1. 1 Design and Feasibility of Charging by the Mile CALCOG Regional Leadership Forum Monterey, California March 13, 2014

2. Oregon Per-Mile Road Usage Charge Law Senate Bill 810 directs Oregon DOT to implement per-mile road usage charge for light vehicles as an operational program by July 1, 2015 The Oregon RUC Program has no termination date 2

3. 3 Initial Legislation in 2001 Road User Fee Task Force Develop policy recommendations for a new revenue system based on road use to replace current system DOT administers task force DOT to develop and implement pilot programs based on task force policy recommendations Allows fuel tax refund for those paying mileage fee House Bill 3456

4. The original pilot (2006-2007) Pay-at-the-pump model Wireless Reader Central Database VMT Charge VMT Data GPS Satellite Signals Service Station POS System VIN, VMT data, Fuel purchase amount 4

5. Problem Pay-at-the-pump was a closed system “A closed system is an internally integrated system controlled by a single entity with essential components that cannot be substituted by other external components which could perform the same functions” There is only one way to do it 5

6. 2007 – The Year Our Electronic World Changed 6

7. The original pilot (2006-2007) Pay-at-the-pump model Wireless Reader Central Database VMT Charge VMT Data GPS Satellite Signals Service Station POS System VIN, VMT data, Fuel purchase amount START OVER 7

8. Redesign of Oregon’s Distance Charging Concept Design program with open architecture to allow for evolution of technologies (2009) Provide motorists choices for mileage reporting (2010) Provide access to private sector transaction processing and account management abilities (2010) Create per-mile charging system that is flexible, scalable and geographically unlimited (2012) 8

9. Redesign of Oregon’s Mileage Charge Program Design as an open system to allow technologies to evolve (2009) Provide choices for mileage reporting (2010) Provide access to private sector transaction processing and account management (2010) Create per-mile charging system that is flexible, scalable and geographically unlimited (2012) 9

10. What is an open system? “An integrated system based on common standards and an operating system accessible to the marketplace whereby components performing the same function can be readily substituted or provided by multiple providers” There are multiple ways to do it 10

11. Motivations for Change Declining fuel tax revenue Unfairness of fuel tax growing worse Changes to nation’s vehicle fleet  Fully electric vehicle  Plug-in hybrid  Fuel cell  Clean diesel  ICE vehicles CAFE standard to 54.5 MPG by 2025 Societal inequity resulting from new vehicle purchases 11

12. Building Political Support Legislative involvement in RUC policy and pilot program Testimony before legislature Governor, Commission and DOT leadership Interaction with interest groups 12

13. Around the State RUC Education Tour 13 Portland St. Helens Newberg Salem Albany Eugene Redmond La Grande John Day Rufus Medford Roseburg Springfield

14. 14 Oregon’s Second Pilot (2012-2013) Road Usage Charge Pilot Program Open System with taxpayer choices for mileage reporting 44 volunteer participants from Oregon 8 state legislators Others with policy interest Paid road usage charge of 1.5 cents per mile and received fuel tax credit Private sector firms provided Mileage reporting technologies Tax processing and account management Washington DOT and Nevada DOT managed 44 additional participants

15. Categories of mileage reporting 1.Report all miles driven (basic) 2.Report miles by location (advanced) 3.Changeable reporting of miles (switchable) 4.Assume maximum annual mileage (simplified) 15

16. Senate Bill 810 Oregon Per-Mile Road Use Charge Law Implement operational RUC program –1.5 cents per mile –Rebate of fuel tax paid –Mileage reporting choices –Vehicle location technology not required –Open system –Private sector administration option –Penalties for false statements, non-payment and tampering –Protection of personally identifiable information First application: 5,000 voluntary taxpayers Start date: July 1, 2015 16

17. Privacy Solutions 1. Provide choices of reporting method and technology 2. No mandate for vehicle location capability (GPS) 3. Select mileage reporting device from marketplace 4. Legal mandate to personally identifiable information 17

18. SB 810, Section 9 Protect Personally Identifiable Information Constraints on use of PII Limits access Imposes obligation to protect Exception for express approval Data destruction within 30 days after later of Payment processing Dispute resolution Noncompliance investigation Exceptions to data destruction Consent Monthly summaries Aggregation after PII removed 18

19. Oregon’s Platform for Per-mile Charge Machine to machine communications via standard mileage message DOT certifies private sector entities under an open system for:  Mileage reporting technologies  Tax processing  Account management 19

20. 20

21. Standard mileage message { "$schema": "http://json- schema.org/draft- 03/schema", "required": false, "type": "object", "properties": { "RUCMSG" : { "required": true, "type": "object", "properties": { "RUCMSGinfo" : { "required": true, "type": "object", "properties": { "MRDID" : { "required": true, "type": "string" }, "VIN" : { "required": true, "type": "string" }, "MSGID" : { "required": true, "type": "string" }, 21 "MSGType" : { "required": true, "type": "string" }, "Timestamp" : { "required": true, "type": "string" }, "MRDIssuer" : { "required": true, "type": "string" }, "MRDManufactu rer" : { "required": true, "type": "string" }, "MRDConfigVer sion" : { "required": true, "type": "object", "properties": { "HWMainReleas e" : { "required": true, "type": "string" }, "HWSubRelease" : { "required": true, "type": "string" }, "SWMainRelease" : { "required": true, "type": "string" }, "SWSubRelease" : { "required": true, "type": "string" } }, "MapConfigVersion" : { "required": false, "type": "object", "properties": { "MapMainRelease" : { "required": true, "type": "string" }, "MapSubRelease" : { "required": true, "type": "string" } }, "FuelConsumption Data" : { "required": false, "type": "string" } }, "RUCMSGcontent" : { "required": false, "type": "array", "items": [ { "required": false, "type": "object", "properties": { "MileageDayRecor d" : { "required": true, "type": "object", "properties": { "RecordDate" : { "required": true, "type": "string" }, "MRDHealth" : { "required": true, "type": "string" }, "TotalMilesonDate " : { "required": true, "type": "string" }, "AccumMilesonDa te" : { "required": true, "type": "string" }, "EstFuelConsume donDate" : { "required": false, "type": "string" }, "FuelAddedonDate " : { "required": false, "type": "number" }, "MileageRuleReco rd" : { "required": false, "type": "array", "items": { "required": false, "type": "object", "properties": { "MileageRuleID" : { "required": true, "type": "string" }, "MilesinRuleID" : { "required": true, "type": "string" }, "EstFuelConsume dinRuleID" : { "required": false, "type": "string" }, "FuelAddedinRuleI D" : { "required": false, "type": "string" } }}}}}}}]}}}}}}}}}}}}]}}}}}

22. Mileage message decoded Vehicle identification number Reporting device identification number Timestamp for installations and removals Total mileage during reporting period Fuel consumption during reporting period For advanced plans, mileage by zone 22

23. What Voluntary Taxpayers Will See 1 st Marketing materials 2 nd RUC Website explaining system 3 rd Choose Your Plan matrix 4 th MRD activation instructions 5 th Invoice with payment instructions Always available: Help Desk 23

24. Expected Reporting Methods Mileage Reporting Basic Advanced Switchable Refunds Automatic refunds of fuel tax Manual refunds for off public road mileage for those choosing basic reporting 24

25. Choice of Mileage Reporting Plan 25

26. Mileage Reporting Device Activation 2. Install device into vehicle 26 1.Activate device built into vehicle, or

27. 27 Invoicing and Payment Invoice Receive by mail, email or automatic account access Summarized totals Options for payment Cash Check Credit Debit Electronic Funds Transfer 27

28. Is Oregon’s experiment going to work? 28

29. Oregon Road Usage Charge Summit November 13-15, 2013  Seminar for 15 state DOTs  Workshop for 38 vendors  Policy and technical tracks  Oregon legislative panel  Two days of one-on-one meetings with vendors 29

30. IMS International Telematics KPMG Magneti Marelli Motor Vehicle Software Corp. Q-Free America Raytheon Robert Bosch, LLC Sanef SiFore / Intel Tater Tot Designs Team Red US Telvent / Schneider Electric The Hub Companies, LLC Thermo King Northwest, Inc. True Mileage Vehcon, Inc. Verizon Xerox 3M Motor Vehicle Systems & Services Accenture American Roads Technologies Atkins, NA Battelle Brisa North America Cambria Solutions, Inc. CGI Technologies Continental Automotive Coral Sales Company Cubic Transportation Systems Danlaw, Inc. Delcan Corporation Egis Projects Canada EROAD GeoToll, Inc. GO-PASS Mobility Services, LLC IBI Group IBM 38 Firms Attending the 2013 Oregon RUC Summit 30

31. ODOT Recommendations to US States Access Oregon’s open system RUC platform for individual or regional pilot programs  Use Oregon’s standard mileage message  Access vendors hired by Oregon DOT  Access back end operational capabilities of Oregon consulting team  Advantages: 1)Save time 2)Save money 3)Design program elements acceptable to individual states 31

32. Sections 29 and 30 of SB 810 Western Road Usage Charge Consortium  Western states eligible  Research multi- jurisdictional RUC issues  Research RUC issues of common interest  Multiple state pilots  Assess regional system 32

33. 33 VA