THE CASE FOR A ROAD USAGE CHARGE CALIFORNIASTUDIES

By California Department of Transportation Road Charge Program Director Lauren Prehoda

California has an upcoming challenge. Taxes on the purchase of gasoline and diesel currently fund the majority of the state’s road and bridge repairs. However, as many Californians are switching to more fuel-efficient or electric vehicles, they buy less gasoline and diesel and pay less or no gas tax. This not only means less funding for roads, it also means people who own older or less fuel-efficient vehicles are paying more in taxes than others. In California, this means that, on average, rural drivers pay more than their urban counterparts to use the road.

Fuel tax revenue will continually decline as California transitions to electric and other clean air vehicles in the future. To address this funding concern, the Legislature passed Senate Bill 1077 (DeSaulnier) in 2014 and Senate Bill 339 (Wiener) in 2021 to study a transportation tax based on a permile fee, known as a road usage charge. The state is exploring this new mechanism to both stabilize

California’s transportation funding and create a fairer system where everyone pays the same to use the road. Since 2016, California has completed two road usage charge pilot programs and has conducted a series of studies to further examine the policy idea.

In 2023, the California Department of Transportation (Caltrans) will conduct further pilot research and aims to recruit participants from two distinct populations: rural and tribal communities. It is critically important to have the voices of these communities at the table as the state shapes this potential policy. The research pilot, known as the Public/Private Roads Project, will gather essential information for planning how a road usage charge program could address travel to and from public and private roadways. The project will demonstrate the ability of current GPS technology to differentiate when a car is driving on a public versus a private road, while protecting the user’s privacy. Currently, when a driver is on a private road, they are still paying the gas tax even though no public money goes to the maintenance of that road.

In addition to recruiting participants for focus groups and attitude survey research, the state is offering incentives of up to $250 for community members to take part in a 7-month pilot launching in March 2023. To be eligible for the incentive, rural community members will need to have mileage reported electronically through a device or app, drive around as usual during the pilot timeframe and participate in two surveys. Technology and user experience are the focus of the pilot study and no participant will pay for the simulated road charges.

California needs a fairer, more transparent and more sustainable way to fund our roads. Caltrans wants the voices of rural community members, ranchers, tribes and business owners at the table as this policy idea on replacement funding is being explored. The department wants to understand how the concept fits into your day-to-day and what unique challenges and opportunities it may provide rural and tribal communities. Caltrans encourages CCA members to sign up to participate so that you can experience it firsthand and tell us what you think. For more history and information on California Road Charge, to get in touch with the project team or to sign up for the pilot, visit caroadcharge.com/engage/contact-us/