congestion pricing and urban partnerships presentation 4 us department of transportation part 2:...

Congestion Pricing and Urban Partnerships

Presentation 4

US Department of Transportation

www.fightgridlocknow.gov

Part 2: Congestion Pricing Policy Development


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Addressing Public Concerns and Key Strategies for Success

Presentation 4:Public Concerns


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Overview

• 10 most frequent public concerns

• What you can do to get acceptance:▫ Communicate ▫ Design appropriate policies to address

concerns

• Key ingredients for success


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10 Key Public Concerns

1. It will be ineffective 6. It will divert traffic

2. It’s just another tax 7. Government cannot be trusted.

3. It’s social engineering 8. It increases cargo transport cost and hurts the economy

4. It hurts the poor. 9. It costs too much to collect tolls

5. It invades privacy 10. It’s unfair double taxation

*


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Congestion Costs Imposed on Others When Flow Breaks Down (per mile of travel)

Per Mile From 6-7am From 7-8am Difference

Traffic flow 2,000 vehicles

Travel time per mile 1 min. (60mph)

3 min. (20mph)

2 min.

Total for 2,000 vehicles 2,000 min. 6,000 min. 4,000 min.

Delay caused to 2,000 veh. per added vehicle

100 morevehicles*

4,000/100 =40 min.

Monetary value of external costs imposed on others

$8.00**

*Assume that 100 additional vehicles lead to breakdown flow

**Assuming $12 per hour value of time


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Road Use Costs Per Mile (cents)Per Mile Low

estimateHighestimate

Borne by user:

•Vehicle operation•Travel time*•Accident insurance•(Subtotal)

20 20

5(45)

406010

(110)

External •Noise, air pollution, accidents•Congestion delay imposed on others

50

10800

Social cost 50 910

Assuming $12 per hour value of time


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Construction Costs for Adding Urban Freeway Lanes vs. Gas Tax

Per mile For10-mile trip

For 20-mile round trip

Construction cost/ lane $15 M. $150 M. $300 M.

Daily traffic volume in peak periods (5-6 hours/day)

10,000 vehicles

10,000 vehicles

10,000 vehicles

Const. cost per vehicle $1,500 $15,000 $30,000

Gas tax per vehicle $0.02 $0.20 $0.20

Present value of gas taxes paid over 30 years

$62 $620 $1,240


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Characteristics of a Bold Pricing Approach

• Provide reliable and viable travel alternatives including expansion of bus and rail transit services

• Introduce as a “trial.”

• Provide money-back guarantee

• Return surplus to motorists or ensure use of revenue for the benefit of those paying

• Provide low-income toll discounts

• Optimize traffic signals on arterial system


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Key Ingredients for Success• Communication: Public that sees congestion as a

problem, sees the need for a radical solution, sees road pricing as a viable solution

• Policy formulation: Pricing package that is designed to address public concerns

• Champions: Politicians who are willing to take a risk▫ Politicians cannot expect to win popular support for pricing

before pricing is introduced. They will need to ride out hostility with the expectation that support will increase once a package has been successfully implemented


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Involving the Public and Creating Political Champions – Case Study

•Grassroots and Grasstops•Minnesota’s experience with congestion pricing•The I-394 MnPass HOT lane project

Presentation 5:Public and Political Outreach


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Grassroots Public Involvement and Action Research

• Market research – understanding• Education – learning• Outreach – involving• Communication – explaining• Marketing – selling• Evaluation – confirming


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Grasstops Approach

• It’s the Governor, stupid!• Engage legislative champions• Keep it bipartisan• Take your show on the road• Take them on the road• Look for media opportunities• No question left behind


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Twin Cities Citizens Jury on Congestion Pricing (1995)

• 24 randomly selected citizens gathered in St. Paul State Capitol for five days

• 16 against, 8 in favor of congestion pricing as a way of managing congestion and financing transportation

• Congestion not bad enough yet• Congestion pricing not fair – Lexus Lane• Congestion pricing costs too much – raise gas

tax instead• Not convinced that congestion pricing will work


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Minnesota’s Experience with Congestion Pricing

1995 Citizens Jury on congestion pricing1996 Hwy 212 toll proposal defeated by local

veto1997 I-394 HOV lane buy-in proposal withdrawn2000 Value Pricing Workshop2001 Value Pricing Advisory Task Force

“Grass tops” communication plan2002 I-35W Crosstown pricing proposal

considered too complicated by Mn/DOT


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Minnesota’s Experience with Congestion Pricing

2003 I-394 HOT lane project approved by Legislature and Governor

2004 I-394 Community Task Force I-394 User Focus Groups

2005 I-394 MnPASS express lanes open2006 I-394 Phase 2 Task Force – improving

transit and throughput


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I-394 MnPass Project Goals1. Improve I-394 efficiency 2. Maintain free flow speeds

in MnPASS lane3. Use revenues to improve

highway and transit in corridor

4. Employ new technologies for pricing and enforcement


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MnPASS User Satisfaction

• 95% satisfaction with all electronic tolling

• 85% satisfaction with traffic speed in lane

• 65% satisfaction with dynamic pricing

• 65% satisfaction safety of merging

Source: May 2006 survey of 106 MnPASS users


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MnPASS Acceptance “Good Idea” by IncomeWhat do you think of allowing single drivers to use the carpool lanes by paying a toll?

63%63%

62%71%

60%62%71%

61%64%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Lower-Income Mid-Income Higher-Income

Fall 2004

Fall 2005

Spring 2006


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Lessons Learned

• Political leadership is necessary• Public will support projects if they can see

benefits• Pricing projects must work from day one• Effective outreach, education and marketing

are critical for success• Pricing projects are more likely to generate

support if linked to transit improvements


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Evaluation of Economic and Financial Feasibility

Presentation 6: Congestion Pricing Concepts


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Introduction

• Congestion pricing concepts

• Examples of innovative strategies

• Costs, toll rates, revenues and benefits


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Policy Questions

• Objectives:▫ Congestion relief, revenue, business

productivity, quality of life, environment

• Use of revenues:▫ Reduce other taxes, improve public

transportation, fix highways or add capacity

• Governance/procurement method:▫ Lead agency, charging policy, investment

decisions, private participation


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Congestion Pricing Concepts(Physical Configurations)

Type Examples

Point charge Bridge, tunnel, ramp meter bypass

“Area” charges Cordon or area

Highway corridor Some lane(s) only, or full facility

Highway network Some lane(s) only, or full facility

Metropolitan region Highways as well as surface streets

*


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Congestion Pricing Policy(Who is charged and who is exempt?)

Type Who is charged and who is exempt?

HOT HOVs exempt

Super HOT (SHOT)

Buses, vanpools, authorized 4-person carpools exempt (Reason Foundation)

Express toll Buses exempt

FAIR Any of the above + credits to drivers on congested free lanes

Fast Miles Monthly budget of credits issued to all drivers

*


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Example: High-Performance Highways

• Price whole facility▫ On congested segments only▫ During peak (congested) periods only

• Complementary strategies▫ Operations – ramp metering to control merges▫ Transit – Bus Rapid Transit with potential guided

shoulder running or other separated runningway Flextime/telecommuting – to provide time of travel choices

▫ Traveler information – to help traveler make efficient modal choices


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Advantages

• Will reduce congestion in the short-term

• Advantages relative to pricing of lanes only:▫ Less right-of-way, pavement and barriers▫ Capacity per lane is higher▫ Higher vehicle throughput since all lanes are free flow▫ Weaving and safety issues avoided▫ Lower toll due to more supply of premium service▫ Entire facility is congestion-free


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Urban Road Pricing Schemes: Costs vs. Revenues

Capital costs

Operating costs(annual)

Revenues (annual)

London $180 M. $180 M. $360 M.

Stockholm $260 M. $26 M. $105 M.

Singapore $130 M. $11 M. $108 M.


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Stockholm: Costs vs. Benefits

• Investment cost - $262 M.

• Net present value of benefits - $1,104 M.

• Benefit/Cost ratio - 4.3


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TRUCE Model EstimatesModerate Congestion

Severe Congestion

Extreme Congestion

Travel time index

Avg. peak period speed

Avg. toll for a 10-mile trip

1.39

43 mph

$1.13

1.51

40 mph

$1.36

1.75

34 mph

$1.95


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Costs for 100-mile Priced Network

(million $) Moderate Congestion

Severe Congestion

Extreme Congestion

Highway:CapitalO & M (per year)Annualized

Transit (annual)TOTAL

$55$21$25

$53$78

$55$29$33

$72$105

$55$37$41

$92$133


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Revenues and Benefits for 100-mile Network (million $)

Moderate Congestion

Severe Congestion

Extreme Congestion

CostsRevenuesSurplus

BenefitsB/C ratio

$78$118

$40

$1111.4

$105$196

$91

$1941.8

$133$358$226

$3782.8


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Broad Conclusions

• High performance highways will be financially self-sufficient

• With high levels of congestion▫ Revenue surpluses will be higher▫ Benefits will exceed costs by wider margins

congestion pricing and urban partnerships presentation 4 us department of transportation part 2:...

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