Trucking’s concerns must be factored into mileage-based user fee model, study says

A new study from the Eastern Transportation Coalition says that understanding the trucking industry’s unique demands is essential when evaluating fuel tax alternatives. Going further, the study found that a one-size-fits-all approach to a mileage-based user fee “could unfairly impact motor carriers by failing consider the industry’s unique circumstances.”

The study, which was released this week, discovered five major findings.

• Bringing the trucking industry’s voice to the table in mileage-based user fee discussions is essential.
• Trucks can’t simply be treated as big cars in a mileage-based system.
• Existing regulations provide guidance for a mile-based user fee implementation.
• One rate for all trucks doesn’t work.
• There is a need for further education and outreach.

A complete report can be found here.

The Eastern Transportation Coalition’s pilot study was conducted from October 2018 through March 2019 and included more than 50 tractor-trailers traveling more than 1.4 million miles across 27 states. The pilot was aimed at providing a closer look at how a mileage-based system would affect the trucking industry. Mileage-based user fees charge motorists for their road use instead of the amount of fuel they purchase. The model has been considered as a possible alternative to state and federal fuel taxes, which have generated less revenue as fuel efficiency has improved.

Previous mileage-based user fee studies have looked mostly at passenger vehicles, while the Eastern Transportation Coalition focused on how the model would affect tractor-trailers.

The study notes that individual trucks “travel substantially more miles than individual passenger cars, have higher fuel costs, and contribute significantly more in fuel taxes.”

Another key finding was that one rate shouldn’t be applied to all trucks, because of “the vast differences in vehicle operations, types, ages, performance and mileage traveled.”

The study also emphasizes that in order for a mile-based system to work there must be continued education and outreach regarding how this would affect the trucking industry.

“The future transportation funding solution cannot be solely on the shoulders of motor carriers, as this approach is inconsistent with the ‘user pays for what they use’ principle,” the study said.

A six-month pilot involving 200 trucks is planned for this fall. The coalition is looking for participants in the study, which starts Oct. 1.

OOIDA President Todd Spencer said that no matter which model is used it must be equitable for truckers.

“While many OOIDA members remain skeptical of transitioning away from traditional user fees to a mile-based user fee approach, the reality is many federal and state lawmakers and transportation officials are considering these systems as a means to fund our highway infrastructure in the future,” Spencer said.

“We appreciate the Eastern Transportation Coalition’s sincere desire to fully engage the trucking industry to better understand motor carriers’ serious apprehensions with mileage-based user fee proposals, including concerns about fairness, privacy, security and regulatory hurdles … Our goal has always been to ensure highway user fees are fair and equitable and collected in a manner that minimizes the burdens on our members.”