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OPT-IN: A Transition Strategy to Efficient Road User Charges

Jack Faucett Associates, a pioneer in the fields transportation economics and public policy, is undertaking innovative research in the field of congestion pricing.  In 2007, we introduced the concept of OPT-IN through a working paper published by the Transportation Research Board (TRB) entitled, "Opt-in: Transition Strategy to Efficient Road User Charges".

Our paper introduces the Opt-in Highway User Fee Plan (Opt-in) which would allow participating users to instrument their vehicles (could be OEM for new vehicles or after-market) with appropriate technology to record the miles driven by time of day, facility type, speed etc. This information would be utilized to establish a charge for road use for each vehicle based on a rational pricing scheme that charged the fee based on fixed and marginal system costs for the particular service provided; facility type, time of day, level of service, and other selected attributes considered. Participants would not be charged current user fees.

National transportation agencies are embracing the evolution to efficient road pricing. In the United Kingdom, transportation leaders have announced a plan to eliminate the fuel levy in favor of a national satellite based road charging system by 2015. In the US a report from a Panel of the National Academy of Sciences recognized that fuel taxes would soon be unable to support the national highway finance needs and would be replaced with a road tolling system. Finally, in June of 2006, the US Secretary of transportation, Norman Y. Mineta, announced a new plan to address congestion that was founded in the need for efficient road tolling systems. Despite this movement to efficient road pricing, little research has been undertaken on transition strategies for the current to the future system. Transition of such a major system can be difficult and costly.

For more information on OPT-IN and other congestion pricing strategies, contact Michael Lawrence, President of JFA.
The Issue At A Glance
Why Pricing? What's OPT-IN?
bulletCongestion Not Fuel Type
bulletDependent Speed Flow Benefits
bulletDifficulty Raising Fuel Tax
bulletEnvironmental Justice
bulletCost of Sprawl
bulletIndividual Rather Than Highway User Class Equity
bulletFuel Tax Evasion, Especially Diesel
bulletCharge By Point of Travel Rather Than Point of Fuel Purchase
bulletRevenue Based on Demand Identifies True Needs
bulletReduces System Costs
bulletMarket Based Cost Allocation



bulletNationwide Voluntary Road Pricing (Federal/State)
bulletMarket Based Like EZ Pass/Speed Pass
bulletGPS-Based Credit for Fuel Tax Paid
bulletVarying Rates: Peak/Off-Peak, Facility Type, Fuel Efficiency, Emissions
bulletRevenue Positive or Neutral

Why Drivers Opt-In?

bulletAccess HOT Lanes
bulletAvoid Congestion
bulletParking Access
bulletPay As-You-Drive
bulletLow Off-Peak Rates
What's the Benefits of OPT-IN? What Research Is Needed?
bulletFreedom of Choice
bulletAvoids Privacy Concern
bulletEases Equity Issue
bulletReduces Transition Costs
bulletHelps States Meet Air Quality SIP
bulletAvoids Case by Case
bulletPolitical Evaluation
bulletPublic Participation
bulletStakeholder Buy-in
bulletPublic Opinion Not In My Back Yard!
bulletEquip Vehicles as Needed
bulletNo Mass Conversion
bulletAdjust Revenue as Needed
bulletReduces Transport Energy
bulletConsumption Reduces Greenhouse Gases
bulletFull System Description
bulletPredict Responses
bulletHouseholds Individuals Study
bulletPublic Finance Criteria: Administrative Cost, Equity, Adequacy, Efficiency, Stability, Ease of Use, Evasion, Compliance Cost, Benefit-Cost Analysis, and Cost Effectiveness
bulletEconomic Impact Analysis
bulletAnalyze Political Feasibility
bulletDraft Legislative Language