1. Jeffrey F. Paniati Associate Administrator for Operations Federal Highway Administration Department of Transportation Enabling Congestion Pricing in the United States ITS World Congress and Exhibition on Intelligent Transport Systems and Services London, UNITED KINGDOM October 2006 SS 12 – “Strategies for Future Funding: Enabling Road Pricing and Congestion Management”

2. 2 Presentation Outline Congestion in the U.S. Congestion Pricing as a solution U.S. Congestion Initiative - Moving forward on pricing

3. 3 Congestion on I-95 in Northern Virginia Crisis of Congestion: A Tax on the Nation Commuting costs: Each motorist stuck in traffic wastes on average 47 hours and 30 gallons of fuel every year – at a cost of $800 per person annually. Quality of life: Reduced air quality, less time with family and friends. Productivity: Delays to trucks and unreliability of delivery times increase costs for businesses and reduce economic competitiveness.

4. 4 Over the past 20 years, the number of hours lost each year by an average driver to congestion increased from 17 to almost 50. In the 13 largest cities, drivers now spend the equivalent of almost 8 work days each year stuck in traffic. Annual Hours Lost to Congestion Per Peak Hour Driver Very Large Metro Areas, 1983 v. 2003* Philadelphia Hours 100 80 60 40 20 0 1983 2003 Atlanta Washington Dallas LA/Long Beach Chicago San Francisco Detroit Miami Boston New York Phoenix Houston City Average Crisis of Congestion: Wasted Hours

5. 5 Sources of Highway Congestion Source: “ Traffic Congestion and Reliability;” FHWA (September, 2005)

6. 6 Challenges in Reducing Highway Congestion The price of highway travel (gas taxes, registration fees, etc.) bears little or no relationship to the cost of congestion. Unlike other public utilities, the public expectation is that the “service” is free or does not change with changes in demand. The highway industry has a long tradition of infrastructure building and has only recently begun to embrace the importance of system management and operations.

7. 7 1.Relieve urban congestion. 2.Unleash private sector investment resources. 3.Promote operational and technological improvements. 4.Establish a “Corridors of the Future” competition. 5.Target major freight bottlenecks and expand freight policy outreach. 6.Accelerate major aviation capacity projects and provide a future funding framework. A Six Point Plan

8. 8 Peak period throughput, CA SR-91, priced vs. unpriced lanes Congestion Pricing: An Overview A charge that varies by traffic volumes or time of day. It shifts discretionary travel to off-peak. It increases vehicle throughput. Single most viable approach to reducing congestion - positive results both here in the U.S. and around the world. Reducing peak period travelers by just 3-8% can reduce delays by up to 50%.

9. 9

10. 10 Express Toll Lanes Example: SR 91, Orange County, CA

11. 11 Express Toll Lanes Have Worked SR 91: Toll-payers save 20-30 minutes. Trip time is reliable.

12. 12 Express Toll Lanes Have Worked SR 91: HOT lanes carry more vehicles per lane.

13. 13 HOV to HOT Conversion San Diego, I-15 Eight miles, two reversible lanes. Tolls vary dynamically. Ensures free- flowing traffic.

14. 14 HOV to HOT: Public Opinion I-15 70% approval for existing HOT lanes. 84% favor HOT lanes extension. Considered “fair.”

15. 15 Variable Tolls on Toll Facilities Examples: New York’s water crossings. Ft. Myers bridges.

16. 16 Variable Tolls on Toll Facilities Have Worked Midpoint Bridge Ft. Myers, FL -20% -15% -10% -5% 0% 5% 10% 15% 20% 6:00 AM6:30 AM7:00 AM7:30 AM8:00 AM8:30 AM9:00 AM9:30 AM 10:00 AM10:30 AM11:00 AM11:30 AM 12:00 PM12:30 PM 1:00 PM1:30 PM2:00 PM2:30 PM3:00 PM3:30 PM4:00 PM4:30 PM5:00 PM5:30 PM6:00 PM6:30 PM7:00 PM Time of Day Percent Change in Traffic During Each Half-Hour Discount Other Peak

17. 17 Challenges with Pricing Strategies: Public Acceptance Public acceptance issues: –Geographic, income, and user equity. –Public attitudes – double taxation, tolling existing lanes, trust in government to use revenues “wisely.” Strategies to address issues: –Toll discounts or credits based on income. –Reduce existing tax burdens. –Increase public understanding of traffic management benefits.

18. 18 Challenges with Pricing Strategies: Technical Issues: –Costs and financial feasibility –Enforcement –Traffic operations Strategies to address issues: –Improve financial feasibility by tolling some existing capacity. –If all vehicles pay, enforcement is easier. –New technologies are helping solve operations and enforcement concerns.

19. 19 Moving Forward: Urban Partnership Agreements The Objective: To advance the U.S. Congestion Initiative by enabling cities to systematically progress towards implementation of broad congestion pricing over the course of the next three years.

20. 20 US DOT Congestion Mitigation Initiative - Urban Partnerships Four components: –Broad congestion pricing –New or expanded bus rapid transit –Expanded telecommuting/flexible work schedules –Technology/operations strategies Plus: –Expedited completion of key capacity projects

21. 21 Moving Forward through the Value Pricing Pilot Program Target Projects: Pricing of existing major roadways in a broad area Priced Managed Lane Networks Cordon Pricing Parking Pricing Phases: Constituency Building/Public Outreach Project Development/PPP Implementation/Evaluation

22. 22 Moving Forward with HOT Lanes and Express Toll Lanes Target Projects: Existing HOV lanes that are underutilized. Existing HOV lanes that have degraded service levels due to high traffic volumes. Proposed new HOV lanes. Proposed freeway expansion projects.

23. 23 “ Congestion is not a fact of life. We need a new approach, and we need it now.” Secretary of Transportation Norman Y. Mineta May 2006