Electronic Tolls and Congestion Pricing Study Transportation leadership you can trust. presented to Connecticut Transportation Strategy Board presented by Cambridge Systematics, Inc. Urbitran IBI Group Fitzgerald & Halliday, Inc. Sam Schwartz, PLLC September 18, 2008

Agenda Introductions and Consultant Team Goal, Work Plan, and Schedule History of Tolling Modern Tolling Proposed Tolling and Pricing Concepts to Study Next Steps

Project Goal and Overview Prepare a document that lays out as many options as possible, sets the context for informed decision-making and provides a knowledge base with respect to tolls and congestion pricing in Connecticut Areas of investigation Concept evaluation Traffic, revenue, cost Regional equity Economics Environment Safety Implementation evaluation Implementation steps Federal requirements Public-private partnerships (PPP) Privacy

Work Plan and Schedule Month Phase Identify Pricing Strategies and Potential Toll/Pricing Project Locations Implementation Considerations Institutional, Contractual, Procurement, PPP, Privacy, Public Acceptance Evaluation of Tolling and Pricing Strategies Traffic, Revenue, Cost, Equity, Economic, Environmental, Safety Final Report Jul Aug Sep Oct Nov Dec Jan Feb Meet with OPM Present to TSB Meet with Stakeholders (to be determined) Interim Phase Report Draft Final Report

Consultant Team Cambridge Systematics Urbitran Fitzgerald and Halliday Overall lead Travel demand and impacts Institutional, contractual, and public-private partnerships Public acceptance Urbitran Travel demand and transit Economics Equity Safety Fitzgerald and Halliday Environmental IBI Group Technology Costs Privacy Sam Schwartz Company Institutional Operations Safety

Traditional Tolling in the U.S. Toll roads in U.S. date back to the 18th century with more than 2,000 private roads and bridges 20th Century Bridges and tunnels Inter-city turnpikes – pre 1956 Interstate era Pennsylvania, New York, New Jersey, Connecticut Regional toll authorities – mostly 1960s and on Dallas, Houston, Richmond, Miami, Tampa Common denominator Revenue stream pays off debt for expensive projects or systems of projects

Tolling in Connecticut 1790-1850 – Over 100 Private Turnpikes Source: F.J. Wood, The Turnpikes of New England, published in 1919, via Wikipedia.

Connecticut’s Modern Tolling History

U.S. Toll Roads, Bridges, and Tunnels 5,200+ miles States with Toll Roads, Bridges, and/or Tunnels Source: International, Bridge, Tunnel, and Turnpike Association.

New Technology Brings New Opportunity

Policy Needs to Precede Projects Types of Policy Motivations Funding Transportation System Efficiency Hybrid

Funding

Funding Motivation New Projects Build new road, bridge, or tunnel Toll revenue pays – all or part – if part, how much? Remove tolls after debt is paid off? Build system of facilities Start with one project, leverage others over time (Dallas, Orlando) Cross subsidize Transit (New York City and San Francisco) Popular in high-growth states – TX, FL, CO Fertile ground for public- private partnership

Funding Motivation Public-Private Partnerships Brownfields – Asset Monetization Chicago Skyway Lease Indiana Toll Road Northwest Parkway in Colorado Greenfields – Private Equity to Build New Projects Dulles Greenway in Virginia SR 91 Express in California Greenville Southern Connector in South Carolina

Transportation System Efficiency

System Efficiency Motivation Congestion Pricing Concept Level of Service a.m. p.m. Time

Variable Pricing Static Published time of day toll schedule Examples New York Bridges and Tunnels Orange County (CA) Transportation Corridor Agencies

Variable Pricing Dynamic Toll changes frequently based on real time traffic conditions (California and Minnesota) Morning Peak Toll Rates on I-394 $0.00 $1.00 $2.00 $3.00 $4.00 $5.00 7:16 7:22 7:28 7:34 7:40 7:46 7:52 7:58 8:04 8:10

System Efficiency Motivation High Occupancy Toll (HOT) Lanes Convert HOV lanes to HOT Lanes (I-394 Minneapolis) Optimize use of HOV lanes Costs relatively low Revenues relatively low A type of “managed lane”

Funding Transportation System Efficiency Hybrid

Hybrid Motivation – Funding plus Efficiency More Managed Lanes Build new HOT lanes (I-95 in Miami) Multiple toll lanes in each direction Higher revenue potential Higher costs More opportunities to improve transit line-haul

Hybrid Motivation – Funding plus Efficiency More Managed Lanes (continued) Express toll lanes HOV pay too Higher revenue potential, potentially self-supporting High opportunity to encourage transit Truck only toll (TOT) lanes Safety as well as congestion relief Significant design and operations issues

About Tolled Managed Lanes Toll lanes depend on congestion!!! Bus rapid transit can take advantage of travel time reliability made possible by tolled managed lanes

Hybrid Motivation – Funding plus Efficiency The Next Generation Price existing highways: Germany and Austria – trucks only Never tried in USA Being studied: Seattle, Federal Cordon or area tolling (London and Stockholm) Relieves intense CBD congestion Requires effective transit/walk/bike High operation cost

Hybrid Motivation – Funding plus Efficiency The Next Generation (continued) Mileage-based pricing Experimental today but could replace fuel tax (Oregon) Technical and transition challenges Highest ultimate potential for revenue and management

Federal Initiatives Value Pricing Pilot Program Originated as Congestion Pricing Program in 1991 Program to determine how pricing impacts congestion Urban Partnership Program $1 billion awarded in 2007 Increasing desire to link tolling and transit Seattle Minneapolis-St. Paul New York City Chicago San Francisco Los Angeles Miami

All Electronic Tolling (AET) How Does it Work? No toll booths No stopping

Technology Key Elements Roadside equipment On-board unit Back-office processing/administration

Radio Frequency Identification (RFID) E-ZPass Technology “Tag and beacon” Highway 407 – Toronto RFID + Video

Video Transport for London RUC – London, England Video only

Global Positioning System (GPS) GPS Truck Tolling – Germany

How do you handle vehicles without on-board units? Many options All involve video Pre registration, post registration, or no registration Customer payment options Credit card/bank account Cash -- prepaid

Public Opinion Around the U.S. The public Wants value Learns from experience Cares about the use of revenues and wants tangible projects Believes in equity and wants fairness Wants simplicity and prefers tolls to taxes Majority of public support tolling Support falls as projects get complicated and private sector gets involved Source: NCHRP Synthesis 377.

Proposed Tolling and Pricing Concepts to Study

Proposed Concepts to Study Funding Motivation New highways? Proposed Concepts to Study

Proposed Concepts to Study Funding Motivation Toll new lanes or toll all lanes I-95: Branford – RI Line I-84: Waterbury – NY Line Beyond these projects, explore policy to toll all future reconstruction Proposed Concepts to Study

Proposed Concepts to Study Proposed Concepts to Study Funding Motivation Border Tolling Funding Motivation Border Tolling Proposed Concepts to Study Proposed Concepts to Study

Proposed Concepts to Study Efficiency Motivation Convert HOV lanes to HOT lanes I-84 and I-91 Proposed Concepts to Study

Proposed Concepts to Study Efficiency Motivation Convert existing shoulders to HOT Lanes Proposed Concepts to Study

Proposed Concepts to Study Hybrid – Funding + Efficiency Motivation Identify congested corridors; price to relieve congestion and fund improvements Proposed Concepts to Study

Proposed Concepts to Study Hybrid – Funding + Efficiency Motivation Toll all limited access highways Proposed Concepts to Study

Proposed Concepts to Study Hybrid – Funding + Efficiency Motivation Toll all miles driven in the state Proposed Concepts to Study

Next Steps

Work Plan and Schedule Month Phase Jul Aug Sep Oct Nov Dec Jan Feb Identify Pricing Strategies and Potential Toll/Pricing Project Locations Implementation Considerations Institutional, Contractual, Procurement, PPP, Privacy, Public Acceptance Evaluation of Tolling and Pricing Strategies Traffic, Revenue, Cost, Equity, Economic, Environmental, Safety Final Report Meet with OPM Present to TSB Meet with Stakeholders (to be determined) Interim Phase Report Draft Final Report Final Report

Electronic Tolls and Congestion Pricing Study Transportation leadership you can trust. Discussion