1. Tolling and Pricing Opportunities Under the Federal-aid Highway Program January 2006

2. Overview Background Programs The Tolling and Pricing Team An Expression of Interest The Website

3. 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.

4. 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

5. 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

6. 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

7. 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

8. The Express Lanes Demonstration Program Wayne Berman, FHWA Office of Operations

9. 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

10. 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

11. 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)

12. SAFETEA-LU Section 1121: HOV Facilities Jessie Yung, FHWA Office of Operations

13. 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.

14. 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)

15. 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

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

17. 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.

18. 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.

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

20. The Value Pricing Pilot Program Patrick DeCorla-Souza FHWA Office of Policy and Governmental Affairs

21. 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.

22. Why? Reduce congestion Enhance efficiency of the transportation system Promote state and local efforts to test and implement innovative pricing approaches

23. 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

24. 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

25. 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

26. 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

27. 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

28. Deadlines for FY 2006 Funding Expression of Interest: January 31 Full proposal: March 31

29. Interstate System Construction Toll Pilot Program Greg Wolf FHWA Office of Infrastructure

30. Interstate System Construction Toll Pilot Program 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

31. Interstate System Construction Toll Pilot Program Separate pilot facilities may be in the same State Interstate compact of States may be formed to advance multi-State projects

32. Interstate System Reconstruction & Rehabilitation Pilot Program Greg Wolf FHWA Office of Infrastructure

33. Interstate System Reconstruction & Rehabilitation Pilot Program Continues unchanged from TEA-21 Allows 3 existing Interstate facilities (highway, bridge, or tunnel) to be tolled Facilities must be in separate states

34. Interstate System Reconstruction & Rehabilitation Pilot Program Used to fund reconstruction or rehabilitation Facility could not be maintained or functionally improved without toll revenues

35. Section 129 Agreements Greg Wolf FHWA Office of Infrastructure

36. 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…

37. Sec. 129 Tolling Authority 1. Initial construction, except Interstate 2. Reconstruct or rehab. on existing toll facilities 3. Reconstruct or replace free bridges and tunnels 4. Reconstruct free highways, except Interstate 5. Feasibility studies of above Five Toll activities eligible for Federal funding under 23 USC 129:

38. Sec. 129 Tolling Authority If Federal-aid funds are used for construction activities under Section 129, a Toll Agreement is required.

39. 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:

40. 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.

41. 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

42. For More Information http://www.ops.fhwa.dot.gov/ tolling_pricing/index.htm http://www.ops.fhwa.dot.gov/ tolling_pricing/index.htm