Thursday, May 7, 2009

Towards a Ubiquitous Road User Charging System

In my monthly report to members on May 5, I noted that Congressman Jim Oberstar had propelled IBTTA and tolling to the center of the debate on how to fund America’s future highway system. How did he do it? In a hearing on April 28, Mr. Oberstar suggested that we as a nation should seriously consider moving to a vehicle miles traveled (VMT) charging system to fund highways and that such a system could be phased in over the next two years. Now it appears Mr. Oberstar is distancing himself from those comments.

That’s okay. Everyone will be talking about VMT before long. Both of the funding commissions that Congress established under SAFTEA-LU – the Policy and Revenue Study Commission and the Infrastructure Financing Commission – recommended a short term increase in the fuel tax and a long-term transition to VMT to fund America’s future highway needs. Both commissions said the fuel tax is unsustainable as a long term mechanism to support highways because you’re taxing a commodity whose use you’re trying to discourage.

A recent press release from the Bipartisan Policy Center, which comments on the report of the Financing Commission, underscores “the principle that users and direct beneficiaries should bear the full costs of their use of the transportation system to the greatest extent possible.” The Center will release its own report on how to reform transportation policy on June 9.

Ed Regan of Wilbur Smith Associates has spoken and written about a layered approach to road user charging that could be applied at the federal, state, and local levels of government, as well as at the level of the individual toll road. He made a presentation called “A National Pricing System: The Time is Coming” at our Transportation Finance Summit last December.

And earlier this week, I participated in a meeting in Washington, DC at which representatives from the I-95 Corridor Coalition got together for a brainstorming session to outline the contours of a pilot project to model a national VMT charging system. The goal is to design a project that could be launched immediately once funding for such a pilot is available.

In summary: there seems to be a steady drumbeat of thinking, talking, exploring and moving toward a ubiquitous road user charging system. It’s hard to say how long it will take to get there. Those who support such a program agree that a massive public education program will be needed. The IBTTA Board of Directors in April discussed at great length the movement toward a VMT charging system and embraced the notion that IBTTA needs to take a leadership role in this effort. We are definitely working on it and will continue to nurture relationships with friends and allies who can help give rise to this sustainable approach to road funding.

-- Pat Jones

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