Iteris’ proprietary highway condition analysis and prediction system (HiCAPS) pavement condition model an
  • Safe-driver training reduces costs, increases safety
    February 3, 2012
    Hermes, one of Europe's leading home delivery specialists, and part of the Otto group's European logistics division, estimates that introducing a range of safe-driving measures in its UK operations have contributed to a US$1.5 million cost saving to the business in the 12 months to April 2010.
  • Development banks pledge US$175 billion for clean transport
    June 21, 2012
    Eight of the world’s largest multilateral development banks (MDBs) banks yesterday pledged to invest US$175 billion over the next 10 years to support sustainable transport in developing countries. The pledge was made at the UN Sustainable Development Conference in Rio de Janeiro (Rio+20) by the African Development Bank, Asian Development Bank, CAF- Development Bank of Latin America, European Bank for Reconstruction and Development, European Investment Bank, Inter-American Development Bank, Islamic Developme