Aligning Oversize/Overweight Permit Fees with Agency Costs: Critical Issues

This project provides an elementary analysis of issues and a proposed framework for the state to evaluate cost recovery options due to oversized and overweight (OSOW) operations. The authors provide a review of current permitting practices, provide a sampling of fee structures, and outline preliminary trends for OSOW demand in the foreseeable future. The basis for the project is the Midwest States, but the findings incorporate national trends and data as appropriate. The research team surveyed state DOTs for information on permit fee structures and the respective distribution and allocation of permit revenue. The research team did not attempt to determine roadway, infrastructure, and other impacts of OSOW loads, but rather document studies that attempt to monetize these values and provide observations. A methodology is proposed to generate said costs, but the validation of such methodology was outside the scope of this study. Finally the project report details other considerations, including truck-to-rail diversion potential if permit fees are increased. A series of best practices is provided to help guide the operations of a permitting process. The research team concludes that permit fees likely cannot recover the costs of issuance, however, in many agencies the permit fee is not designed to be a cost recovery mechanism. This is magnified in the multitrip permitting processes available in most states. The authors do not make a specific recommendation for agencies with respect to permit fee determination. The research team does recommend additional and site specific research to determine the impact and associated cost of pavement damage due to single trip, oversize and overweight movements.