Toll Revenue Policy: Opportunities for New Revenue and Congestion Management November 16, 2010 Mark F. Muriello Assistant Director Tunnels, Bridges and Terminals

The Port Authority of NY & NJ: Delivering Vital Connections Tunnels and Bridges Holland Tunnel, Lincoln Tunnel. George Washington Bridge, Outerbridge Crossing, Bayonne Bridge, Goethals Bridge Bus Terminals Port Authority Bus Terminal, George Washington Bridge Bus Station, Journal Square Transportation Center PATH Rail Transportation Airports J.F. Kennedy, LaGuardia, Newark Liberty, Stewart Marine Terminals Port Newark, Port Elizabeth, Howland Hook, Brooklyn, Red Hook, Auto Marine, Greenville Economic/Waterfront Development Resource Recovery, Industrial Parks, Teleport, Newark Legal & Communications Ctr, Hoboken The World Trade Center Site

Transportation As A System Integrated operations Demand management Payment choices A view that transportation assets are a system that provide mobility for people and goods manifested through: Investment decisions Asset Replacement Strategic capacity enhancement

Annual Cost exceeds $8 Billion Peak Volumes at Key Links Exceed Capacity Hours of Delay Expected to Grow by 60% in 20 years. Heightened Region-wide Air Quality Concerns Overburdened Freight Routes Hurt Competitiveness Congestion: A Sense of Urgency

Toll Policy Address the Port Authoritys financial capacity to deliver programs. Capacity to deliver the Capital Program. Capacity to address ongoing Port Authority needs (i.e., state-of- good repair, mobility improvements, security, etc.) Capacity required for future regional investments. Address congestion throughout the regional transportation system. Promote equity through a fair distribution of costs to users. Advance a publicly acceptable and supportable program of charges and benefits.

Increase the E-ZPass market share. Encourage shifts to off-peak travel to address peak- period congestion. Encourage mass transit and higher vehicle occupancy. Support commercial vehicle management incentives. Advance discounts that support congestion mitigation. Advance toll rates that are easy to understand and implement. Toll Policy Objectives

PA Auto Toll History 1970 $ $ $ $ $ $ 5.00 $ 4.00$ $ 8.00 $ 6.00$ 8.00 PeakOff-Peak Cash

Auto Tolls CASH All Hours Peak Hours Off-Peak Hours $ 6.00 $ 8.00 $ 8.00 Overnight Hours Peak Hours Off-Peak Hours CASH All Hours $ 7.00 $ 8.00 $ 5.50$ 8.00 Truck Tolls (Per axle) HOV 3+ Carpools:$2.00 per trip Current Toll Rates (Eastbound Direction Only) SIB Discount Program: $4.00 per trip for 20 trips within 35 days. Bus Tolls CASH All Hours All Hours $ 4.00 $ 6.00

Public Communication Plan Wide-ranging customer communications program and materials. Web Site Toll-free Telephone Information Direct Mail Advertisements In-Lane Materials Toll Plaza Handouts

Stakeholder Outreach Elected Officials & Community Groups Business & Industry Groups Special Interests Transportation Interests

Public Hearings in Two States Not a statutory or regulatory requirement. An agency policy to seek input from the general public and interested parties. A balanced schedule of locations and times (including internet sessions) to ensure full representation of the region. Comments also collected through written statements submitted at public hearings, and via US mail and .

The Importance of the Media The importance of using the media effectively cannot be overstated. Newspapers, radio, and television stories and interviews: Ensuring the facts are presented accurately. Keeping the program in the public eye. Informing the public about the needs and objectives. The New Jersey Television Network

Using Employees as Ambassadors Training the workforce: Pricing program information Handling customer complaints Employees given comprehensive program details and explanations: Mailed employee information package. Program updates and details on Port Authority intranet. Staff briefings and newsletters. Employees became part of the communication plan with friends, family, neighbors, civic and community groups, etc.

What Weve Have Accomplished Introduction of meaningful congestion pricing to the NY-NJ region. Growth in E-ZPass market share, allowing higher-speed toll plazas and the first highway- speed bridge toll plaza.

What Weve Accomplished Public Acceptance & Support Outreach to the editorial boards of the major regional newspapers paid tremendous benefits. Most effective means of educating the public and shaping opinion. November 18, 2000 The Cost of Crossing the Hudson … Price hikes are inherently painful, but these are worth applauding, if not demanding, as a matter of fairness and as a means to fight congestion. January 18, 2001 The Case for Hikes … (The Port Authority) has devised a rate change designed to prevent a web of traffic jams from strangling bistate commerce.

What Weve Accomplished Support and advocacy from publicly trusted and respected advocates.

What Do Customers Think? 60% 40% 29% 71% Agree Disagree Agree Disagree Is It Fair To Vary Toll Rates... To Improve Congestion? To Support Public Transit?

Travel Time Flexibility of Customers Small shifts in peak period demand have meaningful congestion benefits. 45% 30%

The Traffic Management Benefits 5-10 AM Pctg. Traffic Distribution

The Traffic Management Benefits 5-10 AM Pctg. Traffic Distribution

The Traffic Management Benefits Percent of Total Truck Traffic

E-ZPass Share: Heavy Trucks Truck participation in E-ZPass has grown significantly since the introduction of time-of-day discounts.

E-ZPass Share: Autos

Transit Ridership Growth Annual Transit Riders

What Does The Public Think? Prefer New Tolls Prefer No New Roads 41% 18% Paying for new road construction…. Source: USA Today, Kelton Research September 13, 2010

The Importance of Toll Finance to States

Tolling Technology Is Transforming Transportation Express Lanes / Open-Road Tolling High-Occupancy Toll (HOT) lanes Private sector investment Non-toll applications (e.g., parking, PierPASS) New toll projects

GO E-ZPASS Driver Feedback Sign (DFS ) and Traffic Light Rear VES Camera Front VES Camera Treadle AVI Antenna Canopy Traffic Light Overhead Vehicle Profiler Mark IV RFID Tag ABC-123 Lane Mode Sign (LMS) SM E-ZPass – How It Works E-ZPass Customers Patron establishes account linked to a tag, which is placed in the vehicle Tag is read in the toll lane Toll is deducted from the Patrons account Image taken of license plate Compared to valid customer list and debited from account Look-up request sent DMV if NOT a customer DMV address information is used to issue a notice of violation to the registered owner of the vehicle Violators

License Plate Look-Up Complexities License Plates Are Complex Multiple Plate Type Codes Duplicate Plates Vanity Plates Contrast between numbers and backgrounds Colors used in the numbers (red is bad) Data Accuracy Change of addresses not submitted by owners in a timely manner Data entry variations Rules Vary for Entering Plate Information What plate characters must be entered How to interpret data on the plate

Electronic Toll Collection: The Evolution of the Toll Industry Development Stages Implementation Stages Electronic Toll Collection Open-Road Tolling All-Electronic Cashless Tolling Electronic Toll Collection Open-Road Tolling All-Electronic Cashless Tolling

Serve and Satisfy An Array of Customers An Interoperable Future: Matching Customers and Payment Methods Customers Come in Various Types…. New Payment Methods and Channels …. So Will the Payment Methods of the Future