The Eastern Transportation Coalition MBUF National Truck Pilot highlights the importance of understanding the complexity of the user

In the release of its report, "The Exploration of Mileage Based User Fee (MBUF) Approaches for  All Users," which includes the first ever National Truck Pilot, The Eastern Transportation  Coalition (TETC) highlights the critical importance of understanding users and their complexities  in the examination of alternative transportation funding approaches such as MBUF. This report  represents findings on both the passenger and truck pilots conducted under a USDOT Surface  Transportation System Funding Alternative grant awarded to the Coalition and its partners. 

"America's highways and bridges are the workplace of our nation's trucking industry and the  reliance on a well-maintained infrastructure to support safe and efficient movement of goods is  critical to that industry and the supply chains and public that count on it," said Dr. Patricia  Hendren, Executive Director of The Eastern Transportation Coalition. "As we examine  alternatives for transportation funding, we must allow for the complexities of different users,  especially for the trucking industry, which has complex operating and regulatory environments,  comprised of diverse fleets traveling significant miles across multi-state and multi-jurisdictional  boundaries."  

This first National level Truck pilot, the second truck pilot undertaken by the Coalition, was  conducted over a six-month period, and included 21 companies and 221 commercial motor  vehicles, reflecting a diversity of operating environments including over the road, Less than  Truckload (LTL) and agriculture. The pilot vehicles, primarily 5 axle, 80,000-pound class 8  trucks, traveled over 11 million miles across 48 states and Washington DC. Technology and  research partner EROAD guided the pilot design and supplied reliable, accurate data from the  vehicles involved in the study. 

The identified five (5) key findings in the report, shared common themes between both trucks  and passenger cars, while recognizing specific needs of each segment, in how MBUF can serve  as a viable alternative for transportation funding, including: 

1. Understanding the Complexity of the User Matters 

2. Real-World Pilots Reduce Privacy Concerns  

3. Leveraging Technology Creates Solutions 

4. A Tiered Rate Based on MPG Doesn't Work 

5. Customized Outreach Needed to Move MBUF Forward 

Truckers are heavy users and payers in the transportation system, paying many fees beyond  fuel tax. In addition, the composition of trucking fleets and vehicles is diverse.  "This latest TETC pilot program makes significant strides toward addressing several of the  trucking industry's concerns with mileage-based user fees. In particular, the pilot identifies and 

provides insight on an oft-ignored yet critical challenge: how to determine the most fair and  equitable rates according to vehicle class. ATA looks forward to working with TETC as it  continues to look for solutions to the many questions that must be answered before an  alternative user fee system can be implemented," said Bill Sullivan, Executive Vice-President,  American Trucking Association. 

"We commend The Eastern Transportation Coalition for taking seriously the apprehensions of  small business truckers' regarding mileage-based user fees (MBUF). Rather than assuming our  nation is ready and willing to transition to an entirely new system of taxation with the flip of a  switch, the Coalition has taken a more methodical and responsible approach. They clearly  understand that the inherent complexity and diversity of our industry creates unique challenges  warranting more extensive examination and real-world testing before policymakers can even  consider replacing existing user fees with MBUF. Owner-Operator Independent Drivers  Association (OOIDA) members rightfully remain wary, but we also appreciate the Coalition for  their thoughtful and transparent approach that is mindful, rather than dismissive, of truckers and  their very valid concerns," said Todd Spencer, President, OOIDA. 

A Motor Carrier Working Group, (MCWG) comprised of trucking companies, truck  manufacturers, freight haulers, shippers, and related organizations, provided critical input and  feedback as the pilot work was formulated and conducted. The clear guidance from the MCWG  and industry partners is to keep rate setting simple and transparent and apply a consistent  approach, as well as to build on the favorable experience with telematics to leverage technology  as a solution to MBUF implementation.  

To continue to explore the viability of a national MBUF system, the Coalition will operate  additional pilot programs including a 2022 truck pilot that examines rate setting approaches, the  feasibility of incorporating MBUF into existing IFTA and IRP frameworks and recruitment of  additional pilot participants to encompass more industry sectors and fuel types.