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Cost Allocation Study Final Report

1997 Federal Highway Cost Allocation Study
Final Report

U.S. Department of Transportation
Federal Highway Administration

Table Of Contents

Executive Summary ES-1
   Study Objectives and Scope ES-1
   Summary of Highway Cost Allocation Study Methods ES-1
   Vehicle Travel Characteristics and Population by Different Vehicle Classes ES-2
   2000 Federal-aid Highway Program Costs ES-2
   Allocation of 2000 Federal Highway Program Costs ES-3
         Life Cycle Cost Analysis ES-5
   Estimates of 2000 Federal Highway User Revenues ES-5
   2000 Federal Highway User Charge Equity Ratios ES-6
   Highway Cost Allocation for All Levels of Government ES-8
   Other Highway-Related Costs ES-9
   Marginal Highway Costs ES-10
   Total Costs of Highways ES-10
   Potential User Fee Changes to Improve Equity ES-11
   Study Conclusions ES-13

 

I. Study Background, Objectives, Scope, and Approach I-1
   Background I-1
   What Is Highway Cost Allocation? I-1
   Recent Studies Related to Highway Cost Allocation I-3
        1982 Federal Highway Cost Allocation Study I-3
        Alternatives to Tax on Use of Heavy Trucks I-5
        Heavy Vehicle Cost Responsibility Study I-5
        Feasibility of a Federal Weight Distance Tax I-6
        Trucking Research Institute Review of Highway Cost Allocation I-7
   1997 Federal Highway Cost Allocation Study Outreach I-7
   Highway Cost Allocation Study Issues I-8
   Relationship Between the Federal Highway Cost Allocation and Comprehensive Truck Size and Weight Studies I-10
   External and Other Non-Agency Costs I-11
   Study Objectives and Scope I-13
   Summary of Study Approach and Methods I-14

 

II. Trends and Forecasts of Highway Use II-1
   Vehicle Classes II-1
   Base and Future Year Vehicle Stock II-2
   Vehicle Population By Weight Groups II-3
   Base Year and Future Year Highway Travel II-3
   Relationship Between Operating and Registered Weights II-8

 

III. Trends and Forecasts of Highway Costs III-1
   Introduction III-1
   Base Period Highway Program Costs III-3
   Federal Highway Program Costs and the Fiscal Management Information System III-3
   Obligation of Federal Funds for Highway-Related Improvements III-4
        Detailed Work Types III-6
        Life Cycle Cost Analysis III-6
        Federal Obligations for Transit III-9
   Future Federal Highway Program Costs III-9
   State and Local Highway Program Costs III-10
        Forecast of Future State and Local Highway Program Financing III-11
        Forecast of State and Local Highway Expenditures III-11
   Non-Agency Costs Associated With Highway Transportation III-12
        Air Pollution III-14
        Noise III-15
        Greenhouse Gas Emissions III-16
        Congestion III-16
        Crash Costs III-18
        Water Quality III-19
        Waste Disposal III-20
        Vibration Effects on Structures III-20
        Aesthetic Impacts of Highways III-20
        Effects of Roads as Barriers III-20
        Loss of Parklands and Natural Habitats III-20
        Environmental Impacts During Construction III-21
        More Controversial Impacts Sometimes Attributed To Highways and Highway Use III-21

   

IV. Trends and Forecasts of Highway User Revenues IV-1
   What Are Highway User Charges? IV-1
   Treatment of Fees Used for Non-Highway Purposes IV-3
   Current Federal Revenue Sources IV-4
        Motor Fuel Taxes IV-4
        Other Federal Highway Taxes IV-5
   Exemptions from the Federal Taxes IV-6
        Categories of Exempt Users IV-8
   Current and Forecast Federal Highway User Revenues IV-11
   State and Local Revenues IV-13
   Highway Finance Data Sources IV-14
   Comparison of Highway User Revenue Data IV-16
        Trends in Motor Fuel Tax Rates IV-17
        Trends in Motor Vehicle Fees for State and Local Governments IV-17
        Highway User Revenues Collected By All Levels of Government IV-18
        Revenues Per Vehicle Miles of Travel and Per Registered Vehicle IV-18
        Highway User Revenues Collected By All Levels of Government IV-19
        Comparison of User Payments by Vehicle Class for all Levels of Government IV-19
   Federal Highway Taxes Paid by Different Vehicle Classes IV-22
        Fuel Taxes IV-22
        Truck and Trailer Excise Tax IV-22
        Tire Tax IV-22
        Heavy Vehicle Use Tax IV-23

   

V. Highway Cost Responsibility V-1
   Cost Occasioned Approach V-1
        Basis and Philosophy V-1
   Federal Agency Cost Allocation V-4
   Pavement Cost Allocation Methods V-5
        New Pavement, Added Lanes V-5
        Pavement Preservation Costs V-10
   Bridge Cost Allocation Methods V-13
        New Bridges V-13
        Bridge Replacement V-15
        Major Bridge Rehabilitation V-16
        Other Bridge Improvements V-16
   System Enhancements V-17
   Uniquely Occasioned Costs V-18
   Other Highway Trust Fund Obligations V-19
   Mass Transit Account V-19
   Summary of Federal Agency Cost Allocation V-20
   Registered Weight Federal Cost Responsibilities V-21
   All Levels of Government Cost Allocation V-22
   Allocation of External and Other Social Costs of Highway Use V-23
        Noise V-23
        Congestion V-24
        Crash Costs V-25
   Responsibility for Social Costs V-27

 

VI. Equity and Efficiency of Highway User Fees VI-1
   Comparison of Federal Revenues and Occasioned Costs   VI-1
        Effects of Alternative Investment Patterns   VI-9
        Federal User Fee Options to Improve Equity   VI-11
   Comparison of Tax Structures for All Levels of Government   VI-19
   Consideration of Social Costs of Highway Use in Assessing Federal User Fee Equity and Efficiency   VI-22
   Summary   VI-30

 

VII. Study Conclusions VII-1

List Of Tables

Table ES-1.

2000 Travel and Number of Vehicles by Vehicle Class

ES-2

Table ES-2. Ratios of 2000 Federal User Charges to Allocated Costs by Vehicle Class ES-6
Table ES-3. 2000 Federal Over and Underpayments by 20 Vehicle Classes ES-7
Table ES-4. 2000 Federal Over and Underpayment by Selected Vehicles ES-8
Table ES-5. Ratios of 2000 User Fee Payments to Allocated Costs for All Levels of Government ES-9
Table ES-6. 2000 Marginal Pavement, Congestion, Crash, Air Pollution, and Noise Costs for Illustrative Vehicles Under Specific Conditions ES-11
Table ES-7. 2000 Ratios of User Changes to Allocated Costs by Vehicle Class Under Alternative Federal User Charge Structures ES-12
Table ES-8. Summary of Key Findings in the 1997 Federal HCAS ES-15
Table I-1. HCAS Vehicle Class Categories I-15
Table II-1. Number of Vehicles by Vehicle Class for 1994 and 2000 II-3
Table II-2. 1994 Number of Vehicles by Vehicle Class and Registered Weight II-5
Table II-3. 2000 Number of Vehicles by Vehicle Class and Registered Weight II-5
Table II-4. Highway Functional Classes II-6
Table II-5. 1994 VMT by Vehicle Class and Highway Functional Class II-9
Table II-6. 2000 VMT by Vehicle Class and Highway Functional Class II-10
Table II-7. 1994 VMT by Operating Weight Group II-11
Table II-8. 2000 VMT by Operating Weight Group II-12
Table II-9. 1994 VMT by Vehicle Class and Registered Weight II-13
Table II-10. 2000 VMT by Vehicle Class and Registered Weight II-14
Table II-11. Trends and Projections of VMT by Vehicle Class II-15
Table III-1. Total Federal, State, and Local Highway Expenditures--1985-1994 III-3
Table III-2. Comparison of Pre-ISTEA (1990) and ISTEA (1993-1995) Period Federal Highway Obligations by Improvement Type III-4
Table III-3. Base Period Federal Highway Program Costs by Highway Functional Class III-5
Table III-4. Base Period Obligations for Selected Work Types III-6
Table III-5. Base Period (1993-1995) Federal Highway Program Obligations by Improvement Type and Highway Functional Class III-7
Table III-6. 1994 Federal Obligations for Transit III-9
Table III-7. Estimated Distribution of Federal Highway Obligations in 2000 III-10
Table III-8. Highway Obligations or Expenditures for 1994 and 2000 for All Levels of Government III-12
Table III-9. High, Middle, and Low Assumptions Used in Estimating Noise Costs III-15
Table III-10. Noise Costs in the Year 2000 III-15
Table III-11. High, Middle, and Low Assumptions Used in Estimating Congestion Costs III-17
Table III-12. Congestion Costs in the Year 2000 III-17
Table III-13. High, Middle, and Low Assumptions Used in Estimating Crash Costs III-18
Table III-14. Crash Costs in the Year 2000 III-19
Table III-15. Estimate of Waste Disposal Costs III-20
Table IV-1. Comparison of Overall National HURs and Obligations or Expenditures for All Levels of Government for 1994 and 2000 IV-2
Table IV-2. Distribution of Federal Highway Motor Fuel Taxes IV-6
Table IV-3. Current Federal Tax Rate IV-7
Table IV-4. Estimated Value of Federal HTF Exemptions for 1994 and 2000 IV-11
Table IV-5. Federal Highway User Fee Payments by Vehicle Class -- 1994 IV-13
Table IV-6. Federal Highway User Fee Payments by Vehicle Class -- 2000 IV-14
Table IV-7. State and Local HURs for 1994 and 2000 IV-15
Table IV-8. Total 1994 HURs for All Levels of Government IV-19
Table IV-9. Total 2000 HURs for All Levels of Government IV-20
Table IV-10. 1994 HURs by Type for All Levels of Government IV-20
Table IV-11. 2000 Highway User Fee Payments by Vehicle Class for All Levels of Government IV-21
Table V-1. Major Federal Cost Categories for Cost Allocation V-5
Table V-2. 2000 Allocatable Federal Costs for New Pavement Construction V-5
Table V-3. Proportion of Federal New Pavement Costs Attributable to the Base Facility V-6
Table V-4. 2000 Federal New Pavement Cost Responsibility for Selected Vehicles V-7
Table V-5. 2000 Federal Cost Responsibility for New Pavement Improvements V-8
Table V-6. 2000 Federal Cost Responsibility for New Pavement Costs for Selected Vehicle Classes V-9
Table V-7. 2000 Allocatable Costs for Pavement Preservation V-10
Table V-8. 2000 Proportion of Federal 3R Pavement Costs Attributable to Non-Load Factors V-11
Table V-9. 2000 Federal Cost Responsibility for 3R Pavement Improvements V-12
Table V-10. 2000 Federal Cost Responsibility for Pavement 3R Costs for Selected Vehicle Classes V-12
Table V-11. 2000 Allocatable Federal Costs for Bridge Cost Allocation V-13
Table V-12. Summary of Improvements to Structures Cost Allocation Procedures V-14
Table V-13. Structures Design Increments V-15
Table V-14. 2000 Federal Bridge Costs by Vehicle Class and Improvement Type V-16
Table V-15. 2000 Federal Cost Responsibility for All Bridge Costs V-17
Table V-16. 2000 Federal Distribution of System Enhancements Costs V-18
Table V-17. 2000 Federal Cost Responsibility for Safety and TSM Improvements V-18
Table V-18. 2000 Allocation of Federal Highway Program Costs Among Broad Vehicle Classes V-20
Table V-19. 2000 Comparison of Federal Cost Responsibility on Registered Weight and Operating Weight Basis V-22
Table V-20. 2000 Federal Cost Responsibility on a Registered Weight Basis for Selected Vehicles V-23
Table V-21. 2000 Federal Cost Responsibility for All Levels of Government by Vehicle Class V-23
Table V-22. 2000 Marginal External Costs for Noise V-24
Table V-23. 2000 Marginal External Costs for Congestion V-25
Table V-24. 2000 Marginal External Costs for Crashes V-26
Table V-25. 2000 Responsibility for Social Costs of Highway Use V-27
Table V-26. 2000 Marginal Pavement, Congestion, Crash and Noise Costs for Illustrative Vehicles Under Specific Conditions V-28
Table V-27. Illustrative Marginal Congestion Costs on 4-Lane Urban Interstates V-29
Table VI-1. Base Period and Forecast Period Equity Ratios for Broad Vehicle Classes VI-2
Table VI-2. Comparison of Equity Ratios Based on Registered Weights and Operating Weights of Different Vehicle Classes VI-3
Table VI-3. 2000 Federal Equity Ratios for Single Unit Trucks Based on Registered Weights VI-4
Table VI-4. 2000 Federal Over and Underpayment by Single Unit Trucks at Different Registered Weights VI-5
Table VI-5. 2000 Federal Equity Ratios for Selected Vehicle Classes Based on Registered Weights VI-7
Table VI-6. 2000 Federal Over and Underpayment by 5- and 6-axle Combination Vehicles VI-8
Table VI-7. 2000 Federal Over and Underpayments by 20 Vehicle Classes VI-8
Table VI-8. Distribution of 2000 Federal Obligations by Improvement Category VI-9
Table VI-9. Shares of Cost Responsibility for Different Improvement Types VI-9
Table VI-10. 2000 Federal Cost Responsibility For Different Highway Cost Improvement Categories VI-10
Table VI-11. Distributions of Federal Obligations Under Alternative 2000 Investment Scenarios VI-11
Table VI-12. 2000 Federal Equity Ratios Under Alternative Investment Scenarios VI-11
Table VI-13. Current and Illustrative Federal User Fee Rates VI-12
Table VI-14. 2000 Ratios of User Charges to Allocated Costs by Vehicle Class Under Alternative Federal User Charge Structures VI-13
Table VI-15. 2000 Ratios of User Charges to Allocated Costs by Vehicle Class Under Alternative Federal User Charge Structures VI-14
Table VI-16. Illustrative Annual HVUT Rates for Scenario 4 VI-15
Table VI-17. Federal HVUT Payments by Vehicles With Different Annual Mileages VI-15
Table VI-18. Illustrative WDT Rate Structure Under Scenario 5 VI-18
Table VI-19. Illustrative Axle WDT Rates Under Scenario 6 VI-19
Table VI-20. 2000 Ratios of User Charges to Allocated Costs by Vehicle Class Under Alternative Federal User Charge Structures VI-20
Table VI-21. Ratios of 2000 User Fee Payments to Allocated Costs for All Levels of Government VI-21
Table VI-22. 2000 Comparison of Assumed Federal Share of Marginal Highway Costs to Federal Agency Costs and Federal User Fees VI-23
Table VI-23.  2000 Responsibility for Social Costs of Highway Use VI-27

List Of Figures

Figure ES-1. 2000 Distribution of Federal Highway-Related Obligations by Function ES-3
Figure ES-2. 2000 Distribution of Federal Obligations by Location and Highway Type ES-3
Figure ES-3. Distribution of 2000 Federal Program Cost Responsibility Among Vehicle Classes ES-4
Figure ES-4. 2000 Federal User Fee Distribution by Vehicle Class ES-5
Figure ES-5. Comparison of 2000 Equity Ratios for 1982 and 1997 Federal HCASs ES-7
Figure I-1. Graphical Illustration of HCAS Vehicle Classes I-16
Figure II-1. 2000 Operating Weight Distributions for Single Unit Trucks II-4
Figure II-2. 2000 Operating Weight Distributions for Selected Combination Trucks II-4
Figure II-3. 2000 Operating Weight Distributions for Selected Multi-trailer Truck Types II-4
Figure II-4. 2000 VMT Distribution by Highway Functional Class II-6
Figure II-5. Travel by Different Vehicle Classes on Different Highway Types II-7
Figure II-6. 2000 Operating Weight Distributions for Selected Truck Types II-7
Figure II-7. Comparison of Operating vs. Registered Weight for 3-axle Single Unit Trucks II-15
Figure II-8. Comparison of Operating vs. Registered Weight for 5-axle Tractor-Semitrailer II-16
Figure II-9. Comparison of Operating and Registered Weight Distributions for 8+ axle Twin-Trailer Combinations II-16
Figure II-10. Operating Weight Distributions of 3-axle Single Unit Trucks Registered at 35,000, 45,000 and 55,000 pounds II-17
Figure II-11. Operating Weight Distributions of 5-axle Tractor-Semitrailers Registered at 65,000, 80,000 and 90,000 pounds II-17
Figure II-12. Operating Weight Distributions of 8+ axle Twin-Trailer Combinations Registered at 110,000, 120,000 and 130,000 pounds II-18
Figure III-1. 1994 Source of Funds for State and Local Highway Programs III-3
Figure III-2. Distribution of ISTEA-Period Obligations III-5
Figure III-3. Distribution of Base Period Costs by Highway Class III-6
Figure III-4. LCCA Results Expressed as Cost Savings III-8
Figure III-5. Savings Due to Varying Rehabilitation Threshold III-9
Figure IV-1. 2000 Distribution of Federal Highway Revenues by Broad Vehicle Classes IV-12
Figure IV-2. 2000 Distribution of Federal Highway User Tax Categories IV-12
Figure IV-3. State Government HURs 1980-1994 IV-16
Figure IV-4. Local Government HURs 1980-1994 IV-16
Figure IV-5. Federal and State Motor Fuel Tax Rates IV-17
Figure IV-6. State and Local Motor Vehicle Fees Per Registered Vehicle 1980-1994 IV-18
Figure IV-7. Federal, State, and Local Revenues, 1980-1994 IV-18
Figure IV-8. HURs for All Levels of Government Per VMT and Per Registered Vehicle, 1980-1994 IV-19
Figure IV-9. Federal Taxes for 5-axle Tractor-Semitrailer Combination by Registered Weight IV-22
Figure V-1. 2000 New Pavement Cost Responsibility Distribution V-7
Figure V-2. 2000 New Pavement Cost Responsibility Distribution by Broad Vehicle Classes V-9
Figure V-3. 2000 Federal 3R Cost Responsibility Distribution by Broad Vehicle Classes V-13
Figure V-4. 2000 Distribution of Federal Highway Programs by Broad Vehicle Classes V-20
Figure V-5. 2000 Distribution of Federal Costs by Operating Weight for Single Unit Trucks V-21
Figure V-6. 2000 Distribution of Federal Costs by Operating Weight for Single Trailer Combinations V-21
Figure V-7. 2000 Distribution of Federal Costs by Operating Weight for Multi-Trailer Combinations V-21
Figure V-8. 2000 Distribution of Noise Costs (Middle Estimate) by Broad Vehicle Classes V-24
Figure V-9. 2000 Distribution of Congestion Costs (Middle Estimate) by Broad Vehicle Classes V-25
Figure VI-1. 2000 Federal Overpayment and Underpayment per Vehicle for Single Unit Trucks VI-5
Figure VI-2. 2000 Overpayments and Underpayments per Vehicle by Selected Combination Vehicles VI-6
Figure VI-3. 3-axle Single Unit Trucks Revenues and Cost Responsibility VI-16
Figure VI-4. 3-axle Single Unit Trucks Revenues and Cost Responsibility VI-16
Figure VI-5. 5-axle Tractor-SemiTrailer Revenues and Cost Responsibility VI-16
Figure VI-6. 5-axle Tractor-Semitrailer Revenues and Cost Responsibility VI-16
Figure VI-7. Effects of Additional 1 Cent and 6 Cent Differential -- 3-axle Single Unit Trucks VI-16
Figure VI-8. Effects of Additional 1 Cent and 6 Cent Diesel Differential -- 5-axle Tractor-Semitrailer VI-16
Figure VI-9. Effects of Two HVUT Options -- 3-axle Single Unit Trucks VI-17
Figure VI-10. Effects of Two HVUT Options -- 5-axle Tractor-Semitrailer VI-17
Figure VI-11. Effects of Two WDT Options -- 3-axle Single Unit Trucks VI-17
Figure VI-12. Effects of Two WDT Options -- 5-axle Tractor-Semitrailer VI-17
Figure VI-13. 2000 Responsibility for Various Social Costs of Highways VI-27
Figure VI-14. Highway Cost Responsibility by Vehicle Class VI-29
Figure VI-15. Comparison of 2000 User Fee and Cost Shares VI-30

List Of Acronyms

HCAS Highway Cost Allocation Study
STAA Surface Transportation Assistance Act
TS&W Truck Size and Weight
DOT Department of Transportation
3R Reconstruction, Resurfacing, and Rehabilitation
HCA Highway Cost Allocation
TRI Trucking Research Institute
ESAL Equivalent Single Axle Load
VMT Vehicle Miles Of Travel
HTF Highway Trust Fund
HVUT Heavy Vehicle Use Tax
GVW Gross Vehicle Weight
FHWA Federal Highway Administration
WDT Weight Distance Tax
IRS Internal Revenue Service
FTD Federal Tax Deposit
DRA Deficit Reduction Act of 1984
ATA American Trucking Associations
AASHTO American Association of State Highway and Transportation Officials
TRB Transportation Research Board
NHS National Highway System
ISTEA Intermodal Surface Transportation Efficiency Act of 1991
MTA Mass Transit Account
CMAQ Congestion Mitigation and Air Quality
FMIS Fiscal Management Information System
HPMS Highway Performance Monitoring System
TIUS Truck Inventory and Use Survey
C&P Conditions and Performance
NHTSA National Highway Traffic Safety Administration
LCCA Life Cycle Cost Analysis
M&R Maintenance and Rehabilitation
VOC Vehicle Operating Costs
PSI Pavement Serviceability Index
FTA Federal Transit Administration
NEPA National Environmental Policy Act
CO Carbon Monoxide
CO2 Carbon Dioxide
Nox Nitrogen Oxides
EPA Environmental Protection Agency
PCE Passenger Car Equivalent
AADT Annual Average Daily Traffic
WsDOT Washington Department of Transportation
HUR Highway User Revenue
LUST Leaking Underground Storage Tank
EPACT Energy Policy Act of 1992
CNG Compressed Natural Gas
GVW Gross Vehicle Weight
DoD Department of Defense
MPG Miles Per Gallon
HRFM Highway Revenue Forecasting Model
DOE Department of Energy
GPM Gallons Per Mile
HOV High Occupancy Vehicle
SOV Single Occupancy Vehicle
NAPCOM Nationwide Pavement Cost Model
LTPP Long Term Pavement Performance
NBI National Bridge Inventory
BNIP Bridge Needs and Investment Process
TSM Transportation Systems Management
BTS Bureau of Transportation Statistics
ITS Intelligent Transportation System
FY Fiscal Year
AUTO Automobiles and Motorcycles
LT4 Light Trucks with 2-Axles and 4 Tires (Pickup Trucks, Vans, Minivans, etc.)
SU2 Single Unit, 2-Axle, 6 Tire Trucks (Includes SU2 Pulling a Utility Trailer)
SU3 Single Unit, 3-Axle Trucks (Includes SU3 Pulling a Utility Trailer)
SU4+ Single Unit Trucks with 4- or More Axles (Includes SU4+ Pulling a Utility Trailer)
CS3 Tractor-Semitrailer Combinations with 3-Axle
CS4 Tractor-Semitrailer Combinations with 4-Axle
CS5T Tractor-Semitrailer Combinations with 5-Axles, Two Rear Tandem Axles
CS5S Tractor-Semitrailer Combinations with 5-Axles, Two Split (>8 feet) Rear Axles
CS6 Tractor-Semitrailer Combinations with 6-Axles
CS7+ Tractor-Semitrailer Combinations with 7- or more Axles
CT34 Truck-Trailers Combinations with 3- or 4-Axles
CT5 Truck-Trailers Combinations with 5-Axles
CT6+ Truck-Trailers Combinations with 6- or more Axles
DS5 Tractor-Double Semitrailer Combinations with 5-Axles
DS6 Tractor-Double Semitrailer Combinations with 6-Axles
DS7 Tractor-Double Semitrailer Combinations with 7-Axles
DS8+ Tractor-Double Semitrailer Combinations with 8- or more Axles
TRPL Tractor-Triple Semitrailer or Truck-Double Semitrailer Combinations
BUS Buses (all types)
Page last modified on November 7, 2014.
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