Demonstrating the Potential of OEM Telematics Data for Calculation of Distance-Based Fees

Summary

The Minnesota Department of Transportation (MnDOT), in partnership with the Minnesota Department of Revenue (MNDOR), seeks to build on its previous distance-based fee (DBF) demonstration. MnDOT and MNDOR, in partnership with the University of Minnesota's Hubert H. Humphrey School of Public Affairs (the Humphrey School) and Via Transportation, Inc. (Via) will assess and demonstrate the potential of using telematics data directly sourced from a leading automobile manufacturer for the purposes of computing distance-based fees. This project builds on previous research and aims to assess opportunities and challenges of the use of OEM telematics in the implementation on DBFs as a way to fund the roadway system. In addition, it aims to show its potential to reduce administrative costs and enhance equity. The Humphrey School's work will consist of outreach, policy research, financial analysis and evaluation activities.

The first outreach event was held on December 12, 2024, featuring a keynote address by Dr. Asha Agrawal from the Mineta Transportation Institute, and presentations from Utah, Hawaii, and Oregon, along with Minnesota presentations on New York's congestion pricing and Minnesota's current transportation finance. A second outreach event was held on June 4, with Mark Muriello of IBTTA as the keynote speaker, and details of the demonstration announced publicly. Proceedings of the event were completed and distributed, and a memo discussing policy issues to be addressed has been produced. As of December 31, 2025 the project consultant had been brought on board, and the team has begun work on financial analyses and evaluation.