# Presentation: 066629

## Pricing Implications of High Occupancy Vehicle (HOV) Lanes Guidebook 

- June 21, 2007

*This document is confidential and is intended solely for the use and information of the client to whom it is addressed.*

**BRIEFING**

- HOV Pooled Fund Study (PFS)

**Pricing Implications of High Occupancy Vehicle (HOV) Lanes Guidebook **

- Pricing Implication of HOV Lanes Guidebook

## Sections

**Guidebook Study Objectives**
**Baseline Conditions – When Is Conversion to a HOT Lane feasible? **
**Stages Project Development**
**HOT Lane Conversion Issues & Challenges**
**Lessons from the Case Studies**
**Direction for the Future**

- Pricing Implication of HOV Lanes Guidebook

## Sections

**Sections**

**Guidebook Study Objectives**
- Baseline Conditions – When Is Conversion to a HOT Lane feasible?
- Stages Project Development
- HOT Lane Conversion Issues & Challenges
- Lessons from the Case Studies
- Direction for the Future

- Pricing Implication of HOV Lanes Guidebook

## The purpose of this guidebook is to provide state and local practitioners with guidance on the conversion of HOV to HOT lanes

**The purpose**** ****of this guidebook is to provide state and local practitioners with guidance on the conversion of HOV to HOT lanes**

**Study Objectives**
- Explore the implications of converting HOV lanes to HOT lanes
- Identify activities required for successful conversion
- Provide technical guidance to planners and designers
- Provide key lessons learned, best practices
**Research Methodologies**
- Case studies
- Focused interviews
- Strength, Weaknesses, Opportunities and Threats (SWOTs) analysis

- Pricing Implication of HOV Lanes Guidebook

## Sections

**Sections**

- Guidebook Study Objectives
**Baseline Conditions – When is conversion to a HOT lane feasible?**
- Stages of Project Development
- HOT Lane Conversion Issues & Challenges
- Lessons from the Case Studies
- Direction for the Future

- Pricing Implication of HOV Lanes Guidebook

## What is a High Occupancy Toll (HOT) Lane? 

**What is a High Occupancy Toll (HOT) Lane? **

- A HOT lane is a managed lane treatment that is combines two important elements:
- Value pricing
- HOV access
- Why are HOT lanes of so much interest?
- Effective means of congestion mitigation
- Offer more travel choices
- Provide an additional revenue source
- Why are HOT lanes controversial?
- Equity (user and geographic) – perceived to benefit a ‘privileged’ client base
- Perceived to be a double tax

- Pricing Implication of HOV Lanes Guidebook

## Over the past decade, several states have passed legislation supporting HOT lane demonstration projects

- I-15 Express Lanes
- I-25 Express Lanes
- MnPass
- Katy Freeway
- SR-167

**Over the past decade, several states have passed legislation supporting HOT lane demonstration projects**

**HOT Lane Projects In Operation**

- Minneapolis, MN

- Salt Lake City, UT

- Connecticut

- San Diego CA

- Houston, TX

- Atlanta, GA

- Santa Clara County, CA

- Denver, CO

- Orange County, CA

- Seattle, WA

- I-15 Express Lanes (Expansion)
- I-495 Washington DC
- I-75 & I-85 Atlanta
- I-95 Miami
- US-101 (Santa Clara County, CA)
- I-580 (Alameda County, CA)
- I-680 (Sunol Grade)

**Potential Future HOT Lane Sites**

***In addition, there are several states currently considering HOT lanes and undertaking efforts to begin preliminary planning studies.***

- Miami, FL

- Alameda County, CA

- Pricing Implication of HOV Lanes Guidebook

## When does it make sense to convert an existing HOV lane to HOT lane?  

- Local support for road pricing strategies as a means of congestion relief.
- The existing HOV lane facility consists of two lanes (reversible or per direction).
- HOT lanes can be applied to single-lane HOVs with striped buffer separation.

**Federal**
**(****multiple funding programs)**
**$764,978,942**

- HOV lane experiences chronic underutilization.
- The adjacent highway mainline lanes should be at or near capacity during peak periods.
- HOT infrastructure can be retrofitted into existing facilities with minimum physical reconstruction.
- Regional support for pricing demonstration projects as a means of congestion management, which are identified in regional transportation plans.

- Pricing Implication of HOV Lanes Guidebook

## It is important to consider the cumulative net effects resulting from conversion of an HOV lane to HOT lane

- Generate revenue

- Reduce resources available for other actions

- Cost recovery

**Convert HOV Lane to HOT Lane**

- Induce increased travel demand

- Reduce emissions

- Reduce person-delay

- Reduce SOV delay

- Pricing Implication of HOV Lanes Guidebook

## Sections

**Sections**

- Guidebook Study Objectives
- Baseline Conditions – When is conversion to a HOT lane feasible?
**Stages of Project Development**
- HOT Lane Conversion Issues & Challenges
- Lessons from the Case Studies
- Direction for the Future

- Pricing Implication of HOV Lanes Guidebook

## Conversion of an HOV lane to HOT lane must proceed through the key stages of project development

**Feasibility Assessment**
**Project Champion**
**Stakeholder Support**
**Develop Conceptual Framework**
**Legislative Action**
**Public Outreach**

**Define Objectives**
**Ensure Stakeholder Understanding**
**Clarify Design**
**Engineering and Design Studies**
**Develop Engineers Cost Estimate**
**Develop Specification**
**Public Outreach**

**Determine Method**
**Prepare Procurement Document**
**Competitive Selection Process**
**Continued  Champion Support**

**Technology**
**Toll Rate Concept**
**Separation Type**
**Ingress / Egress**
**Signage**
**Toll Zone Location**
**Construction and Test**
**Public Information**

**Hours of Operation**
**HOV Use / Fee**
**24/7 Maintenance**
**Account Management**
**Enforcement**
**Violation Noticing**
**Stakeholder and Champion Support**
**Public Information**

**Key Stages of HOT lane Project Development**

- Pricing Implication of HOV Lanes Guidebook

**Notes:**
Technology
Tolls
Enforcement
Toll Rate Concept
Barrier / Buffer Separation
Facility Access
Direct access
Slip ramps
Toll Zone Location
Customer Support
Construction and Test
Public Coordination

## A public outreach program must be integrated into the project development process

**Section:** Funding Requirements and Regulatory Assessment

- Procurement

- Construction

- Operations

- Public
- Outreach &
- Coordination

- Pricing Implication of HOV Lanes Guidebook

## The viability of HOT lane conversion is directly influenced by program goals and objectives

**The viability of HOT lane conversion is directly influenced by program goals and objectives**

- HOT Lane **program goals**:
- Provide congestion relief
- Enhance travel options
- Maximize person throughput
- Generate revenue
- What is the right **operating/ownership model** for the HOT lane?
- How will **negative impacts** (e.g. user equity) be mitigated?
- Concept of Operations – requirements must reflect objectives developed as part of the **goal-setting process**.

***Program Goals***

***Operating Model***

***Impact Mitigation Strategies***

***Concept of Operations***

**Components of a Successful HOT Lane Program**

- Pricing Implication of HOV Lanes Guidebook

## HOT Concept of Operations

- Provide travelers the option to purchase travel time savings
- Lane management objectives
- Regulate lane capacity
- Maintain reliable LOS
- Electronic tolling concepts
- Transponder
- Automated video identification
- Manual enforcement
- Customer account services

- Pricing Implication of HOV Lanes Guidebook

## Sections

**Sections**

- Guidebook Study Objectives
- Baseline Conditions – When is conversion to a HOT lane feasible?
- Stages Project Development
**HOT Lane Conversion Issues & Challenges**
- Lessons from the Case Studies
- Direction for the Future

- Pricing Implication of HOV Lanes Guidebook

## What are some of the biggest challenges associated with HOT lane conversion? 

**What are some of the biggest challenges associated with HOT lane conversion?**** **

- Gaining and building public support.
- Addressing equity concerns.
- HOV and violations enforcement.
- Not creating new traffic problems.
- Maintaining minimum LOS with continued travel growth.
- Pressure to drop the toll exemption for HOVs.
- Can HOT lanes be applied to a single-lane minimum-build context?
- Transitioning from a HOT lane demonstration to an expanded HOT facility with multiple entry/exits.

- Pricing Implication of HOV Lanes Guidebook

## Enforcement of violations on HOT lanes is currently the biggest challenge facing HOT lane operators

- Why is manual enforcement such a challenge?
- How have operators done enforcement?
- All HOT lane users are required to have a transponder and active account.
- All HOT lane operators currently use visual (manual) enforcement
- Video capture of vehicle license plate
- Potential new technologies
- IR occupancy camera able to count occupants by detecting skin – undergoing high speed trials
- In-vehicle occupancy capability with Dedicated Short Range Communication (DSRC)

- Enforcement is critical to the success and effectiveness of HOT lane operations.
- Enforcement strategy and technology implemented must be:
- Reliable
- highly visible, and
- fair

- Pricing Implication of HOV Lanes Guidebook

## Sections

**Sections**

- Guidebook Study Objectives
- Baseline Conditions – When is conversion to a HOT lane feasible?
- Stages Project Development
- HOT Lane Conversion Issues & Challenges
**Lessons from the Case Studies**
- Direction for the Future

- Pricing Implication of HOV Lanes Guidebook

## The three HOT lane projects chosen for the case studies were all converted from HOV lanes

**The three HOT lane projects chosen for the case studies were all converted from HOV lanes**

- Pricing Implication of HOV Lanes Guidebook

## Focused interviews were designed to solicit feedback on key challenges/issues and success variables

**Topic Areas Discussed**

**Focused interviews were designed to solicit feedback on key challenges/issues and success variables**

- Agency interviews were scheduled and performed in February  through May 2007
- The interviews consisted of:
- An overview of Guidebook objectives
- A 45- to 60-minute discussion based on focused questions from a pre-planned interview guide document
- The team then compiled all the notes, data, and responses into a database
- The team then reviewed responses and performed a comprehensive SWOT analysis

**Planning and Policy**
**Public Outreach and Coordination**
**Design Issues and Challenges**
**Implementation and Procurement**
**Management and Operations**

- Pricing Implication of HOV Lanes Guidebook

## The case studies revealed some important best practices and lessons learned 

- Develop an extensive and effective Public Outreach Program at the earliest stages
- Include HOT project in the MPO planning requirements as soon as possible
- Foster a revenue and sharing plan that includes transit when possible to do so
- Use dynamic tolling strategies to control _traffic _lane _volume _capacity.
- Implement an enforcement system that is visible, effective and fair
- Establish 24/7 maintenance services to include an On-Line Maintenance System (MOMs).

- A Political Champion is a MUST to ensure project success
- An Extensive Public Outreach program is critical for success and acceptance politically as well as with the public
- HOT lanes should be implemented as a congestion management tool first and a possible source of revenue second
- Enforcement of occupancy requirements is the most difficult operational challenge
- Understand the impact of creating added capacity to HOV lanes and potentially creating unexpected, new congestion hot spots

**Section:** Interview Methodology and Community Response to IMTS

- Pricing Implication of HOV Lanes Guidebook

## Sections

**Sections**

- Guidebook Study Objectives
- Baseline Conditions – When is conversion to a HOT lane feasible?
- Stages Project Development
- HOT Lane Conversion Issues & Challenges
- Lessons from the Case Studies
**Direction for the Future**

- Pricing Implication of HOV Lanes Guidebook

## Direction for the Future

- HOV conversions being considered by more regions and state DOTs
- Legislatures more proactive with enabling legislation
- Implementations will ‘look’ like Open Road implementations
- All users of HOV / HOT lanes may be required to have a transponder
- Pressure to drop the toll exemption for HOVs a la 91 Express Lanes

- Demonstration of FAIR lanes concept
- Public Private Partnership (PPPs) will become the basic funding method
- Use of Video License Plate capture technology fully integrated with DSRC
- Integrate with regional ITS program
- Implement continuing evaluation of facility performance

- Pricing Implication of HOV Lanes Guidebook

**Notes:**
Inflation?