

The future of road funding
May 1, 2025
John Peracchio, a strategic adviser on intelligent transportation systems and a member of the Michigan Council on Future Mobility and Electrification, discusses road usage charges (RUC) and their potential in Michigan. He shares insights from a recent international conference, highlighting Hawaii’s innovative RUC implementations. The conversation touches on balancing technology with public understanding of RUC, the need for educational outreach, and how such funding could enhance public transit in Michigan, especially for vulnerable communities.
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Multiple Road Usage Reporting Options
- Utah's road usage charge pilot offers multiple mileage reporting options to accommodate preferences.
- Options include odometer readings, telematics, and smartphone apps balancing technology and privacy.
Why Drivers Choose Road Usage Charges
- Drivers opt into road usage charges if they believe it will cost them less than current fuel and registration fees.
- Transparent education is essential because fuel taxes are less obvious to consumers.
Hawaii's Unique RUC Implementation
- Hawaii uses annual vehicle safety inspections to read odometers for RUC, making it an effective and mandatory approach there.
- The island's geography simplifies policy since vehicles rarely drive out of state, unlike Michigan's neighboring challenges.