Tolling and Congestion Pricing Patrick DeCorla-Souza Office of Innovative Program Delivery Federal Highway Administration Presentation to Transportation.

Tolling and Congestion Pricing

Patrick DeCorla-Souza

Office of Innovative Program Delivery

Federal Highway Administration

Presentation to Transportation Advisory Group

The Council of State Governments

December 4, 2008

Overview

• Rationale for congestion pricing

• Congestion pricing examples worldwide

• Recent developments

Ways to Reduce Congestion

• Increase capacity:– Physical capacity – Management and operations

• Reduce demand – Provide attractive “substitutes” for driving

during rush hours– Congestion pricing

Why Congestion Pricing?

• Manages demand: Balances demand with supply

• Generates revenue

• Signals where additional capacity may be economically justified

How Congestion Pricing Works

• Variable toll makes the cost borne by user reflect the actual social cost of driving

• Willingness to pay – people will choose to drive as long as the benefit they get is equal to the cost they face

• Others will shift to using substitutes

Substitutes

• Alternative modes with traveler information– Transit – Ridesharing

• Alternative destinations– Telecommuting

• Alternative times– Flextime, staggered work hours

Overview

• Rationale for congestion pricing

• Congestion pricing examples worldwide

• US DOT’s Congestion Initiative

Types of Congestion Pricing

• Managed Lanes:– Separate lanes on freeways managed with

variable tolls

• Managed Highways:– All lanes on highway managed with variable tolls

• Area or Cordon Pricing:– User charges to enter or drive in an area

Managed Lanes

SR 91, Orange Orange County, CACounty, CA -

• Four new lanes in median, 10 miles

• Tolls are $1.20 to $10.00

Managed Lanes

Fixed peak vs. off-peak toll differential

Toll rates set to maintain high performance

•Houston I-10 and US 290

•SR 91 in Orange Co., CA•I-15, San Diego•I-394, Minneapolis•I-25, Denver •SR 167, Seattle

Maximum Toll Rates: San DiegoEvening Period Northbound

Maximum Toll Schedule for I-15 HOT Lanes, San Diego, California

$4.00               

$3.00                

$2.00                

$1.00                

$0.75                

 3:00 - 3:30

3:30 - 4:00

4:00 - 4:30

4:30 - 5:00

5:00 - 5:30

5:30 - 6:00

6:00 - 6:30

6:30 - 7:00

Managed Highways

• Variable pricing on the State Route 520 floating bridge.

– Tolls on the existing bridge

– Will help pay for the new bridge.

Managed Highways

Fixed peak vs. off-peak toll differential

Toll rates set to maintain high performance

•Ft Myers bridges•NYC crossings•Orange Co., CA•Dulles Greenway•France & S. Korea

•Singapore expressways and major arterials

65 kph45 kph

Increase Decrease

Toll rates

Tolls Rates on Singapore Expressways

Charges vary from 50 cents to $2.50

Cordon or Area Pricing

Fixed peak vs. off-peak toll differential

Toll rates set to maintain high performance

•London (flat fee)•Stockholm (variable fees)

•Singapore CBD cordon

Stockholm Toll Rates

Overview

• Rationale for congestion pricing

• Congestion pricing examples worldwide

• Recent developments

USDOT Urban Partnership Program

• Key:– Tolls that vary with level of demand

• Support strategies:– Transit– Telecommuting and flextime– Technology:

• Multimodal traveler information• Active traffic management and operations

Urban Partners

Miami

Minneapolis -St. Paul

San Francisco

Seattle

Los Angeles

Chicago

HOT Network Study: Washington DC

Annual revenue:•$1.5 to $2.8 billion annually

Capital cost recovery:•43% to 48% for new lanes•58% to 110% with pricing of existing general purpose lanes

“Traffic Choices” Study:Seattle, WA

• Present value of revenues = $87 B

Area Pricing in New York City

Annual net revenue:

•$500 million

•Dedicated to transit

Public Opinion Surveys

• Managed Lanes:– 60-70% approval from all income groups

• Managed Highways:– Seattle: 64-74% approval for new tolls on

currently free SR 520 bridge which needs rehabilitation

• Area Pricing:– New York City: 60% approval (67%

approval in City Council vote)

Summary

• Congestion pricing has many benefits

• Operates successfully worldwide

• Bold and innovative projects are underway in several U.S. cities

• Studies suggest promise in addressing funding shortfalls

• Public opinion can be positive

For more information contact:

Patrick DeCorla-Souza

Office of Innovative Program Delivery

Federal Highway Administration

202-366-4076

[email protected]

www.FightGridlockNow.gov