Alauddin Khan, MBA, PE, PTOEChief Performance Management Engineerg g

August 15, 2013

Fuel Tax Has been good source for decades Not inflation adjusted Likely to be used less in future

55¢ Per55¢ Per GallonFuel Tax

50 00%

60.00%

30.00%

40.00%

50.00%

45%

2016 F t d I t

Potential Loss in Revenue in 2017 18%

0 00%

10.00%

20.00%

17%

2016 Forecasted Impact0.00%

As a percentage of the total price of fuel, taxes have declined from 45% in 1994 to 17% today!

State Fuel Tax~ $1.8 B plus Federal Fuel Tax ~ 1.9B =$3.7B$ Tolls ~ 11%

Strategic Intermodal System (SIS) is estimated to be $131.2 billion Strategic Intermodal System (SIS) is estimated to be $131.2 billion 20 0 d ll20 0 d ll

$2.6

$2.8

in 2010 dollarsin 2010 dollars

$1 8

$2.0

$2.2

$2.4

$1.2

$1.4

$1.6

$1.8

State Fuel Tax ForecastForecast with …

$1.0FY 11‐12 FY 12‐13 FY 13‐14 FY 14‐15 FY 15‐16 FY 16‐17 FY 17‐18 FY 18‐19 FY 19‐20

Objective – VMT fee as a potential replacement for current fuel taxes for sustainable, equitable, and viable transportation funding mechanismtransportation funding mechanism

Not advocating for VMT Fee Not advocating for VMT Fee Not discussing raising fuel taxes or the fee

Enhanced full efficiency ◦ By 2016:37mpg, 2025: 54mpg

Alternative fuel vehicles Alternative fuel vehicles

Fuel Tax Less resilient/effective

6

7

Non-intrusive mechanism Non-intrusive mechanism

Media Editorial Boards Media, Editorial Boards

Perception: Positivep

Information on transportation funding, issuesp g

Sensitive to Sensitivity – Ignoring >>Counterproductive

Average taxes per capita: $15-$18/month

PPP and other Financing Options: Borrowing costs

Nevada: Unique geography tourism driven Nevada: Unique geography, tourism driven economy

True Market Competition Integrated Solution – True Market Competition, Integrated Solution –Benefit: AM, Preservation, Ops, Capacity, Financing

Revenue distribution: Neighboring States, locals

Financial Impact: Low-Income, high-mileage

I t f O t f St t i it S t I t bilit Impact of Out-of-State visitors, System Interoperability

Rural vs. Urban Equityq y

10

Costs of Administration

Impact on a Regional and Mega-Regional basis

Institutional Structures

Transition Plan

4 Major levels4 Major levelsPolitical,

Policy Makers,

Business Owners, CEOs

Key Stakeholders, P i t S t

Public

Legislators Private Sector

Constitutionally Cost of Administration LeastConstitutionally Protected

Cost of Administration keep it low

Least

Technology

Mega Regional Other Innovative Options

1•Grass Roots Level Public Involvement

2•3-7% Administration Costs

3•Mitigate Privacy Concerns: GPS Optional

3

4•Minimize Bureaucracy & Existing Burdens

4y g

•Address Risks: Stakeholders/Elected Officials5

Address Risks: Stakeholders/Elected Officials

Flexible, Address Issues

Future-Oriented

Funding

User Paid

gModel

Self-Sufficient

System Operators

Suppliers t that the Rack

Distributors DMV

New System

Forge a powerful strategic consensus

◦ Regional Partnerships◦ National Level Implementation◦ National Level Implementation

Let the system users decide Invest Strategically and Boldly

P th F d Ch ll St t i ll Path Forward -Challenges: Strategically Prepared for it

National Surface Transportation Financing Commission – 2/2009National Surface Transportation Policy and Revenue Study Commission – 12/2007

UTAH DOT, CDOT, FDOT, Caltrans, WSDOT, AZDOT, MnDOT

New

MechanismMechanism

Transition

Build a Strong and Resilient Platform first

2013-15 StudyAll Answers on the Table

Alauddin Khan, MBA, PE, PTOEAkhan@dot.state.nv.us775-888-7192415-572-8081

VMT b it (U d t ti ) VMT website = (Under construction)

MBUF: Mileage Based User FeeMBUF: Mileage Based User FeeVMT Fee: Vehicle Miles Traveled FeeCAFÉ: Corporate Average Fuel Economy