Comprehensive RUC Presentation

History of the Gas Tax
• “User Pays Principle”
• Instituted first by OR in 1919
• UT followed in 1923 (2.5 ¢/gal)
• 24.5 ¢/gal from 1997-2015
• 29.4 ¢/gal from 2016-2018
• 30.0 ¢/gal from 2019-
• Indexed for inflation now
• Fed rate 18.4 ¢/gal 1992-
Image courtesy of Oregon Department of Transportation

-80%
-70%
-60%
-50%
-40%
-30%
-20%
-10%
0%
2003 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 2019
Erosion from Construction Cost Inflation Erosion from Fuel Efficiency
National Fuel Tax Purchasing Power Decline
3
- 46%
- 22%
Indexing to CPI
Road Usage Fees
Utah Legislative
Countermeasures:

0
10
20
30
40
50
60
2000 2005 2010 2015 2020 2025 2030 2035 2040
BillionsofMilesDrivenAnnually
Utah Vehicle Miles Traveled (VMT) Projection
4
More drivers are driving more miles—
creating more demand on the roadway
system.
23 Billion Miles
51 Billion Miles
Transportation choices, policies, and
population growth will define Utah’s future VMT.
32 Billion Miles
29 Billion Miles
+26%

0
0.2
0.4
0.6
0.8
1
1.2
1.4
1.6
1.8
2
FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18
BillionsofGallons
Gallons of Fuel Purchased in Utah
5
Great
Recession
+27%

Utah Fuel Tax Revenue
6
0
50
100
150
200
250
300
350
400
450
500
$(Millions)
Great
Recession
State
Fuel Tax
Increase
+13%

0.0
0.2
0.4
0.6
0.8
1.0
1.2
1.4
1.6
1.8
2.0
RevenueperVMT(cents/mile)
Utah Fuel Tax Revenue per Vehicle Mile Traveled (VMT)
7
Great
Recession
State
Fuel Tax
Increase

What is RUC?
• Usage fee charged in proportion to miles driven
• Similar to utilities such as water, natural gas, or electricity
• Being considered as replacement of existing gas tax, not a
new tax

How Do RUC Systems Work?
September 24, 2019 9
In-vehicle mileage counter
transmits miles driven to
private-sector account
manager.
Mileage fees are deducted
from pre-paid wallet managed
by account manager.
Vehicle owner adds funds to
the wallet when it gets low.
State of Utah contracts with (and
oversees) account manager.
Account manager sends road
usage charge collections to
State of Utah.
Payer State of Utah
Account Manager
1
2
3
4
5

Why Consider RUC to Generate Transportation Revenue?
Registration Fee
Gas Tax
Road Usage Charge
Doesn’t scale with VMT; doesn’t
align with User Pays Principle
Provides some link to usage but
increasingly less so
Scales with VMT; aligns with User
Pays Principle

RUC System Challenges
• Limited understanding of transportation funding
• Enforcement
• Technology
• Data accuracy
• Out-of-state driving
• Privacy protection
• Administrative costs

RUC Systems: Where to Start?
12
Public
Stakeholders
Tech Choices
Privacy
Legislature
Key Champions
Revenue Alternatives
Legislation & Rate Setting
State Agencies
Eligible Vehicles
Operational Structures
Data Security
Enforcement & Disputes
Public Outreach

RUC Systems – Where to Start?
13
• Transportation funding options
• Mandatory or optional program
• Identify key champions
• Advisory Committee to
represent stakeholders
• Continuous outreach
• Focus groups and surveys
• Informational website
Privacy Use of
Odometer
Capture
Use of
Telematics
Enrollment
Process
Enforcement
& Disputes
RUC
Rate-setting
Upcoming
Legislative
Process
Utah Case Study: Perceptions of a RUC
Mean score before 3.39
Mean score after 4.21
**The biggest perception change came
from understanding how gas tax was
collected today**

RUC Research & Pilot Projects across the US
14
RUC West members (14 states)
I-95 Corridor Coalition members (17 states)
Completed pilot program (7 states)
Ongoing program (2 states)
— Delaware

Federal STSFA Grants
15
• Surface Transportation System
Funding Alternatives (STSFA)
grants available annually for
states to test RUC
• Requires 50% state match
• $10.2M of federal money
awarded in 2019 to seven states
• Utah awarded $1.25M towards its
initial alternative fuel vehicle
implementation

RUC West Consortium
• 14 western states
• 3 tier groups:
• Implementing (OR)
• Piloting (CA, CO, HI, UT, WA)
• Research only (all others)

Utah’s RUC West Research Involvement to Date
• RUC vendor certification
• Parameters for a RUC rate
• Plan for Regional RUC pilot
• Addressing out-of-state drivers
• Effects of RUC on rural residents
• Protection of privacy in a RUC system
• Public understanding of a RUC system
• Web-based cost transportation calendar
• Impacts of changing fleet fuel economy
on state transportation funding

Future RUC West Research Topics
• Administrative costs
• Evasion and enforcement
• Connected and autonomous
vehicles
• Data anonymization and
aggregation standards
• Use of blockchain technology

Pilot Efforts in Other RUC West States
• California
• Large pilot with 5,000 vehicles
• Different technology options
• Large set of final reports with
lessons learned
• Emphasis on testing of privacy
protections

• Colorado
• Small pilot project of 100
vehicles
• Simulated revenue
• 3 mileage reporting options
(MROs)
• Various fuel efficiency types
• Urban and rural drivers

• Oregon
• Several pilot projects over the last
10 years
• Current program (OReGO) collects
actual revenue from about 7,000
volunteer participants
• Multiple MROs
• Location-based
• Non-location-based

• Washington
• Pilot project in 2018
• 2,000+ vehicles enrolled
• Simulated revenue
• Multiple MROs
• Small element of out-of-state
driver testing with Oregon and
Idaho

• Regional Pilot (CA and OR)
• Running in 2019
• Will test interoperability between
two separate states
• Will collect mileage driven within
drivers’ home state and in the
neighboring state
+

Total Registered Vehicles
2,594,746 (2019)
Gasoline Diesel EV PHEV Gas Hybrid Other Alt Fuel
Size & Growth of Utah’s Vehicle Fleet
24
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
55%
2015–16 2016–17 2017–18 2018–19
Year-over-year Growth (%)
EVs PHEVs & Gas Hybrids All Others
89.5% 8.5%
2%
0.2%
0.1%
1.5%
0.2%
5,526Vehicles(Feb2019)
42,770
2,546,450

Utah Growth in EV & Hybrid Registration
25
Electric vehicles
experienced
49%
annual growth in
registration 2015–19.
Hybrid vehicles
experienced
14%
annual growth in
registration 2015–19.
*Increase of 1,938 EVs from 2018-19 *Increase of 4,413 hybrids from 2018-19

Average Annual State Gas Tax Payments
26
Sedan
25 MPG
$187
Heavy Truck
6 MPG
$777
Pickup
15 MPG
$311
EV
DOESN’T APPLY
$0
Gas Hybrid
50 MPG
$93
1. Based on 30.0 cents/gal State gas tax and 15,542 miles driven annually by average Utah vehicle.
2. Federal tax of 18.4 cents/gal for gasoline and 24.4 cents/gal for diesel not included in amounts shown above.

Average Annual Total Gas Tax Payments
27
Sedan
25 MPG
$301
Heavy Truck
6 MPG
$1,409
Pickup
15 MPG
$501/$564
EV
DOESN’T APPLY
$0
Gas Hybrid
50 MPG
$150
1. Based on 30 cents/gal State tax (gasoline/diesel) and 15,542 miles driven annually by average Utah vehicle.
2. Based on Federal tax of 18.4 cents/gal for gasoline and 24.4 cents/gal for diesel.
3. Pickup truck costs listed for both gasoline and diesel values; heavy truck costs listed for diesel only.

$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
15 MPG Pickup 20 MPG Utah Avg 35 MPG Sedan 50 MPG Gas Hybrid Electric Vehicle (EV)
AnnualExpenditures($)
Total Annual Costs for Typical Utah Drivers
28September 24, 2019
$3,109
$2,331
$1,332
$952
$595
Federal Fuel Tax: $0.18/gal
Utah State Fuel Tax: $0.30/gal
Hybrid Fee: $20/yr EV Fee: $120/yr
Gasoline: $2.52/gal
Electricity: $0.11/kWh
$143
$233

2018 EV/PHEV New Sales Market Share
29
0.0–0.5%
0.5–1%
1–2%
2–3%
3–4%
4–5%
5%+
Lowest: 0.2%
Highest: 7.8% 1.6%

2017–18 EV/PHEV New Sales Market Share Change
30
< 0.0%
0–50%
50–100%
100–150%
150–200%
200%+
Lowest: 11%
Highest: 250%
Negative:
- 10%
70%

Legislative Elements
31
• Privacy and security protections
• RUC fee yearly payment cap
• UDOT/DMV information sharing
• Rulemaking authority for UDOT
• To hire CAM and administer program
• Exempt out-of-state miles?
• Limit hybrid enrollment, if needed
• Implement enforcement mechanisms
such as registration hold or penalties

Issues That Must Be Statutorily Addressed to Implement RUC
32
• RUC fee yearly payment cap
• RUC rate setting process
• To hire CAM and administer program
such as registration hold
• Other enrollment components

SB 136 – Road Usage Charge Study Recommendations
• Set up Road Usage Charge (RUC) Advisory
Committee
• Provide RUC alternative to paying flat fee for:
• Electric vehicles
• Plug-in hybrids
• Gasoline hybrids
• Consider privacy, methods for reporting road
usage, and options for administrating the system
• Implement initial system by January 1, 2020
• Submit annual report of findings
• Future pilot projects
33

SB 136 (2018) – RUC Study Recommendations
• Set up RUC Advisory Committee
• Provide RUC alternative to paying flat fee
for EVs, PHEVs, and gas hybrids
• Consider privacy, methods for reporting
road usage, and options for administering
the system
• Implement initial system by Jan 1, 2020
• Submit annual report of findings
• Future pilot projects
34

SB 136
• Implement a Road User Charge (RUC) – Jan 2020
• Alternative to paying a flat fee for electric vehicles:
• Eligible types: EV, PHEV, hybrids
• Establish a RUC advisory committee
• Report annually on program & future pilot projects
35
SB 72
• Rulemaking authority for Transportation
Commission
SB 136 (2018) & SB 72 (2019) –
Transportation Governance & Funding Amendments

SB 72 (2019) – Alternative Fuel RUC Program Structure
36
• Allows owners/lessees to opt into a
RUC or pay annual fee
• Transportation Commission authority to
set rate with advisement from UDOT
• To contract CAM and administer program

SB 72
37
• Allows owners/lessees to opt into a RUC or
pay annual fee
• Grants Transportation Commission
authority to set rate with advisement
from UDOT
• To contract third party CAM and
administer program

SB 72 – Admin Rule Requirements
38
• Transportation Commission rule
• Responsible to establish the RUC mileage rate
• Process for setting the rate
• Depositing of funds collected
• Set the rate
• UDOT rule
• Enrollment, withdrawal, and removal process
• Mileage reporting and payment processing
• Privacy and security processes and procedures
• Agreements between UDOT, account manager,
and participants
• UDOT role in rate setting

SB 72 – Admin Rule Requirements
39
• Transportation Commission rule
• Definitions
• Responsible to establish the RUC mileage rate
• Process for setting the rate
• Depositing of funds collected
• Set the rate
• UDOT rule
• Enrollment, withdrawal, and removal process
• Mileage reporting and payment processing
• Privacy and security processes and procedures
• Agreements between UDOT, account manager,
and participants
• UDOT role in rate setting

R940. Transportation Commission, Administration.
R940-8. Establishment of Road Usage Charge (RUC) Rates.

Considerations to UDOT’s Recommendation for RUC Rate
• Utah’s fleet of RUC-eligible vehicles exceeds statewide average MPG
• Rates in other states’ pilots have ranged from $0.010-$0.024/mile
• Oregon’s rate began at $0.015/mile and increased to $0.017/mile
• Revenue neutrality with gas tax depends on VMT and MPG of vehicles in RUC
• Total RUC fees paid per year will not exceed the applicable flat fee.
ANNUAL FEES 2019 2020 2021*
EVs $60 $90 $120
PHEVs $26 $39 $52
Gas Hybrids $10 $15 $20
* Fees are indexed to CPI after 2021
MILEAGE EQUIVALENT* 2019 2020 2021*
EVs 4,000 6,000 8,000
PHEVs 1,733 2,600 3,467
Gas Hybrids 667 1,000 1,333
* Based on $0.015/mile RUC rate

Elements for Setting RUC Rate
43
• Round to nearest hundredth (same significant digits as gas tax)
• Determine gas tax revenue
• Determine VMT for vehicles
• Establish state average vehicle MPG
• Collect EPA mileage rate for over 50k different types of registered vehicles
• Calculate weighted (by number of vehicles) average MPG assuming an equal
mileage distribution

Option B
UDOT recommends rate to
Transportation Commission.
Commission approves the rate.
RUC Rate-setting Process
Option A
Legislature sets rate directly.
44

RUC Rate Option 1 – Gas Tax Revenue Divided by VMT
45
• Pros
• Uses actual gas tax revenue in the calculation
• Cons
• Gas tax revenue per vehicle may decrease
• VMT may continue to increase
• VMT includes out of state vehicles and EVs
• Both the revenue and the VMT can fluctuate annually
Formula : ($483 Million)/(32 Billion Miles) = $0.015/mile
2017 gas tax revenue (Utah Tax Commission)
2017 Vehicle Miles Traveled (FHWA Submittal)

RUC Rate Option 2 – Gas Tax Divided by Fuel Efficiency
46
• Pros
• Tied to current gas tax and CPI calculation method
• Average vehicle MPG is based on actual vehicles registered in Utah
• Gas tax doesn’t decline, except by legislation
• Cons
• Doesn’t factor the individual miles driven by different vehicle types for
the average MPG
Formula: ($0.30/gal) / (20.0 mpg) = $0.015/mile
Current state gas tax
State average vehicle MPG

ANNUAL FEES 2019 2020 2021*
EVs $60 $90 $120
PHEVs $26 $39 $52
EVs 4,000 6,000 8,000
PHEVs 1,733 2,600 3,467
Gas Hybrids 667 1,000 1,333
Cons
• Could introduce multiple rates based on different vehicle types
• Too low to be a gas tax equivalent (See Options 1 and 2)
• Most likely still not low enough to entice hybrids to join economically
Formula: ($120) / (15,542 miles) = $0.008/mile
EV flat fee
Average annual miles driven in Utah
RUC Rate Option 3 –“Fees” Divided by Average Miles Driven

Formula: ($0.30/gal) / (20.0 mpg) = $0.015/mile
Current state gas tax
State average vehicle MPG
Formula : ($483 Million)/(32 Billion Miles) = $0.015/mile
2017 gas tax revenue (Utah Tax Commission
2017 Vehicle Miles Traveled (FHWA Submittal)
RUC Rate Option 1 – Gas Tax Revenue Divided by VMT
RUC Rate Option 3 – “Fees” Divided by Average Miles Driven
RUC Rate Option 2 – Gas Tax Divided by Fuel Efficiency
EV flat fee

ANNUAL FEES 2019 2020 2021*
EVs $60 $90 $120
PHEVs $26 $39 $52
EVs 4,000 6,000 8,000
PHEVs 1,733 2,600 3,467
Gas Hybrids 667 1,000 1,333
EV flat fee
Utah Gas Tax Equivalence to State’s Average Vehicle MPG Rating:
[(16,000) Miles / (40) MPG] x (0.30) per gal = $120 in State Tax
[(8,000) Miles / (20) MPG] x (0.30) per gal = $120 in State Tax
Utah’s actual average vehicle MPG per DMV registered vehicles

Admin Rule Schedule for RUC – SB 72
• Commission Rule – (RUC mileage rate set)
• May 16th – Department recommendation for RUC rate
• May 17th – Present Rule and Rate for public comment
• June 28th – Present to Commission for approval
• July - Office of Admin Rules
• August – Effectuation
• UDOT Rule
• May/June – Internal approval
• June 28th – Present to Commission
• July – Office of Admin Rules
• August - Effectuation

Market-based or User-Pay System Exploration Across the US
- Policy Considerations
• NYC Congestion
pricing
• Seattle Congestion
pricing
• Oregon Local-option
pilot
• San Francisco ride
hailing tax
Demand-
responsive pricing
• WA Pilot–ID,OR,Can
• - Pricing Schema
• OR/CA Pilot
• - System Integration
• I-95 Corridor Coalition
• - Multi Agency
Interoperability
between states
• I-95 Corridor Coalition
Pilot
Integration with
tolling operations
•Pay more gas tax than
average due to lower
MPG and more miles
driven
•May benefit from RUC
at a revenue neutral
price point
Rural residents &
low-income
households

Demand-responsive pricing New York City congestion pricing
Seattle congestion pricing
Oregon local-option pilot
Interoperability between states Oregon/California pilot
Washington pilot
Integration with tolling operations I-95 Corridor Coalition pilot
Rural residents and low-income households
Market-based Policy Considerations

Advisory Committee Members (State Representation)
Group Name Representative
Utah Senate Wayne Harper; Don Ipson
Utah House of Representatives Kay Christofferson; Logan Wilde
Utah Governor’s Office Miranda Jones
Utah Tax Commission Scott Smith
Utah Department of Motor Vehicles Monte Roberts
Utah Department of Technology Services Scott Peterson
Utah Transportation Commission Wayne Barlow
Utah Department of Transportation (multiple staff members)

Advisory Committee Members (Non-state Representation)
54
Group Name Representative
Federal Highway Administration – Utah Division Ivan Marrero
Utah Insurance Office Tracy Klausmeier
Utah Taxpayers Association Rusty Cannon
Utah Trucking Association Rick Clasby
Utah Farm Bureau Sterling Brown
Layton City Mayor Bob Stevenson
Mountainland Association of Governments Andrew Jackson
RUC West Randal Thomas; Tim Kirby
Utah Clean Energy Josh Craft
Salt Lake Chamber of Commerce Sophia DiCaro
American Civil Liberties Union Marina Lowe
Uber Piper Overstreet-White

Privacy
Advisory Committee Discussion
55
Use of
Odometer
Capture
Use of
Telematics
Enrollment
Process
Enforcement &
Disputes
RUC
Rate-setting
Upcoming
Legislative
Process
What else?

Advisory Committee & Technical Groups
• Full Advisory Committee
meetings
• May 3, 2018
• August 13, 2018
• November 19, 2018
• Frequent meetings and work
sessions with technical
groups
Advisory
Committee
Policy, Legislation,
& Governance
Privacy & Security
Compliance
& Enforcement
Data Collection
Technology
Communication

Technical Recommendations
Advisory
Committee
Policy, Legislation,
& Governance
Privacy & Security
Compliance
& Enforcement
Data Collection
Technology
Communication
57
Let’s walk through the Advisory
Committee recommendations
through the lens of a RUC
enrollee.

RUC Advisory Committee Recommendations
• Annual RUC fee cap tied to flat fee amounts
• Revenue-neutral RUC rate tied to gas tax
• Online enrollment synced with DMV registration
• Short/long-term data retention options
• Prepaid wallet for user payments
• Location-based mileage reporting
• Odometer capture app for initial enrollment,
annual “true up”, and dispute resolution
• DMV registration hold as enforcement last resort
Advisory
Committee
Policy,
Legislation,
& Governance
Privacy &
Security
Compliance
& Enforcement
Data Collection
Technology
Communication

Future Roles of Advisory Committee
Monitor 2019
legislative
session
Next meeting
likely in early
April
Monitor alt-fuel
RUC
implementation
Recommend
future RUC pilot
ideas
59

Implementation Efforts
CAM Procurement
RUC Legislation
& Admin Rules
Financial
Modeling
60

Utah’s RUC Approach
• Flat fees for alternative fuel vehicles
• RUC enrollment option in lieu of flat fee
• RUC implementation date: January 2020
• Broad-based Advisory Committee
• Annual report to legislative committee
• Future RUC pilot efforts to be determined later

Element at launch Element under discussion Potential future element
Number of other states considering or using element
Elements of a Utah RUC System Based on Advisory Committee Input
62
Data Collection Tech
OBD-II GPS Devices 6
Odometer Capture 2
Telematics 2
Smartphone Apps 5
Vehicle Types
EV 6
PHEV 5
Gas Hybrid 6
Autonomous 0
Gas/Diesel 6
Heavy Truck 2
Systems/Processes
DMV Registration 0
Out-of-state Detection 6
Public/Private Roads 4
Tolling Integration 2
Regional Interop. 4
Paved/Unpaved Roads 0
Federal/State Lands 0
#

Elements of Utah’s Initial RUC System
Technology
•Telematics
•Phone App/
OBD-II
Privacy
•Flat Fee or RUC
•Data Retention
•Data
Distribution
•User Agreement
Vehicle Types
•Electric (EV)
•Plug-in (PHEV)
•Gas Hybrid
Enrollment
•Online
•VIN
•Odometer
Capture
•DMV Interface
•Registration
Holds
Comm Acct Mgr
•Prepaid Wallet
& Cap
•Credit Card/ACH
•Monthly
Statement
•User Options
•App Interface

Possible Future Elements
64
Vehicle Types
•Gas/Diesel
•Heavy Trucks
•Fleets
•Autonomous
Interoperability
•Neighboring States
•National RUC
•Local RUC
Differentiation
•In-/Out-of-state
•Public/Private
•Paved/Unpaved
Integration
•Tolling
•Emissions Testing
•Multimodal Payment
Bundling

Utah’s Alternative Fuel Vehicle Payment Choice
65
EV: $120
PHEV: $52
Gas Hybrid: $20
1.5¢ / Mile*
?
*Usage-based fees will not
exceed annual flat fee

Transportation Fee Payment Options
Option A
Owners of alternative fuel vehicles
pay annual flat fee, intended to offset lost
fuel tax revenue. (Starting Jan 2019)
66
Annual Fee Schedule
Year EV PHEV Gas Hybrid
2019 $60 $26 $10
2020 $90 $39 $15
2021+ $120 $52 $20
Per-mile Fee
Option B
Owners of alternative fuel vehicles enroll
in RUC program and pay a per-mile fee
(not to exceed annual flat fee) based on
actual miles driven. (Starting Jan 2020)

US Alternative Vehicle Fee Adoption
67
Considered annual fees (12 states)
Adopted annual fees (19 states)
Adopted one-time fees (1 state)
2018 2019

US Alternative Fuel Vehicle Fees
68
National
ANNUAL FEES RANGE AVERAGE
EVs $50–$225 $127
PHEVs $30–$200 $85
Gas Hybrids $20–$100 $58
Utah
ANNUAL FEES 2021*
EVs $120
PHEVs $52
Gas Hybrids $20
*Fees are lower in 2019-20 and
indexed to CPI after 2021
2019

US Alternative Vehicle Fee Adoption
69
Adopted one-time fees (1 state)
2018 2019

US Alternative Fuel Vehicle Fees
70
National
EVs $50–$225 $127
PHEVs $30–$200 $85
Utah
ANNUAL FEES 2021*
EVs $120
PHEVs $52
Gas Hybrids $20
*Fees are lower in 2019-20 and
indexed to CPI after 2021
2019

US Alternative Fuel Vehicle Flat Fees (as of May 2019)
71
National
EVs $50–$225 $127
PHEVs $30–$200 $85
Utah
ANNUAL FEES 2019 2020 2021*
EVs $60 $90 $120
PHEVs $26 $39 $52

US Alternative Fuel Vehicle Flat Fees (as of May 2019)
72
National
EVs $50–$225 $127
PHEVs $30–$200 $85
Utah
ANNUAL FEES 2019 2020 2021*
EVs $60 $90 $120
PHEVs $26 $39 $52
Sources for this map are: http://www.ncsl.org/research/energy/new-fees-on-hybrid-and-electric-vehicles.aspx,
https://escholarship.org/uc/item/62f72449, and research of 2019 legislative session outcomes.

Why Enroll in RUC?
73
Save Money
If enrollees don’t drive
many miles/year, they
may save money relative
to the annual fee.
Pay-as-you-go
Enrollees may pay as
they go instead of paying
the annual fee.
Early Adopters
Enrollees may be curious
about the RUC program
and want to try it out.

Enrollment Process
Enroll online with
name and license
plate number.
Provide valid credit
or debit card for
prepaid wallet.
Complete CAM
user agreement.
Submit initial
odometer capture.
74

Mileage Reporting Options
75
• Majority will use location-based
device
• Vehicles without OBD-II ports may
use telematics option
• Odometer capture at enrollment
and at annual registration

Enforcement & Dispute Resolution
76
• Enrollees keep devices and credit
card info active
• Disputes may be resolved through
odometer capture
• Exit process for situations such as
unresolved disputes, vehicle sales,
or moving out of state

Integration with Department of Motor Vehicles
77
• Syncing of annual registration cycle
(and flat fee payments) with RUC
enrollment
• Confirmation that RUC applicants’
vehicles are eligible for program
• Ability to place registration holds for
non-compliant RUC payers and clear
the holds once they’ve paid debts

Annual fee
Integration with Annual DMV Registration Process
78
After Jan 1, 2020, owners
will have two options for
paying transportation fees
2019 – alternative fuel
vehicle owners receive
notice to pay annual fee
Per-mile
fee

Commercial Account Manager (CAM) Procurement
Meetings with vendors
•Summer/Fall 2018
Request for Information
(RFI) in process
•Posted: Oct 2018
•Due: Nov 2018
Request for Proposals
(RFP) coming up
•Draft: Dec 2018
•Final: Feb 2019
•Selection: Spring
2019
•System Testing: Fall
2019
79

Commercial Account Manager (CAM) Selection
• International tolling firm with RUC experience in
multiple US states
• 3-5 year contract period
• Contract negotiation May-June
• System setup June-Oct
• System testing Oct-Dec
• Live operations Jan 1, 2020

81
RUC Payer
RUC payer is able to:
• View their collected data
• Dispute erroneous charges
• Choose data retention length that best suits
their circumstances
• Be protected from GRAMA requests
• Be protected from release of personal data
except in criminal proceeding
RUC Payer & CAM Privacy Expectations
Commercial Account Manager (CAM)
CAM is able to:
• Collect raw location data
• Retain data according to user agreements
• Send mileage summaries to State
• Share aggregated anonymized data with
the State
CAM is unable to:
• Share personal data and location data
with State (except for audits and
dispute resolution) or with third
parties

82
No
Yes
User Agreements & Data Retention
*CAM = Commercial Account Manager
Pay Annual Flat Fee
Pay Per-mile
Fees
User Agreement with CAM*
to allow for retention of data
through current billing cycle
only.
Pay as you go; total will not
exceed annual flat fee.
Additional Optional
Services
Optional User Agreement
with CAM* to allow for
longer-term data retention
in return for additional
services.
Could involve extra fees for
services at user discretion.
Opt-in
choice
Join RUC?

83
RUC Per-mile Fee
RUC payer is able to:
• View their collected data
• Dispute erroneous charges
• Be protected from public record requests
• Be protected from release of personal data
except in criminal proceeding
CAM is able to:
• Collect raw location data but not share
w/State (except for disputes)
• Send mileage summaries to State
• Share aggregated anonymized data with the
State
Short-term
data retention Value-added Services
CAM retains raw location data for
current billing cycle only (default)
Additional Services
CAM retains raw location data until
enrollee leaves system (user opt-in)Long-term data
retention
User & CAM Agreement Options
* CAM = Commercial Account Manager

RUC System Financial Planning
Operations
Revenue
Costs
84
Customized Revenue & Cost Model
• See effects of policy choices
• Forecast financial viability
• Identify RUC rate parameters

Funding for RUC Program Setup & Operations
• $1.25M federal grant over 5 years (STSFA)
• $1.25M state match required
• Eligible for soft match expenditures (e.g. State employee time charges)
• SB 72 fiscal note
• $755K legislative appropriation for initial setup
• Ongoing legislative appropriation of $115K/year for employee operations
• UDOT funds as necessary to cover remaining needs and operate the
program
*Anticipated RUC program revenues will fund the program by 2025

Projected Funding & Costs for Initial Years of RUC Program
86

STSFA Grant & RUC Program Funding
87
• Utah received $1.25M federal grant for setup and operations
• Requires 50% state match
• Legislature gave $115K for ongoing FTE; $755K for 1-time FY20 setup

0
20
40
60
80
100
120
Flat Fee RUC Flat Fee RUC Flat Fee RUC Flat Fee RUC Flat Fee RUC
ThousandsofVehicles
88
Vehicles Enrolled in RUC or Paying Flat Fee
56
64
75
91
111
0
1.3 2.0 2.8 4.0
5-year Vehicle Totals
Flat Fees:
111,000 (97%)
RUC:
4,000 (3%)
Total:
115,000
Assumed Annual Growth
PHEVs: 5%
EVs: 50%
Gas Hybrids: 12%
2019 2020 2021 2022 2023
PHEVs
EVs
Gas Hybrids

-
1
2
3
4
5
6
7
Flat Fee RUC Flat Fee RUC Flat Fee RUC Flat Fee RUC Flat Fee RUC
MillionsofDollars
89
Revenue from Flat Fees & RUC
$1.0
$1.9
$3.3
$4.6
$6.4
$0
$0.07 $0.15 $0.23
$0.35
5-year Revenues
Flat Fees:
$17,200,000 (95.5%)
RUC:
$806,000 (4.5%)
Total:
$18,006,000
2019 2020 2021 2022 2023
PHEVs
EVs
Gas Hybrids

System Cost/Revenue Break-even Points
90

Utah RUC - Initial & Future Financial Projections
VendorBidRangefor
Setup& Operations
Break-even
ScenarioProjections
(internalcostsincluded)

Utah RUC – RFP Bid Ranges
VendorBidRangefor
Setup& Operations
Cost Type* Lower Bound Upper Bound
Initial One-Time Setup $327,000 $1,000,000
Yearly One Maintenance $90,000 $575,000
Year One Annual Operating Cost $146,000 $620,000
Total 5 year $1,200,000 $3,500,000
*Costs based off assumptions for number of vehicles provided in RFP

2019 Communication Timeline
• Summer 2019
• Public opinion research focused on
eligible vehicle owners
• Summer-Fall 2019
• Refine communication plan and
prepare communication pieces
• Fall 2019
• Launch informational website and
begin educational outreach to eligible
vehicle owners
94

Communication Update
• Fall 2018
• Presentations to various groups
• Website link and information page
• January 2019
• Surveys and focus groups
• Legislative communications
• Spring 2019
• RUC Utah branding
• Website and social media pages
95

RUC Public Opinion Research
96
Awareness of term, Road Usage Charge

Rating Comparison Before & After RUC Definition
97
Mean score before 3.39
Mean score after 4.21

Comfort Level with Plug-in Device to Transmit Mileage
98
Mean score 3.28

Perception RUC Will Discourage Alt-Fuel Vehicle Purchases
99

Key Findings to Build Upon
100
Allocation of Funding

101
Toll Lanes During Peak Congestion

102
Expansion of RUC Program to All Vehicles

Big-picture Considerations
103
• UDOT is studying what the future of RUC in Utah could look like
• Expansion of RUC
• 52% of survey respondents favored applying RUC to all vehicles, 39% opposed
• Should Utah expand RUC to other types of vehicles?
• Should Utah make RUC mandatory for EVs?
• Market-based pricing
• Survey respondents showed preference for tolling lanes at peak congestion
• When will RUC be ready to have a measurable impact in this area?

Leveraging Tech to Better Measure Usage
104
Public
Paved
$$$
Private
$0
Public
Unpaved
$$
Better GPS Better MappingBetter Car Tech
Interoperability

Potential Next Utah RUC Pilot
105
• STSFA Round 4 is expected to be released
Summer 2019
• Possible pilot topics
• Open Utah RUC program to gas vehicles
• DMV point-of-sale RUC enrollment
• Test market-based pricing
• Integrate with Express Lanes system
• Enroll vehicles with telematics capability

Rural & Low-income Households Benefit from RUC
106
Rural
$273
$254
-$19
Urban
$229
$230
+$1
Sources:
(1) Urban/rural household and vehicle data from Financial Impacts of Road User Charges on Urban and Rural Households.
(2) Utah gas tax of $0.30/gal. (Costs shown are only state tax, not Federal)
(3) Assumes revenue-neutral per-mile RUC rate (Weighted Average)
• Benefits for low-income and rural households are similar

Comprehensive RUC Presentation

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Comprehensive RUC Presentation