Exploring an Alternative to the Gas Tax in CA - TPM Portaltpm- an Alternative to the Gas Tax in CA...

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  • Exploring an Alternative to the Gas Tax in CA

    Norma Ortega

    August 2, 2017

    Mission Possible! Shaping the Future of Transportation Finance

  • Why Explore Road Charge?

    2

    Transportation

    Funding

    Problem

    The Funding Shortfall:

    Aging infrastructure

    Increased requirements

    Shrinking funding Some states are addressing inflation by

    increasing the current gas tax

    Fuel efficiency

  • 3

    Road Charging is

    A User Pays principle the more you

    drive, the more you pay (by mileage).

    A funding model that applies more

    equitability to electric, hybrid and fuel

    consumption vehicles.

    A sustainable transportation funding

    alternative.

  • 4

    Californias Journey

    2015 Outreach & Education

    Summer 2017Finalize report

    Fall 2014Legislation Passed

    SB 1077

    2016Nine-month Live Pilot

    July 2016 March 2017

  • 5

    California Achieved Many Firsts

    The Road Charge Pilot Program:

    5,000 participating vehicles over a 9-month period

    4 account managers gathered mileage data and simulated payments

    6 reporting methods offered to participants

    No tech, low tech and high tech options available for reporting miles driven

    Heavy commercial vehicles included in pilot studyTotal miles driven in the pilot!

  • 6

    Final Pilot Enrollment Overview

    The contents of this material reflect the views of the author who is responsible for the facts and accuracy of the data presented herein.

    All information is current as of March 31, 2017

  • Enrollments of Private Vehicles by Method

    7

    The contents of this material reflect the views of the author who is responsible for the facts and accuracy of the data presented herein.

    All information is current as of March 31, 2017

    High Technology

    80%Low Technology

    20%

    High technology includes the 1% of heavy vehicles using the

    automated heavy vehicle mileage meter.

  • 8

    Participant Feedback

    85%Satisfied with the

    overall pilot

    61%More aware of

    the amount they

    pay for road

    maintenance

    73%Think a road

    charge is more

    fair than a gas tax

    87%Found

    participating in

    the pilot easy

    91%Would participate

    in another road

    charge program

  • Final Report Policy Perspectives

    9

    Data Security Privacy Rural vs. Urban

    Other State Policies Fleet Parity Rate Setting

    Income Equity Admin Costs

  • 10

    Preliminary Pilot Findings

    Certain demographic targets set by the TAC were unattainable

    Experience and education during the pilot lead to an increase

    in acceptance

    Most think a road charge funding model is more equitable

    System requirements were successfully developed, tested

    and audited

    No privacy and data security breaches or complications

    Successful in studying the viability of using third-party

    vendors

    Demonstrated the ability to offer value-added features as an

    enhancement to the user experience

  • 11z

    Preliminary Pilot Findings Cont.

    Mileage OptionsAll reporting methods worked

    Manual options

    Highest degree of privacy

    Most difficult to enforce

    Costly to administer compared to the gas tax

    Automated options

    Plug-in devices are most reliable; as technology advances

    could be obsolete by the time road charge is adopted

    Smartphone app with location & in-vehicle telematics

    show great promise, but need further refinement

  • 12

    The FAST Act Multiple Grants Awarded

    Demonstrate user-based

    alternatives

    5 year $95 million grant program

    Eligible to a state or group of states

    to test road charge design,

    acceptance and implementation

    8 states awarded

  • 13

    The FAST Act What CA is Doing

    Pay-at-the-pump/ charging station

    investigation

    Organizational structure and

    compliance program development

    Education and outreach

  • 14

    RUC West Regional Pilot

    14 participating states

    Builds on RUC West funded

    projects

    Leverages state DOT

    relationships and agreements

    Utilizes lessons learned from

    existing RUC projects

    Define a regional system

    Investigating interoperability

  • Thank you!

    15

    Norma Ortega

    CFO/Deputy Director of Finance

    Caltrans

    Norma.Ortega@dot.ca.gov