ERD selected to participate in mileage-based user fee pilot

TEL +64 9 927 4700 PO Box 305 394
FAX +64 9 927 4701 Triton Plaza, North Shore 0757 Page 1
FREE 0800 4-EROAD Auckland, New Zealand eroad.co.nz



MEDIA RELEASE
EROAD selected to participate in mileage-based user fee pilot
Transportation management software provider to take part in an I-95 Corridor Coalition truck pilot exploring the
feasibility of a multi-state MBUF approach

Auckland – 21 November 2017 EROAD, a global technology provider of fleet management, electronic tax
reporting and safety compliance solutions for the transportation industry, today announced it has been
selected to participate in the first multi-state truck pilot to explore the feasibility of a Mileage-Based User Fee
(MBUF) along the United States’ eastern seaboard.
“This is an extremely significant opportunity for EROAD as it’s the first truck pilot in the US to explore the
feasibility of a Mileage-Based User Fee across multiple states,” said Steven Newman, EROAD CEO. “It will
highlight our ability to demonstrate a highly flexible, feasible and cost-effective way to introduce road
charging across jurisdictions without needing an intrusive and expensive roadside infrastructure, while also
reducing the reporting burden on motor carriers.”
The I-95 Corridor Coalition truck pilot, slated to begin next year, will include 50 vehicles equipped with EROAD
in-vehicle hardware for a period of six months. The EROAD system will record accurate mileage data and
apply applicable formulas for a truck-based MBUF as prescribed by the programme’s Steering Committee,
which includes the American Trucking Associations. EROAD will produce dummy invoices, demonstrating
payments to appropriate agencies within the I-95 Corridor Coalition.
The pilot area, running from Maine to Florida, is a critical freight corridor in the US economy. Over 5 billion
tons of freight, representing almost 40% of the country’s GDP, moves annually across the area’s 1,917 miles of
roads, approximately 20% of all US roadways. Average daily truck traffic in the region includes over 10,000
vehicles with peak daily traffic averaging over 31,000 units. Looking to the future, the amount of truck traffic
in the corridor is expected to more than double by 2035.
For the $1.6 million pilot programme, the I-95 Corridor Coalition has partnered with the Delaware
Department of Transportation to explore the feasibility of replacing fuel taxes with a mileage-based user fee
approach in a multi-state environment. Previous mileage-based usage approaches have primarily focused on
a single state.
Patricia Hendren, executive director of the I-95 Corridor Coalition, said trucks were an important component
of exploring the feasibility of a mileage-based user fee approach. “Commercial vehicles have a long list of
reporting requirements, they are heavy users of the system and they are heavy payers,” she stated. “Our goal
is to look at the data that commercial vehicles are currently required to submit and ask ‘within that
framework, what would a mileage-based approach look like?’
“EROAD has significant experience providing technology solutions that address International Fuel Tax
Agreement (IFTA), International Registration Plan (IRP), Hours of Service (HOS) and Electronic Logging
Device (ELD) requirements,” Hendren added. “We need their knowledge and understanding of the reporting
challenges the freight industry faces in order to truly assess the feasibility of a usage fee approach across
multiple jurisdictions.”

Page 2 eroad.co.nz
The I-95 Corridor Coalition is a partnership of transportation agencies, toll authorities, public safety officials,
and related organisations along the east coast. The pilot is partially funded through the US DOT (Department
of Transportation) Surface Transportation Funding Alternatives programme established to explore alternative
mechanisms for road funding to fuel taxes. The federal fuel tax was last raised in 1994 and is not indexed to
inflation. Combined with the increasing adoption of fuel-efficient and electric vehicles, motor fuel revenues
are not keeping pace with demands on an aging infrastructure.

For further information contact:
Steven Newman
Chief Executive Officer
EROAD Limited
DDI: 09 927 4713
Email: steven.newman@eroad.com


About EROAD
EROAD modernises road charging and tax compliance and health and safety compliance for road transport by
replacing paper-based systems with easy-to-use electronic systems that also improve fleet management. The
company is headquartered in Auckland, New Zealand, and listed on the New Zealand Exchange (NZX). Its US
business is based in Portland, Oregon, serving customers with vehicles operating in every US mainland state,
growing outward in concentration from the Northwest. In 2009 EROAD introduced the world’s first
nationwide electronic road user charging (eRUC) system in New Zealand and, in 2017, more than 50% of
heavy transport RUC is expected to be collected electronically, representing a rapid transition to e-commerce
on a voluntary, industry-led basis, due to the cost- savings and benefits to customers. EROAD is also a leading
provider of health and safety compliance services, including vehicle management and driver behaviour and
performance measures.
www.eroad.co.nz