Estimate Cost of Implementation (17)

Description:

Identifying operational program costs and developing a cost estimation tool can provide an understanding of RUC implementation costs. This work should be based on data from the pilot system (if any) as well as from basic industry research comparisons to other operational systems. Cost estimates should be developed specifically to compare phase-in strategies. If RUC for commercial motor carriers is planned, the implementing agency may be different than the implementing agency for noncommercial vehicles. Planning and estimation should include both agencies.

Details:

Costs should include, at a minimum, the following:

Either vendor or state costs

  • Mileage reporting methods and setup, including hardware/app
  • Data collection, including communications and storage
  • Payment processing (e.g., credit card, automated clearinghouse/bank transfer, cash, or check)
  • Account management, including maintaining web service and customer service
  • Size and implementation of program (e.g., all vehicles charged a RUC, or only select vehicles)

Exclusively state costs

  • Vendor oversight—reviewing vendor data and following up if questions arise
  • Enforcement—sending notices and fines to those in noncompliance
  • Communications—educating the public
  • IT—storing data from vendors
  • Audit—checking individual users to confirm compliance

Primary Use:

Estimate costs of live operational system.

Best Practices/Lessons Learned:

  • Base estimates on real parameters provided by agencies. Collect data from departments of motor vehicles, tolling agencies, and other relevant agencies. Model estimates should reflect that costs will decline over time.
  • Make educated guesses about economies of scale.
  • Update or recalibrate the cost-estimating tool when new lessons are learned.
  • A gas tax cost of collection of 1% is likely not achievable, but sub 10% is achievable, and sub 5% is possible.
  • Leverage cost information from the pilot cost, but realize that pilots are small and limited; they do not include economies of scale, which must be included in such modeling.

State Government Context and Assumptions:

The lead RUC agency does this task immediately following the pilot.