I-95 Corridor Coalition MBUF Research for the I-95 Corridor Coalition Gary W. Euler

I-95 Corridor Coalition Multi-State MBUF Initiative Focus on institutions – who should (could) do it? Focus on multi-state perspective – can states work together with or without a federal lead? Focus on cost – what are the administrative costs? Focus on legal and regulatory constraints – what changes would be needed? Advanced two projects to address administrative elements Focus on functionality – what needs to be done?

Approach:  Based on results of NCHRP 20-24(69) RAND #1  Extensive interviews  Guided by Member Advisory Committee Identified required administrative functions:  System functionality associated with three broad options: s imple, complex and advanced Estimated cost based on available information Investigated institutional issues and models such as IRP and E-ZPass ® IAG Assessed Federal/State legal and regulatory issues I-95 Corridor Coalition Phase 1 Project Study Approach

Level of customer service and communication Level of monitoring, including identifying unregistered or newly registered vehicles and identifying delinquent accounts Enforcement and auditing to minimize evasion and to assure collections and revenue distribution Ability to leverage existing systems such as the IRP, E-ZPass ® IAG, etc. I-95 Corridor Coalition Administrative Cost Drivers

Enrollment is a critical requirement that may be integrated with state vehicle registration processes  Interaction, involvement, and coordination among state motor vehicle agencies are essential Potential institutional models range from DMV, IRP/IFTA and E-ZPass ® to new operating entities and private sector roles  Sole government institutional arrangements are unlikely without private sector involvement Collection of federal charges may be done via the states where the registration information resides I-95 Corridor Coalition Key Findings: Institutional

No “show stopping” legal or constitutional issues Would benefit from authorizing legislation that would address: Characterization of MBUF charges Administrative authority Rate setting and use of revenues Enforcement provisions Adjudication processes and mechanisms User privacy protections I-95 Corridor Coalition Key Findings: Legal

Prepared a Concept of Operations for administering an “advanced” multi-state mileage-based user fee system Worked with 3 states: Delaware, Maryland and Pennsylvania Provided a foundation for a potential multi-state field trial I-95 Corridor Coalition Phase Two Project

I-95 Corridor Coalition Project Context Long range vision  Suspend privacy concerns  Start with a “fresh sheet of paper” Must be multistate in nature, i.e., provide at least for cross-reporting of miles driven by state Must provide for all charges on all roads, including local roads, priced-facilities and time of day (congestion) pricing – i.e., a single integrated system Must provide for implementation flexibility  Handling of state responsibilities  Outsourcing  User payment choices  Rates and rate structures

I-95 Corridor Coalition Assumptions Continuing evolution of system/technology trends –Communications networks –Per mile toll rate structures –Availability of devices on/in vehicles –Prevalence of electronic billing/collection Continuing evolution in institutional policy –Adoption of MBUFs by all states –Enabling legislation –Cooperative agreements –Electronic registration and titling

Concept of Operations

I-95 Corridor Coalition Cost Estimate Approach Data compiled for NCHRP Report #689, “Costs of Alternative Revenue-Generation Systems,” including cost estimates submitted for a proposed system in the Netherlands, was used as the basis Analyzed MBUF functions, considered cost ranges and identified costs that could potentially be offset Assembled cost information for current revenue systems from the states and toll authorities Solicited private sector views on costs

I-95 Corridor Coalition Cost Conclusions MBUF collection is more costly than fuel tax collection MBUF collection costs compare more favorably if the cost of collecting tolls and registration fees are also considered Equipment costs were excluded from consideration

I-95 Corridor Coalition Key Transition Considerations Many challenges especially in multistate environment. All-electronic tolling, toll interoperability, and electronic titling and registration provide promising foundations Important that each state/authority retain autonomy in any transition Administrative structures developed early on will carry forward Federal leadership would be helpful