Amid falling fuel taxation revenue, states consider switching to a pay-per-mile system instead of a pay-per-gallon system.

Evan Burroughs has spent almost a decade advocating for an Oregon pilot program that charges drivers based on the distance their vehicle travels instead of the amount of fuel consumed. Despite his best efforts, his own mother has yet to fully embrace the new system.

Margaret Burroughs, who is 85 years old, has expressed reluctance to install a tracking device on her Nissan Murano to record the miles she drives for activities such as grocery shopping and needlepoint meetings.

For her, paying at the pump seems like a more convenient option, as it has been for Americans for over a hundred years.

She is not alone in her hesitation as many drivers are skeptical about the cost and privacy implications of switching to a mileage-based system.

Margaret Burroughs recognizes the potential benefits of Oregon’s initiative, which is the first of its kind in the country.

However, she understands that adding an extra layer of complexity to drivers’ lives is not ideal, especially during times of high stress.

Nonetheless, it is essential to recognize the potential advantages that this pilot program offers. By charging motorists based on distance, rather than fuel consumption, it incentivizes the use of more fuel-efficient vehicles and encourages individuals to consider alternative modes of transportation.

It also has the potential to generate additional revenue for infrastructure improvements, benefiting the community as a whole.

Margaret acknowledges the challenging circumstances that many people face currently and does not want to add to their burden by promoting a system that some may perceive as intrusive.

Margaret Burroughs’ hesitancy to adopt the new mileage-based system illustrates the numerous challenges that U.S.

states are encountering as they implement road usage charging programs. These programs aim to eventually replace motor fuel taxes, which are producing less and less revenue each year due to the widespread adoption of fuel-efficient vehicles and the growing popularity of electric cars.

The shift towards mileage-based systems requires overcoming technological barriers, privacy concerns, and the reluctance of drivers to change the way they pay for their use of public roads.

Conversion to mileage-based systems requires significant investments in infrastructure and coordination among stakeholders, making the transition a slow and complex process.

The federal government is preparing to launch a $125 million pilot program, which it hopes will ease the transition of states towards road usage charges.

Despite the pressing need for change, only three states – Oregon, Utah, and Virginia – are currently generating revenue through mileage-based systems, highlighting the challenges of implementation and public acceptance of such initiatives.

If the revenue gap between states’ gas tax proceeds and their transportation budgets remains unaddressed, it could reach an estimated $67 billion by 2050, largely due to improvements in fuel efficiency alone, according to Boston-based CDM Smith.

In response, many states have introduced temporary measures like imposing additional taxes or registration fees on electric vehicles, and more recently, adding per-kilowatt-hour taxes to publicly accessible charging stations.

However, these short-term solutions may no longer be sufficient, and a new era of road usage charges may need to be adopted more widely to ensure sustainable funding for transportation infrastructure across the United States.

While some states have implemented temporary solutions, such as adding delivery taxes to online orders or using electronic tolling systems, the majority of academic research and legislative activity has focused on road usage charges.

These charges, also known as mileage-based user fees, distance-based fees, or vehicle-miles-traveled taxes, have been promoted as a more equitable and efficient way to fund transportation infrastructure in the long term.

By reflecting the actual amount of road usage, these charges can incentivize fuel-efficient or electric vehicles and reduce congestion and emissions. However, the implementation of

According to Doug Shinkle, transportation program director at the nonpartisan National Conference of State Legislatures, mandatory road usage charge programs are on the horizon.

After two decades of anticipation and more than a decade of pilot projects and voluntary participation, states are expected to require the programs in the near future. The focus is not on collecting revenue, but on establishing the systems, ironing out any issues, and introducing it to the public.

The U.S. Bureau of Labor Statistics reports that electric car sales in the country increased from only 0.1% of total car sales in 2011 to 4.6% in 2021. S&P Global Mobility predicts they will make up 40% of total car sales by 2030, with other projections estimating even higher percentages.

Patricia Hendren, executive director of the Eastern Transportation Coalition, emphasizes the importance of addressing multistate trips when implementing road usage charge programs, especially in the eastern U.S. where states are smaller and closer together compared to the West.

Virginia’s program, which was launched in 2022 and has already become the largest in the nation, could offer valuable insights and lessons for other states.

Hendren’s organization, which focuses on transportation safety and technology innovations in 17 states, has participated in several pilot projects. She also highlights the challenge of educating the general public about the limitations of the gas tax, which has traditionally funded road infrastructure.

According to Hendren, road usage charge programs are essential because they reflect the connection between people who utilize the roadways and the means of funding them.

As Hendren explains, the existing approach has been utilized for a century but is no longer viable. Therefore, it is crucial to transition to an updated system.

Eric Paul Dennis, a transportation analyst at the Citizens Research Council of Michigan, has raised concerns regarding the lack of functional mandatory road usage charging programs despite years of research.

According to Dennis, the absence of a functional system calls into question whether road usage charging is feasible.

Dennis clarified that while he thinks a functioning road usage charging program can be developed, he has yet to see a program design that is both publicly acceptable and feasible at scale.

He states that not being able to conceptualize a program architecture that could work should lead to skepticism regarding the implementation of such a program.

The implementation of a road usage charging program in Washington state has been stalled due to a disagreement over how to begin. The state’s lawmakers recently passed a bill that would allow for the collection of voluntary odometer readings as an initial step.

However, Democratic Governor Jay Inslee vetoed the bill, arguing that the state must have a program in place before collecting citizens’ personal data. The disagreement highlights the chicken-and-egg dilemma of whether to collect data to create programs or to have programs in place before collecting data.

States face challenges regarding the social and environmental effects of transitioning from the gas tax to road usage charging programs, according to Asha Weinstein Agrawal, director of the National Transportation Finance Center at San Jose State University’s Mineta Transportation Institute.

The institute has performed annual national surveys since 2010, and they have indicated an increasing interest in mileage-based fees, lower rates for low-income drivers, and rates linked to vehicle emissions. As such, policymaker’s decisions must consider the environmental and social implications of road usage charging programs.

Agrawal highlighted the disconnect between public policy and transportation funding mechanisms and the growing emphasis on reducing carbon emissions in various states as part of the fight against climate change.

She believes that transitioning to a road usage charging system that makes it less expensive to operate high-emission vehicles and more costly to drive environmentally friendly cars sends negative economic signals.

Meanwhile, Burroughs explained how his dad, who operates an electric car, benefits from Oregon’s program since he avoids significant vehicle registration fees while Burroughs pays an extra dollar or two each month for his Subaru Outback’s participation in the program.

He believes that the cost is worth paying to be part of the trial and confident that he pays his fair share for road maintenance.