Exploratory Study: Vehicle Mileage Fees in Texas (0-6660-1)

This project evaluates Vehicle Mileage (VM) fees as a possible funding mechanism for meeting the State of Texas' long-term transportation needs. Researchers conducted listening sessions with the general public and stakeholders to gather input on the concept. Researchers also prepared a decision matrix that can aid policy makers in evaluating the various trade-offs in policy that will be encountered in vehicle mileage fee system development. This study identified both challenges and opportunities for implementation of VM fees:

• most study participants viewed the implementation of mileage fees as unworkable; privacy, cost of administration, and enforcement emerged as the most commonly cited concerns;
• the rationale of transitioning to mileage fees has not been adequately established with the general public;
• a new funding mechanism will inherently raise fairness concerns among rural and low-income drivers;
• despite concerns, research shows that the vehicle mileage fees are a logical, sustainable, long-term option to supplement or replace the fuel tax;
• if pursued, simple implementation solutions will engender the greatest public and stakeholder support;
• field demonstrations that illustrate the full spectrum of implementation aspects, including payment, administration, and enforcement, can show how the concept might work in Texas; and
• effective policy design can address any major public acceptance issues.

Finally, researchers recommend a demonstration approach that focuses on electric vehicles, tests all aspects of payment, administration and enforcement, and offers a low-technology deployment (using odometer readings) that would provide drivers with the option to adopt a high-technology alternative.