NORTH AMERICA TOLL INTEROPERABILITY Efficiency vs. Privacy in Motor Vehicle Programs

A Growing Industry Tolling Statistics Over 100 North American toll authorities in 35 States Several new authorities being planned More than $10 Billion collected annually in North America $7.3 Billion collected by the E-ZPass Group (Northeast) $1 Billion collected by Florida Turnpikes $1 Billion collected by Texas Turnpikes 2

From Stop & Go to Free Flow Tolling Evolution A memory of the past (1980’S) Toll booths (cash collection with gate arms) The ultimate interoperability scheme Harnessing RFID technology (1990’S) Open Road Tolling (ORT) Toll booths with separated highway speed toll collection This slide should promote all things AET – we’ve moved to AET for a reason…while cash collection was ‘fully interoperable’ it was dangerous, costly and time consuming. Discussion Points: Toll industry has been transitioning with new technology over the past 30 years We have moved to AET because: 1. Customer desire – time & money savings!! 2. New customer base – cashless – nobody carries cash anymore - Pay with transponder (banked) - Pay with license plate (unbanked/underbanked/privacy concerns, etc.) - Mention underbanked/unbanked payment options (new cash for credit cards, upcoming cellular options, CSC sites, etc.) 3. Significant money saving for agencies/states as well - Reduced footprint/right-of-way - Reduced installation – less infrastructure - Reduced operating costs

From Stop & Go to Free Flow Tolling Evolution Positioning for the future (Now!) All Electronic Tolling (AET) Highway speed tolls…no roadside cash collection Use multi-protocol reader to read different transponders Uses video for billing and violation enforcement Provides backbone for other pay-as-you go applications, e.g. VMT, Parking 4

Multi-Protocol Technology New and Improved Business Model Multi-protocol readers can read different transponders (RFID) at highway speeds Several agencies are installing multi-protocol readers Creating new business agreements with multiple agencies Does not require changing RFID technology New Form Factors Offer New Opportunities Toll industry is advancing RFID technology – dual protocol readers and new business agreements (EZG) but it still has shortcomings

Image-based Tolling New and Improved Business Model Image-based tolling is key to interoperability Bill from license plate image Bill users without transponders Can eliminate cash collection Augments incompatible electronic devices Once a violator, now a customer Increased reliance on accurate MVA databases Cash customers still have option to pay cash Solution to the shortcomings, is video tolling. - Serves non/incompatible customers through plate billing but does rely on LP data (and as discussed in later slides, current customer data) - Augments previous cash payers – they still have cash options as discussed in the last slide 6

Typical North American Toll Facility Demographics Political Subdivision of the State Established by State Statute Does Not Receive Federal or State Funds Does Not Receive Federal or State Gas Tax Funds May Have an NLETS ORI Subscribes to DPPA Requirements Public Safety Services Provided by State Police Increasingly Relies Upon DMVs for Operations Solution to the shortcomings, is video tolling. - Serves non/incompatible customers through plate billing but does rely on LP data (and as discussed in later slides, current customer data) - Augments previous cash payers – they still have cash options as discussed in the last slide 7

Current US Interoperability Regional Networks Discussion Part 1: Interoperable regions include EZG, SunPass, TxTag and FasTrak. NC will soon be interoperable with FL and EZG with new dual-protocol readers. Generally touch on incompatible technologies: Different vendors, patented technology and closed-architecture systems in each region – NC being the first to deploy MP Readers, but only compatible with two regions due to RFID technology restrictions. Mention local v. occasional users Discussion Part 2: Each system is different, and not just the transponders ranging from $x to $x apiece, but the back office and roadside systems which work specifically with the transponders (customers) that are deployed and are complicated and expensive to install. Over 40 million tags deployed today!! Current interoperable regions have millions, some billions, if not more, of dollars invested in their individual systems. POINT: NOT JUST A SWAP OF TECHNOLOGY (TAGS) – EXPENSIVE.

E-470 I-25 HOT Lanes Northwest Parkway 9 Solution to the shortcomings, is video tolling. - Serves non/incompatible customers through plate billing but does rely on LP data (and as discussed in later slides, current customer data) - Augments previous cash payers – they still have cash options as discussed in the last slide E-470 9

E-470 Public Highway Authority 47 mile toll road 51.3 million transactions 72% EXpressToll penetration $94.3 million toll revenue net of bad debt $120 million in total revenue $1.4 billion of debt 2.8 M Out of State Transactions 883K Transactions not Processed Solution to the shortcomings, is video tolling. - Serves non/incompatible customers through plate billing but does rely on LP data (and as discussed in later slides, current customer data) - Augments previous cash payers – they still have cash options as discussed in the last slide 10

Example Image-based Tolling Statistics Colorado’s Q1 AAMVA Region IV Transactions State LPT Transactions LPT Accounts CO 5,408,312 507,994 WY 149,542 24,744 CA 61,065 5,616 AZ 39,858 3,344 WA 25,631 104 NM 24,594 3,302 UT 18,131 2,396 MT 16,051 2,533 NV 14,515 803 OR 13,579 1,776 ID 11,351 1,686 AK 4,415 692 AB 2,995 6 SK 1,075 2 BC 1,045 89 HI 877 127 Total 5,793,036 555,214 Solution to the shortcomings, is video tolling. - Serves non/incompatible customers through plate billing but does rely on LP data (and as discussed in later slides, current customer data) - Augments previous cash payers – they still have cash options as discussed in the last slide 11

Transponders Deployed Regional Networks Cost of converting to a single technology is enormous Over 50 million customers use transponders $500 million for transponder replacement Cost of changing roadside and back office systems Estimated $2 billion or more

Interoperability The Common Denominator Solution without adapting to one technology Provides reliable vehicle identification by combining RFID transponders, multi-protocol readers and ALPR Technologies Next Step: Provide a system for information exchange 13

Interoperability HUB Use shared customer data for billing outside “home territory” 1st portion: EXISTING customers only

Interoperability HUB Ability to expand to other services: 2nd Portion: Access to non-existing customers Option to build into other services (parking, fleets, transit, etc.) Full transportation account

Implementation February 2011 Implement: Issuing RFP for license plate interoperability hub Pilot Program beginning mid-2011 Implement: 1st: License plate data exchange 2nd: RFID information exchange 16

License Plates Databases Solutions in the Making Toll industry needs: Improved access to vehicle registration information Continued coordination with American Association of Motor Vehicles (AAMVA) and state and provincial MVAs Could also mention: Violation enforcement BUT not on their agenda and we are working on it state by state Need for license plate change – BUT currently state ran Potential for VMT through RFID – again, not on their agenda

AAMVA Working Group Discuss areas of Common Interest License Plate Standards Enforcement Registration lookups and holds HUB operations Technology overlaps

QUESTIONS? Dave Kristick Deputy Executive Director E-470 Public Highway Authority Aurora, Colorado dkristick@e-470.com (303) 537-3702 QUESTIONS?