I-81 Corridor Improvement Plan Shannon Valentine Secretary of Transportation January 24, 2019

Motor Fuel Tax Revenue and Vehicle Miles Traveled (VMT) Source: CTF Revenue Reporting by DOA; VDOT VMT Report 2200 - DVMT by Maintenance Jurisdiction All Roads, annualized total (VMT reflects calendar year reporting)

Commonwealth Transportation Fund Revenue Updates December 2018 Revenue Forecast $47.2 million net reduction statewide Regional Revenues positive

Transportation Revenue Estimate Updates State Revenue updates during FY 2019 – FY 2024 period Sales Tax on Fuel decreased $56.6 million $45.7 million for the HMOF $10.9 million for the TTF Retail Sales and Use Tax collections forecast increased by $185 million; $93.7 for HMOF and $91.8 million for TTF Expectations for Motor Vehicle Sales and Use Tax were reduced by $175 million over the period Updates of other miscellaneous and dedicated revenues impact total available funding

Revenue Estimate Updates Federal revenue is based on Federal FY 2019 apportionments and assume Obligation Authority levels for the year provided under the FAST Act Current federal budget extension through December 21, 2018, obligation authority provided to Virginia based on portion of the year After FY 2020, assumed federal revenue growth of 1.7 percent “Absent a revenue fix by 2020, the Federal Highway Trust Fund is expected to experience a significant cash shortfall leading to an estimated 51 percent drop in highway obligations from the year before, or from $46.9 billion to $23 billion, and a zeroing out of obligations from the Mass Transit Account in 2021 and 2022.” - Carlos Braceras P.E., President of American Association of State Highway and Transportation Officials; Testimony on November 28, 2018 to U.S. Senate Committee on Environment and Public Works Without congressional action, federal revenues will be reduced in the future

Transportation in Virginia SMART SCALE State of Good Repair VITAL Infrastructure WMATA and Transit

I-81 Corridor Overview – Critical to Movement of Goods in Eastern U.S. Includes TRANSEARCH INSIGHT and VDOT data 2012-2016

I-81 Corridor Operations Plan Delay Makes I-81 Unique

Major Interstate Corridor Funding SMART SCALE vs. Other Resources Regional/Tolls/Other I-64 $397 $1,179 I-66 $2,680 I-77 $5 I-81 $168 I-85 I-95/I-395 $220 $940 Figures in millions

SB971: I-81 Corridor Improvement Plan Review of top problem areas Identification of potential solutions for each problem area and operations plan Prioritization of potential solutions and recommended improvement plan Development of potential financing options Economic impact analysis of tolling

Public Engagement 12 public input meetings 950+ attendees 5 Commonwealth Transportation Board briefings 2000+ comments received from the public

Prioritization of Potential Capital Improvements Focused on capital improvements package of $2.2 billion based on industry capacity feedback – approximately ½ of cost of all improvements Evaluated all potential capital improvements using SMART SCALE-like process with benefits determined as follows: 40% based on person hours of delay 40% based on change in crash frequency 20% based on change in access to jobs

Summary Benefit Results from Prioritized Capital Improvements By deploying $2.2 billion of capital improvements along the I-81 corridor*: Annual vehicle hours of delay will be reduced, on average, by more than 6 million Trucks will capture more than 3.6 million vehicle hours of annual delay reductions Reductions related to construction of capital improvements responsible for more than 90% of these benefits Annual statistical crashes are anticipated to be reduced, on average, by almost 450 across the entire corridor Approximately 29% of the reduction in annual statistical crashes (representing almost 130 crashes) involve an injury * Estimated based on the share of vehicle delays generated by projects included in list of $2.2 B improvements compared to total vehicle delays generated by all improvements considered in the corridor. Estimate includes benefits related to Operational Improvements

I-81 Financing Options Regional Tax Option Rate Revenue Generated Retail Sales and Use Tax 0.7% $105 Regional Fuels Tax 2.1% $60 Tolling Option Rate Revenue Generated Time of Day Tolling with I-81 Commuter Annual Pass Variable $145 * Figures in millions and for FY2020

81 Corridor Improvement Plan Bipartisan draft legislation introduced Creates a framework for establishing dedicated funding source Authorizes CTB to impose tolls Caps on tolls Offers annual pass for autos and small trucks Revenues may only be used for improvements in 81 Corridor Advisory board will be established

On-Going Items Establish Truck Parking Task Force Establish Speed Enforcement Task Force Develop Multimodal Recommendations Plan sets aside $200M to implement the operational improvements and these items