1. Convergence of Transportation Policy and RFID Enabler of Future Transportation Policy Chris Body Mark IV Vice President, Business Development

2. Transportation MegaTrends Increased Vehicle Miles of Travel (VMT) – Increased 38 Percent since 1990 Increasing Congestion and Lengthening Commutes Limited funds for Road Capacity Enhancements Privatization/ Concessions are crosscutting issue Is the Gas Tax Dead?

3. Policy Solution - Apply the Invisible Hand Our Transportation, esp. Road, Resources are not allocated efficiently Price Cap = Scarcity = Out of Equilibrium Match cost of driving with cost of congestion No incentives to drive less or use alternate routes or modes GPS & RFID can assist in increasing the funding and spreading demand

4. Mature Technology, Developed Policy –Electronic Tolling, E-ZPass, Fast-Track Mature Technology, Developing Policy –HOT Lanes Mature Technology, Immature Policy –Congestion Pricing

5. Apply Market Incentives in Two Ways For the Consumer Demand for the Infrastructure For the Supply of Roadway Infrastructure

6. Technology Divergence

7. What is a HOT Lane? HOV + Tolls = HOT Lanes Newly Constructed or Converted Managed Facilities Maximizes Existing capacity Increases Throughput Cost Based on Value Pricing –HOVs - free –SOVs - Cost is Congestion Priced Toll Collection Typically Electronic - RFID

8. HOT Lanes

9. HOT Lanes on DC Beltway 14 Miles, 4 lanes in Median of 495 All Electronic Tolling Operational in 2012 Market Driven Variable Tolls

10. The Public Private Partnership VDOT –Will Retain Ownership of Facility –Will Oversee Operation Fluor/ Transurban –Construction –Operate & Maintain –Levels of Service Requirements

11. Plan View – DC Beltway HOT Lanes

12. HOT Lanes in Northern Virginia I-395/ 95 Conversion of Existing HOV Construction of New Facility 56 Mile Reversible Lanes North Operational by 2010 South by 2014 $1B Cost Financed by Variable Tolls Fluor, Transurban

13. 95/ 395 Lane Configuration

14. Future Expansion? I-95 Section 100 In Baltimore* Maryland InterCounty Connnector* Dulles Toll Road HOT Lanes Eastern Beltway Expansion Western Beltway Expansion Maryland Beltway Express Toll Lanes I-270 Express Toll Lanes *- Under Construction

15. Congestion or Cordon Pricing Users must pay a fee to access a downtown area Time Variable and Direction Priced Tests Underway –London –Stockholm –Singapore –Coming to the U.S.? Typically RFID or Camera based

16. Currently in the Field Stockholm - RFID and Camera Based London - Camera Based, for now

17. London Advantage: Transport for London Responsible for All Transportation In London Camera Toll Sites Original Fee $10 - increased to $16 Operating Costs significantly higher than expected Considering switchover to tags for operating efficiency (20¢ vs. 60¢) Expanded Westward in 2007

18. London Congestion Pricing Zone Source: Transport for London

19. THE RESULTS

20. Stockholm: Reduction in Traffic 04/05 – 04/06 -19% -22% -26% -9% -21% Source: City of Stockholm

21. Something For Everyone? Congestion Reduction –London - 30% Reduction in Traffic, Half to other modes Environmental Impact –Stockholm Emissions Down 14% –London CO2 Down 16% NOX Down 8% Particulate Matter Down15% Modal Shift –50-60% to Public Transit –20-30% Around Zone

22. Stockholm - After Test, 53-47 Advisory Vote New Government Working out Plan for a Portion of $$ For Road Improvements Outside of City Expected to be Re-Instated in August of 2007

23. Congestion Pricing – Coming to the U.S. $130M Allocated for Projects in 2007 $175M in Next Year’s budget request Reality – will provide some political cover for local politicians Urban Partnership Agreements

24. New York Proposal $8 to Drive in Downtown District, incl. toll South of 86 th Street FDR Drive and Westside Highway Free Some Vehicles Exempt Challenge: Support from Outlying Boroughs, esp. Queens

25. How Do We Pay for These New Projects Challenge: –Gas Tax is Tapped out –Politicians do not want to raise tax A Solution –Tap Private Sector Equity Markets –In the Form of Public Private Partnerships

26. PPP Financing, An Overview Entity Offers Facility for Concession Title/ Ownership NOT Transferred Performance Requirements –Maintenance –New Capacity –Customer Service –Toll Setting Not New to Transportation – Existing Around the World

27. What Does the Private Sector Bring Infusion of Capital Innovative Financing Innovative Ideas i.e. Marketing Ability/ Desire to Raise Tolls to Market Levels Best Practices

28. “ We Can Build Our Way Out of Congestion… Assuming We Price It Correctly.”

29. Contact Information Chris Body Vice President, Business Development Mark IV IVHS 301-535-1563 cbody@ivhs.com Other Background Information -www.trb-pricing.orgwww.trb-pricing.org -www.ops.fhwa.dot.govwww.ops.fhwa.dot.gov -www.valuepricing.orgwww.valuepricing.org -www.viginiahotlanes.comwww.viginiahotlanes.com