Road Usage Charging

What is a road usage charge (RUC)?

A road usage charge (RUC) is a transportation funding model wherein all drivers are assessed a fee based on the number of miles they drive, rather than on how much gas they consume.

Why are states considering RUC?

The revenues currently available for state highways and local roads may not be sufficient to preserve and maintain existing infrastructure, reduce congestion, and improve service. The gas tax cannot meet current and long-term transportation funding needs because it continues to generate less revenue as cars become more fuel-efficient or use alternative fuels.

Studies show that by 2030, as much as half of the gas tax revenue that could be collected will be lost to fuel efficiency. States need to explore more sustainable transportation funding models, like RUC, to generate adequate revenue to support their road maintenance and improvement needs.

What other alternative transportation funding solutions exist?

Implementing a road usage charge may be a sustainable option for addressing the systemic problems of the current gas tax funding model. However, many states have been exploring and researching other alternative options to increase funds for road maintenance, including:

  • increasing vehicle licensing and registration fees
  • levying new or additional fees on sales of electric vehicles
  • applying revenues from general sales taxes to transportation
  • creating transportation reinvestment zones
  • increasing public/private partnerships
  • indexing gas taxes to a variety of economic indicators
  • tolling highways, bridges, or regions

Feasibility, cost, sustainability, household impacts, and other factors are key considerations for these alternatives. RUC is considered a particularly promising solution because it represents a funding alternative that addresses core weaknesses of the current gas tax model by directly associating the amount paid to the usage of the transportation network, providing a more equitable, sustainable, and long-term funding model.

Why not just raise the gas tax to generate more revenue?

Raising the gas tax only offers a short-term solution to funding roadway maintenance and operations. Revenues will continue to decline on a per-mile basis as vehicles continue to become increasingly more fuel-efficient and more consumers transition to all electric, hybrid, or alternative fuels vehicles that pay little-to-no gas tax.

Why not charge vehicles by weight instead of by the mile?

The impact on roads created by light duty cars and trucks, from small compacts to large pickups, is uniform for all vehicles. A 2007 American Association of State Highway and Transportation Officials (AASHTO) report found that vehicles weighing between 2,000 and 7,000 lbs. produce the same wear and tear on our roads. Whether you drive a 2,500 lb. Toyota Prius or a 6,500 lb. Hummer, there is no significant difference in the impact these vehicles have on a typical highway.

Many states implement weight-mile taxes for large, commercial freight trucks based on the number of axles, vehicle weight, and miles traveled. The federal government has estimated that a 40-ton, 18-wheel truck with a max payload causes the same damage as 9,600 midsize cars. This helps ensure that heavier vehicles pay their fair share for the additional wear and tear they inflict on our roadways.

What options are available for recording and paying for road usage?

Some states have researched and implemented various mileage recording and payment options to provide users with choices in each system. The options available vary from state to state and often include a mix of high- and low-tech methods for mileage recording. Some of these options include:

  • Time permits: Like a vehicle registration fee, the participant purchases unlimited road use for a specific period.
  • Mileage permits: The participant pre-pays to drive a certain number of miles.
  • Odometer charge: The participant pays a fee per mile based on periodic odometer readings.
  • Automated mileage reporting without general location data: Vehicles have equipment that measures and reports mileage automatically to an account manager, either provided by a state agency or a private company. The account manager periodically (monthly or quarterly) sends the motorist an invoice for their individual road use.
  • Automated mileage reporting with general location data In-vehicle equipment reports mileage traveled to a third-party account manager which invoices the participant. The equipment also provides general location data, so the participant is not charged for travel out-of-state or on private roads. These options include in-vehicle telematics, smartphone apps, and plug-in devices for the vehicle's on-board diagnostics (OBD-II) data port.

RUC America

What is RUC America?

RUC America is the foremost authority on road usage charging in the United States, bringing together leaders from multiple state transportation organizations to share resources and explore innovative funding solutions for preserving the future of our transportation network.

How can my state participate?

  • Membership in RUC America connects your organization with the most current tools, resources, and information on road usage charging. Learn about Membership Criteria and Requirements for participation.

RUC Fiscal Impacts

How does road user charging impact people who buy electric or highly fuel-efficient vehicles?

All vehicles, regardless of fuel source, cause wear and tear to our roads and contribute to roadway congestion. A road usage charge would place a fee on the number of vehicle miles traveled rather than fuel consumed, allowing electric, hybrids, and other fuel-efficient vehicles to pay their fair share to maintain the roads. Although the payment method is different, the road usage charge is based on the same principle as a gas tax which corresponds to miles driven.

How does RUC impact lower income households?

The impact varies based on individual circumstances. Studies show that, in general, hybrid and electric vehicles tend to be more expensive and more likely to be purchased by individuals in higher income brackets. Drivers of such vehicles pay little or no gas tax even though they still contribute wear and tear to the roads, while those who drive older and less fuel-efficient vehicles currently pay more because they purchase more fuel. A road usage charge can spread the cost to maintain and operate roads more equitably across all drivers.

How does RUC impact rural households?

Studies show that rural households typically pay more gas tax per mile driven as they tend to own vehicles with lower fuel efficiency than urban and suburban households. Under a road usage charge system, they would potentially pay the same amount per mile driven as owners of higher fuel efficiency vehicles, so the cost to pay for roads could be shared by all drivers more equitably. In every state, the actual impact on individual households may depend on various circumstances.