Surface Transportation System Funding Alternatives Phase I Evaluation: Road Usage Charge Enhancement to Improve Functionality, Public Acceptance, and Interoperability by the Oregon Department of Transportation

Sethi, Sonika; Pierce, Ben; Robbins, Justin; Van Duren, Drew; Agrawal, Asha Weinstein · 2022 · ROSA P / United States. Department of Transportation. Federal Highway Administration

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Summary

This report presents the independent evaluation of the Oregon Department of Transportation’s (ODOT) Phase I activities under the Surface Transportation System Funding Alternatives (STSFA) Program. Motivated by the declining reliability of motor fuel taxes due to increasing vehicle fuel efficiency, the study assesses whether Road Usage Charges (RUC)—fees based on miles driven rather than fuel consumed—can serve as a viable, scalable alternative to maintain the long-term solvency of the Highway Trust Fund. ODOT utilized $2.1 million in federal funding to enhance its existing voluntary OReGO program, focusing on expanding technology options, increasing public awareness, evaluating compliance mechanisms, and exploring interoperability. The evaluation methodology involved a systematic review of ODOT’s activities between September 2017 and July 2019, guided by Federal Highway Administration (FHWA) assessment frameworks. ODOT tested four primary mileage-reporting technologies: dashboard image capture, vehicle onboard telematics, data exchange platforms, and smartphone applications paired with wireless beacons. The agency also conducted tabletop exercises to simulate manual reporting options, partnered with other state agencies to streamline data sharing, and held focus groups to gauge public perception and equity concerns. The evaluation team analyzed these efforts against criteria including system scalability, cost efficiency, data security, and user acceptance. Key findings indicate that providing diverse technology options is critical for program success, but maturity varies significantly. Vehicle telematics proved reliable but lacks universal availability in current vehicles. Smartphone and beacon pairing, while accessible, suffered from poor user experience, data inconsistencies, and interference issues. Dashboard image capture also yielded inconsistent data. Manual reporting was identified as necessary for inclusivity but expected to incur high administrative and enforcement costs. Regarding system attributes, the report highlights that secure, interoperable telematics access is essential for data privacy, though current pilot security measures require enhancement for mandatory implementation. Focus groups revealed significant public concerns regarding equity, with participants perceiving RUC as unfair to low-income drivers and those owning fuel-efficient or electric vehicles, who felt penalized for environmentally responsible choices. The study concludes that while RUC offers a potential path to sustainable transportation funding, significant technical and social hurdles remain. ODOT recognized the need to decouple RUC approaches from specific technology solutions to ensure flexibility. The evaluation suggests that streamlining business processes and aligning with existing standards could reduce administrative costs. However, the tradeoff between enforcement costs and marginal revenue gains remains a critical consideration. Ultimately, the report provides the U.S. Congress and FHWA with lessons learned on the functionality, public acceptance, and interoperability challenges of user-based revenue mechanisms, informing future decisions on national implementation.

Key finding

Emerging mileage-reporting technologies such as smartphone-beacon pairing and dashboard image capture demonstrated significant usability and data accuracy issues, whereas vehicle telematics offered reliability but limited current availability, highlighting the need for technology-agnostic system designs.

Methodology

field_study

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clean success 1 2026-06-01
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enrich success 1 2026-05-23
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summarize success llm qwen3.6-27b-prismaquant summ-v5 3 2026-06-10
tag success vector_similarity 24 2026-06-11
verify success 2 2026-06-10

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