Governments around the world are facing road funding shortfalls as the revenue collected from fuel declines in line with increases in fuel efficient vehicles. 

One solution to this problem is transitioning from traditional gas taxes to a road-user charging funding model (also called mileage-based user fees), whereby revenue is collected for each mile driven.

But overhauling a decades old road funding model is no mean feat. That’s why Transurban, in partnership with the I-95 Corridor Coalition, will help lead the way in conducting a feasibility study.

The partnership was awarded a grant from the U.S. Department of Transportation – forming part of the largest multi-state study in the eastern United States – and will be the first to integrate dynamically tolled managed lanes.

The grant will bring a real-world mileage-based user fee charging experience to the public through demonstration pilots, while also providing policy-makers with insights into public perception and understanding of mileage-based user fees.

Building upon Transurban’s experience with the 2017 Melbourne Road Usage Study, the scope of the US study will include:

  • approximately 400 Virginia-based participants
  • congestion management demos and evaluation
  • testing of user fee technology to include tolls on existing facilities
  • management of out-of-state travel
  • budget stipends to assess driver choice and attitudes.

The award is part of USDOT’s 5-year, US$95M Surface Transportation System Funding Alternative grant program that has already awarded the I-95 Corridor Coalition with two prior program grants. Other grant partners include Departments of Transportation in Delaware, Pennsylvania, North Carolina and New Jersey as well as private partner, EROAD focused on a multi-state road user charging truck pilot.

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