History
The Utah Department of Transportation (UDOT) has received four grants totaling $3.245 million from the federal Surface Transportation System Funding Alternatives (STSFA) program. UDOT used its fiscal year 2018 grant funds awarded in 2019 to implement a voluntary operational Road Usage Charge (RUC) program for owners of fully electric vehicles, plug-in hybrid vehicles and gasoline hybrid vehicles. The RUC program is exploring the feasibility of a RUC serving as an alternative to the state’s fuel tax and began enrolling participants on Jan. 1, 2020.
Utah was awarded its second and third STSFA grants in July 2020. The second grant explores the feasibility of combining the RUC program with existing Express Lanes tolling to reduce administrative costs and improve the customer experience. The third grant tests the feasibility of overlaying a local government RUC fee on top of the state’s RUC fee.
A fourth STSFA grant was awarded to UDOT in March 2021 to assist with optimizing the RUC customer experience. The purposes of this optimization are to attract new participants, retain existing participants, and identify efficiencies that will improve the program while reducing administrative costs. Overall, UDOT aims to create more sustainable funding for the state’s transportation system.
STSFA Awards
Fiscal Year
|
Grant Amount
|
Description
|
2018
|
$1,250,000
|
Implement a RUC program for fully electric vehicles, plug-in hybrid vehicles and gasoline hybrid vehicles.
|
2019
|
$395,000
|
Examine the ability to integrate several aspects of the RUC program for alternative vehicles with the existing Express Lanes tolling systems.
|
2019
|
$350,000
|
Test interagency coordination and system interoperability between state and local entities by allowing local jurisdictions the ability to piggyback their own per-mile RUC fees on the existing RUC system.
|
2020
|
$1,250,000
|
Develop and validate RUC-specific customer experience improvements to enhance public acceptability and attract and retain more voluntary participants.
|
Legislative Activity
Mileage-based funding was originally discussed in a 2003-2004 Legislative Transportation Planning Task Force hearing. Since then, six RUC-related laws have been adopted by the Utah Legislature.
In 2015, HB 362, Transportation Infrastructure Funding, directed UDOT to continue studying RUC as an alternative to the fuel tax, including a potential RUC demonstration program along with recommendations to implement a RUC program in the future. In 2017, SB 174, Public Transit and Transportation Governance Amendments, created the Transportation Governance and Funding Task Force and required a report on how the state could address statewide funding needs via user charges. The report was presented to the Transportation Interim Committee in November 2017 with a recommendation to, “Authorize and direct UDOT to begin a RUC demonstration/pilot program as a potential future alternative to motor fuel taxes.”
In 2018, SB 136, Transportation Governance Amendments, required UDOT to implement a RUC demonstration by Jan. 1, 2020, in lieu of collecting an annual flat fee for electric vehicles, plug-in electric hybrid vehicles and gas hybrid vehicles. It also ordered UDOT to create a RUC Advisory Committee to lead the development of its RUC program. The RUC Advisory Committee met three times between May and November 2018. Five technical working groups composed of committee members were also formed to focus on policy, communication, privacy and security, compliance and enforcement, and technology.
SB 72, Transportation Governance and Funding Revisions, adopted in 2019, enacted laws necessary to implement a permanent RUC program, a reversal from the 2018 bill that authorized only a demonstration program. SB 72 authorized UDOT and the Utah Transportation Commission (Commission) to establish certain administrative rules. UDOT was directed to create rules regarding enrollment, withdrawal and removal, mileage reporting, commercial account management (CAM), enforcement, privacy and data sharing. Moreover, the Commission was given RUC rate setting authority. Additional provisions permitted information sharing between UDOT and the state Division of Motor Vehicles (DMV). This addressed specific procedures to protect personal information and data, penalties for violating privacy protections, device tampering and penalty procedures to remove participants for failure to pay.
In 2020, SB 150, Transportation Governance and Funding Amendments, required UDOT to submit a plan to the legislature with potential scenarios to enroll all registered vehicles in the state by Dec. 31, 2031. UDOT submitted its report in May 2021 and presented it to the Transportation Interim Committee in June 2021. The report outlined two scenarios the state could take advantage of, while describing risks associated with expansion, revenue generation, public acceptance and adaptability. The report also analyzed issues regarding rural equity, privacy, costs and technology. SB 150 also reenacted certain reporting provisions originally approved in 2019 via SB 2001 and subsequently repealed the following year via HB 185. These provisions addressed a requirement for UDOT to annually update its RUC enrollment strategy, along with details covering participation rates, revenue collection, potential strategies to expand enrollment and administrative expenses. UDOT must report this information to the legislature by Oct. 1 of each year.
In 2021, SB 82, Road Usage Charge Program Special Revenue Fund, created a specific fund to receive deposits generated by the RUC program. Revenues may be used to cover the costs of administering the RUC program and for state transportation purposes.