DAR File No. 43846

This rule was published in the July 15, 2019, issue (Vol. 2019, No. 14) of the Utah State Bulletin.


Transportation Commission, Administration

Rule R940-8

Establishment of Road Usage Charge (RUC) Rates

Notice of Proposed Rule

(New Rule)

DAR File No.: 43846
Filed: 07/01/2019 09:26:53 AM

RULE ANALYSIS

Purpose of the rule or reason for the change:

The purpose of this rule is to establish procedures for setting road usage charge (RUC) rates in accordance with the RUC program established by Section 72-1-213, and to set a RUC rate. The RUC program is a mileage-based revenue system intended to function as an alternative to the fuel tax.

Summary of the rule or change:

Through authority delegated by Section 72-1-213.1, this new rule authorizes the Transportation Commission (Commission) to establish RUC rates. Pursuant to this grant of authority, the Commission establishes the RUC rate at 1.5 cents per mile. The Commission will adjust the RUC rate annually on January 1 in an amount equal to the percentage change during the previous fiscal year in the Consumer Price Index (CPI) as determined by the Utah Tax Commission for the per gallon motor fuel tax rate pursuant to Subsection 59-13-201(1).

Statutory or constitutional authorization for this rule:

  • Section 72-1-213.1

Anticipated cost or savings to:

the state budget:

This proposed new rule should not cause a fiscal impact to the state's budget. This new rule only provides authority and a procedure for the Commission to follow when setting RUC rates. Any fiscal impact related to the RUC program is disclosed in the corresponding proposed Rule R926-17, which provides procedures the Department will follow to establish and administer the RUC program. (EDITOR'S NOTE: The proposed new Rule R926-17 is under Filing No. 43847 in this issue, July 15, 2019, of the Bulletin.)

local governments:

This new rule will not lead to fiscal impact to local governments. Local governments are exempt from fuel taxes and RUC fees.

small businesses:

This new rule may lead to a fiscal impact on businesses in Utah, which may be a net savings. Businesses that decide to use alternative fuel vehicles for business or personal purposes will have the option of paying a flat fee annually, which is set by the Tax Commission and not set by this rule, or participate in the RUC program and pay 1.5 cents per mile driven up to an amount equal to the amount of the flat fee. If the flat fee is set at $150, a vehicle will need to travel 10,000 miles to be assessed a $150 RUC. RUC participants will not be assessed a RUC for miles traveled in excess of 10,000. RUC participants that travel less than 10,000 miles in a year will realize a net savings compared to paying the flat fee. As the RUC program is not yet operational, and participation in the program is voluntary, the fiscal impact to small businesses cannot yet be estimated.

persons other than small businesses, businesses, or local governmental entities:

This new rule may lead to a fiscal impact on individuals in Utah, which may be a net savings. Individuals that decide to use alternative fuel vehicles for business or personal purposes will have the option of paying a flat fee annually, which is set by the Tax Commission and not set by this rule, or participate in the RUC program and pay 1.5 cents per mile driven up to an amount equal to the amount of the flat fee. If the flat fee is set at $150, a vehicle will need to travel 10,000 miles to be assessed a $150 RUC. RUC participants will not be assessed a RUC for miles traveled in excess of 10,000. RUC participants that travel less than 10,000 miles in a year will realize a net savings compared to paying the flat fee. As the RUC program is not yet operational, and participation in the program is voluntary the fiscal impact to individuals cannot yet be estimated.

Compliance costs for affected persons:

There are no compliance costs associated with this new rule. Participation in the RUC program is voluntary. This rule does not require individuals or businesses to do anything.

Comments by the department head on the fiscal impact the rule may have on businesses:

This new rule will not have a fiscal impact on businesses.

Carlos Braceras, Executive Director

The full text of this rule may be inspected, during regular business hours, at the Office of Administrative Rules, or at:

Transportation Commission
Administration
CALVIN L RAMPTON COMPLEX
4501 S 2700 W
SALT LAKE CITY, UT 84119

Direct questions regarding this rule to:

  • Christine Newman at the above address, by phone at 801-965-4026, by FAX at 801-965-4338, or by Internet E-mail at cwnewman@utah.gov
  • James Palmer at the above address, by phone at 801-965-4000, by FAX at 801-965-4338, or by Internet E-mail at jimpalmer@utah.gov
  • Linda Hull at the above address, by phone at 801-965-4253, by FAX at , or by Internet E-mail at lhull@utah.gov

Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:

08/14/2019

This rule may become effective on:

08/21/2019

Authorized by:

Carlos Braceras, Executive Director

RULE TEXT

Appendix 1: Regulatory Impact Summary Table*

Fiscal Costs

FY 2020

FY 2021

FY 2022

State Government

$0

$0

$0

Local Government

$0

$0

$0

Small Businesses

$0

$0

$0

Non-Small Businesses

$0

$0

$0

Other Person

$0

$0

$0

Total Fiscal Costs:

$0

$0

$0





Fiscal Benefits




State Government

$0

$0

$0

Local Government

$0

$0

$0

Small Businesses

$0

$0

$0

Non-Small Businesses

$0

$0

$0

Other Persons

$0

$0

$0

Total Fiscal Benefits:

$0

$0

$0





Net Fiscal Benefits:

$0

$0

$0

 

*This table only includes fiscal impacts that could be measured. If there are inestimable fiscal impacts, they will not be included in this table. Inestimable impacts for State Government, Local Government, Small Businesses and Other Persons are described in the narrative. Inestimable impacts for Non-Small Businesses are described in Appendix 2.

 

Appendix 2: Regulatory Impact to Non-Small Businesses

1) This is a proposed new rule. It establishes procedures the Transportation Commission (Commission) will follow when setting road usage charge (RUC) rates in accordance with the RUC program established by Section 72-1-213, and to set the RUC rate. The RUC program is a mileage-based revenue system intended to function as an alternative to the fuel tax.

 

2) The RUC is a user fee based on the number of miles driven instead of the gallons of fuel consumed. Similar to utilities, drivers pay for what they use. It is a potential replacement for the gas tax. In the 2018 General Session, S.B. 136 was passed by the Legislature which directed the Utah Department of Transportation (UDOT) to implement a RUC program for alternative fuel vehicles by January 1, 2020. This new rule is necessary to implement the RUC program.

 

3) The RUC system is a voluntary program that alternative fuel vehicle owners may opt into at the time of their annual registration renewal instead of paying a flat fee. Participants sign up with a third-party account manager that collects data and reports miles driven to the account manager using in-vehicle technology the account manager provides. Participants place a credit card on file and set up a pre-paid wallet from which mileage fees are deducted periodically. Payment of the per-mile fee stops once the accumulated total for the year is equal to the annual flat fee. The account manager provides a phone app or other method for submission of an odometer capture photo at enrollment and a yearly "true-up" photo to make sure that mileage on file corresponds to actual odometer readings. Participation in the program is not mandatory. People with privacy concerns may opt for limited data retention or pay the flat fee.

 

4) Through authority delegated by Section 72-1-213.1, this new rule authorizes the Commission to establish RUC rates. Pursuant to this grant of authority the Commission establishes the RUC rate at 1.5 cents per mile. The Commission will adjust the RUC rate will adjust annually on January 1 in an amount equal to the percentage change during the previous fiscal year in the Consumer Price Index (CPI) as determined by the Utah Tax Commission for the per gallon motor fuel tax rate pursuant to Subsection 59-13-201(1). By November 1 of each year, the Commission will obtain from the Tax Commission the CPI percentage. This CPI percentage will be applied to the RUC rate and the increase will be published by December 1 with the adjusted rate taking effect on January 1.

 

5) This new rule may lead to a fiscal impact on businesses and individuals in Utah, which may be a net savings. Businesses and individuals that decide to use alternative fuel vehicles for business or personal purposes will have the option of paying a flat fee annually, which is set by the Tax Commission and not set by this rule, or participate in the RUC program and pay 1.5 cents per mile driven up to an amount equal to the amount of the flat fee. If the flat fee is set at $150, a vehicle will need to travel 10,000 miles to be assessed a $150 RUC. RUC participants will not be assessed a RUC for miles traveled in excess of 10,000. RUC participants that travel less than 10,000 miles in a year will realize a net savings compared to paying the flat fee.

 

6) The executive director of UDOT, Carlos Braceros, has reviewed and approves this analysis.

 

 

R940. Transportation Commission, Administration.

R940-8. Establishment of Road Usage Charge (RUC) Rates.

R940-8-1. Purpose and Authority.

(1) The purpose of this rule is to establish procedures for setting road usage charge (RUC) rates in accordance with the RUC program established by Utah Code Section 72-1-213, and to set a RUC rate. The RUC program is a mileage-based revenue system intended to function as an alternative to the fuel tax.

(2) Authority for this rule is found in Utah Code Section 72-1-213.1.

 

R940-8-2. Definitions.

(1) "Commission" means the Transportation Commission, which is created in Utah Code Section 72-1-301;

(2) The "Department" means the Utah Department of Transportation, which is created in Utah Code Section 72-1-101;

(3) "RUC" means Road Usage Charge as designated pursuant to Section 72-1-213.

(4) "Rate" means the per-mile usage fee that the owner of a motor vehicle enrolled in the RUC program must pay.

 

R940-8-3. Responsibility for Setting RUC Rates.

(1) The Commission will be responsible for setting RUC rates as specified in this rule.

(2) The Commission may, at its sole discretion, change the RUC rate.

 

R940-8-4. Process of Setting RUC Rates.

(1) The Commission will consider the Department's recommendations for RUC rates.

(2) The Commission may consider relevant data and information from any reliable source to help it determine RUC rates.

 

R940-8-5. Depositing of Collected Funds.

(1) Pursuant to State law, RUC fees collected by the Department will be deposited in the Transportation Fund established by Utah Code Section 72-2-102,and subject to the calculation pursuant to Utah Code Section 72-2-107.

(2) Monies from the fund may be used to pay for costs of administering the RUC program, pursuant to Utah Code Section 72-1-213.

 

R940-8-6. Road Usage Charge Rate.

(1) The RUC rate is 1.5 cents per mile effective January 1, 2020.

(2) The RUC rate will adjust annually on January 1 equal to the percentage change during the previous fiscal year in the Consumer Price Index (CPI), as determined by the Utah Tax Commission for the per gallon motor fuel tax rate pursuant to 59-13-201.

(3) By November 1 of each year the Commission will obtain from the Tax Commission the CPI percentage. This CPI percentage will be applied to the RUC rate and the increase will be published by December 1 with the adjusted rate taking effect on January 1.

 

KEY: road usage charge (RUC), alternative fuel vehicles, RUC rates

Date of Enactment or Last Substantive Amendment: 2019

Authorizing, and Implemented or Interpreted Law: 72-1-213.1


Additional Information

More information about a Notice of Proposed Rule is available online.

The Portable Document Format (PDF) version of the Bulletin is the official version. The PDF version of this issue is available at https://rules.utah.gov/publicat/bull_pdf/2019/b20190715.pdf. The HTML edition of the Bulletin is a convenience copy. Any discrepancy between the PDF version and HTML version is resolved in favor of the PDF version.

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For questions regarding the content or application of this rule, please contact Christine Newman at the above address, by phone at 801-965-4026, by FAX at 801-965-4338, or by Internet E-mail at cwnewman@utah.gov; James Palmer at the above address, by phone at 801-965-4000, by FAX at 801-965-4338, or by Internet E-mail at jimpalmer@utah.gov; Linda Hull at the above address, by phone at 801-965-4253, by FAX at , or by Internet E-mail at lhull@utah.gov.  For questions about the rulemaking process, please contact the Office of Administrative Rules.