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Edition:Technical report; Mar. 2010-July 2010.
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Abstract:This project evaluates Vehicle Mileage (VM) fees as a possible funding mechanism for meeting the State of Texas’
long-term transportation needs. Researchers conducted listening sessions with the general public and stakeholders to
gather input on the concept. Researchers also prepared a decision matrix that can aid policy makers in evaluating the
various trade-offs in policy that will be encountered in vehicle mileage fee system development. This study identified
both challenges and opportunities for implementation of VM fees:
• most study participants viewed the implementation of mileage fees as unworkable; privacy, cost of
administration, and enforcement emerged as the most commonly cited concerns;
• the rationale for transitioning to mileage fees has not been adequately established with the general public;
• a new funding mechanism will inherently raise fairness concerns among rural and low-income drivers;
• despite concerns, research shows that the vehicle mileage fees are a logical, sustainable, long-term option to
supplement or replace the fuel tax;
• if pursued, simple implementation solutions will engender the greatest public and stakeholder support;
• field demonstrations that illustrate the full spectrum of implementation aspects, including payment,
administration, and enforcement, can show how the concept might work in Texas; and
• effective policy design can address any major public acceptance issues.
Finally, researchers recommend a demonstration approach that focuses on electric vehicles, tests all aspects of
payment, administration and enforcement, and offers a low-technology deployment (using odometer readings) that
would provide drivers with the option to adopt a high-technology alternative.
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