Oregon’s Road Usage Charge
Program -SB810
Implementation
2015 AASHTO Audit Conference July 21, 2015
Motivations for Change in Road FundingDeclining revenue & increasing unfairness of fuel tax
Changes to nation’s vehicle
fleet
CAFE standard to 54.5 MPG by
2025
Societal inequity resulting from new vehicle purchases
Defining Road Usage ChargeA fee charged for the distance a vehicle is driven
Count the milesand fuel
Administer the program
Collect the tax
SB 810 Overview• 5,000 volunteer vehicles
• Restrictions by MPG categories
• Operational on July 1, 2015
• 1.5 cents per mile
• Credit for fuels tax
• Mileage reporting choices
• Personal information protection
• Minimal enforcement provisions
The Project: Road Usage Charge Program – SB810 Implementation
Scope Schedule Budget
$8.1 millionCreate business line
Engage account managers
Develop ODOT systems
Recruit volunteers
Wages36%
OT 2%
Other Payroll
15% Legal
2%
Prof. Serv.41%
IT1%
Rent2% Other
1%
SB810 Effective
Contracts Signed
Operational Trial
Go Live
July 2013
November 2014
April – June 2015
July 2015
December 2015Project Closes
RUCAS dev startsJuly 2014
The volunteer experience
Volunteer Experience – Start up
1. Select provider 2. Sign up and select from the offerings
3. Install mileage reporting device
Daily volunteer experience
4. Drive
Volunteer experience - Billing
What bill your charges are on
How it looks
How you payWhen you pay
Account manager dependent
5. Account settlement
Azuga uses a prepaid wallet
Verizon charges your credit card monthly
Sanef invoices quarterly if threshold met
The RUC System
Design principles
Open architectureTax payer choices
Scalable
15
Policy Neutral
Geographically Unlimited
Who manages account
How miles are counted
How much data to share
ODOT Account Manager
Bank
ODOT
Mileage Collection
Commercial Account Manager(s)
Reporting
Transaction Processing
Account Management
Oregon Road Usage ChargingOpen System Concept
Mileage and fuel data
$ Tax Reconciliation
Public Outreach
EvaluationManager Volunteer
Manage Account Managers
Monitor & Reporting
Inquires & Issue Resolution
Tax Collection
DMV
Accounting
Mileage Collection
Mileage CollectionAccuracy
Requirement Precision
Miles and Fuel +/- 5%
In / out of state ½ mile
Public / Private Miles 50 feet
Mapping• ODOT certified map providers to
standards• ODOT did not provide the maps
• Technology and processes validated in upfront certification
• Beginning and ending odometer collected• Mileage data sent to ODOT
– For monitoring weekly – Can be used to study trends and anomalies
• All error data is sent to ODOT• ODOT has authority to audit
Verifying Mileage data
Account Managers
Account Managers
• Collect data• Process transactions• Manage mileage reporting device• Manage RUC payer accounts
– Account setup– Billing / Refunds– Customer service
• Provide customer web portal• Report and remit tax to ODOT• Report monitoring data to ODOT
Functions of the account manager
Account ManagersThe RUC Market
• Choose market• Advanced Reporting• Offer value added
services
Commercial Account
Managers
• Accept any volunteer• Basic Reporting (no GPS)• No value added
services
ODOT Account Manager
Account Manager compliance
• Up front certification• Contract
• Service level agreements• Key performance indicators
• Noncompliance impacts payments
Certification process
Pre-contract
Initial Certification
Step 1 Step 2
Submit/Review Qualification
Documentation
Conduct/Witness Product
Demonstrations
Formal Certification
Step 3 Step 4 Step 5
Conduct Self Certification
Integration Testing
Systems Acceptance
Testing
Post contract
• System Uptime & Scheduled Maintenance– Online service available
99.9% of a 24/7 site– Exception for scheduled
maintenance
• Change & Configuration Management– Monthly report
summarizing changes, effect & impact (ODOT & RUC payer)
• Daily, Monthly, Quarterly Reports– VIN summary– Errors & events– RUC revenue
• Quarterly Reports– VIN summary– Errors & events– RUC revenue
Contract RequirementsService Level Agreement
• Incoming Calls• Email • Inquiry resolution• Escalated inquiry
resolution
• Monthly reporting:• Call activity report• Inquiry classification
report (billing, program, general, MRD reporting, feedback, other
• Inquiry resolution
Contract Requirements
Key Performance Indicators
ODOT
Operations
ODOT will have 5 staff to perform program functions
ODOT Operations
Processes for: • Compliance
• Contract Administration
• Accounting
• Program management • Volunteer & Public Engagement
Now
Very little
Vs.
Requires experience with operations
Future
???
Penalties and interest
Many applications used for RUC
Built on ODOT standard infrastructure
RUC Administration SubsystemODOTs RUC specific – Custom developed application
Interface to DMVRequired to validate registration
Communications
WHO
Communications
Contracted services (PRR)
Project team
WHAT
Account manager toolkits
Social media
Traditional media
Website
HOW
Research
Outreach
Branding
CommunicationsMarketing & Communications Strategies
• Continue recruiting volunteers
• Change messaging if all available spots are full
• Continue marketing the concept– Social Media– Blog
CommunicationsSupport for operations
Next Steps
• Project– Write Transition
Plan– Document
Lessons Learned– Develop a
Roadmap to Viability
– Finish other project deliverables
• Program– Oversee account
managers– Collect tax– Manage
volunteers– Resolve
issues/inquiries– Monitor and
report
TransitionOverlap of Project and Operations
Post 7/1
- Refine processes- Monitor compliance
(contract administration, key performance measures, etc.)
- Monitor volunteer activity- Execute evaluation plan- Projects?
Next StepOperations
OperationsReporting Dashboard
Activities after launch