A Roadmap for Road User Charging

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How do we get from ineffective and distorting taxes to fair road tolling where people pay for the roads they use? Skymeter, a Toronto-based company, offers a solution.

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A Roadmap for Road User Charging

  1. 1. A Roadmap from Gas Tax to Time Distance and Place Road User Charging Bern Grush, Chief Scientist, Skymeter Corporation
  2. 2. Systems Thinking <ul><li>Measurement </li></ul><ul><li>Billing </li></ul><ul><li>Enforcement </li></ul><ul><li>etc </li></ul><ul><li>Privacy </li></ul><ul><li>Access </li></ul><ul><li>Tax </li></ul><ul><li>Spending </li></ul><ul><li>etc </li></ul><ul><li>Zones </li></ul><ul><li>Prices </li></ul><ul><li>Parking </li></ul><ul><li>Enforcement </li></ul><ul><li>etc </li></ul>Technology TDM Policy Public Policy How do we bring it all together ?
  3. 3. Today <ul><li>History </li></ul><ul><li>VMT vs TDP </li></ul><ul><li>TDP uses GPS </li></ul><ul><li>Four Challenges </li></ul><ul><li>How it works </li></ul><ul><li>A Roadmap </li></ul><ul><li>Discussion </li></ul>
  4. 4. 15 years ago – Europe Congestion
  5. 5. Five years ago – World Congestion Global Warming
  6. 6. Two years ago – U.S. Funding National Security Congestion Global Warming
  7. 7. Now – U.S. Funding National Security Congestion Global Warming
  8. 8. Going forward – U.S. Funding National Security Congestion Global Warming GAS-TAX vs VMT
  9. 9. Vehicle Miles Traveled Odometer reading (suggested) Use GPS to check which state you are in (Oregon 2005-7) Use GPS (TDP) to cover all roads in an entire country (Netherlands 2011-16) Use GPS to check if you are on a certain road (PSRC study 2005-8) Gas tax (1932) VMT TDP Replace gas tax in US with VMT tax (AASHTO 2022-2025)
  10. 10. AASHTO’s Proposal AASHTO’s Funding and Finance team is preparing a draft Legislative Recommendations Summary. From the 3 June 2008 draft: “ In 2022, begin to replace the motor fuel tax with a vehicle miles travelled user tax; lower the federal gasoline tax to 27 cents and replace with revenue from a VMT tax of one-half cent per mile; in 2025, increase the VMT tax to just over 2.0 cents per mile and phase out motor fuel taxes completely ; in 2030, increase the VMT tax to about 2.2 cents per mile .
  11. 11. Time, Distance and Place T D P Pay more during peak periods Pay for actual use Pay varying rates on different roads
  12. 12. Time, Distance and Place It’s the fairest way to pay Just like we do for electricity and water
  13. 13. Time, Distance and Place “ How street space is allocated, priced , and managed tells people how to travel ” Michael Replogle Transportation Director, Environmental Defense Fund Washington, DC
  14. 14. Existing tolling technologies… … can toll highways
  15. 15. … can charge for entering a zone Existing tolling technologies…
  16. 16. 340 Gantries $$$ But they can’t do Time Distance Place charging
  17. 17. GPS does TDP best A GPS road pricing system is Scalable …
  18. 18. GPS does TDP best A GPS road pricing system is FLEXIBLE …
  19. 19. … and it enables a Road-Use Financing (remove the gas tax) Congestion Pricing Parking-by-the-minute HOT lanes Meter-less Parking PAYD Insurance TDP Insurance Value Pricing Emission Charging Driver Rewards TDP Taxi Plating Courier Drop Charging Wide-Area Tolling Cordon Tolling HUGE policy menu HOT Streets Superoperability Vehicle-Type Charging
  20. 20. The four challenges Reliability Affordability Privacy (The Technology) Implementation (The Roadmap)
  21. 21. Reliability Buildings in urban areas reflect and block GPS signals, often resulting in position errors. We fixed The Urban Canyon Problem
  22. 22. Reliability <ul><li>Accuracy </li></ul><ul><li>Repeatability </li></ul><ul><li>Evidentiary weight </li></ul><ul><li>Tamper proof </li></ul><ul><li>Telcos </li></ul>
  23. 23. Reliability: Accuracy
  24. 24. Reliability: Repeatability 40 of the same trip over a week…
  25. 25. Reliability: Evidentiary Weight Liability-Critical blue GPS Red Same Trip – Same Charge in New York City
  26. 26. Urban Canyon in perspective Blue is Liability Critical GPS Navigation Signals Drift: Car stopped here for light; but we solved this for parking applications Navigation Signals Bias: Navigation-Grade GPS made a consistent error for over a kilometer, putting the vehicle on the wrong road – and wrong price Reliability: Evidentiary Weight
  27. 27. Reliability: Tamper Proof <ul><li>Broken on removal </li></ul><ul><li>Jam detection </li></ul><ul><li>Shield detection </li></ul><ul><li>Gap detection </li></ul><ul><li>Radio health signal </li></ul><ul><li>Visible Light source </li></ul>Skymeter has multi-layered tamper protection
  28. 28. Reliability: Telco Backoffice <ul><li>Distribution network </li></ul><ul><li>Trust: </li></ul><ul><ul><li>financial processing </li></ul></ul><ul><ul><li>data handling </li></ul></ul><ul><li>Roaming </li></ul><ul><li>Customer service </li></ul><ul><li>Collection </li></ul>Skymeter uses trusted telecom networks
  29. 29. Affordability We decimated Cost <ul><li>No infrastructure </li></ul><ul><li>Self-install </li></ul><ul><li>Self-enforced </li></ul><ul><li>Mobile spot check </li></ul><ul><li>Multiple applications </li></ul><ul><li>Existing payment tech </li></ul>
  30. 30. Affordability Multiple applications… We are a data services company for Roads, Parking, Insurance and more……
  31. 31. [ Affordability ] No Infrastructure
  32. 32. [ Affordability ] Self-install Self-enforce
  33. 33. [ Affordability ] Mobile Spot Check
  34. 34. [ Affordability ] Multiple Applications <ul><li>Road tolling </li></ul><ul><li>Congestion Pricing </li></ul><ul><li>Parking </li></ul><ul><li>Insurance </li></ul><ul><li>Taxi Plating </li></ul><ul><li>Courier </li></ul><ul><li>Mapping </li></ul><ul><li>more </li></ul>
  35. 35. [ Affordability ] Existing Payment Technology <ul><li>Telcos have everything already </li></ul><ul><ul><li>Trust </li></ul></ul><ul><ul><li>Billing/collection </li></ul></ul><ul><ul><li>Roaming </li></ul></ul><ul><ul><li>etc </li></ul></ul>
  36. 36. Affordability Skymeter’s system minimizes operating expenses and maximizes your ability to manage transportation
  37. 37. We measure privately… Skymeter measures data from many vehicles
  38. 38. And keep it private… ...by sending ONLY the chargeable amounts to the operators
  39. 39. Privacy <ul><li>Encryption </li></ul><ul><li>Lag </li></ul><ul><li>Location anonymity </li></ul><ul><li>Loop-back proxy </li></ul>
  40. 40. Anonymous Loop-back Proxy <ul><li>OBE output can be </li></ul><ul><li>Charge to no-board smartcard reader </li></ul><ul><li>Charge to off-board payment operator </li></ul><ul><li>Behavior data to insurer </li></ul><ul><li>Trip data to marketer </li></ul><ul><li>All at patrons choice </li></ul>OBE sends billing data Administrative signals Payment Handling The Anonymous Loop-back Proxy OBE collect, compress, store journey & billing data Off-board price calculator Request to calc charge amount Return charge data to vehicle Pricemap database Calculate Bill NO STORE NO personal or vehicle ID NO location data
  41. 41. How it works <ul><li>SET pricing policy </li></ul><ul><li>MEASURE road use </li></ul><ul><li>CALCULATE bills </li></ul><ul><li>REPORT bills to operators </li></ul><ul><li>SEND bill to users </li></ul>This is what Skymeter does
  42. 42. MEASURE…
  43. 43. MEASURE… Again and again… We ensure Same Trip – Same Charge
  44. 44. CALCULATE… Calculate the charge according to a pricemap
  45. 45. REPORT… Skymeter produces customized data feeds for billing and telematics
  46. 46. Skymeter in Action COMP1 Expected Variance Over 800 KWN Range for same drive! Skymeter Expected Variance Correct Price COMP1 price The Skymeter Price was derived using Skymeter’s Liability Critical GPS meter. Financial units are in Korean Won. COMP1 was one of the competitors for these runs. We do not have permission to disclose their name. Skymeter is consistently close to the actual price!
  47. 47. Skymeter makes managing surface transportation: Reliable. Affordable. Private.
  48. 48. Putting it all together… Reliable Private Affordable Measure Calculate Report
  49. 49. What about policy ? We’ve talked about technology
  50. 50. We offer The Roadmap (A step-by-step approach to implementing full road-user charging)
  51. 51. Phase 1: Introduction PAYD Insurance Driver Rewards TDP Taxi Plating Courier Drop Charging Introduction Expanded Application TDP Implementation Full Implementation 2009  2014  2019   2025
  52. 52. Phase 2: Expanded Application Parking-by-the-minute HOT lanes Meter-less Parking TDP Insurance Value Pricing HOT Streets Superoperability Introduction Expanded Application TDP Implementation Full Implementation 2009  2014  2019   2025
  53. 53. Phase 3: TDP Implementation Congestion Pricing Emission Charging Cordon Tolling Vehicle-Type Charging Introduction Expanded Application TDP Implementation Full Implementation 2009  2014  2019   2025
  54. 54. Phase 4: Full Implementation Road-Use Financing (remove the gas tax) Wide-Area Tolling Introduction Expanded Application TDP Implementation Full Implementation 2009  2014  2019   2025
  55. 55. The full map Introduction Expanded Application TDP Implementation Full Implementation 2009  2014  2019   2025 Road-Use Financing (remove the gas tax) Congestion Pricing Parking-by-the-minute HOT lanes Meter-less Parking PAYD Insurance TDP Insurance Value Pricing Emission Charging Driver Rewards TDP Taxi Plating Courier Drop Charging Wide-Area Tolling Cordon Tolling HOT Streets Superoperability Vehicle-Type Charging
  56. 56. Thank you! Skymeter Corporation 101 College St., Toronto, CAN +1 416 673 8406 [email_address]

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