A USDOT University Transportation Center

Establish a National Mileage-Based User Fee system (MBUF), or a “Road User Charge” (RUC)

Road user charging (RUC) systems, or a mileage-based user fee system (MBUF), are government policies that charge drivers based on how many miles they travel. This system is similar to tolling, except that it would apply to all roadways in an area.1 The goal of RUC systems is to ensure that all road users contributes to their share of transportation infrastructure costs.2 With a rise in the number of fuel-efficient and electric vehicles, there was a concern that the associated decline in fuel tax revenue would negatively impact the government’s ability to maintain roadways.

Considering this strategy will help achieve the goal of the following objectives

  • Less Contamination
  • Less Emissions
  • Less Traffic Noise
  • Connectivity and Inclusion
  • Healthy Destinations
  • Less Traffic Violence
  • Active Transportation
  • Green Space

Transportation lifecycle phases

This strategy is associated with the following transportation lifecycle phases:

  • Construction
  • End of Life
  • Maintenance
  • Material Selection
  • Operations
  • Policy and Planning
  • Project Development

Who's involved

  • Car owners
  • Local governments
  • Policymakers
  • State governments
  • Transit agencies
Road user charging (RUC) systems, or a mileage-based user fee system (MBUF), are government policies that charge drivers based on how many miles they travel. This system is similar to tolling, except that it would apply to all roadways in an area.1 The goal of RUC systems is to ensure that all road users contributes to their share of transportation infrastructure costs.2 With a rise in the number of fuel-efficient and electric vehicles, there was a concern that the associated decline in fuel tax revenue would negatively impact the government’s ability to maintain roadways.

How it Helps

This approach can indirectly lower vehicle emissions and traffic noise due to a potential decrease in driving mileage. Additionally, introducing a variable pricing system depending on the time of day can shift vehicle trips away from peak travel times if the cost per mile is reduced during off-peak periods. This would further reduce pollution levels during heavy traffic periods.
Further, RUC can raise funds for the public transit system and other transportation-related improvements.3 It can also encourage road users to take active forms of transportation, such as biking and walking, thus improving overall community health.

Implementing

Monitoring:

Although there is not one model for how an RUC system should be implemented, there are different approaches.4 For example, drivers could be charged per mile through odometer checks or in-vehicle devices and telematics systems.

Potential Barriers:

There are many concerns over implementing an RUC system including:
-Travelers’ privacy regarding GPS tracking
-Unfair burden to rural drivers who may have to drive further distances
-Unfair burden to lower-income individuals
-Disincentive for EV adoption if users do not think it will save them money

Examples

1) Oregon’s OReGO Initiative

In 2015, ODOT launched the OReGO initiative, a pay-per-mile system that is a volunteer-based program that charges participants 1.9 cents per mile they drive. Funds are then used to maintain Oregon’s roads and bridges since increasing numbers of vehicles are using less gas or running on electricity. OReGO offers incentives for volunteer participation including fuel tax credits and reduced vehicle registration fees.

https://www.myorego.org/why-it-matters/

1. Azuga. Road Usage Charging. https://www.azuga.com/fleet-tracking-glossary/road-usage-charging
2. Atkinson, R. D. (2019). A Policymaker's Guide to Road User Charges. ITIF. https://itif.org/publications/2019/04/22/policymakers-guide-road-user-charges?mc_cid=44a7338466&mc_eid=7929cffa5b
3. KonSULT. (2016). Road User Charging. University of Leeds. http://www.konsult.leeds.ac.uk/pg/01/
4. IBTTA. (2021). Road Usage Charge (RUC). https://www.ibtta.org/road-usage-charge-ruc