Evolution From Road Usage Charge (RUC) 1.0 to RUC 2.0 Saves Money and Time

Item #: 20240065

CONTACTS

Implementing Organization: Strategic Technology
Champion: Lyle McMillan
Implementation Lead: Daryl Ballantyne, DBallantyne@utah.gov 801 791-1570
Development Team:

Daryl Ballantyne - UDOT

Nathan Lee - UDOT

Lyle McMillian - UDOT

Cameron Kergaye - UDOT

Travis Jensen -WCG

Michael Butler - WCG

Matthew Dorfman - CDM Smith

Jenny Roberts - CDM Smith

Craig Baxter - CDM Smith

Article Written By: Daryl Ballantyne
Innovation Team Coordinator: Winston

STATUS

Implementation Date: May 1, 2024
Adoption Status: Fully Implemented
Adoptability Note: How could simplifying a process improve your program?

APPLIES TO

Topic: Compliance and Enforcement
Organization(s): UDOT (all), Central Admin / Senior Leaders, Central Maintenance / Facilities Management, Central Materials, Central Preconstruction, Communication, Data Technology & Analytics, Finance / Comptroller, Internal Audit, Performance and Asset Management, Planning, Policy / Legal, Program Financing, Research and Innovation, Right of Way, Risk Management, Strategic Technologies, Transit and Trails
Job Role(s): Business Analyst, Information Specialist, Program Director, Program Manager, Program Specialist
Tags: Highway transportation, capital costs, fees, labor costs, labor productivity, use charges, revenues, economic benefits, expenses, expenditures, stop doing, accounting > billing, budgeting, payment, ( comptroller ), communications > public relations ( PR ), contract administration > bids, contracting, solicitations, contracts, ( RFP, FRQ ), finance > appraisals, investments, asset management, cost recovery, cost sharing, fees, loans, revenues, sales, taxes, usage charges, governance > auditing, policy making, procedures, compliance, law, ( legal ), information technology >> software, networks, logistics > inventory, distribution, purchasing, procurement, warehousing, supply chain management, risk management, insurance, program management, public opinion, user benefits

PROBLEM

Program customers in UDOT’s first iteration of the Road Usage Charge Program (UC 1.0) had an option to use a device that plugged into the OBD-II port of their vehicle. The device captured mileage and location data then relayed that information back to the program.

At the time that RUC 1.0 ended, nearly 3,600 program customers were using the plug-in devices. In addition to privacy concerns related to tracking location, these devices were costly to install and operate ($95 per device plus $5.67 per user/month maintenance fee). Furthermore, the whole process was difficult to operate due to the required customer assistance. The device had to be mailed to the customer, and some customers required assistance with installing the device in their vehicle. When ending RUC 1.0, customers needed to be contacted and their device had to be mailed back to UDOT. It was difficult for all parties.

CHANGE

Mileage reporting was made much easier in the move to RUC 2.0. Instead of plug-in devices, customers were required to simply capture an image of their vehicle’s odometer using an ubiquitous smartphone camera. Not only did this reduce privacy concerns by removing any location reporting, it also reduced administrative costs by 46%. Eliminating devices removed the cost and headache of mailings devices while also reduced customer complaints and required support.

RESULT

The transition from RUC 1.0 to RUC 2.0 started May 1, 2024 so the full impacts of the change are still being determined. The program has already realized lower monthly administrative costs. In addition to cost savings, the user experience for customers is better. Tracking mileage is now easier, less confusing, and privacy concerns have been resolved.

Next Steps: UDOT’s RUC program is expected to significantly grow in size in the coming years. Currently, program enrollment is limited to electric vehicles (EV). But Utah’s EV count is growing 40-50% each year, thereby dramatically increasing the pool of vehicle owners eligible to enroll in the program. It is likely that other vehicle types will become eligible for the program in the future, which will increase enrollment potential even more. Compared with RUC 1.0, these expected developments will increase the total amount of cost savings even beyond what has been currently realized.