Creating Colorado's Emerging Mobility Impact Study
S Curve Strategies partnered with the Colorado Department of Transportation (CDOT) and HDR on an assessment of a possible fee structure for electric rideshare companies and what this would mean to the growth of this industry.
In May 2019, CDOT was directed by the State Senate to convene a group of appointed stakeholders, conduct a study, and solicit policy recommendations.
Stakeholders were charged with evaluating impacts of the emerging mobility providers and providing feedback on a range of potential fee structures on motor vehicles used for commercial purposes, as defined by SB 19-239, that could be used to encourage the use of zero emission vehicles (ZEVs) and shared rides in emerging mobility providers.
Key Findings Include
Existing Fees: Fee structures should consider all of the types of fees that emerging mobility providers are already contributing to offset their impacts to transportation infrastructure. As you will see in the full report, many of these providers pay varying levels of fees to the State and localities in Colorado.
Ease of Implementation: Generally, the Working Group concurred that a flat or percent of transaction fee would be easier for companies to implement in the near term because these types of fees are already administered by other cities, airports, and states.
Alignment with S.B. 19-239 Goals: In contrast, the Working Group generally concurred that a mileage-based fee would more readily meet the requirements of SB 19-239. However, this fee would be more difficult to implement and would require new development by the companies.
Graduated Fees: The Working Group agreed that shared and ZEV rides should be discounted; while it was generally agreed that a shared and ZEV ride should have the lowest or no fee, there was disagreement about the level of discount for a shared ICE vehicle or a single-passenger ZEV.
Flexibility: The Working Group expressed interest in flexibility in the fee structure to change over time, both to reflect policy changes as well as new business models in transportation. It was also recognized that it may make sense to implement easier approaches, such as flat fees or percentage fees, in the early days, while preserving an ability to transition to mileage-based fees as it becomes more technically feasible. This could include the creation of an Advisory Committee to continue discussion of these new technologies and their impacts on the transportation system, as well as an ability to modify the fee through an administrative process.
Data: We appreciated industry participation in this process, and their feedback was critical. However, there is a lack of data about emerging mobility providers, and without the tools to properly handle proprietary information, it was difficult to assess the true impacts of these services. Future legislation should include data collection authority by the regulatory body that will help inform the effectiveness of any fees and policies.
Colorado Pressures
Colorado’s transportation system faces growing pressure due to continued population and economic growth, and land use patterns that create large distances between jobs and housing. In August of 2018, the Colorado State Demographer’s Office reported that Colorado’s population increased by nearly 500,000 people between 2010 and 2017.
By 2040, the population is expected to be well over 7 million. Colorado also attracts a large number of visitors. The Colorado Office of Tourism reported that there were a record 85.2 million travelers to the state in 2018.
Colorado roadways are crowded and traffic congestion delay results in over $3.6 billion per year in economic impact to the state in terms of wasted fuel and wasted time, based on one approach to measuring congestion costs. Emerging technologies are placing additional demand on the transportation network. New providers, such as rideshare build on or disrupt the business models of existing services, such as taxis, car rental, and traditional freight delivery. Colorado’s Clean Air Effort
Colorado faces serious air quality issues and impacts from climate change. According to the U.S. Environmental Protection Agency, the transportation sector is one of the largest contributors to U.S. greenhouse gas emissions (a major contributor to overall air pollution).
In response to these challenges, Governor Jared Polis has laid out a number of initiatives to address pollution, air quality, and greenhouse gas emissions from the transportation sector. Lowering vehicle emissions by reducing VMT, increasing shared rides, and shifting more trips from vehicles with internal combustion engines (ICE) to ZEVs will help reduce carbon emissions.
To achieve the goal of 940,000 ZEVs in Colorado by 2030, the Polis Administration has worked with the Colorado State Legislature to move forward a number of initiatives to encourage electrification across the transportation sector.
In addition to this study, Colorado statewide efforts include:
The Air Quality Control Commission adopted the ZEV standard, providing more options for electric vehicle purchases across the State. As of August 2019, there were at least 48 ZEV models on the market. Adopting the ZEV standard will help incentivize manufacturers to make these models available at Colorado dealers.
The State awarded a $10.3 million grant to partner with a private company to build fast-charging stations across the state in accordance with the Colorado Electric Vehicle Plan. The fast-charging stations will be located along interstate, state, and U.S. highways across the state.
The Colorado Department of Health and Environment revised Colorado’s Beneficiary Mitigation Plan for the Volkswagen Diesel Emissions Settlement Funds to support greater electrification efforts, including more funding for transit fleet and medium and heavy-duty vehicle fleet electrification.
The State Legislature passed SB19-077: Public Utility Implementation of an Electric Vehicle Infrastructure Program which authorizes public utilities to provide charging stations and requires utilities to file applications to support widespread transportation electrification, and EV specific rate offerings.
The State Legislature passed HB19-1159: Modifications to the Income Tax Credits for Innovative Motor Vehicles which modifies the amounts and extends the number of years of existing state
The State Legislature passed HB19-1198: Power and Duties of the Electric Vehicle Grant Fund which provides more flexibility in how the Electric Vehicle Grant Fund is used by allowing funds for administration of charging station grants and to offset charging station operating costs.
The State Legislature passed HB19-1261: Climate Action Plan to Reduce Pollution which sets statewide goals to reduce 2025 greenhouse gas emissions by at least 26%, 2030 greenhouse gas emissions by at least 50%, and 2050 greenhouse gas emissions by at least 90% of the levels of statewide greenhouse gas emissions that existed in 2005.
The Public Utility Commission (PUC) Proceeding 18AL-0852E advocates for electricity rates that support customer investment in charging stations to help expand the development of electric vehicle charging.
Governor Polis passed Executive Order B2019-002 on January 17, 2019, which requires CDOT to develop a ZEV and “clean transportation plan” to support the widespread deployment of electric vehicles in ways that save energy, reduce congestion and improve the transportation network.