The MBUF concept is a user-based taxing system that charges drivers for the miles they drive on the roadway system. This concept requires a taxing authority to collect a tax based upon the number of miles traveled by each vehicle. The concept assumes that the owner of a vehicle would pay the MBUF for the mileage traveled. Many intuitional, policy and technical issues have to be resolved.

The objective of the pooled fund project is to learn and begin coordinating efforts with respect to the MBUF concept. Up to now, coordination between states has been difficult. Several states have conducted their own research and demonstration projects and some states have expressed interest in just learning more about the topic. In an effort to begin coordinating efforts and advancing the knowledge on MBUF the pooled fund will have two main objectives: 1) Offer membership to the MBUF Alliance. Each state will have opportunity to dedicate a portion of their annual contribution towards this organization and their educational events. As a research and educational organization, the mission of the Mileage-Based User Fee Alliance is to: • Create a constructive learning environment and policy space for collaboration and networking among individuals and groups interested in mileage based user fees; • Coordinate efforts to build awareness of mileage-based user fee programs in the US and around the world; and • Promote research to test the feasibility of mileage-based user fee programs 2) Solicit and select specific research projects that all member states are jointly interested in performing. On an annual cycle, the remaining project moneys will be used to fund research projects that will cover areas of the MBUF concept that have not been explored to date. Topics could range from alternate tax collection designs, to enforcement alternatives, to private industry scenario testing and standards recommendations.

• Track and conduct research on mileage-based user fee initiative in the U.S. and around the world. • Organize and facilitate workshops attended by MBUFA member states to share knowledge and best practices related to mileage-based user fees. • Organize and sponsor an annual “MBUF” conference or symposium to provide a continuing education and peer exchange opportunity for member states. • Organize and implement peer-to-peer exchanges, education and outreach activities regarding mileage-based user fees. • Within budgetary allowances, provide support to member states such as speaking at member state conferences, offering expert advice, travel support for conferences and meetings, etc.

Project to be funded at $20,000 per member per year. This amount will cover cost of an annual MBUF Alliance membership. Up to $5,000 may be used for travel and expenses for conferences, meetings and peer-to-peer activities.