Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Comprehensive RUC Presentation

4,099 views

Published on

The Utah Legislature is working to ensure that transportation funding mechanisms are ready and in place to meet future demands and keep Utah moving. Drivers of electric and hybrid vehicles pay a flat fee during their annual registration to compensate for not paying as much fuel tax as drivers of conventional vehicles. These fees pay for operations and maintenance of Utah's transportation system.

In 2020, electric and hybrid vehicle owners will have an option to pay a road usage charge in lieu of their annual fee. In future years, the RUC program could also be a potential replacement to the fuel tax for all vehicles in Utah. UDOT is involved in this effort in order to Keep Utah Moving by making sure future funding will be available to build and maintain our transportation system.

Published in: Government & Nonprofit
  • $40/day Cash-Only Surveys ➤➤ https://t.cn/A6ybK1ra
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
  • I earned $5000 ultimate month by using operating online only for 5 to 8 hours on my computer and this was so smooth that i personally couldn't accept as true with before working on this website. if you too need to earn this sort of huge cash then come and be part of us. do this internet-website online... ▲▲▲ http://t.cn/AisJWCv6
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
  • See how I make over $7,293 a month from home doing REAL online jobs! ♣♣♣ http://t.cn/AisJWUCf
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
  • Be the first to like this

Comprehensive RUC Presentation

  1. 1. Updated May 25, 2019
  2. 2. History of the Gas Tax • “User Pays Principle” • Instituted first by OR in 1919 • UT followed in 1923 (2.5 ¢/gal) • 24.5 ¢/gal from 1997-2015 • 29.4 ¢/gal from 2016-2018 • 30.0 ¢/gal from 2019- • Indexed for inflation now • Fed rate 18.4 ¢/gal 1992- Image courtesy of Oregon Department of Transportation
  3. 3. -80% -70% -60% -50% -40% -30% -20% -10% 0% 2003 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 2019 Erosion from Construction Cost Inflation Erosion from Fuel Efficiency National Fuel Tax Purchasing Power Decline 3 - 46% - 22% Indexing to CPI Road Usage Fees Utah Legislative Countermeasures:
  4. 4. 0 10 20 30 40 50 60 2000 2005 2010 2015 2020 2025 2030 2035 2040 BillionsofMilesDrivenAnnually Utah Vehicle Miles Traveled (VMT) Projection 4 More drivers are driving more miles— creating more demand on the roadway system. 23 Billion Miles 51 Billion Miles Transportation choices, policies, and population growth will define Utah’s future VMT. 32 Billion Miles 29 Billion Miles +26%
  5. 5. 0 0.2 0.4 0.6 0.8 1 1.2 1.4 1.6 1.8 2 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 BillionsofGallons Gallons of Fuel Purchased in Utah 5 Great Recession +27%
  6. 6. Utah Fuel Tax Revenue 6 0 50 100 150 200 250 300 350 400 450 500 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 $(Millions) Great Recession State Fuel Tax Increase +13%
  7. 7. 0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 1.6 1.8 2.0 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 RevenueperVMT(cents/mile) Utah Fuel Tax Revenue per Vehicle Mile Traveled (VMT) 7 Great Recession State Fuel Tax Increase
  8. 8. What is RUC? • Usage fee charged in proportion to miles driven • Similar to utilities such as water, natural gas, or electricity • Being considered as replacement of existing gas tax, not a new tax
  9. 9. How Do RUC Systems Work? September 24, 2019 9 In-vehicle mileage counter transmits miles driven to private-sector account manager. Mileage fees are deducted from pre-paid wallet managed by account manager. Vehicle owner adds funds to the wallet when it gets low. State of Utah contracts with (and oversees) account manager. Account manager sends road usage charge collections to State of Utah. Payer State of Utah Account Manager 1 2 3 4 5
  10. 10. Why Consider RUC to Generate Transportation Revenue? Registration Fee Gas Tax Road Usage Charge Doesn’t scale with VMT; doesn’t align with User Pays Principle Provides some link to usage but increasingly less so Scales with VMT; aligns with User Pays Principle
  11. 11. RUC System Challenges • Limited understanding of transportation funding • Enforcement • Technology • Data accuracy • Out-of-state driving • Privacy protection • Administrative costs
  12. 12. RUC Systems: Where to Start? 12 Public Stakeholders Tech Choices Privacy Legislature Key Champions Revenue Alternatives Legislation & Rate Setting State Agencies Eligible Vehicles Operational Structures Data Security Enforcement & Disputes Public Outreach
  13. 13. RUC Systems – Where to Start? 13 • Transportation funding options • Mandatory or optional program • Identify key champions • Advisory Committee to represent stakeholders • Continuous outreach • Focus groups and surveys • Informational website Privacy Use of Odometer Capture Use of Telematics Enrollment Process Enforcement & Disputes RUC Rate-setting Upcoming Legislative Process Utah Case Study: Perceptions of a RUC Mean score before 3.39 Mean score after 4.21 **The biggest perception change came from understanding how gas tax was collected today**
  14. 14. RUC Research & Pilot Projects across the US 14 RUC West members (14 states) I-95 Corridor Coalition members (17 states) Completed pilot program (7 states) Ongoing program (2 states) — Delaware
  15. 15. Federal STSFA Grants 15 • Surface Transportation System Funding Alternatives (STSFA) grants available annually for states to test RUC • Requires 50% state match • $10.2M of federal money awarded in 2019 to seven states • Utah awarded $1.25M towards its initial alternative fuel vehicle implementation
  16. 16. RUC West Consortium • 14 western states • 3 tier groups: • Implementing (OR) • Piloting (CA, CO, HI, UT, WA) • Research only (all others)
  17. 17. Utah’s RUC West Research Involvement to Date • RUC vendor certification • Parameters for a RUC rate • Plan for Regional RUC pilot • Addressing out-of-state drivers • Effects of RUC on rural residents • Protection of privacy in a RUC system • Public understanding of a RUC system • Web-based cost transportation calendar • Impacts of changing fleet fuel economy on state transportation funding September 24, 2019 17
  18. 18. Future RUC West Research Topics • Administrative costs • Evasion and enforcement • Connected and autonomous vehicles • Data anonymization and aggregation standards • Use of blockchain technology
  19. 19. Pilot Efforts in Other RUC West States • California • Large pilot with 5,000 vehicles • Different technology options • Large set of final reports with lessons learned • Emphasis on testing of privacy protections
  20. 20. Pilot Efforts in Other RUC West States • Colorado • Small pilot project of 100 vehicles • Simulated revenue • 3 mileage reporting options (MROs) • Various fuel efficiency types • Urban and rural drivers
  21. 21. Pilot Efforts in Other RUC West States • Oregon • Several pilot projects over the last 10 years • Current program (OReGO) collects actual revenue from about 7,000 volunteer participants • Multiple MROs • Location-based • Non-location-based
  22. 22. Pilot Efforts in Other RUC West States • Washington • Pilot project in 2018 • 2,000+ vehicles enrolled • Simulated revenue • Multiple MROs • Small element of out-of-state driver testing with Oregon and Idaho
  23. 23. Pilot Efforts in Other RUC West States • Regional Pilot (CA and OR) • Running in 2019 • Will test interoperability between two separate states • Will collect mileage driven within drivers’ home state and in the neighboring state +
  24. 24. Total Registered Vehicles 2,594,746 (2019) Gasoline Diesel EV PHEV Gas Hybrid Other Alt Fuel Size & Growth of Utah’s Vehicle Fleet 24 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% 55% 2015–16 2016–17 2017–18 2018–19 Year-over-year Growth (%) EVs PHEVs & Gas Hybrids All Others 89.5% 8.5% 2% 0.2% 0.1% 1.5% 0.2% 5,526Vehicles(Feb2019) 42,770 2,546,450
  25. 25. Utah Growth in EV & Hybrid Registration 25 Electric vehicles experienced 49% annual growth in registration 2015–19. Hybrid vehicles experienced 14% annual growth in registration 2015–19. *Increase of 1,938 EVs from 2018-19 *Increase of 4,413 hybrids from 2018-19
  26. 26. Average Annual State Gas Tax Payments 26 Sedan 25 MPG $187 Heavy Truck 6 MPG $777 Pickup 15 MPG $311 EV DOESN’T APPLY $0 Gas Hybrid 50 MPG $93 1. Based on 30.0 cents/gal State gas tax and 15,542 miles driven annually by average Utah vehicle. 2. Federal tax of 18.4 cents/gal for gasoline and 24.4 cents/gal for diesel not included in amounts shown above.
  27. 27. Average Annual Total Gas Tax Payments 27 Sedan 25 MPG $301 Heavy Truck 6 MPG $1,409 Pickup 15 MPG $501/$564 EV DOESN’T APPLY $0 Gas Hybrid 50 MPG $150 1. Based on 30 cents/gal State tax (gasoline/diesel) and 15,542 miles driven annually by average Utah vehicle. 2. Based on Federal tax of 18.4 cents/gal for gasoline and 24.4 cents/gal for diesel. 3. Pickup truck costs listed for both gasoline and diesel values; heavy truck costs listed for diesel only.
  28. 28. $0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 15 MPG Pickup 20 MPG Utah Avg 35 MPG Sedan 50 MPG Gas Hybrid Electric Vehicle (EV) AnnualExpenditures($) Total Annual Costs for Typical Utah Drivers 28September 24, 2019 $3,109 $2,331 $1,332 $952 $595 Federal Fuel Tax: $0.18/gal Utah State Fuel Tax: $0.30/gal Hybrid Fee: $20/yr EV Fee: $120/yr Gasoline: $2.52/gal Electricity: $0.11/kWh $143 $233
  29. 29. 2018 EV/PHEV New Sales Market Share 29 0.0–0.5% 0.5–1% 1–2% 2–3% 3–4% 4–5% 5%+ Lowest: 0.2% Highest: 7.8% 1.6%
  30. 30. 2017–18 EV/PHEV New Sales Market Share Change 30 < 0.0% 0–50% 50–100% 100–150% 150–200% 200%+ Lowest: 11% Highest: 250% Negative: - 10% 70%
  31. 31. Legislative Elements 31 • Privacy and security protections • RUC fee yearly payment cap • UDOT/DMV information sharing • Rulemaking authority for UDOT • To hire CAM and administer program • Exempt out-of-state miles? • Limit hybrid enrollment, if needed • Implement enforcement mechanisms such as registration hold or penalties
  32. 32. Issues That Must Be Statutorily Addressed to Implement RUC 32 • Privacy and security protections • RUC fee yearly payment cap • UDOT/DMV information sharing • RUC rate setting process • Rulemaking authority for UDOT • To hire CAM and administer program • Implement enforcement mechanisms such as registration hold • Other enrollment components
  33. 33. SB 136 – Road Usage Charge Study Recommendations • Set up Road Usage Charge (RUC) Advisory Committee • Provide RUC alternative to paying flat fee for: • Electric vehicles • Plug-in hybrids • Gasoline hybrids • Consider privacy, methods for reporting road usage, and options for administrating the system • Implement initial system by January 1, 2020 • Submit annual report of findings • Future pilot projects 33
  34. 34. SB 136 (2018) – RUC Study Recommendations • Set up RUC Advisory Committee • Provide RUC alternative to paying flat fee for EVs, PHEVs, and gas hybrids • Consider privacy, methods for reporting road usage, and options for administering the system • Implement initial system by Jan 1, 2020 • Submit annual report of findings • Future pilot projects 34
  35. 35. SB 136 • Implement a Road User Charge (RUC) – Jan 2020 • Alternative to paying a flat fee for electric vehicles: • Eligible types: EV, PHEV, hybrids • Establish a RUC advisory committee • Report annually on program & future pilot projects 35 SB 72 • Rulemaking authority for UDOT • Rulemaking authority for Transportation Commission • UDOT/DMV information sharing SB 136 (2018) & SB 72 (2019) – Transportation Governance & Funding Amendments
  36. 36. SB 72 (2019) – Alternative Fuel RUC Program Structure 36 • Privacy and security protections • UDOT/DMV information sharing • Allows owners/lessees to opt into a RUC or pay annual fee • RUC rate setting process • Transportation Commission authority to set rate with advisement from UDOT • Rulemaking authority for UDOT • To contract CAM and administer program • Implement enforcement mechanisms such as registration hold • Other enrollment components
  37. 37. SB 72 37 • UDOT/DMV information sharing • Allows owners/lessees to opt into a RUC or pay annual fee • RUC rate setting process • Grants Transportation Commission authority to set rate with advisement from UDOT • Rulemaking authority for UDOT • To contract third party CAM and administer program • Implement enforcement mechanisms such as registration hold • Other enrollment components
  38. 38. SB 72 – Admin Rule Requirements 38 • Transportation Commission rule • Responsible to establish the RUC mileage rate • Process for setting the rate • Depositing of funds collected • Set the rate • UDOT rule • Enrollment, withdrawal, and removal process • Mileage reporting and payment processing • Privacy and security processes and procedures • Agreements between UDOT, account manager, and participants • UDOT role in rate setting
  39. 39. SB 72 – Admin Rule Requirements 39 • Transportation Commission rule • Definitions • Responsible to establish the RUC mileage rate • Process for setting the rate • Depositing of funds collected • Set the rate • UDOT rule • Enrollment, withdrawal, and removal process • Mileage reporting and payment processing • Privacy and security processes and procedures • Agreements between UDOT, account manager, and participants • UDOT role in rate setting
  40. 40. R940. Transportation Commission, Administration. R940-8. Establishment of Road Usage Charge (RUC) Rates. September 24, 2019 40
  41. 41. September 24, 2019 41 R940. Transportation Commission, Administration. R940-8. Establishment of Road Usage Charge (RUC) Rates.
  42. 42. Considerations to UDOT’s Recommendation for RUC Rate • Utah’s fleet of RUC-eligible vehicles exceeds statewide average MPG • Rates in other states’ pilots have ranged from $0.010-$0.024/mile • Oregon’s rate began at $0.015/mile and increased to $0.017/mile • Revenue neutrality with gas tax depends on VMT and MPG of vehicles in RUC • Total RUC fees paid per year will not exceed the applicable flat fee. September 24, 2019 42 ANNUAL FEES 2019 2020 2021* EVs $60 $90 $120 PHEVs $26 $39 $52 Gas Hybrids $10 $15 $20 * Fees are indexed to CPI after 2021 MILEAGE EQUIVALENT* 2019 2020 2021* EVs 4,000 6,000 8,000 PHEVs 1,733 2,600 3,467 Gas Hybrids 667 1,000 1,333 * Based on $0.015/mile RUC rate
  43. 43. Elements for Setting RUC Rate 43 • Round to nearest hundredth (same significant digits as gas tax) • Determine gas tax revenue • Determine VMT for vehicles • Establish state average vehicle MPG • Collect EPA mileage rate for over 50k different types of registered vehicles • Calculate weighted (by number of vehicles) average MPG assuming an equal mileage distribution
  44. 44. Option B UDOT recommends rate to Transportation Commission. Commission approves the rate. RUC Rate-setting Process Option A Legislature sets rate directly. 44
  45. 45. RUC Rate Option 1 – Gas Tax Revenue Divided by VMT 45 • Pros • Uses actual gas tax revenue in the calculation • Cons • Gas tax revenue per vehicle may decrease • VMT may continue to increase • VMT includes out of state vehicles and EVs • Both the revenue and the VMT can fluctuate annually Formula : ($483 Million)/(32 Billion Miles) = $0.015/mile 2017 gas tax revenue (Utah Tax Commission) 2017 Vehicle Miles Traveled (FHWA Submittal)
  46. 46. RUC Rate Option 2 – Gas Tax Divided by Fuel Efficiency 46 • Pros • Tied to current gas tax and CPI calculation method • Average vehicle MPG is based on actual vehicles registered in Utah • Gas tax doesn’t decline, except by legislation • Cons • Doesn’t factor the individual miles driven by different vehicle types for the average MPG Formula: ($0.30/gal) / (20.0 mpg) = $0.015/mile Current state gas tax State average vehicle MPG
  47. 47. September 24, 2019 47 ANNUAL FEES 2019 2020 2021* EVs $60 $90 $120 PHEVs $26 $39 $52 Gas Hybrids $10 $15 $20 * Fees are indexed to CPI after 2021 MILEAGE EQUIVALENT* 2019 2020 2021* EVs 4,000 6,000 8,000 PHEVs 1,733 2,600 3,467 Gas Hybrids 667 1,000 1,333 * Based on $0.015/mile RUC rate Cons • Could introduce multiple rates based on different vehicle types • Too low to be a gas tax equivalent (See Options 1 and 2) • Most likely still not low enough to entice hybrids to join economically Formula: ($120) / (15,542 miles) = $0.008/mile EV flat fee Average annual miles driven in Utah RUC Rate Option 3 –“Fees” Divided by Average Miles Driven
  48. 48. September 24, 2019 48 Formula: ($0.30/gal) / (20.0 mpg) = $0.015/mile Current state gas tax State average vehicle MPG Formula : ($483 Million)/(32 Billion Miles) = $0.015/mile 2017 gas tax revenue (Utah Tax Commission 2017 Vehicle Miles Traveled (FHWA Submittal) RUC Rate Option 1 – Gas Tax Revenue Divided by VMT RUC Rate Option 3 – “Fees” Divided by Average Miles Driven RUC Rate Option 2 – Gas Tax Divided by Fuel Efficiency Formula: ($120) / (15,542 miles) = $0.008/mile EV flat fee Average annual miles driven in Utah
  49. 49. September 24, 2019 49 ANNUAL FEES 2019 2020 2021* EVs $60 $90 $120 PHEVs $26 $39 $52 Gas Hybrids $10 $15 $20 * Fees are indexed to CPI after 2021 MILEAGE EQUIVALENT* 2019 2020 2021* EVs 4,000 6,000 8,000 PHEVs 1,733 2,600 3,467 Gas Hybrids 667 1,000 1,333 * Based on $0.015/mile RUC rate Formula: ($120) / (8,000 miles) = $0.015/mile EV flat fee Average annual miles driven in Utah Formula: ($233) / (15,542 miles) = $0.015/mile Utah Gas Tax Equivalence to State’s Average Vehicle MPG Rating: [(16,000) Miles / (40) MPG] x (0.30) per gal = $120 in State Tax [(8,000) Miles / (20) MPG] x (0.30) per gal = $120 in State Tax Utah’s actual average vehicle MPG per DMV registered vehicles
  50. 50. Admin Rule Schedule for RUC – SB 72 September 24, 2019 50 • Commission Rule – (RUC mileage rate set) • May 16th – Department recommendation for RUC rate • May 17th – Present Rule and Rate for public comment • June 28th – Present to Commission for approval • July - Office of Admin Rules • August – Effectuation • UDOT Rule • May/June – Internal approval • June 28th – Present to Commission • July – Office of Admin Rules • August - Effectuation
  51. 51. Market-based or User-Pay System Exploration Across the US - Policy Considerations • NYC Congestion pricing • Seattle Congestion pricing • Oregon Local-option pilot • San Francisco ride hailing tax Demand- responsive pricing • WA Pilot–ID,OR,Can • - Pricing Schema • OR/CA Pilot • - System Integration • I-95 Corridor Coalition • - Multi Agency Interoperability between states • I-95 Corridor Coalition Pilot Integration with tolling operations •Pay more gas tax than average due to lower MPG and more miles driven •May benefit from RUC at a revenue neutral price point Rural residents & low-income households
  52. 52. Demand-responsive pricing New York City congestion pricing Seattle congestion pricing Oregon local-option pilot Interoperability between states Oregon/California pilot Washington pilot Integration with tolling operations I-95 Corridor Coalition pilot Rural residents and low-income households Market-based Policy Considerations
  53. 53. Advisory Committee Members (State Representation) September 24, 2019 53 Group Name Representative Utah Senate Wayne Harper; Don Ipson Utah House of Representatives Kay Christofferson; Logan Wilde Utah Governor’s Office Miranda Jones Utah Tax Commission Scott Smith Utah Department of Motor Vehicles Monte Roberts Utah Department of Technology Services Scott Peterson Utah Transportation Commission Wayne Barlow Utah Department of Transportation (multiple staff members)
  54. 54. Advisory Committee Members (Non-state Representation) 54 Group Name Representative Federal Highway Administration – Utah Division Ivan Marrero Utah Insurance Office Tracy Klausmeier Utah Taxpayers Association Rusty Cannon Utah Trucking Association Rick Clasby Utah Farm Bureau Sterling Brown Layton City Mayor Bob Stevenson Mountainland Association of Governments Andrew Jackson RUC West Randal Thomas; Tim Kirby Utah Clean Energy Josh Craft Salt Lake Chamber of Commerce Sophia DiCaro American Civil Liberties Union Marina Lowe Uber Piper Overstreet-White
  55. 55. Privacy Advisory Committee Discussion 55 Use of Odometer Capture Use of Telematics Enrollment Process Enforcement & Disputes RUC Rate-setting Upcoming Legislative Process What else?
  56. 56. Advisory Committee & Technical Groups • Full Advisory Committee meetings • May 3, 2018 • August 13, 2018 • November 19, 2018 • Frequent meetings and work sessions with technical groups September 24, 2019 56 Advisory Committee Policy, Legislation, & Governance Privacy & Security Compliance & Enforcement Data Collection Technology Communication
  57. 57. Technical Recommendations Advisory Committee Policy, Legislation, & Governance Privacy & Security Compliance & Enforcement Data Collection Technology Communication 57 Let’s walk through the Advisory Committee recommendations through the lens of a RUC enrollee.
  58. 58. RUC Advisory Committee Recommendations September 24, 2019 58 • Annual RUC fee cap tied to flat fee amounts • Revenue-neutral RUC rate tied to gas tax • Online enrollment synced with DMV registration • Short/long-term data retention options • Prepaid wallet for user payments • Location-based mileage reporting • Odometer capture app for initial enrollment, annual “true up”, and dispute resolution • DMV registration hold as enforcement last resort Advisory Committee Policy, Legislation, & Governance Privacy & Security Compliance & Enforcement Data Collection Technology Communication
  59. 59. Future Roles of Advisory Committee Monitor 2019 legislative session Next meeting likely in early April Monitor alt-fuel RUC implementation Recommend future RUC pilot ideas 59
  60. 60. Implementation Efforts CAM Procurement RUC Legislation & Admin Rules Financial Modeling 60
  61. 61. Utah’s RUC Approach • Flat fees for alternative fuel vehicles • RUC enrollment option in lieu of flat fee • RUC implementation date: January 2020 • Broad-based Advisory Committee • Annual report to legislative committee • Future RUC pilot efforts to be determined later
  62. 62. Element at launch Element under discussion Potential future element Number of other states considering or using element Elements of a Utah RUC System Based on Advisory Committee Input 62 Data Collection Tech OBD-II GPS Devices 6 Odometer Capture 2 Telematics 2 Smartphone Apps 5 Vehicle Types EV 6 PHEV 5 Gas Hybrid 6 Autonomous 0 Gas/Diesel 6 Heavy Truck 2 Systems/Processes DMV Registration 0 Out-of-state Detection 6 Public/Private Roads 4 Tolling Integration 2 Regional Interop. 4 Paved/Unpaved Roads 0 Federal/State Lands 0 #
  63. 63. Elements of Utah’s Initial RUC System Technology •Telematics •Phone App/ OBD-II Privacy •Flat Fee or RUC •Data Retention •Data Distribution •User Agreement Vehicle Types •Electric (EV) •Plug-in (PHEV) •Gas Hybrid Enrollment •Online •VIN •Odometer Capture •DMV Interface •Registration Holds Comm Acct Mgr •Prepaid Wallet & Cap •Credit Card/ACH •Monthly Statement •User Options •App Interface
  64. 64. Possible Future Elements 64 Vehicle Types •Gas/Diesel •Heavy Trucks •Fleets •Autonomous Interoperability •Neighboring States •National RUC •Local RUC Differentiation •In-/Out-of-state •Public/Private •Paved/Unpaved Integration •Tolling •Emissions Testing •Multimodal Payment Bundling
  65. 65. Utah’s Alternative Fuel Vehicle Payment Choice 65 EV: $120 PHEV: $52 Gas Hybrid: $20 1.5¢ / Mile* ? *Usage-based fees will not exceed annual flat fee
  66. 66. Transportation Fee Payment Options Option A Owners of alternative fuel vehicles pay annual flat fee, intended to offset lost fuel tax revenue. (Starting Jan 2019) 66 Annual Fee Schedule Year EV PHEV Gas Hybrid 2019 $60 $26 $10 2020 $90 $39 $15 2021+ $120 $52 $20 Per-mile Fee Option B Owners of alternative fuel vehicles enroll in RUC program and pay a per-mile fee (not to exceed annual flat fee) based on actual miles driven. (Starting Jan 2020)
  67. 67. US Alternative Vehicle Fee Adoption 67 Considered annual fees (12 states) Adopted annual fees (19 states) Adopted one-time fees (1 state) Considered annual fees (15 states) Adopted annual fees (26 states) 2018 2019
  68. 68. US Alternative Fuel Vehicle Fees 68 Considered annual fees (15 states) Adopted annual fees (26 states) National ANNUAL FEES RANGE AVERAGE EVs $50–$225 $127 PHEVs $30–$200 $85 Gas Hybrids $20–$100 $58 Utah ANNUAL FEES 2021* EVs $120 PHEVs $52 Gas Hybrids $20 *Fees are lower in 2019-20 and indexed to CPI after 2021 2019
  69. 69. US Alternative Vehicle Fee Adoption 69 Considered annual fees (12 states) Adopted annual fees (19 states) Adopted one-time fees (1 state) Considered annual fees (15 states) Adopted annual fees (23 states) 2018 2019
  70. 70. US Alternative Fuel Vehicle Fees 70 Considered annual fees (15 states) Adopted annual fees (23 states) National ANNUAL FEES RANGE AVERAGE EVs $50–$225 $127 PHEVs $30–$200 $85 Gas Hybrids $20–$100 $58 Utah ANNUAL FEES 2021* EVs $120 PHEVs $52 Gas Hybrids $20 *Fees are lower in 2019-20 and indexed to CPI after 2021 2019
  71. 71. US Alternative Fuel Vehicle Flat Fees (as of May 2019) 71 Considered annual fees (15 states) Adopted annual fees (23 states) National ANNUAL FEES RANGE AVERAGE EVs $50–$225 $127 PHEVs $30–$200 $85 Gas Hybrids $20–$100 $58 Utah ANNUAL FEES 2019 2020 2021* EVs $60 $90 $120 PHEVs $26 $39 $52 Gas Hybrids $10 $15 $20 * Fees are indexed to CPI after 2021
  72. 72. US Alternative Fuel Vehicle Flat Fees (as of May 2019) 72 Considered annual fees (15 states) Adopted annual fees (23 states) National ANNUAL FEES RANGE AVERAGE EVs $50–$225 $127 PHEVs $30–$200 $85 Gas Hybrids $20–$100 $58 Utah ANNUAL FEES 2019 2020 2021* EVs $60 $90 $120 PHEVs $26 $39 $52 Gas Hybrids $10 $15 $20 * Fees are indexed to CPI after 2021 Sources for this map are: http://www.ncsl.org/research/energy/new-fees-on-hybrid-and-electric-vehicles.aspx, https://escholarship.org/uc/item/62f72449, and research of 2019 legislative session outcomes.
  73. 73. Why Enroll in RUC? 73 Save Money If enrollees don’t drive many miles/year, they may save money relative to the annual fee. Pay-as-you-go Enrollees may pay as they go instead of paying the annual fee. Early Adopters Enrollees may be curious about the RUC program and want to try it out.
  74. 74. Enrollment Process Enroll online with name and license plate number. Provide valid credit or debit card for prepaid wallet. Complete CAM user agreement. Submit initial odometer capture. 74
  75. 75. Mileage Reporting Options 75 • Majority will use location-based device • Vehicles without OBD-II ports may use telematics option • Odometer capture at enrollment and at annual registration
  76. 76. Enforcement & Dispute Resolution 76 • Enrollees keep devices and credit card info active • Disputes may be resolved through odometer capture • Exit process for situations such as unresolved disputes, vehicle sales, or moving out of state
  77. 77. Integration with Department of Motor Vehicles 77 • Syncing of annual registration cycle (and flat fee payments) with RUC enrollment • Confirmation that RUC applicants’ vehicles are eligible for program • Ability to place registration holds for non-compliant RUC payers and clear the holds once they’ve paid debts
  78. 78. Annual fee Integration with Annual DMV Registration Process 78 After Jan 1, 2020, owners will have two options for paying transportation fees 2019 – alternative fuel vehicle owners receive notice to pay annual fee Per-mile fee
  79. 79. Commercial Account Manager (CAM) Procurement Meetings with vendors •Summer/Fall 2018 Request for Information (RFI) in process •Posted: Oct 2018 •Due: Nov 2018 Request for Proposals (RFP) coming up •Draft: Dec 2018 •Final: Feb 2019 •Selection: Spring 2019 •System Testing: Fall 2019 79
  80. 80. Commercial Account Manager (CAM) Selection September 24, 2019 80 • International tolling firm with RUC experience in multiple US states • 3-5 year contract period • Contract negotiation May-June • System setup June-Oct • System testing Oct-Dec • Live operations Jan 1, 2020
  81. 81. 81 RUC Payer RUC payer is able to: • View their collected data • Dispute erroneous charges • Choose data retention length that best suits their circumstances • Be protected from GRAMA requests • Be protected from release of personal data except in criminal proceeding RUC Payer & CAM Privacy Expectations Commercial Account Manager (CAM) CAM is able to: • Collect raw location data • Retain data according to user agreements • Send mileage summaries to State • Share aggregated anonymized data with the State CAM is unable to: • Share personal data and location data with State (except for audits and dispute resolution) or with third parties
  82. 82. 82 No Yes User Agreements & Data Retention *CAM = Commercial Account Manager Pay Annual Flat Fee Pay Per-mile Fees User Agreement with CAM* to allow for retention of data through current billing cycle only. Pay as you go; total will not exceed annual flat fee. Additional Optional Services Optional User Agreement with CAM* to allow for longer-term data retention in return for additional services. Could involve extra fees for services at user discretion. Opt-in choice Join RUC?
  83. 83. 83 RUC Per-mile Fee RUC payer is able to: • View their collected data • Dispute erroneous charges • Be protected from public record requests • Be protected from release of personal data except in criminal proceeding CAM is able to: • Collect raw location data but not share w/State (except for disputes) • Send mileage summaries to State • Share aggregated anonymized data with the State Short-term data retention Value-added Services CAM retains raw location data for current billing cycle only (default) Additional Services CAM retains raw location data until enrollee leaves system (user opt-in)Long-term data retention User & CAM Agreement Options * CAM = Commercial Account Manager
  84. 84. RUC System Financial Planning Operations Revenue Costs 84 Customized Revenue & Cost Model • See effects of policy choices • Forecast financial viability • Identify RUC rate parameters
  85. 85. Funding for RUC Program Setup & Operations September 24, 2019 85 • $1.25M federal grant over 5 years (STSFA) • $1.25M state match required • Eligible for soft match expenditures (e.g. State employee time charges) • SB 72 fiscal note • $755K legislative appropriation for initial setup • Ongoing legislative appropriation of $115K/year for employee operations • UDOT funds as necessary to cover remaining needs and operate the program *Anticipated RUC program revenues will fund the program by 2025
  86. 86. Projected Funding & Costs for Initial Years of RUC Program 86
  87. 87. STSFA Grant & RUC Program Funding 87 • Utah received $1.25M federal grant for setup and operations • Requires 50% state match • Legislature gave $115K for ongoing FTE; $755K for 1-time FY20 setup
  88. 88. 0 20 40 60 80 100 120 Flat Fee RUC Flat Fee RUC Flat Fee RUC Flat Fee RUC Flat Fee RUC ThousandsofVehicles 88 Vehicles Enrolled in RUC or Paying Flat Fee 56 64 75 91 111 0 1.3 2.0 2.8 4.0 5-year Vehicle Totals Flat Fees: 111,000 (97%) RUC: 4,000 (3%) Total: 115,000 Assumed Annual Growth PHEVs: 5% EVs: 50% Gas Hybrids: 12% 2019 2020 2021 2022 2023 PHEVs EVs Gas Hybrids
  89. 89. - 1 2 3 4 5 6 7 Flat Fee RUC Flat Fee RUC Flat Fee RUC Flat Fee RUC Flat Fee RUC MillionsofDollars 89 Revenue from Flat Fees & RUC $1.0 $1.9 $3.3 $4.6 $6.4 $0 $0.07 $0.15 $0.23 $0.35 5-year Revenues Flat Fees: $17,200,000 (95.5%) RUC: $806,000 (4.5%) Total: $18,006,000 2019 2020 2021 2022 2023 PHEVs EVs Gas Hybrids
  90. 90. System Cost/Revenue Break-even Points 90
  91. 91. Utah RUC - Initial & Future Financial Projections VendorBidRangefor Setup& Operations Break-even ScenarioProjections (internalcostsincluded)
  92. 92. Utah RUC – RFP Bid Ranges VendorBidRangefor Setup& Operations Cost Type* Lower Bound Upper Bound Initial One-Time Setup $327,000 $1,000,000 Yearly One Maintenance $90,000 $575,000 Year One Annual Operating Cost $146,000 $620,000 Total 5 year $1,200,000 $3,500,000 *Costs based off assumptions for number of vehicles provided in RFP
  93. 93. 93
  94. 94. 2019 Communication Timeline • Summer 2019 • Public opinion research focused on eligible vehicle owners • Summer-Fall 2019 • Refine communication plan and prepare communication pieces • Fall 2019 • Launch informational website and begin educational outreach to eligible vehicle owners 94
  95. 95. Communication Update • Fall 2018 • Presentations to various groups • Website link and information page • January 2019 • Surveys and focus groups • Legislative communications • Spring 2019 • RUC Utah branding • Website and social media pages 95
  96. 96. RUC Public Opinion Research 96 Awareness of term, Road Usage Charge
  97. 97. Rating Comparison Before & After RUC Definition 97 Mean score before 3.39 Mean score after 4.21
  98. 98. Comfort Level with Plug-in Device to Transmit Mileage 98 Mean score 3.28
  99. 99. Perception RUC Will Discourage Alt-Fuel Vehicle Purchases 99
  100. 100. Key Findings to Build Upon 100 Allocation of Funding
  101. 101. Key Findings to Build Upon 101 Toll Lanes During Peak Congestion
  102. 102. Key Findings to Build Upon 102 Expansion of RUC Program to All Vehicles
  103. 103. Big-picture Considerations 103 • UDOT is studying what the future of RUC in Utah could look like • Expansion of RUC • 52% of survey respondents favored applying RUC to all vehicles, 39% opposed • Should Utah expand RUC to other types of vehicles? • Should Utah make RUC mandatory for EVs? • Market-based pricing • Survey respondents showed preference for tolling lanes at peak congestion • When will RUC be ready to have a measurable impact in this area?
  104. 104. Leveraging Tech to Better Measure Usage 104 Public Paved $$$ Private $0 Public Unpaved $$ Better GPS Better MappingBetter Car Tech Interoperability
  105. 105. Potential Next Utah RUC Pilot 105 • STSFA Round 4 is expected to be released Summer 2019 • Possible pilot topics • Open Utah RUC program to gas vehicles • DMV point-of-sale RUC enrollment • Test market-based pricing • Integrate with Express Lanes system • Enroll vehicles with telematics capability
  106. 106. Rural & Low-income Households Benefit from RUC 106 Rural $273 $254 -$19 Urban $229 $230 +$1 Sources: (1) Urban/rural household and vehicle data from Financial Impacts of Road User Charges on Urban and Rural Households. (2) Utah gas tax of $0.30/gal. (Costs shown are only state tax, not Federal) (3) Assumes revenue-neutral per-mile RUC rate (Weighted Average) • Benefits for low-income and rural households are similar

×