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Road Funding in the Age of Fuel Efficiency Travis P. Dunn

IBTTA Transportation Finance & Road Usage Charging Conference

April 26, 2015 Portland, OR

3 Reasons Per-Mile Charging Got More Interesting

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TODAY  (STATUS  QUO)  

THE  FUTURE  

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Total cost of driving – pennies per mile

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Fuel    13.0    

Fuel  Taxes    1.8    

Maintenance    5.1    

Insurance    6.5    Other  Taxes  

 2.3    

Deprecia0on    22.3    

Tires    1.0    

Finance    5.4    

Pennies per mile

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0  

25  

50  

75  

1991   1996   2000   2005   2008   2012  

IRS-­‐es'mated  total  cost  of  driving  

Cost  per  mile  driven  dedicated  to  roads  

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Houston  

San  Antonio  

Corpus  Chris8  

Rio  Grande  Valley  

Laredo  

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Trucks & SUVs as a % of Auto Sales

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0%  

10%  

20%  

30%  

40%  

50%  

60%  

70%  

1976   1982   1988   1994   2000   2006   2012  

July  2005:  60.6%  

The fuel economy challenge, 2008-2015

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The fuel economy challenge, 2008-2015

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Gas Tax Revenue in Pennies Per Mile

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0  

0.5  

1  

1.5  

2  

2.5  

1991   1998   2004   2009   2015   2022   2029   2036  

Reason 1: Fuel tax decline is real and here to stay

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Fuel  Economy  

Fuel  Tax  Revenue  

What we learned at the 2014 IBTTA Annual Meeting

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u  Software is eating average

u  High fidelity vs. high utility

… But what about government services?

Doug  Stephens,  Retail  Prophet  

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Proliferation of light vehicle telematics

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Reason 2: Collection is easier and less costly each year

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Telema0cs  A

vailability,  Ad

op0on,  and  Q

uality  

Per-­‐Mile  Charge  Collec0on  Costs  

Creole Crumble

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Transportation in the news

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5  

6  

7  

8  

9  

10  

Jan-­‐12   Jan-­‐13   Jan-­‐14  

INRIX,  Inc.  Conges8on  Index  

Reason 3: As road quality declines, awareness grows

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Public  Aware

ness  

Road  Quality  

In summary…

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Fuel  Economy  

Telema0cs  

Public  Aware

ness  

Fuel  Tax  Revenues  Per-­‐Mile  Charge  Collec0on  Costs  

Road  Quality  

STATUS  QUO  

In summary…

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<   ROAD  CHARGING  

STATUS  QUO  

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Thank You!

Travis P. Dunn travis.dunn@dartagnan.co

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