Road Usage Charging

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Introduction

Interest in road usage charging programs has increased over the past decade. States are facing declining fuel tax revenues and are looking for new ways to fund the maintenance and operation of transport infrastructure. 

Road usage charging programs tax vehicles regardless of their fuel source or fuel consumption. Widespread adoption of road usage charging could generate more revenue for states than fuel-tax based systems do now.      

What is Road Usage Charging?

Road usage charging (RUC) is also referred to as distance-based user fees (DBUF), vehicle miles traveled tax (VMTT), and mileage-based user fees (MBUF). No matter what you choose to call it, RUC is defined as a government policy that charges drivers for their use of a road system based on how many miles they travel.

This type of policy is similar to tolling in that motorists pay for their use of a road network to support transportation funding. 

However, toll systems are usually only set up to charge users for the utilization of certain road features such as expressways, tunnels, or bridges. Road usage charges apply to all roadways in a set area (such as a county or state), 24/7. 

Road usage charging has not yet been widely adopted in the United States but interest is growing and a few states are already running pilot projects. 

States with Road Usage Charge Programs 

Under ten states have launched road usage charge pilot programs so far including Washington, California, Colorado, Delaware, Hawaii, Oregon, Pennsylvania, and Minnesota. Most of these states took advantage of federal funding to partially pay for these programs. 

These projects are going well and more states are considering enacting RUC pilot programs.   

Currently, Oregon is the only state to create and run a fully functioning road usage charge program—called OReGO

OReGO started in 2015. The program has enrolled over 1,600 vehicles so far. Participation is voluntary. In 2019 legislation was passed to expand OReGO.  

Why Use Road Usage Charging? 

Roads in the United States are currently paid for in a number of ways including fuel and tire taxes, tolls, vehicle registration fees, and more general revenue sources such as sales taxes. 

The two main sources of funding for highways in America are state and federal fuel taxes. However, these taxes have not kept up with inflation and are worth 40% less than they were a quarter-century ago—despite the overall rise in fuel prices over the past decade.  

Due to the gradual decline of fuel tax revenue, there is great interest in using road usage charges to fund America’s highways, as it charges based on distance traveled—not fuel use. 

Another factor making RUC systems more attractive to policymakers is the public’s increasing interest in fuel-efficient vehicles, including electric vehicles. These vehicles pay much less in fuel tax per mile than conventional vehicles do. Some pay nothing at all in fuel taxes. 

There is concern that governments in the near future are going to be unable to collect sufficient fuel-tax revenues to maintain transportation infrastructure due to the widespread adoption of fuel-efficient vehicles. 

Again, RUC seems like a potential solution to policymakers as it taxes all vehicles based on the number of miles they drive—regardless of their fuel use. 

Road Usage Charging is Easy with Azuga’s OBDII Device

It is technically permitted to comply with RUC regulations using paper licenses and hand-recorded odometer readings. 

However, automated technologies with GPS-enabled devices can not only help your drivers remain RUC compliant but also provide a number of additional benefits—not to mention that they reduce human error and more accurately record information.  

Azuga Insight—one of the best RUC products on the market—includes road use tracking for road usage charging compliance. That’s in addition to other features and premium services that can improve your fleet and benefit your drivers. 

For road usage charging, drivers can view their road usage information including miles traveled, fuel tax credit, and their wallet balance. Drivers love that there is zero paperwork required with Azuga. 

Here are some of Azuga Insight’s top features. 

Don’t Miss Payments

Azuga can ensure you don’t miss required tax payments. The digital wallet automatically manages your money and includes pre-pay and alert functions. 

Visual Trip Logs 

With visual trip logs—included in Azuga Insights at no additional cost—users can track where they travel and view details such as trip duration, cost, and even their carbon footprint. Routes can easily be shared. 

Monitor Battery Performance

Azuga Insights can also help you monitor your vehicle’s battery’s performance and alert you when it’s time for a replacement. You can also set up “safe zones”: geographic boundaries where, if your vehicle enters or exits the area, you’ll receive a notification. 

At-Home Emissions Testing

Don’t want to leave your house to get emissions testing done? No problem. With Azuga Remote Emissions Service participants in the OReGO program can complete mandated vehicle emissions tests with a few easy button clicks at home—or anywhere. 

This electronic service is free and certified by the Oregon Department of Transportation. To be eligible vehicles need to have an OBD port, be classified as light-duty, have a fuel economy of 20 miles-per-gallon or better, and be registered to someone who is a resident of Oregon. 

Find it Forward

With Find it Forward, Azuga helps you find places like gas stations, hospitals, ATMs, and restaurants that are near your current location and in the direction you are going. 

Engine Information

Azuga can even provide information on your vehicle’s engine. Azuga devices connect directly to your vehicle’s OBD-II port and relay important data on how well your engine is functioning.

Conclusion

Road usage charging is still in its infancy in the United States, with only Oregon enacting a fully functioning RUC program. 

However, declining fuel tax revenue and an increase in demand for fuel-efficient and electric vehicles could drive more states to turn to RUC programs to fill their funding gaps for transportation infrastructure. 
Azuga has already created cutting-edge technology to help drivers remain compliant with RUC programs. If you want to not only record the number of miles you drive for road usage charging, but also have access to a number of incredible features with the same device, check out Azuga Insights.

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What is Fleet Data?

Tracking fleet data is vitally important to running a fleet in any industry. Any kind of data can be tracked, from where vehicles are, to what assets a company has on hand, to the safety of drivers and vehicles. All of this information is important for fleet managers to know to make their fleet effective and productive. What is fleet data, and how can it help fleets be more effective?

Fleet Data for Vehicle Maintenance

Keeping up with vehicle maintenance is one of the best ways to keep vehicles on the road for the long haul. With how much time fleets spend driving, wear and tear on a vehicle is inevitable, but fleet managers can reduce this by harnessing telematics and maintenance alerts. Telematics can tell managers when a vehicle has engine trouble or when a driver is being rough on the brakes or idling too much. Managers can also set up maintenance alerts so they do not have to try and remember when each vehicle needs routine maintenance. Preventative maintenance is crucial to a vehicle’s longevity and will help it stay on the road for years to come. 

Fleet Data for Safety

Any fleet’s top priority is safety. Drivers and vehicles are integral to a fleet business’s entire operation, and ensuring that they do their jobs safely is a huge part of a fleet manager’s job. Luckily fleet data can track driver behavior and determine if drivers are behaving safely behind the wheel. Telematics can track actions such as hard braking, rapid acceleration, distracted driving, and speeding. When drivers display any of these behaviors, they will receive an alert. If the behaviors continue, the system will alert the fleet manager, who can then choose to get in touch with the driver. Accidents can cost thousands of dollars, and days of lost time for businesses, so avoiding them is crucial for companies to succeed. 

Fleet Data for Asset Tracking

Asset tracking is terrific for preventing theft, but it is also ideal for fleet managers to keep track of what they have on hand in their warehouse. Often, assets and equipment sit unused in a warehouse, taking up space that something practical could be occupying. With asset data, fleet managers can determine what assets the fleet does not use and get rid of them, making room for something that will be more beneficial for the company. Furthermore, knowing what’s on hand prevents double-purchasing, which saves the company money as well. 

Conclusion

Tracking fleet data is essential for keeping a fleet productive and effective. It is all part of a fleet manager’s job. Luckily, Azuga has many tools to help with tracking fleet data. Reach out to the experts at Azuga today to find out how to get started gathering data today so that you can do the best for your fleet.


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Record of Duty Status

Each driver is required by the law to record a driver’s duty of status every 24 hours, using the structures stipulated by the Federal Motor Carrier Safety Administration (FMCSA). A record of duty status (RODS) can also be referred to as a driver’s log. It allows drivers to record details such as date, vehicle number, totals driving hours, the total number of miles driven within 24 hours, carrier’s name, a 24-hour period starting time, address, driver’s certification/signature, and remarks. 

Records can be maintained using an electronic logging device (ELD), using an FMCSA approved automatic on-board recording gadget, or even manually on a grid. Logs must be validated at all times by indicating each change in a duty status.

Exemptions to Record of Duty Status

A RODS is mandatory as part of Hours of Service (HOS) rules, which applies to commercial vehicles (CMVs). However, a few cases of short-haul carriers are exempt from maintaining records of duty status. 

Company policies may be different, but the FMCSA only expects drivers to record time and location after every stop.

Since the introduction of the ELD mandate, several motor carriers are leaning toward electronic logging devices to maintain their records of duty status automatically. Companies were given until December 16, 2019 to update automatic on-board recording devices to the latest ones, meaning there were also some exemptions to the ELD Rule.

Exemptions to RODS regulations include the following:

  • Drivers driving within a radius of 150 air-miles
  • Drivers of CMVs driving within a radius of 150 air-miles, who do not need a CDL, and at the same time operate within a radius of 150 air-miles of their daily reporting locations.

For drivers to qualify for the exemption, they must meet all the requirements stated by the regulations. Failure to meet even one of the requirements means all HOS rules apply.

Electronic Logging Devices

A driver must produce ELD records when requested by a safety official, either immediately, or within the permissible time if the motor carrier operates from more than one terminal or office. A motor carrier is supposed to retain a back-up copy of all ELD records for at least six months.

Only carriers or drivers falling under the exempted categories may use other recording methods, which may include automatic onboard recording devices (AOBRDs) to maintain driver record of duty status.

Submitting and Retaining Driver Record of Duty Status Paper Logs

Being exempted from the ELD rule does not mean you are automatically exempted from the HOS regulations. A driver is required to submit original paper log sheets to their respective carriers within 13 days after the completion of their trips. The driver retains a copy of all RODS for the previous seven days, which must be produced on request for inspection at the time they are on duty. Drivers must also sign all hard copies of RODS.

Electronic HOS Regulations

The idea behind mandating the ELD rules was to provide accurate, consistent, and accessible methods of logging driver hours of service, and simultaneously create a safer working environment. The new measures were intended to ensure drivers took necessary breaks and rested appropriately, and to ensure they remained alert while driving. Making the switch from manual processes like logbooks to electronic hours of service tools makes it easier for businesses to keep up with the FMCSA requirements.

However, the implementation of electronic logging devices does not change the fleet manager’s responsibility to track off duty or driving hours. What it does require is that you make use of a log tracking device and software system.

Who Should Comply with ELD HOS Logging?

The HOS rules apply to drivers operating CMVs such as school buses and semi-trucks. For a vehicle to be classified as a CMV, it must fulfil the following:

  • Weigh above 10,000 pounds
  • Have a combined weight rating or gross vehicle weight of more than 10,000 pounds
  • Be used for transporting 16 or more persons, including the driver, or nine or more passengers for commercial transport purposes
  • Transport goods classified as hazardous and require placards

If a vehicle meets the qualifications above, it is required by the law to comply with HOS regulations and to maintain decent hours of service log. 

Common Hours of Service Violations - And How to Fix Them

Besides ordinary traffic violations and unsafe driving, it is common among drivers to fail to comply with HOS regulations. Hours of Service compliance counts as one of the core basics of CSA, and maintaining a low score is often a result of piling frustrations.

The ability to fix problems associated with hours of service is the most crucial way to keep safety scores in check, and helps in controlling the frequency of roadside inspections.

Below are the most common violations of Hours of Service and how you can fix them.

Clerical Form Errors

When entering data manually, issues like mathematical errors, poor handwriting, the omission of essential information, and many other mistakes, may arise. These are issues that can be minimized by implementing an electronic system that automatically fills in the required data when it is needed. Tired drivers can easily leave out essential data, which could be deemed a violation of the hours of service regulations.

Not Updating Statuses

The driver record of duty status graph shown on a log must always be up to date, showing each detail of changes. Forgetting, or simply failing to update duty status is common among drivers and leads to severe roadside inspections. It is mostly due to drivers failing on their mandate to remain vigilant by changing statuses.

It is easy to fix this recurring problem with the simple touch of a screen. All drivers have to do is to indicate the time their shifts start, and to change their status to off-duty when shifts end. Electronic logbooks are designed to detect when a vehicle is stationary or in motion, and gives accurate data at all times.

No Records of Duty Status

Failing to properly maintain your RODS and not maintaining logs for seven days is a violation that can lead to hefty fines. Drivers of companies running smaller vehicles may not be aware of what is required of them, but they must check with the relevant authorities. Inspectors ask for records of the previous seven days. Therefore, drivers must not misplace any record whatsoever.

Partner with Azuga for FMCSA Compliance

Azuga works with you to deliver customized solutions for fleets and drivers. It doesn’t matter the size of your fleet, Azuga offers the right products and technology to duly maintain drivers’ records of duty status and keep you compliant with the hours of service regulations.

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What is an Enterprise Fleet?

If you utilize company vehicles during the course of business, you might want to familiarize yourself with enterprise fleet management and maintenance. Operating a fleet can be a challenge. Luckily there are things that you can do to make your life a lot easier. In this article, we will answer what is an enterprise fleet? Plus, we’ll outline four key tips you should know about enterprise fleet management and an additional three tips about enterprise fleet maintenance.

What is an Enterprise Fleet?

An enterprise fleet, simply put, is a fleet of vehicles leased or owned by a business. Automotive Fleet Magazine defines enterprise fleets as commercial entities with 15 or greater vehicles. A wide range of businesses operate enterprise fleets. For example, delivery businesses and many businesses who do on-site service calls or have representatives travel to meet with clients have enterprise fleets.

The enterprise fleet industry is huge in the United States. Automotive Magazine recently released a report that outlines the number of cars and trucks that are leased or owned by enterprise fleets in the United States. Fleets in the U.S. leased 431,000 vehicles last year and owned 204,000 vehicles. There are a total of 727,000 trucks being leased by enterprise fleets and 1,860,000 trucks are owned by them.

In some areas, enterprise fleets are also made up of vehicles that are privately owned (or leased) by employees but used for business purposes. These are known as “grey fleet” vehicles. 

Tips on Enterprise Fleet Management

Enterprise fleet management can be a challenge. It’s a fast-paced job that requires you to stay on your toes. Fleet managers are often responsible for drivers and accountable to management. Below are four tips on how to excel in enterprise fleet management:

1. Create Instructions for Enterprise Fleet Vehicle Acquisition and Disposal

When a business lacks purchasing and disposal guidelines for fleet vehicles they may be giving up thousands of dollars through inefficiencies. Consistency is very important in enterprise fleet management.

Your company should look into bulk purchasing and understand the right time or number of miles at which to best sell a vehicle. Enterprise fleet managers should spec out options for fleet vehicles and assemble a purchasing plan. In addition, they should gain insight into the optimal time to dispose of fleet vehicles.

2. Be Proactive When it Comes to Safety

Fleet drivers face a whole host of distractions and safety hazards on the job. Great fleet managers know how to get ahead of things that might become problems. Invest in safety before accidents happen.

Investing in safety may look like hands-free devices for your drivers, installing an app that monitors driver behavior on their phones, or an in-cab camera that oversees drivers while they’re on the road. Ultimately, being proactive about safety will save your company money in the long run.

3. Set Performance Goals for Drivers

Many fleet managers find it useful to incentivize drivers to perform well. Drivers may be encouraged to achieve higher fuel efficiency or perform vehicle inspections regularly. No matter what goal you set, you should hold your drivers to a high-performance standard.

Driver behavior monitoring makes it simple to set goals and encourage safe driving habits. Actionable goals help managers encourage drivers to improve their driving habits. 

4. Continually Educate Yourself on the Enterprise Fleet Industry 

The best fleet managers know that the fleet industry is constantly changing and it's vital that managers keep up. Top fleet managers join industry associations, read trade publications and blogs, and overall keep up with what is happening in the industry.

Often fleet managers will discover new technologies to adopt when reading up on the fleet industry. This helps them keep ahead of the competition. With so much information readily available online, it’s never been easier for fleet managers to keep up-to-date and ahead of the curve.

Tips on Enterprise Fleet Maintenance

Fleet maintenance is integral to running a top-performing enterprise fleet. Here are three tips on how to excel at enterprise fleet maintenance:

1. Know Your Total Cost of Ownership

Pay attention to your maintenance costs and make note when they start to rise because of a vehicle’s age. Make sure you comprehend the warranty coverage provided by the manufacturer and the way it impacts the vehicle’s total cost of ownership. Those who excel at enterprise fleet management understand trends in the used vehicle market, the residual value of fleet vehicles, and the best time to sell fleet vehicles to obtain a cost-effective enterprise fleet.

2. Properly Spec Fleet Vehicles

A vital part of fleet maintenance is performing specs on vehicles. It’s important that this job is performed well. You should be aware of the demands your fleet vehicles will face. Make sure to outline vehicle usage.

The danger is that under-specing a fleet vehicle can lead to maintenance issues down the line that could put a dent in your budget. On the other hand, an over-spec’d fleet vehicle can also increase costs. Great fleet managers know the criteria involved with specing (operating conditions, what’s being carried, usage, etc.) and try to make theirs as accurate as possible.

3. Perform Preventative Maintenance

One of the most important things to understand about enterprise fleet maintenance is the cost savings involved in preventative maintenance. Well-maintained fleet vehicles are less likely to require unscheduled downtime or repairs. Some examples of preventative maintenance are general vehicle safety checks, oil changes, and tire rotation, and inspection. Make sure to perform these activities on a regular schedule.


Good enterprise fleet management practices help leaders in the fleet management industry achieve more. Take your fleet to the next level when you implement smart technology like Azuga Fleet™. The Azuga team is here to help boost your fleet’s productivity, improve safety, and save you hundreds each year. 

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