26 November 2019 Washington State Transportation Commission PO Box 47308 Olympia, WA 98504-7308 Re: Comments on Washington State Transportation Commission recommendations for a Road Usage Charge Dear Chair Litt, Vice Chair Jennings, and members of the Washington State Transportation Commission: The organizations listed below appreciate the opportunity to provide comments on the Washington State Transportation Commission (WSTC) recommendations for a Road Usage Charge (RUC). As our state continues to grow, we have the opportunity and responsibility to ensure that we have a clean and just transportation system and the corresponding funding to maintain it. Collectively we seek to reduce greenhouse gas emissions and air pollution while building an equitable transportation system that benefits health, safety, mobility, and access to opportunity for all. We urge you to consider the following in your recommendations to the legislature regarding a RUC, with more information below.    Do not restrict revenue to “highway purposes” Set a progressive rate structure and ensure implementation considers the needs of communities that have been marginalized RUC must be implemented strategically, and ensure it accounts for broader environmental and other impacts Context The transportation sector is responsible for the largest share of Washington State’s greenhouse gas emissions and other toxic pollutants, making this sector a critical part of addressing climate change and air quality in Washington State.1 At the same time, we lack essential funding for maintaining our transportation system: WSDOT needs $1.24 billion annually to preserve and maintain our system, but receives only half of what is necessary.2 While our roadways are inadequately maintained, our transit systems also lack sufficient investment. Only 2% of statewide transit funding comes from the state, in large part due to restrictions on gas tax spending, which per the 18th amendment of the Washington State Constitution, is to be deposited in the motor vehicle account for “highway purposes.” This is particularly acute when compared to other states - Washington provides $14.07 in transit funding per capita, compared to a national average of $42.11.3 1 Washington State Greenhouse Gas Emissions Inventory: 1990-2015. https://fortress.wa.gov/ecy/publications/documents/1802043.pdf 2 WSDOT. http://leg.wa.gov/JTC/Meetings/Documents/Agendas/2019%20Agendas/Sept%2019%202019/WSDOT_Preservati on.pdf 3 Washington State Transit Capital Needs Assessment Executive Summary. http://leg.wa.gov/JTC/Documents/Studies/Transit%20Study_PaulNeal/Final_JTCTransitCapitalNeedsTechnicalRepo rtandExecSum.pdf The gas tax is one of the most significant sources of transportation revenue in Washington State, bringing in about $1.75 billion annually, and accounting for roughly half of the state’s transportation revenue.4 However, this revenue source is expected to decline as more efficient vehicles and electric vehicles (EVs) become more common. In fact, EV adoption is occurring rapidly, with the state reaching its 2020 goal of 50,000 EVs on the road ahead of schedule.5 We believe that any Road Usage Charge must be crafted very thoughtfully. In this spirit, our organizations offer the following comments on WSTC’s recommendations for a RUC and urges the WSTC to consider these options as it finalizes its report to the legislature. Do not restrict revenue to “highway purposes”. A RUC presents an opportunity to help fund our transportation system in a more financially sustainable way. Multimodal investments present benefits to the overall population and to the environment in terms of increased safety, reduced air pollution, and mitigated stormwater runoff. While road usage by passenger vehicles necessitates the need for ongoing road maintenance, funding that helps mode shifts to transit, walking or biking benefits our roadways overall by way of less wear and tear and reduced congestion, leading to fewer maintenance needs and fewer demands for costly road expansions. Restricting RUC revenues to the motor vehicle account ignores the interconnectedness of our entire system. That is not to say that revenue should not be used for highway purposes. Our existing roads must be safely maintained, and we have a legal mandate to fix culverts. If adopted, a RUC must provide revenue for preservation, while also contributing to other multimodal transportation needs. We strongly disagree with WSTC’s current suggestion to restrict RUC revenues to highway-related expenditures, and we urge the Commission to rethink this recommendation. Set a progressive rate structure and ensure implementation considers the needs of marginalized communities and workers. The gas tax, in addition to being a declining source of revenue absent continuous rate increases, is also a regressive revenue source since those with lower incomes are likely to pay a higher percentage of their income. A RUC, if structured equitably with a progressive rate structure, presents the opportunity to remedy both of these issues. One of WSTC’s recommendations to the legislature is to continue researching certain topics, including “potential equity impacts of RUC on communities of color, low-income households, rural communities, vulnerable populations, and displaced communities” and “assessing different approaches to RUC ratesetting.” A better understanding of both of these topics would be beneficial. We also understand that in addition, the WSTC has requested more funding to conduct research that will help to better understand the needs of underserved communities; we recommend that this research answer how both RUC fees, design, and implementation will be inclusive of all. This research should be sure to include:  Direct and compensated outreach to these specific communities, including tribes 4 Transportation Revenue Forecast Council – September 2019 Transportation Economic and Revenue Forecasts, Volume I: Summary. https://www.ofm.wa.gov/sites/default/files/public/budget/info/transpo/Sept2019VolumnI.pdf 5 Washington Department of Ecology – Zero Emission Vehicles: Driving into the future. http://ecologywa.blogspot.com/2019/09/zero-emission-vehicles-driving-into.html     How to best structure RUC as a progressive revenue source. Which fee structure and payment and implementation methods would best serve the needs of low-income residents, considering both logistic barriers to income verification and the accuracy of vehicle value as a proxy for wealth? Ensuring those who drive for a living are not disproportionately impacted as individuals Payment options based on research and user interface testing for non-English languages, and a range of visual, mobility and intellectual disabilities Suitable payment methods for those with no bank account or smartphone If adopted, a RUC must be implemented strategically, and ensure it accounts for broader environmental and other impacts. In Washington, we simultaneously lack essential transportation funding today and need to better understand implementation considerations and impacts of a RUC so people are not harmed by this significant policy change in the future. We also recognize that environmental degradation that stems from our use of the roads is often not accounted for in the immediate costs, and the brunt of this degradation is disproportionately borne by lower-income, marginalized communities. If a RUC is adopted, we agree with the WSTC’s recommendation to transition to a RUC with a start-up phase which will inform implementation before a RUC is expanded to include all vehicles, but caution that we must understand how to equitably implement this system by answering the research questions listed above. We also suggest that a RUC better accounts for different impacts vehicles have on the road, the environment, and on our communities. For example, heavier vehicles not only cause more roadway wear and tear, but they tend to pollute more as well. We recommend that both RUC research and a future RUC account for broader impacts, and that this understanding is thoughtfully incorporated into a future transition. Conclusion Implementing a RUC with revenue that is not restricted to highway purposes and that is designed and implemented using an equity and environmental lens could be an opportunity for Washington State. If a RUC is designed and adopted with the above recommendations, not only could Washington take significant steps in addressing its transportation funding problem, but it could also be a leader nationwide by designing and implementing a RUC that goes beyond narrowly replacing the gas tax and instead helps address broader issues that impact our whole transportation system. We strongly urge the WSTC to revise some of its recommendations to the legislature in accordance with this letter, and we also offer support for continuing research and phasing in implementation. Thank you, Climate Solutions Front and Centered Futurewise Sierra Club The Nature Conservancy in Washington Transportation Choices Coalition Washington Environmental Council/Washington Conservation Voters