I-680 Value Pricing: A HOT Lane Demonstration Project of “Smart Carpool Lanes” Sponsor: Alameda County Congestion Management Agency 2003 Sponsor: Alameda County Congestion Management Agency 2003

2 Why High-Occupancy-Toll (“HOT”) Lanes? u Provide another option for travelers u More efficient use of HOV lane and freeway capacity u Generate revenue for transportation improvements u Maintain public support for HOV lanes

3 Why I-680? u New HOV lanes planned u 14-mile freeway distance with heavy congestion and directional commute traffic u Relatively few interim on/off users –Silicon Valley jobs on south end u Sufficient right-of-way u Financial needs

4 How will tolls be collected? u All electronic toll collection (no toll booths). u Same technology as the current Fastrak system used for collection on all San Francisco Bay Area bridges.

5 How does a driver know where to enter or exit the HOV/HOT lane? u Combined HOV/HOT lane will be separated form the regular freeway lanes by solid double yellow stripes. u Vehicles may legally enter or exit the HOV/HOT only at designated locations, where there is a gap in the solid stripes.

6 How will it be enforced? u Enforcement will be primarily done by California Highway Patrol. u A light will flash on an overhead reader indicating when a toll-paying vehicle is using the lane. u Enforcement will be supplemented with video surveillance cameras as deterrent.

9 How will toll levels be set? u Highest toll during peak-periods, lower shoulder and off-peak, nominal nighttime u Tolls will be adjusted up or down periodically depending on demand u Toll adjusted to ensure the combined HOV/HOT lane is never congested u HOVs always ride for free

10 Toll –setting methodology u Begin with travel demand forecasts from regional model with no tolls u Using ECONorthwest Toll Optimization Model (TOM), derive first-run toll structure u TOM solves for tolls that meet efficiency, revenue maximization, throughput or other desired goals, interacting with regional model u Adjust toll levels and hourly traffic volumes for tolled and untolled lanes until efficiency criteria are optimized

11 Toll-setting methodology u Users’ toll/non-toll decision based on tradeoff between travel time savings and paying toll u Importance of continuous distribution of users value-of-time for toll-setting u Account for peak-spreading over time u 5 toll levels: 2 peaks, 2 shoulders, off-peak u 2+ & 3+ carpool policies tested; with and without intermediate access

12 Peak Toll Levels in 2006 (2002 $) 2+ carpool 3+ carpool Southbound (AM peak) $3.13 ($0.22 /mile) $4.04($0.29/mile Northbound (PM peak) $4.62($0.33/mile$5.23($0.37/mile)

13 How much will the toll be? u Expected starting peak toll between $3.00 and $4.00 u Toll will be adjusted up or down depending on demand u Toll adjusted to ensure the combined HOV/HOT lane is never congested

14 Gross HOT Lane Revenues u Total revenues –Tolls would generate between $6.3 and $14.7 million in revenues in 2006; between $12.3 and $31.9 million in u For all Alternatives, carpool policy has dramatic effect on revenue –HOV 3+ policy generates significantly more revenue.

15 Net Operating Income u At realistic 4 % discount rate, 20-year net present value of operating incomes (million 2002 dollars), for 2+ and 3+ carpool policies and with and without intermediate access (IA) HOV 2+ HOV 3+ No IA $142$207 IA$83$228

16 How will toll revenues be spent? u Pay for HOT lane operations u Improved bus service on I-680 corridor u Capital improvements on I-680 corridor

17 What will we learn from the demonstration project? u Do drivers see HOT lane as worthwhile? u How much are they willing to pay? u How many vehicles and people can move through the corridor? At what speeds? u Can smooth traffic flow be maintained? u How much revenue will be generated? u Will it be perceived as fair?

18 What are the challenges? u Enforcement & toll collection effectiveness u Impact on HOVs u Constraint on access to HOV/HOT lane u Institutional arrangements/management u Bay Area drivers’ unfamiliarity with toll roads and restricted access HOV lanes

19 Other Northern California Studies u I-880 commercial vehicles u Sonoma/Marin US 101 HOT Lanes u Santa Cruz Highway 1 u Bay Bridge Congestion Pricing