Motivations for Change in Road Funding Declining revenue & increasing unfairness of fuel tax
Changes to nation’s vehicle
fleet
CAFE standard to 54.5 MPG by 2025
Societal inequity resulting from new vehicle purchases
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Presentation Notes
CAFE standards have been making more efficient vehicles available, and these standards are continuing to increase. Wealthier individuals are generally the first to purchase these fuel-efficient vehicles, so people in lower socio-economic levels tend to drive less efficient cars. This makes the fuel tax even more regressive.
SB 810 Overview • 5,000 volunteer vehicles
• Revenue Neutral
• Revenues split sames of fuels tax
• 1.5 cents per mile • Credit for fuels tax
• Mileage reporting choices
• Personal information protection
• Minimal enforcement provisions
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Presentation Notes
On July 1, 2015, volunteers were able to enroll in the Road Usage Charge Program. ODOT implemented a fully operational program, even though it is currently limited to 5,000 vehicles.. Here are the key requirements laid out by the bill: The RUC is 1.5 cents per mile. This was designed to be revenue neutral with state fuels tax, which is $0.30/gallon. Volunteers will receive a fuels tax credit to be applied against their Road Usage Charge. Some volunteers (those that have vehicles with 20 MPG or less) will receive a refund because fuels tax paid will exceed RUC charges. All others will pay the RUC. Mileage reporting choices. This program is driven by choices. Volunteers choose the account manager, who will have different value-added services and methods of doing business, and volunteers will choose the mileage reporting device, which can be advanced (location is tracked), or basic (location is NOT tracked) Protection of personally identifiable information. Volunteer information is protected by law. This is a high priority item - Volunteer information is protected.
Defining Road Usage Charge A fee charged for the distance a vehicle is driven
Count the miles and fuel
Administer the program
Collect the tax
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Presentation Notes
RUC is not a ubiquitous term – it is called a vehicle miles traveled tax, a mileage based user tax/fee, and a road usage tax/fee. In Oregon, it’s the fee that is charged for the distance a vehicle is driven. At its simplest level, the premise is that the state will count the miles and the fuel, collect the tax, and administer the program. This is the term used in SB 810, which was passed in 2013.
The volunteer experience
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Presentation Notes
We are going to show you what all goes into the RUC program in Oregon, but we want it to be good experience for the volunteers.
ODOT certifed three account managers – two commercial account managers and one ODOT account manager or OAM. The OAM will be performing all the functions that ODOT would if it were interfacing directly with volunteers – it is signing them up, sending them MRDs, and collecting their money. Choice was one of the important features of SB 810.
Design principles
Open architecture Tax payer choices
Scalable
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Technology agnostic
Geographically Unlimited
Who manages account
How miles are counted
How much data to share
Private and agency options Requirements driven
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Presentation Notes
These were the underlying principles for the design of RUC in Oregon.
ODOT Account Manager
Bank
ODOT
Mileage Collection
Commercial Account Manager(s)
Reporting
Transaction Processing
Account Management
Oregon Road Usage ChargingOpen System Concept
Mileage and fuel data
$ Tax Reconciliation
Public Outreach
EvaluationManager Volunteer
Manage Account Managers
Monitor & Reporting
Inquires & Issue Resolution
Tax Collection
DMV
Accounting
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Presentation Notes
Context: This diagram shows how the systems fit into the business and other systems. Are there business process or system interfaces? Who are the users who interact with the system?
Mileage Collection
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Presentation Notes
The devices are installed in the OBD 2 port of the vehicles; in-vehicle telematics could be used but no vendor certified with that opting instead to use mileage reporting devices.
Mileage Collection Offerings by account manager
Verizon Telematics Future
• GPS • Miles driven
by state • Fuel usage • Services
• No GPS • Miles driven
• Fuel usage
• GPS • Miles driven • by state • Fuel usage • Insurance
Powered by
Account Managers
Account Managers
• Collect data • Process transactions • Manage mileage reporting device • Manage RUC payer accounts
– Account setup – Billing / Refunds – Customer service
• Provide customer web portal • Report and remit tax to ODOT • Report monitoring data to ODOT
Functions of the account manager
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Presentation Notes
Each of these functions requires a different level of scrutiny. The web portal was probably the easiest to validate.
ODOT
ODOT Operations
Processes for: • Compliance • Contract Administration • Accounting • Program management • Volunteer & Public Engagement
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Presentation Notes
Compliance Service Level Agreements Contract Management Audits Addressing data breaches Account managers must notify ODOT Work to resolve Indemnify for losses Accounting Program management Ensure statutory caps are not exceeded Recruit & retain Validate eligibility
Next Steps
• Preparing a Roadmap to Viability Report, lessons learned and certification update documents
• Close out project by 12/31/2015
Operate the Pilot Program
Policy Decisions
• Costs • Compliance /Enforcement • Mileage reporting for ALL vehicles
• Work with Road User Fee Task Force on next steps • Legislative session (2017)
Key challenges
“Back Pocket Slides”
Certification process
Pre-contract
Initial Certification
Step 1 Step 2
Submit/Review Qualification
Documentation
Conduct/Witness Product
Demonstrations
Formal Certification
Step 3 Step 4 Step 5
Conduct Self Certification
Integration Testing
Systems Acceptance
Testing
Post contract
RUC Administration Subsystem ODOTs RUC specific – Custom developed application
