**[FY 2003 Value Pricing Pilot Program Grant Awards]{.underline}**

A brief description of each FY 2003 awards categorized by project type
follows along with a table showing grant award amounts. More detailed
descriptions of the proposals follow the table.

## A. Variable Tolls on Existing Free Roads (including Conversion of HOV Lanes to HOT Lanes)

-   The Colorado DOT would implement the first HOT lane project into a
    downtown location, with multiple ingress and egress points.

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-   The Port Authority of New York and New Jersey, in conjunction with
    New Jersey DOT, proposes to study ways to increase the service level
    for buses through more reliable travel times and potentially
    increasing bus ridership by converting a general purpose tolled lane
    to a premium priced lane.

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-   The Virginia DOT would conduct a study to evaluate the feasibility
    of value pricing concepts across the Northern Virginia metropolitan
    area.

## B. Variable Tolls on Added Lanes 

-   Lee County DOT in conjunction with Florida DOT is proposing the
    first test of value priced Queue Jump lanes.

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-   Florida DOT's HOT lanes project in Miami would provide a 20%
    increase in peak hour, peak direction capacity without having to
    widen I-95, by adding a new reversible HOT lane in the median.

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-   Texas DOT's HOT Lane study is expected to show congestion-reducing
    benefits of HOT lanes on a 15-mile stretch of the Northeast Corridor
    in San Antonio.

## 

## C. Variable Tolls on Existing Toll Facilities

-   The Illinois State Toll Highway Authority, in conjunction with
    Illinois DOT, would employ variable pricing incentives to shift
    traffic out of peak travel periods and encourage use of electronic
    toll payment.

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-   The Ohio Turnpike, in conjunction with Ohio DOT, would develop a
    pricing structure to alleviate truck-caused arterial roadway
    congestion, with minimal construction of new bypass routes and
    without substantially increasing turnpike congestion.

  ----------------------- -------------- ---------------- ---------------- ------------------------ -----------------
  **VALUE PRICING PILOT                                                                             
  PROGRAM - FY 2003 GRANT                                                                           
  AWARDS BY PROJECT                                                                                 
  TYPE**                                                                                            

                                                                                                    

  **State**               **Locality**   **Sponsoring**   **Project Type** **Project Description**  **Federal**

                                         **Agency**                                                 **Funds**

  **[Pricing on Existing                                                                            
  Roads]{.underline}**                                                                              

  **Colorado**            Denver         CDOT             Implementation   HOT lane on I-25         \$1,078,474
                                                                           (balance)                

  **New Jersey**          New York       PANYNJ           Feasibility      Express Bus/HOT Lane for \$670,033
                                                          Study            the Lincoln Tunnel       

  **Virginia**            Northern       VDOT             Feasibility      HOT lanes in Northern    \$500,741
                          Virginia                        Study            Virginia                 

  ** **                                                                                             

  **[Pricing on New                                                                                  
  Lanes]{.underline}**                                                                              

  **Florida**             Lee County     Lee County       Study/Impl       Priced Queue Jump Lanes  \$1,069,120

  **Florida**             Miami-Dade Co. FLDOT            Feasibility      HOT lanes on I-95        \$508,000
                                                          Study                                     

  **Texas**               San Antonio    TXDOT            Feasibility      I-35 HOT lane            \$160,000
                                                          Study                                     

  ** **                                                                                             

  **[Pricing on Toll                                                                                 
  Roads]{.underline}**                                                                              

  **Illinois**            Chicago        ISTHA            Study/Impl       Variable tolls on        \$360,000
                                                                           Northwest Tollway        

  **Ohio**                Statewide      ODOT/OTC         Feasibility      Truck Toll Pricing       \$200,000
                                                          Study                                     

                                                                           **GRAND TOTAL**          **\$4,546,368**
  ----------------------- -------------- ---------------- ---------------- ------------------------ -----------------

# Project Descriptions 

# 

# HOT Lane on I-25

**Grantee:** Colorado DOT

# Project: HOT lane on I-25 

FHWA Funds: \$1,078,474

-   [History]{.underline}: A regional feasibility study of HOT lanes
    including HOT lanes on I-25/US 36 was funded with ISTEA funds
    awarded to the State of Colorado under the Congestion Pricing Pilot
    Program. The study concluded that the I-25/US 36 corridor was the
    most feasible location for a pilot demonstration of HOT lanes. The
    total project cost for the feasibility study was \$552,000,
    including \$133,735 in Federal funds. In 2002, CDOT received
    \$1,721,526 toward its request for \$4 million in Federal funds for
    implementation of the project. The amount of \$1,734,474 requested
    in FY 2003 VPPP funds represents the balance of funding. (Total
    project cost estimates were reduced after refinement of the
    proposal).

-   The proposed value pricing program would manage and partially
    alleviate severe congestion during the peak periods, as well as
    yield greater utilization of the I-25 HOV lanes. The plan would
    convert the Downtown Express HOV facility into a HOT lane facility,
    serving additional trips and optimizing the use of the facility.
    This HOT lane facility would feature dynamic pricing of
    single-occupant vehicles (SOV).

-   Toll-paying SOVs would be excluded from access to the facility if
    SOV access were found to depreciate the level of service for HOVs
    and buses.

-   The HOT lanes would be the first demonstration in the United States
    of value pricing directly into and out of a large central business
    district.

[Expected Results/Benefits]{.underline}: This projects would be the
first demonstration of HOT lanes into a downtown location, with multiple
ingress and egress.

# HOT Lanes on I-95 in Miami-Dade County

**Grantee:** Florida Department of Transportation

**Project:** Pre-implementation project for HOT Lanes on I-95 in
Miami-Dade County in Florida

**FHWA Funds:** \$508,000

-   [History:]{.underline} This is a new project.

-   This funding would pay for an investment grade traffic and revenue
    study, market research and outreach efforts and development of
    monitoring and evaluation plans. A preliminary feasibility study was
    already completed with FDOT funds. Funds have not been requested for
    later phases - preliminary design and engineering, and the
    design-build phase.

-   A proposed new lane would be in the median. A moveable zipper
    barrier would permit multiple lane configurations of between two and
    three HOT lanes in the peak direction. The additional lanes would
    use the two existing HOV lanes. The HOT lanes would allow multiple
    ingress and egress points.

-   FDOT hopes to carry out this project via a public-private
    partnership. A private firm or consortium would be selected to
    design, finance, build and operate the HOT lanes. FDOT would make
    use of a non-profit corporation to run the facilities and issue the
    toll revenue bonds. FDOT would not permit a non-compete clause in
    the public-private partnership agreement.

[Expected Results/Benefits:]{.underline} The overall project, which
includes new ramps and several minor improvements to the mixed flow
lanes, would provide a 20% increase in peak hour, peak direction
capacity without having to widen I-95. The project's estimated benefits,
in terms of travel time savings and reduced vehicle operating costs, are
\$3.77 B and the cost is about \$600 M. This produces a very impressive
benefit-cost ratio in excess of 6.0.

**Priced Queue Jump Lanes in Lee County**

**Grantee:** Florida Department of Transportation/Lee County DOT

**Project:** Implementation of Queue Jumps in Lee County Florida

**FHWA Funds:** \$1,069,120

-   [History]{.underline}: This funding would follow on a \$309,280
    grant provided in FY 2000 for a feasibility study of Queue Jumps in
    Lee County, Florida. The feasibility analysis indicated that while
    queue jumps did not appear to be a good candidate for traditional
    toll bond financing, they are nonetheless financially feasible. The
    analysis has shown favorable public acceptance. Lee County DOT and
    FDOT are experienced partners in efforts to introduce pricing.

-   About \$12 million is requested for construction, but has been
    determined to be ineligible for funding from the VPPP. An additional
    \$600,000 for construction engineering inspection also appears to be
    ineligible. The requested funds are for two separate Queue Jump
    projects, with \$1,336,400 requested for the Queue Jump at Summerlin
    Road and San Carlos Boulevard, and \$1,604,000 requested for the
    Queue Jump at Metro Parkway and Colonial Boulevard, plus \$175,330
    requested for outreach efforts.

-   These funds would pay for critical project development and design
    costs. Funds are also requested for Electronic Toll Collection (ETC)
    and Visual Enforcement Systems. Costs for monitoring and evaluation
    efforts and outreach tasks are also included in this request.

-   A Queue Jump is a facility that can be used to bypass points on the
    transportation network where congestion is particularly severe and
    occurs in a predictable pattern. Tolls would vary by time of day and
    would be levied electronically, and would be tied in with the
    County's existing ETC system. A significant characteristic of queue
    jumps is their ability to generate revenue for needed roadway
    improvements while simultaneously contributing to travel demand
    management.

-   Goals of this effort include traffic demand management using
    variable pricing; evaluation of various types of pricing programs;
    information on the impact of pricing at "point" locations; reduced
    emissions from reduced congestion; increased overall effectiveness
    of the County's existing variable pricing program; and fast-tracking
    of infrastructure improvements.

####### [Expected Results/Benefits]{.underline}: These funds would provide for the establishment of the first test of a value priced Queue Jump. Testing this concept and evaluating its effectiveness would provide very useful information for other areas considering priced Queue Jumps. 

### Variable Tolls on Illinois Northwest Tollway

### Grantee: Illinois State Toll Highway Authority

## Project: Variable Pricing on the Northwest Tollway/I-90

#### **FHWA Funds:** \$360,000

-   [History]{.underline}: This is a new project. The Tollway has
    experienced considerable growth in traffic volumes. In 2001, the
    Authority explored restructuring as a result of the Governor's
    recommendation to eliminate all tolls.

-   The Illinois Tollway Authority is evaluating variable toll options
    for the eastern section of the Northwest Tollway, approximately 25
    miles in length. The purpose of the project is to evaluate potential
    variable pricing strategies that could be used as tools to manage
    travel demand on the Northwest Tollway.

-   The study will include extensive market research and outreach,
    traffic and socioeconomic impact analysis, and identification of
    alternative pricing strategies. A final implementation phase will
    establish variable pricing on designated Tollway facilities.

[Expected Results/Benefits]{.underline}: The study is expected to
determine how to provide pricing incentives to shift traffic out of peak
travel periods and encourage use of ETC. Benefits would include improved
travel times and reduced delays on the Tollway.

### Express Bus/ HOT Lane Study for the Lincoln Tunnel

### Grantee: New Jersey DOT

## Project: Express Bus/HOT Lane Study for the Lincoln Tunnel

#### **FHWA Funds:** \$670,033

-   [History]{.underline}: The Port Authority of New York and New Jersey
    (PANYNJ) implemented variable pricing on the major crossings over
    the Hudson River in 2001. The Value Pricing Pilot Program is
    currently funding a monitoring and evaluation study to analyze the
    impacts of the variable pricing structure.

-   The objective of this proposal is to determine whether value pricing
    might be used to allow non-bus traffic to use the excess capacity of
    a potential second Exclusive Bus Lane on NJ Route 495 leading to the
    Lincoln Tunnel and Midtown Manhattan.

-   This study will consider whether pricing is an appropriate mechanism
    to manage the demand of non-bus traffic wishing to take advantage of
    the reliability and the improved service levels on the new bus lane.

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-   This project will evaluate an array of pricing alternatives that
    allow a vehicle mix that ensures a travel time advantage in the new
    managed lane, while also improving overall passenger throughput and
    travel time reliability during the weekday a.m. peak period.

[Expected Results/Benefits]{.underline}: The major benefit of this study
is in the increased service level for buses through more reliable travel
times. This enhanced service would meet increased demand for buses and
may potentially increase bus ridership.

### Truck Toll Pricing on Ohio Turnpike

### Grantee: Ohio Department of Transportation

## Project: Study of turnpike truck toll discounts to alleviate arterial roadway congestion

#### **FHWA Funds:** \$200,000 

-   [History]{.underline}: This is a new proposal.

-   Truck use on the Ohio Turnpike is low relative to total truck travel
    in the corridor that encompasses both the turnpike and many parallel
    arterial roadways. As a result of the recent expansion of the
    turnpike, turnpike capacity is underutilized. By contrast, parallel
    State routes are more congested, and some of these routes carry
    30-50% trucks.

-   The proposal clearly shows the link between arterial congestion and
    the turnpike tolls and cites a study finding that 70% of truck
    drivers using an arterial roadway through one town are doing so to
    avoid a turnpike toll.

-   Because of arterial truck traffic, local government officials have
    been pressuring the State to build bypass roadways around their
    towns. The proposal estimates the cost to construct all requested
    bypasses would exceed \$100 million. This study would explore
    turnpike truck toll discounts as an alternative to, or at least a
    means to reduce the need for, construction of bypasses.

-   Project goals are to identify whether value pricing can attract
    traffic from parallel routes onto the turnpike, and to develop and
    recommend a pricing strategy to encourage trucks to use the less
    congested Ohio Turnpike.

-   The project includes substantial public outreach and participation
    by government and non-governmental organizations.

[Expected Results/Benefits]{.underline}: A pricing structure would be
developed to alleviate truck-caused arterial roadway congestion with no
or minimal construction of new bypass routes and without substantially
increasing turnpike congestion.

### HOT Lanes on I-35

### Grantee: Texas DOT

## Project: I-35 HOT lane study

#### **FHWA Funds:** \$160,000

-   [History]{.underline}: The San Antonio district of the Texas
    Department of Transportation (TxDOT) is evaluating managed lane
    options for a 15-mile section of the Northeast Corridor (I-35).
    Public involvement has been a key in developing I-35 project to
    date. Pre-project studies have provided some guidance in developing
    managed lanes, including incorporation of value pricing. Although
    TxDOT is an existing partner with value pricing projects in Dallas
    and Houston, this is San Antonio's first request for VPPP funds.

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-   The purpose of the project is to evaluate potential operating
    strategies, including value pricing, that could be used as tools to
    manage travel demand on I-35. Alternative pricing scenarios can be
    utilized to allow certain user groups into the managed lanes at
    different stages over the facility's life.

-   Implementation of managed lanes is highly likely, as it is already
    part of the planned freeway expansion project.

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-   Plans for additional public input (via public meetings and
    individual stakeholder meetings) are planned.

[Expected Results/Benefits]{.underline}: The I-35 HOT lane study is
expected to show congestion-reducing benefits on a 15-mile stretch of
the Northeast Corridor.

### HOT Lanes in Northern Virginia

### Grantee: Virginia DOT

## Project: Regional Value Pricing Evaluation Study

#### **FHWA Funds:** \$500,741 (\$843,040 requested)

-   [History]{.underline}: This is a new project. Recently a referendum
    proposed on the ballot in Northern Virginia to increase the sale tax
    in the region failed leaving the region searching for innovative and
    creative methods for addressing their critical transportation needs.

-   The Virginia Department of Transportation's regional study and
    public outreach plan will determine where value pricing applications
    are reasonable. The purpose of the project is to evaluate potential
    value pricing options that could be used as tools to manage travel
    demand in the region and reduce the need for vehicle use.

-   The region currently has an extensive network of HOV lanes and
    significant rail and bus services. While the HOV lanes in some
    corridors are highly successful, there are corridors where HOV lanes
    operate well below capacity.

-   While the study as proposed will evaluate corridors throughout the
    region. The Capital Beltway (I-495) will receive particular
    attention in light of the results of the recent Environmental Impact
    Study and VDOT's consideration of a proposal to implement HOT lanes
    on I-495 under Virginia's Public Private Transportation Act.

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-   This study will focus a significant amount of effort in educating
    the public about pricing. An effective public outreach component is
    integral to successfully implementing pricing.

[Expected Results/Benefits]{.underline}: This study will ultimately lead
to potential implementation of value pricing concepts across the
Northern Virginia metropolitan area.

#