Frequently Asked Questions

A Mileage-Based User Fee (MBUF):

• Charges drivers for the number of miles traveled, not how much fuel is consumed

• Creates a link between how much you pay and how much you drive instead of basing it on your vehicle’s fuel efficiency

• Is currently being explored as a potential alternative to the fuel tax you pay at the pump

If you are a resident in the Eastern U.S., use our MBUF calculator  to see how much you could pay with a MBUF system instead of the state fuel tax.

Please note that no money is exchanged during the Coalition pilots. All “payments” are simulated.

No. Our work assumes that an MBUF system would replace the current state fuel tax. 

State and federal governments are looking to MBUF as a potential replacement for the fuel tax because the way we currently fund transportation is not sustainable. Vehicle fuel efficiency has improved dramatically since the fuel task was introduced over 100 years ago. Vehicles can go farther on less fuel or none at all. Though this has been great for our wallets and the environment, increased fuel efficiency has presented a challenge for the transportation system that depends on taxes collected per gallon. As vehicles become more fuel efficient, they contribute less revenue to building and maintaining roads, yet continue to contribute to wear and tear as well as congestion. A MBUF system is one alternative to the existing fuel tax to ensure that our transportation system receives the necessary funding for future generations. 

Each state decides which transportation funding mechanism makes sense for their state. In many states, no decisions about MBUF have been made. Pilots in the Eastern U.S. and in other states throughout the country provide the opportunity to experience how MBUF might work in real life. Results from this project will help national and state policymakers decide on next steps.

• First, we work with the trucking industry to recruit participants that reflect diverse vehicle types, fleet size, and fuel type.
• EROAD, our technology and research partner, installs telematic devices for pilot participants at no charge. Because trucks most report mileage for regulatory requirements, our pilots do not offer a non-GPS option for trucks.
• Pilot participants drive normally during the pilot and receive monthly statements explaining what their simulated MBUF payment would look like.
• Our team analyzes the anonymized data to better understand the impacts of MBUF on trucks.
• At the end of the pilot, we conduct surveys and focus groups with some participants to learn more about their experiences.
• Sixty days after the pilot study concludes, we destroy participants’ data.

• First, we recruit participants that reflect pilot goals as well as those of the participating Coalition member states.
• Participants choose how they want to report their mileage using the available options. This may include:
  • A GPS-enabled device that is plugged into their vehicle’s OBD-II port.
  • A non-GPS-enabled device that is plugged into their vehicle’s OBD-II port.
  • An option that doesn’t require them to plug any device into their car.
  • An option that uses in-vehicle telematics to report mileage.
• Pilot participants complete a pre-pilot survey about the enrollment process as well as their opinions on transportation funding and MBUF. 
• Pilot participants drive normally during the pilot and receive monthly statements explaining what their simulated MBUF payment would look like.
• Our team analyzes the anonymized data to better understand the impacts of MBUF on drivers in the Eastern U.S.
• At the end of the pilot, we conduct post-pilot surveys and focus groups to learn more about participants’ pilot experience.
• Thirty days after the pilot study concludes, we destroy participants’ data. 

• To tackle this question, the Coalition (with the help of EBP US) conducted an analysis on the potential implications of an MBUF system on rural and urban households in several Eastern U.S. states in 2020. We have found that, when using a revenue neutral per-mile MBUF rate:
  • Changes would be minimal for most households. Depending on where residents live and what type of vehicle they drive, a shift to MBUF is estimated to change household expenses by about $1.50 a month.
  • How far vehicles can drive on a tank of fuel makes a difference. Households near urban areas tend to have more fuel-efficient vehicles than those in rural areas. This means urban households generally pay less fuel tax per mile driven than rural households in the current fuel tax funding model.
  • If the fuel tax were replaced with a revenue neutral MBUF system, drivers in most rural areas would pay less than they do now.

In our pilot work, we have consistently seen concerns about privacy drop among pilot participants. This is due to:

• Transparency. Participants were informed of which data would be collected by the MBUF account manager and how it would be used.
• Limited personal data. The personal information required for participation in the pilot was very limited (e.g., name, address, email, phone, and vehicle information) and was communicated to pilot participants.
• Mileage reporting options and choice to decline GPS-enabled option. Location-based services were optional and if participants were not comfortable providing location information, they could select the mileage reporting option that does not use location-based services.
• Data protections: The account manager could not sell data to any third party entities and was required to destroy all data 30 days after the completion of the pilot.