Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Revenue Innovation topic
No spam. Unsubscribe anytime.
Commission hears staff report on road‑usage charging pilot and alternatives to gas tax
Summary
Staff reviewed road‑usage charging research, a two‑year pilot with 2,000 drivers, and options that avoid GPS (odometer reporting and plug‑in telematics). They said a per‑mile rate of ~2.6¢ would be revenue‑neutral today and stressed transition risks tied to bond debt and interstate consistency.
Commission staff presented research and pilot findings on road‑usage charging as part of a broader conversation about sustainable transportation revenues.
The staff presenter told commissioners the commission had been directed to explore alternatives to the gas tax, pointing to fuel‑efficiency gains and electric vehicles that have reduced per‑vehicle gas‑tax revenue. Staff described a two‑year on‑road pilot with roughly 2,000 participants to test approaches and said a 2.6¢ per‑mile rate would be approximately revenue‑neutral under current assumptions.
Staff emphasized that road‑usage charging does not require GPS and can be implemented using odometer reporting or in‑vehicle telematics as one option. “It certainly could be an option and for some drivers, that’s the preference,” the presenter said, while stressing that odometer‑based reporting has been tested and is operational in some jurisdictions.
The presenter also described transition risks: the gas tax currently supports bonded debt and cannot simply be switched off without addressing outstanding bonds; a phased approach or gas‑tax credit architecture would be needed to avoid creating gaps in debt service. Staff recommended continued study and coordination with other states to develop interoperability standards for a patchwork of emerging programs.
Commissioners asked about equity, privacy and the treatment of commercial and heavier vehicles; staff said current research has focused on passenger vehicles under 10,000 pounds, and the state is beginning work to evaluate medium‑duty fleets.
