1. TRB Transportation Planning Applications Conference Incorporating Pricing Strategies US Department of Transportation www.fightgridlocknow.gov Incorporating Pricing Strategies into the NEPA Project Development Process Patrick DeCorla-Souza Federal Highway Administration TRB Transportation Planning Applications Conference May, 2007

2. TRB Transportation Planning Applications Conference Incorporating Pricing Strategies US Department of Transportation www.fightgridlocknow.gov Reducing Demand with “ Substitutes ” Alternative modes ▫ Transit - fare reductions, service improvements ▫ Ridesharing – HOV time and cost advantages ▫ Convenience – pre-trip and on-trip traveler information Alternative destinations ▫ Telecommuting Alternative times ▫ Flextime, staggered work hours

3. TRB Transportation Planning Applications Conference Incorporating Pricing Strategies US Department of Transportation www.fightgridlocknow.gov Reducing Demand with Congestion Pricing Combine “ push ” with “ pull ” strategies ▫ Toll SOV in peak periods ▫ Free service for HOV, park-and-ride, etc. ▫ Reduced transit fare, frequent service, etc. Examples: ▫ Bridge pricing - Bay area and NYC: HOV toll discounts ▫ Cordon pricing – Stockholm and London ▫ Expressway pricing - Singapore ▫ Parking pricing – Southern California

4. TRB Transportation Planning Applications Conference Incorporating Pricing Strategies US Department of Transportation www.fightgridlocknow.gov Need Both “ Pull ” and “ Push ” for Success in Reducing Demand “ Pull ” strategies are necessary but not sufficient: ▫ Reduction in delays due to such shifts will cause “ replacement ” of reduced traffic by those who had previously been deterred by congestion To ensure that congestion does not return – total user-borne cost for driving must stay the same Delay “ cost ” must be replaced by money cost – a congestion toll

5. TRB Transportation Planning Applications Conference Incorporating Pricing Strategies US Department of Transportation www.fightgridlocknow.gov Congestion Pricing Potential Traffic reduction: ▫ 15% in London ▫ 20% in Stockholm ▫ 71% of eligible motorists shifted time of travel at least once a week to get toll discounts in Ft. Myers, Florida In Singapore, expressway traffic flows freely in the peak periods 95% of the time

6. TRB Transportation Planning Applications Conference Incorporating Pricing Strategies US Department of Transportation www.fightgridlocknow.gov I-66, Northern VA - March 5, 2007 5:00 a.m. 6:00 a.m. 8:00 a.m. 9:00 a.m. 7:00 a.m.

7. TRB Transportation Planning Applications Conference Incorporating Pricing Strategies US Department of Transportation www.fightgridlocknow.gov Preventing Flow Breakdown with Congestion Pricing Toll “ price ” to manage demand for use of freeway: ▫ Does not waste a resource (time) as in ramp metering ▫ Toll cost is not a “ wasted ” resource – revenue can be used to reduce taxes, pay for alternative modes, or generate additional benefits Main issues: ▫ Motorist may decide to divert to alternative routes ▫ But if lost throughput is regained, this will not increase congestion -- total vehicle throughput and speed will actually increase (e.g., I-66 example)

8. TRB Transportation Planning Applications Conference Incorporating Pricing Strategies US Department of Transportation www.fightgridlocknow.gov Contact Info Patrick DeCorla-Souza, Program Manager, Urban Partnerships, FHWA Tel: 202-366-4076 E-mail: Patrick.deCorla-Souza@dot.govPatrick.deCorla-Souza@dot.gov Web page: www.fightgridlocknow.govwww.fightgridlocknow.gov