Oregon’s experience of introducing a road user charging system could provide valuable lessons for the UK as it considers how to replace declining fuel duty revenues, according to a new report published by the RAC Foundation.
The report examines Oregon’s progress in detail and considers what its experience could mean for the future of road funding and distance-based charging in the UK.
The report, Charging by the mile – Oregon’s long drive to a new road funding model, by transport strategist Dr Grant Klein (with contributions from Highways News’ Paul Hutton and VESOS co-founder Andy Graham), examines how the US state has spent more than two decades developing a distance-based charging system to fund its road network.
With the transition to electric vehicles (EVs) accelerating, traditional fuel duty revenues are coming under increasing pressure. As more drivers move away from petrol and diesel, the UK Treasury faces a growing shortfall in one of its established sources of transport funding.
Distance-based charging is increasingly being considered as a potential solution, linking the amount motorists pay more directly to their use of the road network. However, establishing a system that is affordable, trusted by the public and politically deliverable presents significant challenges.
Oregon offers an example of how those challenges can be addressed.
The Oregon Department of Transportation (ODOT) began exploring alternatives to fuel tax more than 20 years ago, initially in response to improvements in vehicle fuel efficiency. Since then, it has conducted a series of trials and tested different technologies and business models through its road usage charging programme, known as OReGO.
The programme has evolved through public consultation and changes to its design, and is now among the most advanced road charging schemes of its kind. A mandatory road usage charge for electric vehicles is due to be introduced in Oregon from 2027, with hybrid vehicles following in 2028.
Dr Klein identifies three key lessons from the state’s experience that could inform the development of similar arrangements elsewhere.
First, clarity of purpose is essential. Oregon’s legislators have maintained a straightforward message: fuel tax is no longer sufficient to fund the maintenance of roads and bridges. The road user charge is therefore intended to replace, rather than simply add to, the existing fuel tax system.
Second, public concerns must influence the design. Privacy has been a significant consideration, leading to the development of non-GPS reporting options and the involvement of private sector account managers acting as intermediaries between motorists and the state. Concerns about fairness have also been addressed through detailed analysis of rural and urban driving patterns.
Third, flexibility and choice can make a charging system more resilient. Oregon’s developing mandatory scheme will offer multiple ways for drivers to report their mileage, alongside a choice of account managers. A phased transition is also intended to help control costs and give motorists greater flexibility.
Dr Klein said Oregon’s experience demonstrated the importance of allowing a road charging system to develop over time, rather than attempting to introduce a single, fixed solution from the outset.
Read the report by clicking this link: Charging by the mile – Oregon’s long drive to a new road funding model
(Picture: José Maria Toscano)
