FHWA 20-08
Thursday, September 11, 2008
Contact: Ian Grossman
Tel.: (202) 366-0660
Federal Highway Administration Does Not Approve Pennsylvania’s Plans to Toll
Interstate 80
WASHINGTON, DC – The Federal Highway Administration announced today that it did
not approve an application from the Pennsylvania Department of Transportation
and Pennsylvania Turnpike Commission to place tolls on Interstate 80. The agency
said the planned use of toll revenues does not meet federal requirements as
there is no basis to conclude that the proposed lease payments are legitimate
operating costs.
“Tolling interstates is a viable option for many states to fund highway
improvements or to improve performance conditions,” Highway Administrator Tom
Madison said. “Because we are legally bound to ensure applications for this
program meet all congressionally mandated requirements, however, we are
regrettably unable to approve this application.”
The revised application seeking tolling authority under the Interstate System
Reconstruction and Rehabilitation Pilot Program was submitted to the Federal
Highway Administration on July 22, 2008. Under the proposal, PennDOT would
transfer I-80 to the Turnpike Commission and make payments.
The Federal Highway Administration said the Commonwealth’s application did not
meet legal requirements for the correct use of toll revenue. Specifically, the
application called for the Turnpike Commission to use toll revenue to pay annual
lease payments to PennDOT. The federal agency noted that while under the program
toll revenue can be used for lease payments, the amount of the payment is
required to be based on an objective market valuation.
The Commission’s application, however, included no information or data
justifying the proposed amount for the annual toll payment or establishing that
the level was based on an objective market valuation. The agency noted that
earlier this year it had asked for just such justification as it reviewed the
tolling application. The Commission, however, sent no additional information
supporting the lease payment level, the agency said.
“There is simply no evidence that the lease payments are related to the actual
costs of acquiring an interest in the facility,” explained Administrator
Madison. “Although we are unable to move the application forward, we stand ready
to assist the Commonwealth in finding creative ways to address its
transportation needs.”
###