Minnesota Distance Based User Fee Demonstration

Principal Investigator(s):

Frank Douma, Director, State & Local Policy, Humphrey School of Public Affairs

Co-Investigators:

  • Adeel Lari, Researcher, Humphrey School of Public Affairs
  • Lee Munnich, Senior Fellow (Retired), Humphrey School of Public Affairs
  • Zhirong Zhao, Former U of M Faculty, Humphrey School of Public Affairs

Project summary:

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, as well as 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.

Project details: