By facilitating Ontario’s only continuous dialogue on road pricing since 2008, Transport Futures’ aim has always been to establish a comprehensive pricing policy that is fair to drivers in the Greater Toronto Area and, eventually, across the province.

Moving from academic theory and practical case studies presented in conference venues to real action on the ground, we are seeking partners to demonstrate how road pricing based on vehicle kilometres travelled (VKT) can help meet a range of transportation-related economic, environmental and social policy objectives: manage traffic congestion, encourage modal shift and teleworking, reduce emissions, raise significant municipal, provincial and federal revenue for sustainable infrastructure and eventually replace gas taxes – all in an equitable manner.  This will benefit motorists and society.

Ontario drivers don’t pay directly for the kilometres they travel – other than Highway 407 (which accounts for less than 152 km of the province’s 203,000 km road network). However, the latest GPS technology — which includes self-installed on-board diagnostic devices — provides an origin-destination road pricing solution that gives vehicle owners the choice to securely share road usage data and pay for each kilometre travelled instead of paying the standard fuel tax. Since the car itself is automatically reporting the number of kilometres being travelled, administration costs are substantially reduced and road coverage can be incrementally scaled up as more municipalities join the GPS-based system. This is much more difficult and expensive to implement with infrastructure-based gantries (like Highway 407).   

Fortunately, the Oregon Department of Transportation has studied and tested how GPS technology can be used to assess road usage charges since 2001. Branded as “OReGO” in 2015, the Department applies a per-mile charge (currently 1.9 cents per mile) for drivers of cars and light-duty vehicles when they volunteer to participate in the program. The state fuel tax, paid at the pump, is credited to the driver up to the cost of the road charge (fuel tax refunds are not given). The driver’s quarterly invoice is calculated by a non-governmental account manager based on private mileage data reported by the on-board device – routing data is only shared with driver authorization. Currently operating with more than 700 vehicles, OReGO earmarks its revenues for maintenance and construction of publicly owned roads and bridges.

Taking place over five years with 250-500 volunteer drivers living in urban, suburban and rural regions in or near the Greater Toronto Area, the Ontario Road Pricing Demonstration Project will be based on OReGO’s design with a few exceptions:

• Drivers will be charged 3-10 cents per kilometer travelled (based on time and location). This rate includes both provincial AND federal fuel taxes plus applicable HST.
• The invoiced amount may be simulated until at least 400 drivers are participating.
• If there are any net revenues, they may be donated to the improvement of multi-modal road projects where the project is taking place.