What is Road Usage Charging (RUC)?

Most of the funding to maintain and modernize the nation's roads and bridges has traditionally been derived from tax revenues on gasoline and diesel consumption. However, consumers are shifting to alternative transportation modes or purchasing and driving more fuel-efficient vehicles, including hybrid, plug-in hybrid, battery electric, and hydrogen fuel cell vehicles, which use little to no gas or diesel. As a result, fuels tax revenues have significantly declined and states are now struggling to cover the costs of operating, maintaining, and upgrading their critical transportation infrastructure.

To address this funding gap, many states are exploring alternative funding solutions. One of the most promising options is Road Usage Charging (RUC), a pay-by-mile system designed to potentially replace the traditional fuels tax in the future.