(The Center Square) – For years, Washington state officials have contemplated a road usage charge or per mile fee to replace the state gas tax, which is the primary transportation funding source and forecasted to decline in revenue.
That expected decline in revenue is already anticipated by the Washington State Department of Transportation and partially contributing to its impending budget deficit.
The concept of an RUC has been looked at by the state for 12 years and has been studied by by the Washington State Transportation Commission for nearly six years; in 2018, it began a 2,000 participant pilot program. Following a 2019 RUC report to the Legislature in 2019, the commission then initiated Forward Drive research program between 2020-2023; part of the program allowed participant drivers to test implementation options and provide feedback.
Executive Director Reema Griffith told the Joint Transportation Committee at its Dec. 11 meeting that “there are a number of key decision points before lawmakers if the decision is to roll forward with this.”
The biggest question for policymakers to answer is by what method the RUC program will track driver mileage. While several options such as a GPS-device or a smartphone app allow greater precision for mileage, particularly those driven out of state, they have received opposition due to concerns around personal privacy and data security.
In 2023, the WSTC surveyed more than 1,000 individuals who participated in a simulated online enrollment site, and 80% preferred to self-report mileage via an odometer reading due to “ease factor of participating.”
In the most recent fiscal year, the state gas tax generated $1.6 billion. According to the state Economic and Revenue Forecast Council, that revenue stream peaked in 2018 and has been declining since 2020, when much driving was reduced due to the state-imposed lockdowns.
Although fuel efficient vehicles have contributed the expected decline in gas tax revenue, another factor has been the increased number of electric vehicles that will presumably grow in numbers due to a 2030 ban on registering new gas-powered vehicles.
By 2035, WSTC estimates that 100% of new vehicles sold will be EVs, but gas tax revenue will be down to under $1 billion. While the commission estimates gas tax revenue will peak between now and 2027, by 2035 it anticipates revenue will be around $300 million.
For RUC proponents, the RUC is a way to create greater equity between gas vehicle drivers and EV drivers that pay state fees but not the gas tax.
“Road usage charging is in mechanism that can enhance fairness, it can sustain our revenue, and it can preserve those cost advantages for electric vehicle drivers,” Griffith told the JTC.
While important choices will have to be made soon, Griffith added that “in the first year you don’t have to solve everything, and you don’t have to have all the answers to start a small scale voluntary program. You just have to decide what vehicles can volunteer, what the rate will be, what mileage reporting methods will be offered, and enacting some strong privacy protections for data security and for privacy of drivers data in general.”
Another logistical factor will be how to coordinate with other states also participating in the program, as survey participants also emphasized the importance of being able to exempt out-of-state or off-road miles driven. Currently, Oregon has a enacted operational program, while states including Washington, California, Colorado, Minnesota, and Nevada have pilot programs. An additional eight states are engaging in research “as part a multi-state consortium,” according to WSTC.
