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Costs of Alternative Revenue-Generation Systems (2011)

Chapter: Chapter 3 - Revenue Enabling Technologies

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Suggested Citation:"Chapter 3 - Revenue Enabling Technologies." National Academies of Sciences, Engineering, and Medicine. 2011. Costs of Alternative Revenue-Generation Systems. Washington, DC: The National Academies Press. doi: 10.17226/14532.
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Suggested Citation:"Chapter 3 - Revenue Enabling Technologies." National Academies of Sciences, Engineering, and Medicine. 2011. Costs of Alternative Revenue-Generation Systems. Washington, DC: The National Academies Press. doi: 10.17226/14532.
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Suggested Citation:"Chapter 3 - Revenue Enabling Technologies." National Academies of Sciences, Engineering, and Medicine. 2011. Costs of Alternative Revenue-Generation Systems. Washington, DC: The National Academies Press. doi: 10.17226/14532.
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Suggested Citation:"Chapter 3 - Revenue Enabling Technologies." National Academies of Sciences, Engineering, and Medicine. 2011. Costs of Alternative Revenue-Generation Systems. Washington, DC: The National Academies Press. doi: 10.17226/14532.
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Suggested Citation:"Chapter 3 - Revenue Enabling Technologies." National Academies of Sciences, Engineering, and Medicine. 2011. Costs of Alternative Revenue-Generation Systems. Washington, DC: The National Academies Press. doi: 10.17226/14532.
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Suggested Citation:"Chapter 3 - Revenue Enabling Technologies." National Academies of Sciences, Engineering, and Medicine. 2011. Costs of Alternative Revenue-Generation Systems. Washington, DC: The National Academies Press. doi: 10.17226/14532.
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Suggested Citation:"Chapter 3 - Revenue Enabling Technologies." National Academies of Sciences, Engineering, and Medicine. 2011. Costs of Alternative Revenue-Generation Systems. Washington, DC: The National Academies Press. doi: 10.17226/14532.
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Suggested Citation:"Chapter 3 - Revenue Enabling Technologies." National Academies of Sciences, Engineering, and Medicine. 2011. Costs of Alternative Revenue-Generation Systems. Washington, DC: The National Academies Press. doi: 10.17226/14532.
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Suggested Citation:"Chapter 3 - Revenue Enabling Technologies." National Academies of Sciences, Engineering, and Medicine. 2011. Costs of Alternative Revenue-Generation Systems. Washington, DC: The National Academies Press. doi: 10.17226/14532.
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Suggested Citation:"Chapter 3 - Revenue Enabling Technologies." National Academies of Sciences, Engineering, and Medicine. 2011. Costs of Alternative Revenue-Generation Systems. Washington, DC: The National Academies Press. doi: 10.17226/14532.
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Suggested Citation:"Chapter 3 - Revenue Enabling Technologies." National Academies of Sciences, Engineering, and Medicine. 2011. Costs of Alternative Revenue-Generation Systems. Washington, DC: The National Academies Press. doi: 10.17226/14532.
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Suggested Citation:"Chapter 3 - Revenue Enabling Technologies." National Academies of Sciences, Engineering, and Medicine. 2011. Costs of Alternative Revenue-Generation Systems. Washington, DC: The National Academies Press. doi: 10.17226/14532.
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Suggested Citation:"Chapter 3 - Revenue Enabling Technologies." National Academies of Sciences, Engineering, and Medicine. 2011. Costs of Alternative Revenue-Generation Systems. Washington, DC: The National Academies Press. doi: 10.17226/14532.
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Suggested Citation:"Chapter 3 - Revenue Enabling Technologies." National Academies of Sciences, Engineering, and Medicine. 2011. Costs of Alternative Revenue-Generation Systems. Washington, DC: The National Academies Press. doi: 10.17226/14532.
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Suggested Citation:"Chapter 3 - Revenue Enabling Technologies." National Academies of Sciences, Engineering, and Medicine. 2011. Costs of Alternative Revenue-Generation Systems. Washington, DC: The National Academies Press. doi: 10.17226/14532.
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Suggested Citation:"Chapter 3 - Revenue Enabling Technologies." National Academies of Sciences, Engineering, and Medicine. 2011. Costs of Alternative Revenue-Generation Systems. Washington, DC: The National Academies Press. doi: 10.17226/14532.
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Suggested Citation:"Chapter 3 - Revenue Enabling Technologies." National Academies of Sciences, Engineering, and Medicine. 2011. Costs of Alternative Revenue-Generation Systems. Washington, DC: The National Academies Press. doi: 10.17226/14532.
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44 This chapter examines several technologies that have the potential to enable the revenue-generation systems presented in Chapter 2. The selected technologies include the IntelliDrive system (IntelliDrive is a registered service mark of the U.S. Department of Transportation), satellite-based and cellular- based fleet management systems, commercial vehicle informa- tion systems and networks, and electric cars/smart charging software. The status of these systems varies. Some of them are still in the development and testing stage, such as IntelliDrive technology and electric cars, while others have been deployed or tested for trucks only, such as FMS and CVISN. For each system, the chapter discusses its objective; system specifications; technology components used; and current status in terms of research, testing, and deployment. Table 16 summa- rizes and highlights the potential and obstacles faced by each system examined. 3.1 IntelliDrive Technology This section presents an overview of an emerging system, the IntelliDrive system, which could add communication capability to every vehicle on the road. If implemented, vehi- cles traveling on the road will be able to send and receive electronic information to other vehicles, roadside infrastruc- ture, and traffic control centers. IntelliDrive technology will not only be able to track where vehicles are but could also automatically charge and collect tolls from all types of vehi- cles. Although the system seems to have promising potential for collecting and generating revenue, the system itself is at the proof-of-concept and testing stage, and a full deployment is still several years away. 3.1.1 Background of IntelliDrive System In November 2003, the U.S. DOT announced an initiative called Vehicle Infrastructure Integration (VII). VII has since been renamed the IntelliDrive system. Its objectives are three-fold: • Safety: Enable vehicles with 360-degree awareness and eventually lead to reduced vehicle crashes, • Mobility: Provide real-time multi-modal information to travelers and transportation managers, and • Environment: Reduce environmental impacts by helping travelers select alternative routes to avoid congestion and make their trips more fuel-efficient and eco-friendly. The IntelliDrive initiative was envisioned to encompass a broader suite of potential technologies and capabilities. Since 2003, its design has been modified to cover a wider scope than originally designed. For example, as shown in Table 17, Intel- liDrive technologies are now planned to cover all vehicle types instead of focusing only on light vehicles. Communication technology options other than exclusive use of dedicated short- range communication (DSRC) will also be considered. Essentially, a fully deployable IntelliDrive system would use wireless communications to provide connectivity: • Within and among vehicles; • Between vehicles and the roadway infrastructure; and • Among vehicles, infrastructure, and wireless devices (con- sumer electronics, such as cell phones and PDAs) that are carried by drivers, pedestrians, and bicyclists. 3.1.2 IntelliDrive Preliminary Proof of Concept IntelliDrive is a relatively complicated system consisting of many components. According to a report prepared by the U.S. DOT Research and Innovative Technology Administra- tion (2009), aspects of one of the test sites, the Michigan test bed located in Oakland County, Michigan (near the cities of Novi, Farmington, Farmington Hills, and Livonia), include the following: • Covers 45 square miles, • Covers 75 highway and arterial center lane-miles of roadway, • Includes 55 DSRC roadside equipment (RSE) units, C H A P T E R 3 Revenue Enabling Technologies

45 • Uses the Michigan Service Delivery Node (MI SDN), and • Uses the Michigan Network Access Point (MI NAP). Figure 16 shows an architectural overview of the Michigan test bed. The Enterprise Network Operation Center (ENOC), located in Virginia, is used to monitor the performance of the Michigan test bed. Figure 17 demonstrates the locations of the RSE on the tested Michigan roads. This system has also been tested in California. 3.1.3 Technology Components of the System Within the IntelliDrive system there is a subsystem de- signed specifically for tolling and electronic payment. Key System Potential Obstacles IntelliDrive system Adds two-way communication capabilities to vehicles and links them with transportation infrastructure Has a tolling and electronic payment subsystem Uses dedicated short-range communication (DSRC) and GPS Still in the testing stage Several years away from broad deployment FMS Capable of tracking vehicles Uses satellite- and/or cellular-based technologies Needs to be tested on a large number and variety of vehicles May need to merge satellite- based and cellular-based communication technologies CVISN Successfully deployed in more than 20 states Cost-effective design by linking together the existing states’ information systems Lacks ability to track VMT and protect privacy Lack of alternative revenue- generation systems at the state level Electric cars and smart charging software Zero emissions from tailpipe Alternative fuels Application of smart charging software to manage the supply and demand of the electric grid Uncertainty of battery charging/switching Costs of batteries Uncertainty regarding the collection and distribution of utility taxes Table 16. Characteristics of the potential alternative revenue-generation systems. Previously Considered Changed To Unchanged DSRC only Technology options Connectivity for V2V and V2I(*) Original equipment manufacturer (OEM) production units only Aftermarket and retrofit considered National level interoperability – Open standards for communications and data Light vehicle focus All vehicle types DSRC for safety Prototyping/proof of concept Focus toward deployment Safety, mobility, and convenience applications Limited stakeholders Broader stakeholder engagement Must not compromise on safety or security Limited visibility by outsiders Greater program transparency Must protect privacy U.S. focus International harmonization Continued close collaboration among U.S. DOT, AASHTO/local agencies, and vehicle manufacturers Loosely coupled programs Strong, collective U.S. DOT support, coordination, and leadership (*) V2V and V2I denote vehicle-to-vehicle and vehicle-to-infrastructure communication. Source: Schagrin, 2009 Table 17. Changes to IntelliDrive, 2003 to 2009.

46 Source: U.S. DOT Research and Innovative Technology Administration, 2009 Figure 16. Architectural overview of the Michigan test bed. Source: Schagrin, 2009 Figure 17. Michigan development test environment.

technological components of the tolling subsystem include onboard equipment (OBE), human–machine interface (HMI) manager, and antennas. The components are designed with the following capabilities: • The OBE is a self-contained and independent computing system with its own hardware, software applications, and external parts. The OBE’s central processing unit is designed on an Intel-processor–based computer using a Linux oper- ating system with capabilities of communicating with net- work and RSE, and managing tolling and payments. Figure 18 shows the OBE with and without cables. Figure 19 shows the mounted OBE in a vehicle. • The HMI is an interface between the OBE and humans. The HMI is capable of providing visual and audio messages. Figure 20 displays a tolling-related message. In addition, the HMI is capable of providing information related to signs, navigation, gas, and parking. • Antenna for DSRC/GPS: The OBE has two types of antennae to meet the requirements of DSRC and GPS since they use different parts of the radio spectrum. DSRC requires good coverage in all azimuth directions, while GPS requires good coverage both in the vertical and azimuth directions for receiving signals from space. Also, the GPS antenna needs low-noise amplifiers to reduce noise in GPS signals received. Figure 21 shows an antenna with dual capabilities for DSRC/ GPS, mounted on the rear roof of a van. • The RSE is a self-contained unit installed in a location for sending and receiving signals between vehicles and the net- work. The RSE is capable of announcing the services offered 47 Source: The VII Consortium, 2009 Figure 18. OBE with other external parts (left) and cables (right). Source: The VII Consortium, 2009 Figure 19. The mounted OBE. Source: The VII Consortium, 2009 Figure 20. Display of a tolling-related message.

in the area where it is located. The RSE also has GPS for self- positioning and making corrections to vehicle positions. Figure 22 shows a mounted RSE. Two other important elements of IntelliDrive technology include • Service delivery node (SDN): The SDN contains the core service infrastructure of the IntelliDrive system, includ- ing servers, databases, and software systems. The Intelli- Drive system may have multiple SDNs that form the network. MI NAP includes a server with low layer switches, routers, and security equipment. • IntelliDrive system operators use the ENOC to control and manage the network. Privacy protection is one potential factor that could affect the design of IntelliDrive technology. To protect privacy, Intelli- Drive technology: • Cannot track an individual vehicle over any road segment longer than 2 km, • Cannot identify any individual vehicle as violating a traffic law through publicly collected data, and • Cannot identify a vehicle or a vehicle occupant or owner from messages sent to or through the infrastructure. 3.1.4 Tested Functionalities of the System The VII Consortium, which is organized by auto manufac- turing companies, has conducted tests in garages and labs, on tracks, and in the development test environment (DTE) for core functionalities of the IntelliDrive system. Specific tests conducted include • Garage/lab tests – System services: OBE operation, DSRC communica- tion, vehicle interface, vehicle interface, security, and networking. • Track tests – System services: DSRC communication, security, posi- tioning, and networking. 48 Source: The VII Consortium, 2009 Figure 21. Dual DSRC/GPS antenna (left) mounted on a vehicle (right). Source: The VII Consortium, 2009 Figure 22. Typical RSE installation.

– Application: Probe data, in-vehicle signage, and heart- beat. (Heartbeat sends and receives messages regarding speed and position of vehicles every 100 ms.) • DTE tests – System services: Networking, urban canyon communica- tion, and hilly terrain communication. – Application: Off-board navigation, in-vehicle signage, trip-path, payment parking, payment toll, heartbeat, and probe data. The tests for the electronic tolls were performed at two sep- arate locations, one at the Michigan test bed and another at the Dumbarton Bridge on California Highway 84. At the Michigan testing site, 10 tolling zones were set up. During the tests, vehicles had to pass the tolling zones at least once. Nine tests were conducted, all of which were successful. Figure 23 shows the tolling zones and cumulative vehicle passes (with red- colored lines). At the California testing site, seven test runs passed through the bridge. For the first two runs, vehicles passed through the tolling plaza at a relatively low speed, while for the other test runs they passed the bridge at a speed of 40 to 60 mph. All but one of the test runs were successful. The metal structure of the tolling gantry was speculated to be the cause of the failure of the lone unsuccessful run. During the test runs, DSRC radio links were lost when vehicles passed beneath the gantry. Figure 24 49 Figure 23. Tolling zones at the Michigan test bed (left) and cumulative vehicle passes (right). Balloons with different colors indicate the stage of each test. For example, the “Collect 7” balloon indicates that Test #7 was in the collection stage, while the “Invoice 7” balloon indicates that an invoice was issued to Test #7. Figure 24. Tolling test runs at the Dumbarton Bridge in California.

shows successful and unsuccessful tolling tests at the Dum- barton Bridge. 3.1.5 The Current Status of the System As of October 2010, the status of IntelliDrive was as follows: • Completed a major proof-of-concept test program • Updating the concepts of operations, system requirements, and system architecture – Expanding program strategy to consider retrofit and carry-in devices – Expanding program scope to include communications options beyond just DSRC • Opening up the Michigan test site for industry use • Defining and executing the remaining research necessary to get to deployment – Includes regulatory decision points in 2013. Funding for the IntelliDrive initiative was shared between U.S. DOT and the VII Consortium, with the U.S. DOT provid- ing the majority share. 3.2 Fleet Management Systems An FMS is a system that keeps track of a vehicle’s location as well as its travel path, speed, fuel consumption, and idling time. FMSs have been used to monitor companies’ vehicle fleets when providing services to internal or external customers. The industries and government agencies that have used FMSs include the oil and gas industry, the military, the construction and mining industry, and the logistics industry. Technologies implemented in the name of fleet management have progressed over time. Within the last 30 years, a range of technologies has been implemented, from mobile radio, to ana- log, to paging networks, and, most recently, to satellite-based or terrestrial-based (i.e., cellular-based) mobile communica- tions tracking systems. As shown in Figure 25, FMSs use either a satellite-based communications network or a set of cellu- lar towers to track the movement of vehicles. This section pres- ents examples of FMS based on two different communication methods. 3.2.1 Objectives and Benefits of Fleet Management Systems The primary objectives of an FMS are to improve the man- agement of vehicle fleets and to reduce their operating costs. The potential benefits FMSs may bring to operational manage- ment include • Safety: By tracking vehicles in something close to real-time, businesses and government agencies have the potential to reduce liability caused by safety-related issues. • Operations: By monitoring vehicles’ idle time, businesses and government agencies are able to improve vehicle oper- ational efficiency and reduce related operating costs. • Drivers’ behavior: By monitoring vehicles’ movements, businesses and government agencies are able to reduce fuel consumption, detect unauthorized uses of vehicles, and bet- 50 Adapted from Fleet Management Solutions, http://www.fmsgps.com/frontend/overview.aspx Figure 25. Components of fleet management systems.

ter manage both drivers’ working behaviors and their orga- nization’s use of vehicles. 3.2.2 Satellite-Based Fleet Management: Expanded Satellite-Based Mobile Communications Tracking System One of the communication methods implemented in an FMS is a satellite-based communications network. The satellite-based mobile communications system has been deployed to monitor and track hazmat, high-value cargo, and freight transportation. The system is effective in the areas not covered by cellular towers. It is particularly valuable for locat- ing vehicles. The system also provides two-way communica- tions between truck drivers and communication centers at regular time intervals. This information can be shared with carrier-authorized third parties such as public agencies. As an example, this section presents an expanded satellite- based mobile communications tracking system tested by the U.S. DOT in Alaska and Hawaii (U.S. DOT, 2006, 2007). Because of special geographic characteristics in those two states, especially Alaska, communication equipment, such as antennae, has to be specially adjusted to ensure coverage and quality of signals. Capabilities and Technology Components of the Satellite-Based System The wireless satellite-based mobile communications track- ing system tested by the U.S. DOT in Alaska and Hawaii has the following capabilities: • Directs two-way data communication between the driver and the carrier with a driver interface unit for two-way text communications, • Tracks the position of the tractor with the time and date of the transmitted message, • Tracks tethered trailers, and • Provides for panic/emergency alerts. The technology components of the tested satellite-based communication system include satellites, in-vehicle commu- nication units, antennae installed on trucks, tethered trailer tracking units installed on trailers, two panic buttons (one installed in the truck and another remote button), a network management center, and customer application software. Spe- cific features of each technology component are as follows: • Satellite selected: A geosynchronous earth orbit (GEO) satellite, Galaxy 10R, located at 123W with Ku-band, was selected for the test. The satellite was served by Pan AmSat. [The costs for lower earth orbit (LEO) satellites were prohibitively high because of low traffic demand in the tests.] • In-vehicle communication unit and antenna: A satellite- based mobile communications terminal (SMCT) installed in a truck cab and a dome-shaped antenna GPS receiver mounted on the roof of a tractor (see Figure 26). Messages and position information, including latitude, longitude, and time, are transmitted through the over the air (OTA) messaging protocols. • Tethered trailer tracking unit: To track trailers and to record time and location of trailer/tractor connections/ disconnections (see Figure 27). • Panic buttons: One installed in the cab and another wire- less unit (See Figure 28). • Network management center (NMC): NMCs may be located in different parts of the country. For instance, an NMC was located in San Diego, California, and a back-up NMC was 51 Source: U.S. DOT, 2007 Figure 26. In-vehicle communication unit and antenna for satellite-based systems.

located in Las Vegas, Nevada, for the U.S. DOT’s tests in Alaska and Hawaii. The NMC is responsible for receiving and sending messages to drivers relayed through satellites on a 24-hour-a-day, 7-day-a-week basis. • Internet communication: The communication between the customer fleet management center and the NMC is conducted using the Internet. Tested Functionalities of the System • Three technologies were tested: satellite-based mobile com- munications, panic buttons, and tethered trailer tracking. Test results indicated that – Satellite-based mobile communications improved two- way communication  Drivers can request assistance, convey information, and report delivery status and  Dispatchers can respond to drivers’ requests, manage fleet movements, assign routes, and provide informa- tion back to customers. – The panic button improved emergency responses between drivers and dispatchers. – Tethered trailer tracking provided trailer status, con- nected or disconnected, to a trailer. • Recording time: Trucks’ locations were recorded every 15 min. The system would wake up, record its position, and take a reading to determine whether PamAmSat satel- lite coverage was available at that location. At hourly inter- vals, the first three position reports were archived and then sent with the fourth report at the end of the hour, along with other messages. • Information recorded: In addition to the location of trucks, the status of satellite communication was also recorded to indicate whether the truck was in or out of coverage. • Storage of records: All data went through the NMC in San Diego, CA. • Out-of-coverage (OOC): For Alaska, 16% of the responses were outside of the coverage area, and the total miles recorded were 2,219. For Hawaii, OOC responses were 1% of the total responses, and the total number of miles recorded was 493. Special Technical Requirements of the System • Optimizing the mobile unit antenna for coverage in Alaska to maximize the signal strength throughout Alaska and to prevent signal drop-outs if vehicles were in mountain areas. • Using a higher-powered 2W transceiver: A higher-powered 2W transceiver was used to ensure more reliable communi- 52 Source: U.S. DOT, 2007 Figure 27. Trailer tracking unit. Source: U.S. DOT, 2007 Panic Button mounted on tractor’s dashboard Figure 28. Panic buttons.

cations than with the 1W transceiver typically used in the continental United States. • Signal pass/fail criteria: Eb/N0, energy per bit per noise power spectral density, was used. • Maintenance and operations: Since all equipment was new and the test lasted just 3 months, hardware issues were min- imal. Exceptions were a panic button malfunction and a faulty cable that caused the panic button to stick and the keyboard to lock up. The Current Status of the System The U.S. DOT conducted a 90-day pilot test of this system in monitoring hazmat and high-value cargo shipments in Alaska and Hawaii from November 2005 through January 2006. The system was installed on 100 tractors and 20 trailers in Alaska and five trucks in Hawaii. Some key test results were as follows: • Improved communication coverage: During the pilot test, coverage extended beyond the major metropolitan areas. • OOC reports: OOC occurred more in Alaska than in Hawaii because of the mountains. Also, the line of sight between the transceiver on the tractor and the satellite was interrupted because of buildings, overhead loading and unloading facil- ities, and urban canyons in downtown areas. • Benefits experienced: Visibility of the status of the carriers’ fleet was increased. Prior to installing this new system, Alaska drivers depended on relaying messages from one truck to another along the route, while Hawaii drivers depended on cell phones and e-mails to communicate with dispatchers. Though the coverage of the test for Alaska was not 100%, it clearly enhanced the communication between dispatchers and drivers. Funding Sources and Feasibility The U.S. Senate approved $2 million for the Federal Motor Carrier Safety Administration (FMCSA) to conduct the pilot tests of the expanded satellite-based mobile communications tracking system. 3.2.3 Cellular Technology-Based Fleet Management System In addition to satellite-based systems, FMSs can also rely on cellular-based communication technology to monitor and track vehicles. The basic design for the cellular-based FMS relies on cellular towers to conduct two-way communications. Each vehicle needs three technology components: (i) a modem; (ii) an antenna; and (iii) power cables (see Figure 29). The modem and antenna enable reception of signals from a GPS satellite as well as the reception/transmission of signals to cellu- lar towers. As shown in Figure 30, the FMS’s signals are received by cellular towers, which pass the signals on to communication control centers. From there, users of FMS services are able to browse the signals via the Internet. The benefits of a cellular-based FMS are two-fold. First, it uses cellular technology, which continues to improve rap- idly. Some companies such as InstaMapper (see http://www. instamapper.com) already offer free tracking software that some cell phone users can download from the web. Second, because it makes use of the cellular technology already used by consumers, costs of using FMSs are likely to fall more quickly than a system founded on satellite-based technology. To date, cellular-based FMSs have been implemented on just a limited number of vehicles. As a result, the ability of the system to handle large volumes of signals has not been tested. Hence, to truly analyze the feasibility of this approach for rev- enue generation and collection, tests should be performed to ensure that the system is capable of handling probable future signal volumes. 3.3 Commercial Vehicle Information Systems and Networks The commercial vehicle information systems and networks program is designed to assist states in improving motor carrier safety and security, improving efficiency and freight mobility, and simplifying operations. CVISN provides access to safety and credentials information, state-to-state fee processes, and weight and size monitoring. 3.3.1 Objectives of CVISN The primary objective of the CVISN program is to develop and deploy information systems that will support new capabil- ities in three areas that are core to CVISN: • Safety information exchange: Provide carrier, vehicle, and driver safety information to roadside enforcement personnel 53 Figure 29. Technology components in a cellular- based FMS.

and other authorized users. Data include inspection reports and snapshots. • Credentials administration: Provide electronic application, processing, fee collection, issuance, and distribution of (at least) International Registration Plan (IRP) and IFTA cre- dentials; support base state agreements; and electronic IFTA tax filing. State shares information via clearinghouses and snapshots. • Electronic screening: Automatically screen vehicles that approach a roadside check station, determine whether fur- ther inspection or verification of credentials is required, and take appropriate actions. Currently, this screening relies pre- dominantly on enrolled, in-vehicle DSRC transponders. After implementing the core CVISN elements, states may choose to expand participation and deploy the expanded CVISN components, which continue to enhance the safety, security, and productivity of commercial vehicle operations (CVO). The expanded CVISN is designed to achieve the following: • Driver information sharing, • Enhanced safety information sharing, • Expanded e-credentialing, and • One-stop shops and electronic portals. A web portal or one- stop shop with a single sign-on access to all users can pro- vide a way for a state to give a consistent look and feel across multiple applications for back-office users, enforcement, and motor carriers. The long-term vision set by U.S. DOT is to create a paperless CVISN. Specifically, beyond the current core and expanded programs, the future CVISN will include other services and technologies that may hold potential for supporting revenue- generation systems. Some of the services and technologies may include • Extension to integrate other CVO user services such as onboard safety monitoring, automated inspections, haz- mat incident management, freight and fleet management, and intermodal freight functions; • Closer integration with other ITS services for traffic man- agement, traveler information, and incident response; and • The use of DSRC at the 5.9-MHz frequency band, other means of RFID, and optical technologies (e.g., license plate readers) to identify vehicles. To achieve the vision of a paperless vehicle, it is expected that vehicles produced in the future would have a set of advanced technology equipment such as mobile communications sys- tems, navigation and tracking systems, onboard vehicle mon- itors, and electronic onboard recorders. Figure 30 illustrates the vision for CVISN in the long term. 3.3.2 Specifications of CVISN Instead of building an information system for CVISN from scratch, the FMCSA has adopted a strategy of building a com- mon interface to link together the existing databases and infor- 54 Source: U.S. DOT, FMCSA, 2008 Figure 30. Vision: safe and efficient shipping operations.

mation systems that states have developed and implemented across the United States. To integrate the existing state systems, FMCSA has applied open architecture and standards as well as a common technical framework for development and deploy- ment of CVISN. The characteristics of the open architecture and the common technical framework are as follows: • Open architecture and standards: CVISN uses this approach so that the systems developed by individual states can be linked together and communicate to each other. • Common technical framework: CVISN provides a com- mon technological framework and a basis for developing interface standards. Examples of key features of the CVISN architecture include – States’ choices: The CVISN architecture does not specify a particular design for states or carriers, which are free to make their own design(s) to meet their needs. – Interoperability and compatibility: Systems and compo- nents deployed by different organizations (or by the same organization) work together to accomplish shared functions. 3.3.3 Technology Components of the System To conduct roadside electronic screening (or e-screening) of trucks, CVISN requires the following specific technological components: • DSRC transponder: A transponder is mounted on the wind- shield and has red/green indicators. Because each transpon- der is enrolled (registered) and installed on a specific vehi- cle, a direct link between the transponder ID and the vehicle identification number (VIN) is established. • License-plate readers and U.S. DOT number readers: For those trucks without a transponder, license-plate readers and number readers will be implemented. For the basic CVISN, it is an optional technical component but is required in the expanded CVISN. The quality of reading is 40% to 65%, depending on lighting, reflectivity, con- trast, and other factors. • Weigh-in-motion (WIM) scales. • Roadside readers: To obtain VIN from the transponder. • Roadside operations computer (ROC) in the weigh station. Figure 31 shows electronic screening equipment needed for roadside inspection. Figure 32 demonstrates an operational scheme for CVISN that shows how roadside screening equip- ment and fixed and mobile verification sites work together to ensure the safety of freight transportation. 3.3.4 The Current Status of the CVISN As of February 2010, the deployment status of CVISN was as follows: • Expanded CVISN: 23 states have completed the deployment of the core CVISN and are deploying the expanded CVISN; • Core CVISN: 23 states plus Washington, D.C., have deployed only the core CVISN; and • Planning and design for the core CVISN: four states are at this stage. 55 Source: U.S. DOT, FMCSA, 2008 Figure 31. Example of electronic screening equipment.

The deployment of CVISN across the United States indicates wide acceptance of the program among states. The CVISN program is a part of the national ITS architecture, which was defined and baselined in 1996. Funding Sources There are two funding sources for supporting the imple- mentation of CVISN: • SAFETEA-LU: A highway reauthorization act enacted in 2005 that has authorized $100 million in federal deployment funds to support states’ implementation of the core and expanded CVISN functionality. • State funding: States must match the federal funding. 3.4 Electric Cars and Smart Charging Software Electric cars were popular in the late 19th century and early 20th century before internal combustion engines began to dominate the U.S. automotive market in the 1920s. Electric cars were outmoded in the 1930s as vast reserves of crude oil were discovered at the same time as mass production tech- niques reduced the costs of gasoline-fueled cars, which had the added advantage of being rapidly refueled. High oil prices and concerns about the effect of hydrocar- bon emissions on climate change have led to somewhat of a comeback for electric vehicles. Hybrid cars such as the Toyota Prius and the Chevrolet Volt, a plug-in hybrid electric vehicle, have gained increasing acceptance in the United States. The Nissan LEAF, a five-door family hatchback that was intro- duced in August 2009, will be the first mass-produced, all- electric, zero emission vehicle made available commercially in over a century. Nissan launched the LEAF in the United States in 2010, and U.S. production will begin in Smyrna, Tennessee, in 2012. The increasing interest in electric cars in the United States has several implications for transportation infrastructure as well as for the nature of the way revenues and user fees would have to be generated to pay for the use of roadways. First, new infrastructure will be required to accommodate the charging and recharging of electric cars. Second, electric cars would render motor fuel taxes obsolete. Thus, as the share of electric car registrations rises in the United States, tax coffers for fuel taxes will likely experience severe declines, requiring policy makers to seek new revenue sources for building and repair- ing roads. Over time, revenues from utility taxes will rise due to the burgeoning amount of electricity consumed by vehicles. This then begs the question of how either to find an alter- native revenue-generation system unrelated to energy con- sumption or to distribute utility tax revenues generated from the recharging of electric cars to transportation-related investment. The remainder of this section of the report defines the technological components and infrastructure 56 Source: U.S. DOT, FMCSA, 2008 Figure 32. Components of CVISN’s electronic screening system.

required for EVs and considers the potential for using smart charging software to upload vehicle information and assign user fees. 3.4.1 Objectives of Using Electric Cars Two objectives of using electric cars are (i) reducing emis- sions from gasoline cars and improving the environment, and (ii) reducing global dependence on petroleum. A study on greenhouse gas (GHG) emission released by Pew Center (Greene and Schafer, 2003) indicates that transportation is the second largest source for GHG emissions both in terms of the volume and rate of growth. By 2020, the transportation sector alone will be responsible for 36% of total CO2 emissions. The second objective has implications for U.S. national defense interests and economic independence. 3.4.2 Technology Components Related to Electric Cars Key technical issues for electric cars are charging, recharg- ing, and replacing batteries. To gain public acceptance and support, the charging or replacing of batteries in electric cars requires infrastructure for charging a car, preferably taking little more time than is required to refuel a gasoline-powered car. Technological components related to charging electric cars are batteries, a charge station, a switching station, and the electric car itself. Below is the description of each techni- cal component: • Battery: Several different types of batteries have been used in electric cars, such as – Lithium-ion batteries, which provide 200 to 300 miles per charge. – Lead-acid batteries, which provide up to 80 miles per charge. – Nickel-metal hydride (NiMH) batteries, which have higher energy density and may offer 120 miles per charge. • Charge station (or charge at home): Charging batteries is one of the most challenging technical requirements of elec- tric cars. – Charge station: Charge stations can be classified into levels based on voltage supply such as those shown in Table 18. The amount of charging time is closely asso- ciated with the voltage of the available electricity sup- ply. Figures 33 and 34 show two examples of designs for charging electric cars. The charging post shown in Figure 33 is designed by Electric Transportation Engi- neering Corp. (eTec) for charging the Nissan LEAF, while Figure 34 demonstrates the design by Better Place, Inc. The eTec company plans to install more than 10,000 Level 2 charge stations in five states: Arizona, California, Oregon, Tennessee, and Washington. – Charge at home: A typical household in the United States has electric outlets of 1.5 kW (with 110 volt supply). Those in other countries may have outlets of 3 kW (with 220/ 240 volt supply). Charge times are reduced when higher power levels of electricity are available. However, it is likely that nearly all homes will require special wiring to receive the higher power levels needed for quick recharge of electric cars. • Switching station: Instead of charging batteries, an alterna- tive design is to switch or exchange depleted batteries. Bat- teries can be bought, leased, or replaced under a subscribed contract. • Cars: Electric cars such as the LEAF, plug-in hybrid electric vehicle (PHEVs), or hybrid cars could be designed to work with charging and switching stations. 3.4.3 Electric Vehicle Implications for Revenue Collection To the extent that electric vehicles are embraced by con- sumers, they could lead a revolution not only in how vehi- cles are powered but also in the way that highways are funded. When vehicle charging profiles are matched with periods of low demand, the existing grid could support a large transi- tion towards plug-in vehicles. In fact, the results of a study recently conducted by the Pacific Northwest National Labo- ratory (PNNL) suggest that existing electricity generation and transmission infrastructure has the technical capacity to 57 Le ve l of Charger Charge Time forElectric Cars Charge Time for Plug-in Hy brid Electric Cars Level 1 (110V) 8 to14 hours 4 to 8 hours Level 2 (220–240V) 4 to 8 hours 2 to 4 hours Level 3 (480V )(*) 15 minutes 15 minutes (*) Level 3 uses a mint-charge technology. Source: Electric Transportation Engineering Corp. Table 18. Levels of chargers and charge time needed for electric cars.

supply power to up to 73% of the light-duty vehicle fleet (Kintner-Meyer, Schneider, and Pratt, 2007). An important feature of EVs for revenue generation and col- lection is that at some point they must be connected to the grid, or docked, in order to replenish stored energy. The coming vehicle-to-grid communications software could be used to: (i) adjust the timing and pace of charging to meet the needs of the customer while minimizing the demand placed on the grid; (ii) upload real-time performance data and vehicle infor- mation such as the car battery’s size, current state of charge, elapsed time since the last charge, and VMT; and (iii) enable EVs to charge during periods of low-demand and return stored energy back to the grid during peak periods. The 2nd feature highlighted above could be used to implement a VMT fee or a utility-based tax. There are several pilot tests being deployed across the United States that are being used to examine various charg- ing management strategies. For example: • The Idaho National Laboratory is leading a field test of 57 PHEVs with real-time data captured from vehicles in Washington, Oregon, California, and Hawaii; • Seattle City Light is operating a field test on 13 Toyota Priuses to investigate the impact of a PHEV fleet deployed in an urban environment; and • Duke Energy, Progress Energy, and Advanced Energy are leading a field test involving the smart charging of 12 Toyota Priuses to examine the requirements of supporting vehicles as they roam between service areas (V2 Green, 2010). 3.4.4 Regional Influences on Electric Vehicle Market Penetration In 2008, the five states with the greatest percentage of EVs operating on-road were California (53.1%), New York (14.2%), Arizona (6.7%), Massachusetts (4.4%), and Michi- gan (3.4%). The percentage of EVs in use in California reflects the state’s commitment to improving air quality through the adoption of a number of standards and programs (e.g., the Zero Emission Vehicle Program) designed to reduce vehicle emissions. Regional differences in market penetration depend largely on state policies that affect the cost to own and operate EVs. Figure 35 presents a map of state incentives either proposed or in place. As shown, incentives are either planned or provided throughout the western United States and Northeast. For example, Arizona lowers licensing fees for EVs, and California offers rebates of up to $5,000 for battery electric vehicles (BEVs), $3,000 for PHEVs, and $1,500 for electric motorcycles. Oregon recently put $5,000 tax credits in place to offset con- version or purchase costs for PHEVs, and allows $1,500 tax 58 Source: http://www.betterplace.com/images/photos/IMG_3220-N.JPG (left) and http://www.betterplace.com/images/photos/IMG_5317-N.JPG (right) Figure 34. Charging electric car—designed by Better Place. Source: http://www.etecevs.com/PHEV-activities/EcotalityEVbro093009s.pdf Figure 33. Demonstrative design by eTec for charg- ing the Nissan LEAF.

credits for BEVs. These incentives are in addition to federal tax credits of $2,500 to $7,500 for EVs and PHEVs, depend- ing on battery size. The market success of EVs and PHEVs is also influenced by regional differences in the prices of electricity and motor fuel. As retail prices for electricity increase relative to the price of gasoline, demand for EVs and PHEVs would be expected to decline. 3.4.5 The Current Status of the System Based on U.S. DOE Energy Information Administration (EIA) data, the number of EVs operating on-road reached 26,823 in 2008, representing roughly 0.01% of all light-duty vehicles in use. EV sales were small in 2008, representing less than one-tenth of 1% of the light-duty-vehicle market share (U.S. DOE, 2010a). Customer acceptance of the EV will be put to the test in 2011 with the newly introduced Nissan LEAF and its 100-mile all-electric range. The Nissan LEAF has an MSRP of as low as $32,780, or $25,280 after all federal tax credits. Tesla offers a premium sports car version of the EV called the Roadster, which is commercially available at an MSRP of as low as $109,000, or $101,500 after federal tax credits. The number of light-duty EVs in use is forecast to decline in future years to 4,177 by 2030; the projected decline in EVs in use does not reflect a trend away from alternative vehicle technologies but rather a transition towards more competition among alternative technologies, some of which have not yet entered the marketplace. The U.S. DOE forecast presented in the 2010 Annual Energy Outlook (AEO) is conservative (e.g., limited technology gains, moderate oil prices, conservative assumptions regard- ing tax credits for consumers who purchase electric vehicles) compared to a small number of recent forecasts prepared by industry. While some forecasts estimate ultimate hybrid electric and EV penetration of the light-duty vehicle market in the 8% to 16% range (Greene, Duleep, and McManus, 2004), a study prepared by Becker and Sidhu of the Univer- sity of California, Berkeley’s Center for Entrepreneurship and Technology (2009) estimates market penetration rates for the EV with switchable batteries of 64% to 85% by 2030. The low-end estimate relies on oil price data presented in the EIA AEO’s reference case, while higher-end estimates use the EIA high oil price case and assume operator subsidies in the form of tax credits. 3.4.6 Funding Sources The U.S. DOE encourages EV development through invest- ments outlined in the American Recovery and Reinvestment Act and U.S. DOE’s Advanced Technology Vehicle Manufac- turing (ATVM) loan program. Together, these programs are supporting the “development, manufacturing, and deploy- ment of the batteries, components, vehicles, and chargers nec- essary to put millions of electric vehicles on America’s roads.” The Recovery Act includes a $2.4 billion program designed to establish 30 manufacturing facilities for electric vehicle batter- ies and components. For each dollar of federal funds invested in the program, private partners are investing at least one dol- lar. U.S. DOE’s Advanced Research Projects Agency—Energy (ARPA-E) is providing an additional $80 million to transfor- mative research and development projects designed to advance battery and electric drive component technology beyond cur- rent frontiers. The ATVM loan program to date has provided nearly $2.6 billion to Nissan, Tesla, and Fisker to establish elec- tric vehicle manufacturing plants in Tennessee, California, and Delaware, respectively. These investments in electric vehicle 59 States with incentives for EVs proposed or in place. Figure 35. State incentives for electric vehicles.

battery, component, and manufacturing technologies are designed to achieve a number of objectives: • Lower the cost of some electric vehicle batteries by 70% by 2015, • Enable U.S. manufacturers to produce a sufficient number of batteries and components to support the annual pro- duction of 500,000 electric-drive vehicles by 2015, and • Boost the production capacity of U.S. manufacturers to 20% of the world’s advanced vehicle battery supply by 2012 and 40% by 2015 (U.S. DOE, 2010b). The U.S. DOE encourages the development of PHEVs in the U.S. marketplace through its Vehicle Technologies Program. The U.S. DOE supports research into advanced vehicles and fuels, hybrid and electric vehicle systems, energy storage, and materials technology. The U.S. DOE supports the Freedom- CAR and Fuel Partnership with the goal of developing emis- sion- and petroleum-free cars and light trucks and supporting infrastructure. Toward the development of PHEVs, the U.S. DOE has established several long-term goals designed to make PHEVs cost competitive by 2014 and ready for commercializa- tion for volume production by 2016: • $3,400 marginal cost of PHEV technology over existing hybrid technology, • 40-mile all-electric range, • 100 mile-per-gallon equivalent, and • PHEV batteries that meet industry standards regarding economic life and safety (U.S. DOE, 2007). 60

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TRB’s National Cooperative Highway Research Program (NCHRP) Report 689: Costs of Alternative Revenue-Generation Systems presents a framework for analysis of the direct costs incurred in generating the revenues that support federal-aid and state highway construction, operations, and maintenance and uses that framework to estimate unit costs for fuel taxes, tolling, vehicle-miles of travel fees, and cordon pricing schemes.

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