Mileage-Based User FeesAlso Known As “Road Usage Charges”

Facing the Fiscal Cliff and Public Opinion

MODERATORLucy Dunn, California Transportation Commission and Orange County Business Council

PANELISTSLoren Kaye, California Foundation for Commerce and Education

Will Kempton, Transportation California

Norma Ortega, Caltrans

Mike Warren, CH2M HILL

Mileage-Based User Fees

History of Base Gasoline Excise Taxes

Mileage-Based User Fees

Revenue Loss Due to Increases in Fuel Economy

19941996

19982000

20022004

20062008

20102012

20142016

20182020

20222024

20262028

2030

Vehicle Miles Traveled

Gas Consumption with Increased Efficiency

Revenue Loss Due to Increased Fuel Effi-

ciency (New CAFE Standards)

VMT Growth

Mileage-Based User Fees

Overview of the Problem

Gas taxes as the primary source to fund transportation infrastructure

Gas taxes gradually decline in buying power due to:

Improved vehicle fuel efficiency Inflation Alternate fuels Decline in overall travel

Raising gas taxes provides short-term relief but does not solve problem

Unpopular with voters

Mileage-Based User Fees

Common Misconceptions

Driver privacy is sacrificed

MBUF is another tax charged by the government

Rural drivers are unfairly penalized as they drive longer distances

Expensive to deploy and administer (relative to gas tax)

Mileage-Based User Fees

Lessons Learned from Oregon

Choice and ease of use were key

Account management systems used similar elements to tolling

Mileage reporting technology is readily available

MBUF should become commoditized

Regional (and, at some point, national) interoperability is a must

Mileage-Based User Fees

Activity is Large and Expanding