What Does VMT Charging Mean for Tolling?

One of the major currents in the river of last week’s discussion on interoperability is the subject of vehicle miles traveled charging, or VMT for short. The interoperability forum report suggests that establishing an overarching structure for nationwide interoperability could become the foundation to support a nationwide VMT charging program. However, not everyone agrees with this sentiment.

Both of the commissions that Congress established under SAFETEA-LU -- the Policy Commission and the 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. The Bipartisan Policy Center, which issued its report in June 2009, also endorsed the concept that users and direct beneficiaries should bear the full costs of their use of the transportation system to the greatest extent possible, implying that VMT could be the way to go.

However, in the responses to last week’s blog question on interoperability, there was disagreement on the value of engaging in discussions of VMT. Marty Stone asked, “When did the toll industry become the spokesman for national VMT? And, why is national VMT one of the focuses of our interoperability development - especially when there is no guarantee that national VMT will ever overcome a laundry list of very challenging political hurdles?” João Bento said “interoperability does not imply VMT but the reverse does.” Dan Faust said, “We should not be the spokespersons for VMT, nor should we equate VMT with true, customer-focused interoperability.” In addition, in the interoperability forum report, Larry Yermack said, “the issue of VMT alone provides the greatest threat to the toll industry that it has seen in decades.”

What is the significance to the toll industry of the emergence of VMT charging as a concept and a reality? What if anything should the toll industry do to respond to this possibility?

What Should Be Done About Interoperability of Electronic Tolling in North America?

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On October 29, 2009, in Washington, DC, IBTTA assembled a group of experts from different stakeholder organizations, all of whom have a keen interest in the future of mobility and interoperability in North America, to focus on this question: “What is IBTTA’s role in advancing universal tolling interoperability?”
The Full Report of this meeting – linked here – presents the highlights of the discussion that took place during the forum. This report represents the beginning of a discussion on this important issue. Through the discussions at the forum and subsequent conversations in other venues, we hope to give the IBTTA board, elected officials, regulatory officials, and other stakeholders a clear grasp of the technical, institutional, legal, regulatory, financial, and logistical challenges that must be addressed to achieve interoperability at regional, national, and, possibly, even international levels. As the proceedings from this meeting show, achieving universal tolling interoperability is not a simple matter of flipping a switch. It will involve flipping a hundred switches and changing the way thousands or millions of people go about their daily routine.

What Should Be Done About Interoperability of Electronic Tolling in North America?