AASHTO Journal, 10 July 2015
As planned, the Oregon Department of Transportation launched its “OReGO” program July 1, in the nation’s first major deployment of a mileage-based user fee on drivers to pay for roadway infrastructure needs and to replace motor fuel excise taxes that have long provided the major dedicated funding stream.
ODOT will enroll up to 5,000 passenger cars and light-duty commercial vehicles in this first phase of the program, while asking volunteer enrollees for feedback and ideas for improving it in the future. Participants will pay 1.5 cents per mile while driving in Oregon, and receive a credit on their bills for the 30-cent-a-gallon gas taxes they pay at the pump.
Garrett“Oregon is leading the nation to develop a fairer, more sustainable way to fund road maintenance and improvements,” said ODOT Director Matthew Garrett.
The nation’s shift to cars that are more fuel-efficient, plus some that are hybrid-fuel models or all-electric vehicles, means Oregon’s fuel tax revenue keeps shrinking, ODOT said, leaving less available each year for highway maintenance and construction.
Before it launched OReGO, Oregon conducted two pilot projects to test road usage charging, which led the Legislature in 2013 to create the program and launch it statewide this month.
ODOT noted that several other states are considering similar road user charge systems. Those include, in the West, Washington, California, Idaho and Colorado.
“Oregon and other states know that the gas tax drivers pay at the pump isn’t cutting it anymore,” Garrett said. “As newer cars squeeze more miles out of each gallon of gas, and more hybrid and all-electric vehicles are sold, paying for road use by the mile instead of by the gallon ensures that everyone pays their fair share – no more, no less,” he said.
State officials and private partners kicked off Oregon’s pay-by-the-mile usage charge program at a demonstration event in Portland. It included information from the three private vendors through which enrollees can manage their accounts.
Those providers handle customer billing and forward payments to the state highway fund. Two of the providers offer satellite-based tracking systems, while the third offers a non-tracking option that uses a basic mileage reporting device that only reports miles drive and fuel consumption.
Tom Fuller, ODOT communications manager, said those choosing to participate can choose a provider online at the program’s website, and will be redirected to the companies’ sites to enroll their vehicles. “Once you’re approved, the account manager sends you a small reporting device that you plug into your car and you’re good to go with OReGO,” Fuller said.
ODOT said the two account managers that offer satellite-based devices will also offer features that can help drivers save time and money. One will soon add smartphone apps to help drivers find their parked cars, monitor check-engine alerts and other services.