1. Part 2: Congestion Pricing Policy Development

2. Addressing Public Concerns and Key Strategies for Success
Presentation 4: Public Concerns
Addressing Public Concerns and Key Strategies for Success

3. Overview 10 most frequent public concerns
What you can do to get acceptance:
Communicate
Design appropriate policies to address concerns
Key ingredients for success

4. 10 Key Public Concerns 1. It will be ineffective
6. It will divert traffic
2. It’s just another tax
7. Government cannot be trusted.
3. It’s social engineering
8. It increases cargo transport cost and hurts the economy
4. It hurts the poor.
9. It costs too much to collect tolls
5. It invades privacy
10. It’s unfair double taxation *

5. Congestion Costs Imposed on Others When Flow Breaks Down (per mile of travel)
From 6-7am
From 7-8am
Difference
Traffic flow
2,000 vehicles
Travel time per mile
1 min. (60mph)
3 min. (20mph)
2 min.
Total for 2,000 vehicles
2,000 min.
6,000 min.
4,000 min.
Delay caused to 2,000 veh. per added vehicle
100 more
vehicles*
4,000/100 =40 min.
Monetary value of external costs imposed on others
$8.00**
*Assume that 100 additional vehicles lead to breakdown flow
**Assuming $12 per hour value of time

6. Road Use Costs Per Mile (cents)
Low estimate
High
estimate
Borne by user:
Vehicle operation
Travel time*
Accident insurance
(Subtotal) 20 5
(45) 40 60 10
(110)
External
Noise, air pollution, accidents
Congestion delay imposed on others
800
Social cost 50
910
Assuming $12 per hour value of time

7. Construction Costs for Adding Urban Freeway Lanes vs. Gas Tax
Per mile
For10-mile trip
For 20-mile round trip
Construction cost/ lane
$15 M.
$150 M.
$300 M.
Daily traffic volume in peak periods (5-6 hours/day)
10,000 vehicles
10,000 vehicles
Const. cost per vehicle
$1,500
$15,000
$30,000
Gas tax per vehicle
$0.02
$0.20
Present value of gas taxes paid over 30 years
$62
$620
$1,240

8. Characteristics of a Bold Pricing Approach
Provide reliable and viable travel alternatives including expansion of bus and rail transit services
Introduce as a “trial.”
Provide money-back guarantee
Return surplus to motorists or ensure use of revenue for the benefit of those paying
Provide low-income toll discounts
Optimize traffic signals on arterial system

9. Key Ingredients for Success
Communication: Public that sees congestion as a problem, sees the need for a radical solution, sees road pricing as a viable solution
Policy formulation: Pricing package that is designed to address public concerns
Champions: Politicians who are willing to take a risk
Politicians cannot expect to win popular support for pricing before pricing is introduced. They will need to ride out hostility with the expectation that support will increase once a package has been successfully implemented

10. Involving the Public and Creating Political Champions – Case Study
Presentation 5: Public and Political Outreach
Involving the Public and Creating Political Champions – Case Study
Grassroots and Grasstops
Minnesota’s experience with congestion pricing
The I-394 MnPass HOT lane project

11. Grassroots Public Involvement and Action Research
Market research – understanding
Education – learning
Outreach – involving
Communication – explaining
Marketing – selling
Evaluation – confirming

12. Grasstops Approach It’s the Governor, stupid!
Engage legislative champions
Keep it bipartisan
Take your show on the road
Take them on the road
Look for media opportunities
No question left behind

13. Twin Cities Citizens Jury on Congestion Pricing (1995)
24 randomly selected citizens gathered in St. Paul State Capitol for five days
16 against, 8 in favor of congestion pricing as a way of managing congestion and financing transportation
Congestion not bad enough yet
Congestion pricing not fair – Lexus Lane
Congestion pricing costs too much – raise gas tax instead
Not convinced that congestion pricing will work

14. Minnesota’s Experience with Congestion Pricing
1995 Citizens Jury on congestion pricing
1996 Hwy 212 toll proposal defeated by local veto
1997 I-394 HOV lane buy-in proposal withdrawn
2000 Value Pricing Workshop
2001 Value Pricing Advisory Task Force
“Grass tops” communication plan
2002 I-35W Crosstown pricing proposal considered too complicated by Mn/DOT

16. Minnesota’s Experience with Congestion Pricing
2003 I-394 HOT lane project approved by Legislature and Governor
2004 I-394 Community Task Force
I-394 User Focus Groups
2005 I-394 MnPASS express lanes open
2006 I-394 Phase 2 Task Force – improving transit and throughput

17. I-394 MnPass Project Goals
Improve I-394 efficiency
Maintain free flow speeds in MnPASS lane
Use revenues to improve highway and transit in corridor
Employ new technologies for pricing and enforcement

18. MnPASS User Satisfaction
95% satisfaction with all electronic tolling
85% satisfaction with traffic speed in lane
65% satisfaction with dynamic pricing
65% satisfaction safety of merging
Source: May 2006 survey of 106 MnPASS users

19. MnPASS Acceptance “Good Idea” by Income
What do you think of allowing single drivers to use the carpool lanes by paying a toll?

20. Lessons Learned Political leadership is necessary
Public will support projects if they can see benefits
Pricing projects must work from day one
Effective outreach, education and marketing are critical for success
Pricing projects are more likely to generate support if linked to transit improvements

21. Evaluation of Economic and Financial Feasibility
Presentation 6: Congestion Pricing Concepts
Evaluation of Economic and Financial Feasibility

22. Introduction Congestion pricing concepts
Examples of innovative strategies
Costs, toll rates, revenues and benefits

23. Policy Questions Objectives: Use of revenues:
Congestion relief, revenue, business productivity, quality of life, environment
Use of revenues:
Reduce other taxes, improve public transportation, fix highways or add capacity
Governance/procurement method:
Lead agency, charging policy, investment decisions, private participation

24. Congestion Pricing Concepts (Physical Configurations)
Type
Examples
Point charge
Bridge, tunnel, ramp meter bypass
“Area” charges
Cordon or area
Highway corridor
Some lane(s) only, or full facility
Highway network
Metropolitan region
Highways as well as surface streets *

25. Congestion Pricing Policy (Who is charged and who is exempt?)
Type
Who is charged and who is exempt?
HOT
HOVs exempt
Super HOT (SHOT)
Buses, vanpools, authorized 4-person carpools exempt (Reason Foundation)
Express toll
Buses exempt
FAIR
Any of the above + credits to drivers on congested free lanes
Fast Miles
Monthly budget of credits issued to all drivers *

26. Example: High-Performance Highways
Price whole facility
On congested segments only
During peak (congested) periods only
Complementary strategies
Operations – ramp metering to control merges
Transit – Bus Rapid Transit with potential guided shoulder running or other separated runningway Flextime/telecommuting – to provide time of travel choices
Traveler information – to help traveler make efficient modal choices

27. Advantages Will reduce congestion in the short-term
Advantages relative to pricing of lanes only:
Less right-of-way, pavement and barriers
Capacity per lane is higher
Higher vehicle throughput since all lanes are free flow
Weaving and safety issues avoided
Lower toll due to more supply of premium service
Entire facility is congestion-free

28. Urban Road Pricing Schemes: Costs vs. Revenues
Capital costs
Operating costs
(annual)
Revenues (annual)
London
$180 M.
$360 M.
Stockholm
$260 M.
$26 M.
$105 M.
Singapore
$130 M.
$11 M.
$108 M.

29. Stockholm: Costs vs. Benefits
Investment cost - $262 M.
Net present value of benefits - $1,104 M.
Benefit/Cost ratio - 4.3

30. TRUCE Model Estimates Moderate Congestion Severe Congestion
Extreme Congestion
Travel time index
Avg. peak period speed
Avg. toll for a 10-mile trip
1.39
43 mph
$1.13
1.51
40 mph
$1.36
1.75
34 mph
$1.95

31. Costs for 100-mile Priced Network (million $)
Moderate Congestion
Severe Congestion
Extreme Congestion
Highway:
Capital
O & M (per year)
Annualized
Transit (annual)
TOTAL
$55
$21
$25
$53
$78
$29
$33
$72
$105
$37
$41
$92
$133

32. Revenues and Benefits for 100-mile Network (million $)
Moderate Congestion
Severe Congestion
Extreme Congestion
Costs
Revenues
Surplus
Benefits
B/C ratio
$78
$118
$40
$111
1.4
$105
$196
$91
$194
1.8
$133
$358
$226
$378
2.8

33. Broad Conclusions
High performance highways will be financially self-sufficient
With high levels of congestion
Revenue surpluses will be higher
Benefits will exceed costs by wider margins