What Is Road Usage Charging?

As senior director of road usage charging (RUC) mobility operations for WSP USA — and as someone who has been working closely with state transportation officials over the past several years on their RUC plans — I am often asked about this concept of mileage-based user fees.

I always appreciate the opportunity to explain this developing process and, more importantly, clear up some common – but certainly understandable – concerns and misconceptions many people have about it.

Most people first want to know what road usage charging is; more importantly, what impact it might have on their wallet.

First, let’s look at the current system. Right now, every gallon of gasoline that you purchase for your vehicle includes a fuel tax. Some of it is a national tax, and some of the tax is levied by the states. Those taxes are intended to be used to fund road construction, maintenance and repair projects.

For a century or so, that tax system worked fairly well; after all, nearly all of the vehicles using the roadways were gas powered, so the motorists who were responsible for the wear-and-tear on those roadways were also contributing funds that would keep those roads in good working order.

A RUC program takes an entirely different approach to generating revenue for states, charging motorists a per-mile fee to use the roadways. In other words, how many miles did a vehicle travel, rather than how much fuel was used, to reach its destination?

To be clear, a RUC program replaces the existing fuel-tax model. It is not intended to be an additional tax for drivers. In some cases, the transition may result in a motorist paying less than they are paying under the current system.

So why should states make this transition in the first place? What’s wrong with the status quo?

Short answer? A lot.

Two recent developments have led to the current system becoming unsustainable: The emergence of fuel-efficient and electric vehicles, and a tax rate that has not been increased since 1993, resulting in funding falling further behind rising construction costs.

This has led to a growing issue across the U.S. where states are finding a gap in their revenues, which is making it more difficult to fund the necessary, ongoing maintenance projects for their roadways. Simply put, more people need less gas for their vehicles to travel the same distance, and as a result, less tax revenue is being collected by the states.

That’s why a program based on miles driven has become a more effective and equitable revenue source for states to fund maintenance work. What’s even better is that WSP’s RUC operations business has the comprehensive resources and expertise to help make this a smoother transition for states adapting to this new strategy.

As a full-service account manager, WSP has the end-to-end capabilities to provide all the necessary services for a RUC system to be implemented, and for it to be a fantastic experience for state transportation agencies and the drivers themselves. Whether drivers want their mileage calculated through after-market plug-ins or telematic systems in their cars, or through a web or mobile app, we are committed to protecting driver data on top of providing a productive customer service experience.

For more than two decades, WSP been collecting money for tolling clients. This is in addition to providing advisory consulting and project management for RUC concepts and policy for more than 10 years.

Together, with our newly expanded operations business, WSP’s suite of services now includes technology and operations support that allows us to pursue projects that require actual technology solutions for managing accounts, data processing and customer support.

We understand that there are still many questions for both drivers and state agencies who are learning about RUC for the first time, but we are ready to answer these questions, ease any concerns and guide clients through this innovative, Future Ready® path towards more equitable road use taxation.

About Nate Bryer: Bryer is responsible for project execution, technology solutions and overseeing operational support for transportation agenciesin his role as WSP vice president and senior director of road usage charging mobility operations. He has more than a quarter century of experience leading technical teams in developing consumer friendly products and assisting state transportation departments with implementation of advanced RUC systems. Bryer previously served as executive vice president of RUC with a national fleet technology firm where he helped build its RUC practice. He is a graduate of Northern Illinois University with a bachelor’s degree in computer science and DePaul University with a master’s degree in business administration.