FHWA Grants Help States
Tackle Congestion in Innovative Ways
The Federal Highway Administration announced more than $2.8 million
in Value Pricing Pilot program grants, authorized under the new highway
bill, the Safe, Accountable, Flexible, Efficient Transportation Equity
Act: A Legacy for Users (SAFETEA-LU), to the States of New Jersey, Washington,
and Minnesota to explore innovative pricing concepts to reduce congestion.
The projects awarded funds include:
- Puget Sound Tolling Strategies Public Awareness Program - Washington
State $935,000
- All Electronic (Cashless) Tolling System - New Jersey Department
of Transportation with the Port Authority of New York and New Jersey
$988,000
- Innovative Parking Pricing Demonstration - Minnesota Department
of Transportation, $580,000
- Mileage-based Pricing Regional Outreach Program - Minnesota Department
of Transportation, $230,000
- FAST Miles Implementation Test - Minnesota Department of Transportation,
$60,000
Project Descriptions
New Jersey - Upgrade of Electronic Toll Collection
Technology (New York Metropolitan Area)
Grantee: New Jersey Department of Transportation (NJDOT)
Project: Upgrade of Electronic Toll Collection Technology
Federal Funds Awarded: $988,000
- History: In 2002, NJDOT received value pricing
funds to monitor and evaluate a variable pricing structure established
on Port Authority water crossings in March 2001. E-ZPasssm electronic
transactions are deeply discounted in the weekday and weekend off-peak
hours, with higher E-ZPasssm toll rates during the congested peak
hours. This pricing program has managed to achieve some meaningful
and sustained shifts of traffic from the most congested periods to
less congested time periods, especially during the early morning commuting
hours. Currently, tolls are only charged in-bound into New York City.
- This new project will undertake a technology and market assessment
of equipment and systems that can accommodate toll transactions at
a level of accuracy that is currently provided by the existing cash
and E-ZPasssm system; assess the operational challenges and financial
risks of implementing such a system; and determine the potential to
deploy such a system in both the New York-bound and New Jersey-bound
travel directions in order to facilitate more meaningful congestion
charging rates and traffic management incentives in the current non-tolled
direction.
Expected Results/Benefits: The project will encourage
travel during less-congested off-peak hours in the current non-tolled
direction, which is heavily congested at peak times. The project could
make toll transactions more efficient through improved open road toll
operations, and thereby reduce vehicle-hours-traveled and hours of delay
at some of the region's most congested toll-collection bottlenecks.
Minnesota - FAST Miles (Statewide)
Grantee: Minnesota Department of Transportation (MnDOT)
Project: FAST Miles
Federal Funds Awarded: $60,000
- History: The VPP program funded outreach efforts in FY1999, FY2002
and FY2004. This led to the implementation of I-394 MnPASS HOT lanes
in May 2005. The HOT lanes are currently operating successfully.
- This project will explore the political feasibility of an innovative
pricing concept called "FAST Miles". Under the FAST Miles
concept, each motorist is provided a number of dollar credits per
month, analogous to the "free minutes" given by cell phone
providers. The motorist, at his or her discretion, can apply those
credits to use the priced lanes. Once credits are exhausted, the motorist
is then charged the going rate to use the priced lanes, analogous
to what occurs when a cell phone user consumes more than his or her
allocated "free" minutes.
- FAST Miles promotes carpooling by allowing motorists to "pool"
their credits. For instance, a four-person car pool has at its disposal,
four times the "free" miles of a single occupancy vehicle.
Depending on road use charges, savings for carpoolers and public transit
users can be substantial. Unused toll credits can be rebated through
reduced vehicle registration fees or property taxes. Occupants of
multiple occupancy vehicles are rewarded by both improved access to
free flowing traffic lanes and lower use costs.
Expected Results/Benefits: The project will explore
the feasibility of an innovative pricing concept to ease highway congestion
on limited access facilities by providing financial incentives that
promote car pool and public transportation use.
Minnesota - Parking Pricing Demonstration (Twin
Cities Area)
Grantee: Minnesota Department of Transportation (MnDOT)
Project: Parking Pricing Demonstration
Federal Funds Awarded: $580,000
- History: This is a new project. Parking policies have already been
studied in the Twin Cities and a successful parking cash-out program
(where employers provide their employees the option of cash in lieu
of a parking benefit) has been demonstrated. The City of Minneapolis
is currently undertaking a major downtown transportation study where
parking will be an important consideration.
- This project will entail a substantial amount of outreach by the
Humphrey Institute, which has an excellent track record and is highly
experienced in involving the public in transportation pricing issues.
The 18-month outreach program will include efforts tailored specifically
to the media, local governments, and community leaders and will create
a high level parking pricing task force. Demonstration sites will
be selected and parking pricing will be implemented at these sites.
A comprehensive evaluation will be performed.
- A variety of pricing innovations will be explored, as will integration
with the I-394 MnPASS project and the University of Minnesota Metro
Transit smart-card system.
Expected Results/Benefits: This project will lead
to greater political support for parking pricing. Pilot projects will
showcase parking pricing innovations which in turn could be applied
to many other parking facilities and on-street parking spaces.
Minnesota - Mileage-Based User Fee Regional Outreach
(Statewide)
Grantee: Minnesota Department of Transportation (MnDOT)
Project: Mileage-Based User Fee Regional Outreach
Federal Funds Awarded: $230,000
- History: This is a new project. The applicant previously played
a leadership role in the related national pool-funded project, "A
New Approach to Assessing Road User Charges."
- This 2 1/2 year pre-implementation project will focus on building
public understanding and acceptance in Minnesota for fuel tax alternatives,
such as mileage fees to use roadways. The project will entail a substantial
amount of outreach by the Humphrey Institute, which has an excellent
track record and is highly experienced in involving the public in
transportation pricing issues. Program elements include a baseline
survey of public understanding and attitudes, focus groups, expert
interviews, developing and testing messages, and publishing a final
report with recommendations.
Expected Results/Benefits: This proposal will result
in a far better understanding than exists today of the public perception
challenges and opportunities relating to implementing mileage fees in
lieu of the gasoline tax in Minnesota.
WA - Puget Sound Tolling Strategies (Seattle Area)
Grantee: Washington State Department of Transportation
(WSDOT)
Project: Puget Sound Tolling Strategies
Federal Funds Awarded: $935,000
- History: In FY2002, the VPP program funded a GPS-based regionwide
pricing simulation that is in its final phase. In FY2004, the VPP
program funded pre-implementation efforts for HOT lanes on State Route
167. The Washington State Transportation Commission recently completed
public opinion research to assess the awareness and acceptance of
tolling for revenue generation and traffic management.
- This project will advance public awareness and acceptance of value
pricing and associated operational toll concepts from a "user's
perspective," incorporate previous study findings into near and
mid term policies and project planning, and improve state and regional
coordination.
Expected Results/Benefits: The project will communicate
to the public and elected officials the concept of value pricing and
how tolling can help manage traffic. The inability of public agencies
to effectively communicate these concepts has hindered and delayed acceptance
of pricing concepts.
