# Presentation: 212716

## Tolling and Pricing Opportunities

- Under the Federal-aid Highway Program
- January 2006

## Overview

- Background
- Programs
- The Tolling and Pricing Team
- An Expression of Interest
- The Website

## Background

- SAFETEA-LU provided more authority to toll and price motor vehicles:
- To finance construction/reconstruction
- To promote efficient use of highways
- To reduce traffic congestion
- To improve air quality
- Six programs are now available.
- FHWA Office of Operations is lead for coordinating all programs.

**Notes:**
Continued existing opportunities 
Created new opportunities

## Six Programs

- Express Lanes Demonstration Program:wayne.berman@fhwa.dot.gov
- High Occupancy Vehicle Facilities: jessie.yung@fhwa.dot.gov
- Value Pricing Pilot Program:patrick.decorla-souza@fhwa.dot.gov
- Interstate System Construction Toll Pilot Program: greg.wolf@fhwa.dot.gov
- Interstate System Reconstruction & Rehabilitation Pilot Program: greg.wolf@fhwa.dot.gov
- Section 129 Toll Agreements: greg.wolf@fhwa.dot.gov

## The Tolling and Pricing Team

*Coordinates* programs within FHWA
*Reviews* all “Expressions of Interest”
*Directs* public entity to the “best fit”
*Helps* to promulgate final rule on ETC
*Supports* FHWA program offices
*Coordinates* with FHWA field
*Establishes* performance goals, monitors achievements, and assists with any required reports to Congress

**Notes:**
The team does not approve.  Approval rests with the program offices

## An “Expression of Interest”

- Received by the Tolling and Pricing Team
- Presents the Who, What, Where, When, How, and Why
- Helps the Public entity briefly articulate project request and understand all opportunities
- Helps “Team” manage programs and available slots
- Can be prepared and submitted electronically using template

## The Website

- _[http://www.ops.fhwa.dot.gov/tolling_pricing/index.htm](http://www.ops.fhwa.dot.gov/tolling_pricing/index.htm)_
- Programs
- Resources
- Tolling and Pricing Team
- Questions and Comments
- Submit an Expression of Interest

## The Express Lanes Demonstration Program

- Wayne Berman,
- FHWA Office of Operations

## Express Lanes Demonstration Program: Section 1604 (b)

- Allows for 15 Demonstration Projects
- Goals:
- Reducing traffic congestion
- Improving air quality
- Financing expansion
- Eligible Facilities
- An existing facility that collects tolls
- An existing facility that serves HOV’s
- A facility modified or constructed to create additional tolled lane capacity
- A new lane on a non-tolled facility

## Express Lanes Demonstration Program: Section 1604 (b)

- Allows tolling new or existing Interstate highway, bridge, or tunnel facilities
- Variable pricing is required for tolling new or existing lanes
- Use of Revenues:
- Debt Service
- ROI for any private financing
- Operation or maintenance
- Public entities or public-private partnerships are allowed to participate

## Express Lanes Demonstration Program: Section 1604 (b)

- Automation – Tolls must be collected using non-cash electronic technology
- Interoperability Rule: The Secretary must promulgate a final rule that specifies standards, requirements, or performance specifications on automatic toll collection systems used under this program (I.e. Sec 1604 (a, b, & c)

## SAFETEA-LU Section 1121: HOV Facilities

- Jessie Yung,
- FHWA Office of Operations

## SAFETEA-LU Section 1121: HOV Facilities

- Replaces Section 102 (a) of 23 U.S.C. with a new Section 166.
- Occupancy requirement is unchanged.
- No fewer than 2 occupants per vehicle may be required with a few exceptions.

## Exceptions

***Motorcycles and bicycles***
- Inherently Low-Emission Vehicles (9/30/2009)
- Public transportation vehicles
- High occupancy toll vehicles
- Low emission and energy-efficient vehicles (9/30/2009)

## HOT Lanes

- States permitted to create HOT lanes
- Establishes a toll program
- Automatically collect toll
- Varying toll amount based on demand
- Low emission and energy-efficient vehicles may be tolled

## Certification

- Performance Monitoring and Enforcement Programs
- Limit or discontinue use of the facility by exempted vehicles if facility is degraded.
- Annual certification

## HOV Operational Performance

- HOV facility management, operation, monitoring and enforcement
- 45 MPH for HOV facility with a speed limit of 50 MPH or greater
- Not more than 10 MPH lower for facility with speed limit less than 50 MPH
- Maintain a minimum average operating speed 90% of time over a consecutive 180-day period during peak periods.

## Rulemaking

- EPA Administrator must issue a final rule establishing requirements and guidelines for certification of vehicles as low emission and energy-efficient vehicles by February 6, 2006.

## Next Step

- Revised Federal-Aid Highway Program Guidance on HOV Lanes will be published in Federal Register for public comment.

## The Value Pricing Pilot Program

- Patrick DeCorla-Souza
- FHWA Office of Policy and Governmental Affairs

## Background

- Congestion Pricing Pilot Program authorized through ISTEA in 1991.
- Value Pricing Pilot Program authorized through TEA-21 in 1998.
- Reauthorized under SAFETEA-LU in 2005.

## Why? 

- Reduce congestion
- Enhance efficiency of the transportation system
- Promote state and local efforts to test and implement innovative pricing approaches

## Demand Management vs. Financing 

| Demand Management | Financing |
| --- | --- |
| HOV to HOT
Value Pricing Pilot
Express Lanes | Section 129, USC
Interstate Pilots for  Reconstruction  and for Construction |

## Program Funding

- $11 Million in FY2005
- $12 Million in FY2006-2009 (each year):
- $3 Million for projects not involving tolls
- 80% Federal share, with 3 years (max.) support per project
- To support:
- pre-implementation
- implementation
- evaluation

## Program Slots

- 15 state and local value pricing programs allowed
- 14 states are currently participating
- Each state may have an unlimited number of projects
- Projects may include tolls on Interstate highways

## Project Types: Tolling

- Comprehensive applications:
- areawide
- multiple facilities
- Shifts from fixed to variable tolls
- Q-jumps
- Pricing to supplement or supplant tax-based funding
- Credit-based pricing:
- FAIR Lanes, FAIR Highways, FAST Miles, other

## Projects Not Involving Tolls

- Parking pricing:
- Pricing of curb space
- Employee parking “cash out”
- Parking taxes in congested areas
- Pay-as-you-drive pricing:
- Insurance
- Vehicle ownership
- Carsharing
- Per-mile leases

## Deadlines for FY 2006 Funding

- Expression of Interest:
- January 31
- Full proposal:
- March 31

## Interstate System Construction Toll Pilot Program

- Greg Wolf
- FHWA Office of Infrastructure

## New program in SAFETEA-LU, 1604 (c)
Allows 3 new Interstate facilities to be tolled
Used to fund new construction
Tolling must be the most efficient & economical way to advance the project

- New program in SAFETEA-LU, 1604 (c)
- Allows 3 new Interstate facilities to be tolled
- Used to fund new construction
- Tolling must be the most efficient & economical way to advance the project

## Separate pilot facilities may be in the same State
Interstate compact of States may be formed to advance multi-State projects

- Separate pilot facilities may be in the same State
- Interstate compact of States may be formed to advance multi-State projects

## Interstate System Reconstruction & Rehabilitation Pilot Program

- Greg Wolf
- FHWA Office of Infrastructure

## Continues unchanged from TEA-21
Allows 3 existing Interstate facilities (highway, bridge, or tunnel) to be tolled
Facilities must be in separate states

- Continues unchanged from TEA-21
- Allows 3 existing Interstate facilities (highway, bridge, or tunnel) to be tolled
- Facilities must be in separate states

## Used to fund reconstruction or rehabilitation
Facility could not be maintained or functionally improved without toll revenues

- Used to fund reconstruction or rehabilitation
- Facility could not be maintained or functionally improved without toll revenues

## Section 129 Agreements

- Greg Wolf
- FHWA Office of Infrastructure

## Sec. 129 Tolling Authority 

- 23 USC Section 301 prohibits the tolling of highways constructed with Federal-aid funds.
- Exceptions to Section 301 are provided in 23 USC Section 129...

## Sec. 129 Tolling Authority 

- Initial construction, except Interstate
- Reconstruct or rehab. on existing toll facilities
- Reconstruct or replace free bridges and tunnels
- Reconstruct free highways, except Interstate
- Feasibility studies of above

*Five Toll activities eligible for Federal**funding under 23 USC 129:*

## Sec. 129 Tolling Authority 

*If Federal-aid funds are used for**construction activities**under Section 129,**a *_*Toll Agreement*_* is required.*

## Sec. 129 Tolling Authority 

- Debt service
- Reasonable return on investment
- Costs for proper operation and maintenance of the toll facility

*Toll Agreement Requirements *

- Toll revenues will _first_ be used for:

## Sec. 129 Tolling Authority 

*Toll Agreement Requirements *

- Excess toll revenues can be used for any Title 23 eligible projects, 	*if ...*The State certifies annually that the tolled facility is being adequately maintained.

## Summary

- Express Lanes Demonstration Program:wayne.berman@fhwa.dot.gov
- High Occupancy Vehicle Facilities: jessie.yung@fhwa.dot.gov
- Value Pricing Pilot Program:patrick.decorla-souza@fhwa.dot.gov
- Interstate System Construction Toll Pilot Program: greg.wolf@fhwa.dot.gov
- Interstate System Reconstruction & Rehabilitation Pilot Program: greg.wolf@fhwa.dot.gov
- Section 129 Toll Agreements: greg.wolf@fhwa.dot.gov

## For More Information

- _[http://www.ops.fhwa.dot.gov/tolling_pricing/index.htm](http://www.ops.fhwa.dot.gov/tolling_pricing/index.htm)_