Mileage-Based User Fees Also Known As “Road Usage Charges” Facing the Fiscal Cliff and Public Opinion MODERATOR Lucy Dunn, California Transportation Commission and Orange County Business Council PANELISTS Loren Kaye, California Foundation for Commerce and Education Will Kempton, Transportation California Norma Ortega, Caltrans Mike Warren, CH2M HILL

Mileage-Based User Fees History of Base Gasoline Excise Taxes

Mileage-Based User Fees Revenue Loss Due to Increases in Fuel Economy

Mileage-Based User Fees Overview of the Problem Gas taxes as the primary source to fund transportation infrastructure Gas taxes gradually decline in buying power due to: Improved vehicle fuel efficiency Inflation Alternate fuels Decline in overall travel Raising gas taxes provides short-term relief but does not solve problem Unpopular with voters

Mileage-Based User Fees Common Misconceptions Driver privacy is sacrificed MBUF is another tax charged by the government Rural drivers are unfairly penalized as they drive longer distances Expensive to deploy and administer (relative to gas tax)

Mileage-Based User Fees Lessons Learned from Oregon  Choice and ease of use were key  Account management systems used similar elements to tolling  Mileage reporting technology is readily available  MBUF should become commoditized  Regional (and, at some point, national) interoperability is a must

Mileage-Based User Fees Activity is Large and Expanding