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Pilot program explores potential of mileage-based user fees

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Pilot program explores potential of mileage-based user fees
The Eastern Transport Coalition has revealed the findings of an international mileage-based truck pilot that highlights the potential of a mileage-based user fee (MBUF) to reestablish the link between use and payment of the transportation system.

COLLEGE PARK, Md. — The Eastern Transport Coalition recently revealed the findings of its international mileage-based truck pilot, the first of its kind, highlighting the potential of a mileage-based user fee (MBUF) to reestablish the link between use and payment of the transportation system.

The real-world pilot was conducted from June to November 2022 and included more than 250 diverse commercial vehicles, recording more than 8 million miles covering all 48 contiguous U.S. states and four Canadian provinces. This initiative built on the Coalition’s previous pilots by exploring how an MBUF could account for the complexities of the trucking industry. The work was conducted under the supervision of the U.S. Department of Transportation’s Surface Transportation Systems Funding Alternative (STSFA) program.

As the transportation industry evolves with technology, the traditional fuel tax funding model is strained by the increased fuel efficiency and the steady growth of electric vehicles. The Coalition has explored MBUF since 2018 as an alternative to the fuel tax through nine passenger and three commercial vehicle pilots, public opinion surveys, focus groups and data analysis.

With a neutral stance on MBUF as the ultimate solution, the Coalition’s emphasis lies in equipping decision makers with information about how all users could pay for transportation.

From the beginning, the Coalition has encouraged the inclusion of the trucking industry’s voice in the national conversation surrounding MBUF. Acknowledging the trucking industry’s valuable role in sustaining both daily life and the nation’s economy, the Coalition has worked to bridge the gap between stakeholders, policymakers, and industry experts. The outcome is innovative strategies that not only address challenges faced by the trucking sector but also enrich the broader transportation network.

“Central to the Coalition’s mission is its commitment to cultivating open dialogue and transparency throughout decision-making,” said Dr. Patricia Hendren, executive director of the Coalition. “By fostering collaboration among stakeholders, the Coalition envisions pioneering innovative solutions that drive progress reflective of the complex trucking industry and the evolving needs of our transportation system.”

David Heller, senior vice president of safety and government affairs for the Truckload Carriers Association (TCA), also weighed in.

“Looking for dollars to support our nation’s infrastructure is not an easy task, and no stone should be left unturned,” he said. “However, any mechanism, including an MBUF, needs to be fully vetted to determine whether it is a viable option to consider in the future.”

“Results from this international pilot underscore the potential of MBUF as a catalyst for a transparent and scalable highway funding solution,” Hendren said. “Insights reveal the adaptability of the current motor carrier framework for MBUF implementation, demonstrating that a weight-based approach could establish a clear link between road usage and costs.

“Our work, guided by the MBUF Motor Carrier working group and MBUF Steering Committee, has shown there is an intersection between the trucking industry’s desire for uniformity, scalability, and streamlined administrative processes and our country’s need for sustainable highway funding,” she continued.

The Coalition’s four major findings from the newly published report are listed below; the full report is available on the Coalition’s MBUF website.

  • MBUF can be applied to all commercial vehicles regardless of weight, fuel type, international travel, and type of operation.
  • A weight-based MBUF has the potential to provide a more transparent link between usage and cost of road use.
  • Uniformity does not have to be identical to be scalable and has the potential to substantially decrease administrative costs on both the motor carrier and agency sides.
  • Clearinghouse frameworks can be adapted to handle MBUF, but roles and responsibilities need to be clearly defined.

Bill Sullivan, executive vice president for advocacy for the American Trucking Associations (ATA) concurred with the Coalition’s findings.

“The Coalition’s report provides valuable insight on critical issues that must be resolved before a mileage-based user fee can be assessed on the trucking industry,” he said. “The pilot program’s findings highlight that the diversity, complexity, and interstate nature of trucking makes the imposition of a VMT (vehicle milage tax) fee a far more difficult proposition than for other vehicles. The report identifies many of these issues and provides a roadmap toward resolving the challenges that must be overcome.

“ATA will continue to support the Coalition’s efforts to identify and address the many yet unresolved barriers to implementation,” Sullivan concluded.

Todd Spencer, president of the Owner-Operator Independent Drivers Association (OOIDA) said the Coalition’s research considers the concerns of small trucking businesses in its research.

“This is no easy feat. Many small business truckers are leery of anyone talking about the potential conversion to a mileage-based system to fund our highway infrastructure, largely because they fear the system will not reflect factors unique to their operations,” Spencer said.

“Over the years, (the Coalition) has demonstrated to OOIDA that understanding and addressing our members’ concerns is a critical aspect of determining the viability of MBUF. This commitment is reflected throughout their latest MBUF truck report,” he continued. “We commend (the Coalition) for producing another clear and honest report and look forward to remaining an active participant in their ongoing research and outreach.”

TCA’s Heller describes working with the Coalition on the MBUF pilot as a rewarding process, noting that he believes it addresses concerns of TCA members.

“TCA looks forward to being part of these essential discussions in an effort to support the Coalition’s critical work to identify and address the issues that ultimately reflect the needs of our nation’s professional truck drivers and the roads they operate on,” Heller said.

The Coalition noted that, while an MBUF has potential, key challenges and considerations must be addressed before implementation. Moving ahead, the Coalition, under the Surface Transportation System Funding Alternatives grant program, will focus on comprehensive role reviews, lighter truck, and intrastate MBUF-impact assessment, fee consolidation feasibility, weight definition complexities, and alternatively powered commercial motor vehicle participation.

The Trucker News Staff

The Trucker News Staff produces engaging content for not only TheTrucker.com, but also The Trucker Newspaper, which has been serving the trucking industry for more than 30 years. With a focus on drivers, the Trucker News Staff aims to provide relevant, objective content pertaining to the trucking segment of the transportation industry. The Trucker News Staff is based in Little Rock, Arkansas.

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The Trucker News Staff produces engaging content for not only TheTrucker.com, but also The Trucker Newspaper, which has been serving the trucking industry for more than 30 years. With a focus on drivers, the Trucker News Staff aims to provide relevant, objective content pertaining to the trucking segment of the transportation industry. The Trucker News Staff is based in Little Rock, Arkansas.
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