Washington State Road Usage Charge Research Update - February 3, 2022 Reema Griffith, Executive Director, WSTC
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Washington State
Road Usage Charge
Research Update
February 3, 2022
Reema Griffith, Executive Director, WSTC
SITUATION ASSESSMENT
ü Systems are ready: After nearly a decade of research and development, Washington
has the ability to implement a small-scale RUC program.
ü Privacy can be protected: Offering non-GPS approaches and privacy protections in
law are key. The only additional data needed to implement RUC is a periodic odometer
reading.
ü RUC harmonizes transportation funding and climate policy objectives: RUC
enables us to sustain usage-based funding without continuing to rely heavily on fossil
fuel consumption and emissions.
ü RUC offers savings for low-income drivers: The lowest-income vehicle owners in
Washington pay the most in gas taxes because they tend to own older, less fuel-
efficient vehicles. RUC can shift the tax burden to be more equitable.
ü Further research and testing reduces costs and improves user experience:
Research completed in 2021, along with mini-pilots to be conducted in 2022, will
culminate in a comprehensive roadmap for transitioning to RUC. This transition begins
with enactment of a small-scale RUC program as early as 2022.
2
WHAT IS THE PROBLEM? Taxing fuel is no longer a reliable, equitable source of funding
TAXING GALLONS HAS FAIRNESS AND
SUSTAINABILITY CHALLENGES
5.0
4.0
Average vehicle:
20.5 MPG, 2.4 cents/mile
3.0
Cents
Per
Mile 2.0 Per-mile RUC addresses the growing funding gap
Driven in an equitable manner
Vehicles below
1.0 average MPG
pay more per Vehicles above average
mile in fuel tax MPG pay less per mile in fuel tax
0.0
10 20 30 40 50 EV
Vehicle Miles Per Gallons
WASHINGTON IS PREPARED TO BEGIN THE TRANSITION TO RUC Research continues in parallel to inform long-term RUC policy & operations
RESEARCH MILESTONES TO DATE
2012 – 2015 2016 – 2020 2021 – Present
INITIAL ASSESSMENT PILOT TESTING AND SYSTEM READINESS
AND CONCEPT POLICY ISSUE ANALYSIS AND CONTINUED
DEVELOPMENT RESEARCH
• Conducted statewide pilot test with
2,000+ drivers
• Convened Steering Committee • Updating financial analysis
• Tested multiple mileage reporting
• Crafted Guiding Principles • Assessing equity impacts and
methods
• Determined feasibility conducting statewide outreach
• Demonstrated interoperability with
• Developed operational concepts • Exploring service options and
OR, ID, BC
• Conducted business case analysis operational innovation
• Conducted widespread public
• Designed pilot alternatives • Developing cost reduction strategies
outreach
• Designing mini-pilot tests for emerging
• Addressed 10+ policy issues through
concepts
analysis and alternatives
• Issued recommendations
State funded Federally funded
6
YEAR-LONG, 2000-DRIVER, STATEWIDE PILOT
TESTED FIVE MILEAGE REPORTING METHODS
28%
ODOMETER READING 14% MILEMAPPER SMARTHPHONE APP
use • Post-pay for miles reported quarterly use • Records miles using a smartphone
• Report miles either electronically or in • Works with all vehicles
person • Navigational GPS can be turned on/off
• Available only on iPhone iOS
MILEAGE PERMIT PLUG-IN DEVICES (WITH OR
• Pre-select a block of miles (1,000, WITHOUT GPS)
1% 56%
use 5,000, 10,000) use • Automated mileage meter with GPS and
• Report odometer either electronically non-GPS options
or in person every three months 37% • Plugs into OBD-II ports in vehicles 1996
• Obtain additional miles as needed to with GPS or newer
keep mileage permit valid • GPS-enabled devices automatically
19%
without GPS
deduct out-of-state miles
LOW-TECH HIGH-TECH
7
PILOT PARTICIPANT ADVICE TO ELECTED OFFICIALS
RESEARCH FINDINGS: RUC BENEFITS LOW-INCOME HOUSEHOLDS STATEWIDE Like rural households, low-income households already pay more in gas taxes
LOW-INCOME & RURAL HOUSEHOLD FINANCIAL IMPACT ANALYSIS • Fuel tax currently amounts to 1.4% of total low- income household expenditures, on average • Under RUC, the average low-income household would save a modest amount, compared to the gas tax (
TRANSPORTATION TAXES ARE A RELATIVELY SMALL
PROPORTION OF HOUSEHOLD COSTS
Transportation as a percent of household expenditures, by income level
Fuel tax or RUC
Fuel 4%
19%
Insurance
15%
Public
transportation
7%
Other vehicle
expenses Vehicle sales tax, 40%
17% 4% 20% 17% 15% 12% 9%
$150k
Vehicle purchase
34% Today’s fuel tax represents 4% of low-
income household expenditures on
transportation, but will increase as fuel
taxes increase. 11LOWER INCOME HOUSEHOLDS PAY MORE IN FUEL
TAXES & WILL SEE REDUCTIONS UNDER A RUC
Census tract Census
Fuel tax per
average tract RUC per 10,000 Change under
10,000 miles
household average miles driven RUC
driven
income MPG
Less than $50k 20.0 $247 $240 ê $7
$50-75k 20.1 $246 $240 ê $6
$75-100k 20.5 $241 $240 ê $1
$100-150k 21.4 $231 $240 é $9
Over $150k 22.6 $219 $240 é $21HYBRID AND EV OWNERSHIP INCREASES WITH INCOME
RESEARCH FINDINGS: FINANCIAL MODEL INFORMS REVENUE DECISIONS Anticipating the impacts of electrification and other mobility trends on long-term revenue
FLEXIBLE APPROACH ALLOWS EXPLORATION OF
ALTERNATIVE POLICIES, ECONOMIC SCENARIOS
Date: 12/7/2021
Scenario: Neutral Annual Vehicle Miles Travelled (Billions) Annual Vehicle Miles Travelled (Billions)
Description: Passenger Vehicles and Light Trucks Urban and Rural
INPUTS ECHO 60.0 60.0
VMT Growth: Low 50.0 50.0
Fuel Type/Electrification: Reference Case 40.0 40.0
Commute Shifts: 25% Increase
30.0 30.0
Pandemic Scenario: Return to Normal
20.0 20.0
E-Commerce Impact: 10%
RUC Transition: MPG and/or Year 10.0 10.0
Gas Tax Scenario: No Change - -
RUC Rate ($/mile): 0.024 2020 2022 2024 2026 2028 2030 2032 2034 2036 2038 2040 2042 2044 2046 2048 2050 2020 2022 2024 2026 2028 2030 2032 2034 2036 2038 2040 2042 2044 2046 2048 2050
MPG Transition: 25 Passenger Car Light Trucks Total Urban Rural Total
Model Year: 2025
Electrification Scenarios Total Vehicles on RUC Total Vehicles on Fuel
100.0%
Percentage of VMT From Electric Cars 6.0
80.0% 4.0 4.0
60.0%
Millions
2.0 2.0
Millions
40.0% 0.0 0.0
20.0% 2025 2030 2035 2040 2045 2050 2025 2030 2035 2040 2045 2050
0.0%
1991-95 1996-00 2001-05 2006-10 2011-15 2016-20 1991-95 1996-00 2001-05 2006-10
2020 2025 2030 2035 2040 2045 2050
EIA Reference EIA High Gas Price 2011-15 2016-20 2021-25 2026-30
2021-25 2026-30 2031-35 2036-40 2041-45 2046-50
Average Bloomberg High Electrification 2031-35 2036-40 2041-45 2046-50
Fuel Tax Revenue(Billions) RUC Revenue(Billions) Total Revenue(Billions)
Urban and Rural Urban and Rural $1.40
Billions
$1.40 $1.20
Billions
$1.40
Billions
$1.20 $1.20 $1.00
$1.00 $1.00 $0.80
$0.80 $0.80 $0.60
$0.60 $0.60
$0.40
$0.40 $0.40
$0.20 $0.20
$0.20
$0.00 $0.00
$0.00
Urban Gasoline Rural Gasoline Total Revenue
Urban RUC Rural RUCFUEL ECONOMY TRENDS UNDERMINE
TRANSPORTATION REVENUE
Revenue per mile driven
By 2040 fuel tax revenue
$0.02
RUC revenue from
declines nearly 50% per
EVs only mile driven
$0.01 EVs can serve as a starting
point for RUC, but long-
term they only address a
Revenue from fuel tax at $0.494/gal portion of the revenue gap
$0.00
2020 2025 2030 2035 20402022 PILOT TESTING New technologies and various policies will be tested to determine viability and efficiency
CONCEPTS FOR 2022 MINI-PILOTS
1. Self-reporting, tab renewal-
based RUC
8. Unregistered vehicle
research
2. Flexible payment plans 7. Alternative
invoice
designs 9. Vehicle transactions
3. Exploring reporting research
choices
4. Telematics-based RUC 10. Mock standards
committee
5. Low-tech mileage
exemptions
6. Targeted income-
based discountsPOLICY & SYSTEM DESIGN CHOICES CAN ADDRESS MANY OPEN ISSUES Research findings inform choices for how to advance RUC in Washington State
CHOICES FOR BONDING AGAINST RUC REVENUE
*structuring as a VLF
subjects the revenue
to Amendment 18
restrictionsCHOICES FOR PROTECTING PRIVACY THROUGH SYSTEM
DESIGN AND LEGAL PROVISIONS
ü Provide non-GPS/manual mileage reporting, such as self- 4 mileage reporting options require no
reporting of odometer mileage location information
§ The only new piece of information needed for RUC that the
Department of Licensing does not already collect is total miles
driven
ü Give drivers choices for how to report their miles and pay
their RUC charges
§ Any mileage reporting method that uses location services is strictly
for the convenience of the driver (e.g., to automatically deduct out-
of-state and off-road miles)
ü Include provisions to protect privacy, drawing on the
Commission’s model policy, in enabling legislation
21CHOICES FOR ACHIEVING LONG-TERM REVENUE
SUSTAINABILITY & INCREASING FAIRNESS
ü Starting out small allows the RUC program to mature
before scaling to bigger portions of the statewide
vehicle fleet
ü Starting small means choosing “who goes first”:
◦ Electric vehicles
◦ High-MPG vehicles
◦ New vehicles by model year
◦ State-owned vehicles
◦ Volunteer vs. mandatory
22CHOICES FOR SUPPORTING ENVIRONMENTAL PRIORITIES
& ENCOURAGING EV ADOPTION
ü RUC maintains significant
operating cost advantages of
owning an EV
ü Waive current $225 EV flat fee
for EVs paying RUC
ü Offer an introductory
discounted RUC rate or cap for
EVs, phased out as EV
adoption goals are achieved
ü Waive current weight fees for
EVs paying RUC
23CHOICES FOR INCREASING TRANSPORTATION TAX
EQUITY FOR LOW-INCOME DRIVERS
ü RUC reduces the disproportionate burden that the gas tax
places on low income drivers – amplified each time the gas
tax is increased
ü Offer a discounted RUC rate for qualified low-income
households
ü Offer periodic payments for RUC
ü Offer refunds to qualified low-income households who
overpay in fuel taxes (cash or credits toward other taxes)
24RUC ENACTMENTS ARE OCCURRING ACROSS THE NATION Congress continues funding for state RUC pilots & program implementation and launches a national pilot
ROAD USAGE CHARGE ACTIVITIES NATIONALLY
Oregon and Utah have WA
ME
enacted RUC programs and
VT
NH MA
MT ND
are collecting per-mile
MN NY
OR
ID RI
WI
SD MI CT
charges from drivers. WY
IA
PA MD NJ
DE
OH
NE
IL IN
NV WV VA DC
UT
Virginia enacted a program in
CA CO KY
KS MO
NC
2020 which will launch this OK AR
TN
SC
year.
AZ NM
GA
AL
MS
TX LA
FL
AK
A large and growing list of
states are exploring road HI
usage charging as a viable
replacement to the fuel tax. Enacted programs Pilots/demonstrations Research
26CONGRESS CONTINUES ITS SUPPORT FOR RUC RESEARCH
& PROGRAM IMPLEMENTATION
With the passage of the Bipartisan Infrastructure Law,
Congress recognizes the growing consensus that RUC is
a viable alternative to the fuel tax.
► Extends the RUC grant program for states, increasing the
federal share up to 80%, with funds eligible for program
implementation
► Creates a national RUC Advisory Committee
► Directs USDOT and Treasury to collaborate on a
nationwide RUC pilot test to replace the federal gas tax,
building on state efforts
27For more information on Washington State’s RUC Assessment visit: www.waroadusagecharge.org
CONTACT INFORMATION
Reema Griffith, Executive Director
Washington State Transportation Commission
griffir@wstc.wa.gov
360-705-7070
Consultant support provided by:
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