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Key Questions for a National Pilot of Distance-Based Road Charging

Mark Muriello
| 4 min read

When will appointments to the national Advisory Board overseeing the federal pilot of distance-based road charging be announced?  This question was posed by Senate Environment and Public Works Committee Chairman Tom Carper during a June 5 hearing with the Federal Highway Administration’s (FHWA) Shailen Bhatt. The question was provided by IBTTA to Chairman Carper ahead of the hearing. The response was encouraging, though not definitive: recommendations have been submitted to the USDOT Office of the Secretary for review and approval. We are close.

As we begin to establish the administrative and procedural framework for initiating a national pilot of distance-based road charging, it is crucial to focus on the substance of the work.  What objectives should the national pilot strive to achieve?  What outcomes are we seeking after its completion?  How can the effort help inform future federal decisions on policy, funding, and legislation (i.e., what’s needed in reauthorization)?

While there are many complexities and viewpoints to consider, maintaining a focus on the key objectives of a national program will be beneficial.  Here are five priorities worthy of attention.

Focus on revenue as the primary objective.

The interest in distance-based road charges stems from the need to replace diminishing revenues from motor fuel taxes due to vehicle fuel efficiency and alternative fuels.  The federal Highway Trust Fund (HTF) is insolvent.  Transfers from the U.S. General Fund have kept the HTF from deficit for nearly two decades, but these transfers rely on borrowing and political decision-making.  A strong transportation infrastructure funded by independent, sustainable, and reliable revenues has been the hallmark of U.S. federal transportation investment policy for over a century.  States across the nation—on both sides of the aisle—are clamoring for federal revenue that is adequate, predictable, and sustainable over time.  This must be priority one.

Keep it simple to start.

Today’s technologies offer opportunities to create road pricing options that address a host of policy concerns.  Road charging based on vehicle emissions, vehicle weight, fuel type, income and social equity, congestion relief, demand management, payment methods, and many other factors are all possible and have merit.  However, layering these considerations onto a major shift in how we collect transportation revenue in America may be overly ambitious at the outset.  Complicated pricing structures create winners and losers, challenge public and political acceptance, confuse customers, and dull price signals.  If implementing a transportation revenue alternative is priority one, simplicity in programs and rates at the outset will help us get there.

Create user value through partnerships and choice.

Public acceptance and the cost to collect are two significant issues that the national pilot must address.  Road charging programs that offer value and choices to serve user interests and needs are fundamental.  We must meet drivers where they are.  The value propositions associated with any program will drive public acceptance and enrollment in large enough numbers to yield scale economies.  Using a variety of commercial entities for payment channels and service delivery promises customer options that are simple, convenient, and compelling.  A variety of service providers may also produce a set of options that match users’ risk tolerance, technology adoption comfort, privacy desires, and interest in different bundled services.  Clear and understandable value to motorists is essential to winning the hearts and minds of the American people and cost-effective programs.

Don’t reinvent the wheel.

Effective road pricing programs will use operating practices, business processes, and technologies already in development and use. Vehicle and technology companies are already progressing the foundation for vehicle-based commerce and transactions. We need to leverage these for road-user charging, not replicate them. Similarly, aligning financial and transaction clearinghouses with tolling interoperability hubs, existing interjurisdictional government payment processes (i.e., the International Fuel Tax Agreement [IFTA], the International Registration Plan [IRP], etc.), and other financial transaction clearing/settlement mechanisms from the finance and banking industries will offer economies and efficiency.

Maintain long-term flexibility and options.

Commitment to open system designs and technology protocols will allow competition of solutions and services and the ability to adapt to technological change and innovation over time.  Technology-agnostic approaches will require a set of functional and technical requirements to specify outputs and outcomes, but not the technical solutions to get there.  Comprehensive business rules that govern data collection, data protection, and payment processes will balance uniform customer experiences across jurisdictions with the ability to meet local objectives.  In an environment governed by such requirements, standards are essential to ensure efficiency and interoperability, and certification processes underpin the management and credibility of equipment and services.

As IBTTA engages our members and partners in weighing the industry’s interests and needs in a national pilot, we want to hear from you. Please feel free to reach out to me at [email protected] with any information you would like to share about objectives for the distance-based road charging national pilot or how road-use charging should be reflected in the next reauthorization bill for the federal transportation program.

About Mark Muriello 33 Articles

Mark Muriello is IBTTA’s Vice President of Policy & Government Affairs.  Mark has a distinguished record of accomplishment in highway operations, tolling, finance, transportation planning, and policy.  Mark advocates for tolling and road pricing interests at the federal, state and local levels of government, and works with a a comprehensive array of industry organizations and stakeholders.  Mark actively leads IBTTA’s agenda in government affairs, policy, lost revenue recovery, sustainability and reliance, climate action, and alternative transportation revenue sources.  

Mark has more than four decades of experience in transportation and public finance, covering tolling and highway operations, bridges, tunnels, rail, bus, and marine terminal facilities, as well as in the electric utility industry.  As the former Deputy Director of Tunnels, Bridges and Terminals for The Port Authority of New York and New Jersey, Mark oversaw the operations, maintenance and planning for the agency’s six tunnels and bridges and two interstate bus terminals that connect the New Jersey and New York City.  Mr. Muriello served on the International Bridge, Tunnel and Turnpike Association’s Board of Directors while at the Port Authority and in a leadership capacity in a number of industry and national transportation organizations, including the E-ZPass Group, the Transportation Research Board, the OmniAir Consortium, and the Eastern Transportation Coalition.

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