Minnesota User Based Fee Demonstration


Frank Douma, Jerry Zhao, Camila Fonseca, Raihana Zeerak, Adeel Lari, Lee Munnich, Meredith Benesh, Joe Loveland

December 2021

Report no. CTS 21-07

The Minnesota Department of Transportation conducted a 12-month Distance Based Fee (DBF) demonstration that utilizes existing technologies embedded within Shared Mobility (SM) fleet vehicles and connected and automated vehicles (CAVs) to automatically calculate and collect the fees. As part of the demonstration, researchers at the Humphrey School of Public Affairs discussed policy considerations and implications of DBFs on privacy, equity, and administration costs, as these are often raised as obstacles to the implementation of a DBF. Researchers also conducted financial analysis, and outreach and education efforts. Lastly, researchers conducted an evaluation of the demonstration based on the administrative and political feasibility, efficiency, adequacy, and equity of DBFs. This research identified the challenges that had to be overcome to implement DBFs and the potential to deploy this model on a broader scale.

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