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Tolling and Pricing Opportunities

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Slide 1

Tolling and Pricing Opportunities

Under the Federal-aid Highway Program

January 2006


Slide 2

Overview

  • Background
  • Programs
  • The Tolling and Pricing Team
  • An Expression of Interest
  • The Website

Slide 3

Background

  • Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users (SAFETEA-LU) provided more authority to toll and price motor vehicles:
    • To finance construction/reconstruction
    • To promote efficient use of highways
    • To reduce traffic congestion
    • To improve air quality
  • Six programs are now available.
  • FHWA Office of Operations is lead for coordinating all programs.

Slide 4

Six Programs

Slide 5

The Tolling and Pricing Team

  • Coordinates programs within FHWA
  • Reviews all "Expressions of Interest"
  • Directs public entity to the "best fit"
  • Helps to promulgate final rule on Electronic Toll Collection (ETC)
  • Supports FHWA program offices
  • Coordinates with FHWA field
  • Establishes performance goals, monitors achievements, and assists with any required reports to Congress

Slide 6

An "Expression of Interest"

  • Received by the Tolling and Pricing Team
  • Presents the Who, What, Where, When, How, and Why
  • Helps the Public entity briefly articulate project request and understand all opportunities
  • Helps "Team" manage programs and available slots
  • Can be prepared and submitted electronically using template

Slide 7

The Website

Slide 8

The Express Lanes Demonstration Program

Wayne Berman,
FHWA Office of Operations

Slide 9

Express Lanes Demonstration Program: Section 1604 (b)

  • Allows for 15 Demonstration Projects
  • Goals:
    • Reducing traffic congestion
    • Improving air quality
    • Financing expansion
  • Eligible Facilities
    • An existing facility that collects tolls
    • An existing facility that serves High Occupancy Vehicle (HOV)’s
    • A facility modified or constructed to create additional tolled lane capacity
    • A new lane on a non-tolled facility

Slide 10

Express Lanes Demonstration Program: Section 1604 (b)

  • Allows tolling new or existing Interstate highway, bridge, or tunnel facilities
  • Variable pricing is required for tolling new or existing lanes
  • Use of Revenues:
    • Debt Service
    • Return on Investment (ROI) for any private financing
    • Operation or maintenance
  • Public entities or public-private partnerships are allowed to participate

Slide 11

Express Lanes Demonstration Program: Section (Sec) 1604 (b)

  • Automation - Tolls must be collected using non-cash electronic technology
  • Interoperability Rule: The Secretary must promulgate a final rule that specifies standards, requirements, or performance specifications on automatic toll collection systems used under this program (I.e. Sec 1604 (a, b, & c)

Slide 12

SAFETEA-LU Section 1121: HOV Facilities

Jessie Yung,
FHWA Office of Operations

Slide 13

SAFETEA-LU Section 1121: HOV Facilities

  • Replaces Section 102 (a) of 23 U.S.C. with a new Section 166.
  • Occupancy requirement is unchanged.
    • No fewer than 2 occupants per vehicle may be required with a few exceptions.

Slide 14

Exceptions

  • Motorcycles and bicycles
  • Inherently Low-Emission Vehicles (9/30/2009)
  • Public transportation vehicles
  • High occupancy toll vehicles
  • Low emission and energy-efficient vehicles (9/30/2009)

Slide 15

HOT Lanes

  • States permitted to create High Occupancy Toll (HOT) lanes
  • Establishes a toll program
    • Automatically collect toll
    • Varying toll amount based on demand
  • Low emission and energy-efficient vehicles may be tolled

Slide 16

Certification

  • Performance Monitoring and Enforcement Programs
  • Limit or discontinue use of the facility by exempted vehicles if facility is degraded.
  • Annual certification

Slide 17

HOV Operational Performance

  • HOV facility management, operation, monitoring and enforcement
    • 45 MPH for HOV facility with a speed limit of 50 MPH or greater
    • Not more than 10 MPH lower for facility with speed limit less than 50 MPH
  • Maintain a minimum average operating speed 90% of time over a consecutive 180-day period during peak periods.

Slide 18

Rulemaking

  • Environmental Protection Agency (EPA) Administrator must issue a final rule establishing requirements and guidelines for certification of vehicles as low emission and energy-efficient vehicles by February 6, 2006.

Slide 19

Next Step

  • Revised Federal-Aid Highway Program Guidance on HOV Lanes will be published in Federal Register for public comment.

Slide 20

The Value Pricing Pilot Program

Patrick DeCorla-Souza
FHWA Office of Policy and Governmental Affairs

Slide 21

Background

  • Congestion Pricing Pilot Program authorized through Intermodal Surface Transportation Efficiency Act (ISTEA) in 1991.
  • Value Pricing Pilot Program authorized through (Transportation Equity Act of the 21st Century) TEA-21 in 1998.
  • Reauthorized under SAFETEA-LU in 2005.

Slide 22

Why?

  • Reduce congestion
  • Enhance efficiency of the transportation system
  • Promote state and local efforts to test and implement innovative pricing approaches

Slide 23

Demand Management vs. Financing

Demand Management

  • HOV to HOT
  • Value Pricing Pilot
  • Express Lanes

Financing

  • Section 129, USC
  • Interstate Pilots for Reconstruction and for Construction

Slide 24

Program Funding

  • $11 Million in FY2005
  • $12 Million in FY2006-2009 (each year):
    • $3 Million for projects not involving tolls
  • 80% Federal share, with 3 years (max.) support per project
  • To support:
    • pre-implementation
    • implementation
    • evaluation

Slide 25

Program Slots

  • 15 state and local value pricing programs allowed
  • 14 states are currently participating
  • Each state may have an unlimited number of projects
  • Projects may include tolls on Interstate highways

Slide 26

Project Types: Tolling

  • Comprehensive applications:
    • areawide
    • multiple facilities
  • Shifts from fixed to variable tolls
  • Q-jumps
  • Pricing to supplement or supplant tax-based funding
  • Credit-based pricing:
    • FAIR Lanes, FAIR Highways, FAST Miles, other

Slide 27

Projects Not Involving Tolls

  • Parking pricing:
    • Pricing of curb space
    • Employee parking "cash out"
    • Parking taxes in congested areas
  • Pay-as-you-drive pricing:
    • Insurance
    • Vehicle ownership
      • Carsharing
      • Per-mile leases

 

Slide 28

Deadlines for FY 2006 Funding

  • Expression of Interest:
    • January 31
  • Full proposal:
    • March 31

Slide 29

Interstate System Construction Toll Pilot Program

Greg Wolf
FHWA Office of Infrastructure

Slide 30

Interstate System Construction Toll Pilot Program

  • New program in SAFETEA-LU, 1604 (c)
  • Allows 3 new Interstate facilities to be tolled
  • Used to fund new construction
  • Tolling must be the most efficient & economical way to advance the project

Slide 31

Interstate System Construction Toll Pilot Program

  • Separate pilot facilities may be in the same State
  • Interstate compact of States may be formed to advance multi-State projects

Slide 32

Interstate System Reconstruction & Rehabilitation Pilot Program

Greg Wolf
FHWA Office of Infrastructure

Slide 33

Interstate System Reconstruction & Rehabilitation Pilot Program

  • Continues unchanged from TEA-21
  • Allows 3 existing Interstate facilities (highway, bridge, or tunnel) to be tolled
  • Facilities must be in separate states

Slide 34

Interstate System Reconstruction & Rehabilitation Pilot Program

  • Used to fund reconstruction or rehabilitation
  • Facility could not be maintained or functionally improved without toll revenues

Slide 35

Section 129 Agreements

Greg Wolf
FHWA Office of Infrastructure

Slide 36

Sec. 129 Tolling Authority

  • 23 USC Section 301 prohibits the tolling of highways constructed with Federal-aid funds.
  • Exceptions to Section 301 are provided in 23 USC Section 129...

Slide 37

Sec. 129 Tolling Authority

Five Toll activities eligible for Federal funding under 23 USC 129:

  1. Initial construction, except Interstate
  2. Reconstruct or rehab. on existing toll facilities
  3. Reconstruct or replace free bridges and tunnels
  4. Reconstruct free highways, except Interstate
  5. Feasibility studies of above

Slide 38

Sec. 129 Tolling Authority

If Federal-aid funds are used for construction activities under Section 129, a Toll Agreement is required.

Slide 39

Sec. 129 Tolling Authority

Toll Agreement Requirements

Toll revenues will first be used for:

  • Debt service
  • Reasonable return on investment
  • Costs for proper operation and maintenance of the toll facility

Slide 40

Sec. 129 Tolling Authority

Toll Agreement Requirements

Excess toll revenues can be used for any Title 23 eligible projects,
      if ...
The State certifies annually that the tolled facility is being adequately maintained.

Slide 41

Summary

Slide 42

For More Information

http://www.ops.fhwa.dot.gov/tolling_pricing/index.htm

 

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