Skip to main content

Oregon trials road user charging

In Oregon, gas-tax money funds about 58 per cent of the budget used to take care of the state’s roads. As vehicles become more fuel efficient, the gas tax, which is 30 cents a gallon in Oregon and 37 cents in Washington, will generate less and less money. “If we’re using gasoline and diesel sales to fund our transportation system, we’re going to be in big trouble,” said Patrick Cooney of the Oregon Department of Transportation (ODOT). Recognizing the problem early, Oregon started studying alternatives to th
February 11, 2013 Read time: 4 mins
In Oregon, gas-tax money funds about 58 per cent of the budget used to take care of the state’s roads. As vehicles become more fuel efficient, the gas tax, which is 30 cents a gallon in Oregon and 37 cents in Washington, will generate less and less money.

“If we’re using gasoline and diesel sales to fund our transportation system, we’re going to be in big trouble,” said Patrick Cooney of the 5837 Oregon Department of Transportation (ODOT).

Recognizing the problem early, Oregon started studying alternatives to the gas tax in 2001.  The state conducted its first pilot project in 2006, testing new technology that used GPS to charge people for how many miles they drove.

“It caught the attention of the nation because nobody had ever heard of such a thing before,” said Jim Whitty, who manages ODOT’s office of innovative partnerships and alternative funding.

That pilot project proved the technology worked, but concerns about privacy followed, prompting Oregon to dramatically redesign the project taking place today.  
One option, called the advanced option, still uses a device that has GPS.  The device can actually tell if vehicles are driving out of state or on private roads, so drivers are only charged for the miles they drive on Oregon’s public roads.

Around fifty Oregon drivers are currently testing that option, technology that could one day replace the gas tax with a system requiring people to pay a small fee for every mile they drive, an idea known as a road user charge.

Mary Olson, who sits on Oregon’s Transportation Commission and is one of the drivers testing the technology, says “I’m very proud of the state of Oregon for being a leader on this. In order to maintain our transportation system, we need to come up with an alternative to the gas tax.”  But Olson understands that option is not for everyone.  “You have the privacy issues, and they’re not to be dismissed,” she said.

Oregon is also testing other options, such as the ‘basic option’, which has GPS, where the device acts like an odometer that simply counts miles, meaning it does not give drivers credit for leaving the state, so they pay for every mile driven.

A third option links to the GPS that is already in drivers’ smartphones.  “If drivers want to leave the state, they simply activate the app in their phone and those out-of-state miles are excluded from taxation”, Whitty said.

Those who want to skip the technology altogether can simply pay an annual flat fee, although that charge might be higher than what they would pay if they used a device.
“By giving people choices, you get greater acceptance,” Whitty said.  “You also solve the privacy issue because now the government is not picking a box that everyone is suspicious about.”

In fact, all of the GPS options are administered by a private company, so the Oregon government has no access to drivers’ coordinates, Whitty pointed out.

Oregon could turn the program into law this year.  The state legislature will consider a bill that would require vehicles getting at least fifty-five miles a gallon to start paying the road user charge.  It would only apply to vehicles made in 2015 or later because Oregon wants to gently transition into this new system over the course of many years.

“It’s going to be a debate, but I think it’s one that we’ll be able to come to a consensus on,” said Rep. Tobias Read, D-Beaverton, who is also taking part in the pilot project.

Electric vehicles owners are paying close attention to the issue.  They currently pay no gas tax, but still use public roads.  Some feel that should be their reward for investing in such an efficient, environmentally friendly vehicle.

While Washington is a few years behind Oregon in studying this issue, WSDOT is paying close attention to Oregon’s pilot, which currently has about twenty people from Washington taking part.

For more information on companies in this article

Related Content

  • Distraction dominated teen driver accident causes.
    June 3, 2015
    As a new report shows that distracted driving is a bigger cause of accidents than previously thought, Jon Masters asks what should be done to counter this problem. Research carried out by the AAA Foundation for Traffic Safety has shed new light on the dangers of distraction for teen drivers. Six years of study using video analysis has shown that 58% of all crashes involving teen drivers are caused by the driver being distracted and proved that the influence of external factors is stronger than previously th
  • Active traffic management - challenges and benefits
    April 12, 2013
    Minnesota DoT has built one of the most intensive Active Traffic Management (ATM) systems on the road today. Like many ITS deployments, the state has gained benefits but also faces many challenges, as Pete Goldin reports. Smart Lanes is the brand name of Minnesota Department of Transportation’s (MnDoT) ATM system on I-35W in the Twin Cities Metro Area. The original system covered 16 miles of I-35W south of Minneapolis starting in 2009, and was extended by two miles in 2011. Additional ATM equipment was inst
  • US incident management needs national standardisation
    January 26, 2012
    I-95 Corridor Coalition's Tom Martin discusses the state of the art in incident management and what visitors to this year's ITS World Congress can expect of the first ever Emergency Responder-Incident Management Day. Developments in incident management are driven in the main by need. A bald statement, and one which holds no surprises, it nevertheless quantifies the evolutionary process within the I-95 Corridor Coalition over the last decade and more. Spread over 16 states from Maine to Florida, the Coalitio
  • GIS-based state of the art emergency response, damage recovery
    January 26, 2012
    The gecko is one of several members of the lizard family which demonstrate autotomy: the ability to re-grow a tail or some other appendage lost during a time of peril. The GITA's GECCo programme is looking to give US infrastructures much the same capability