1. Transportation leadership you can trust. Electronic Tolls and Congestion Pricing Study Phase Two Interim Report – Implementation Considerations presented to Connecticut Transportation Strategy Board presented by Cambridge Systematics, Inc. with Urbitran, a division of DMJM Harris/AECOM IBI Group Fitzgerald & Halliday, Inc. Sam Schwartz, PLLC January 15, 2009 presented to Connecticut Transportation Strategy Board presented by Cambridge Systematics, Inc. with Urbitran, a division of DMJM Harris/AECOM IBI Group Fitzgerald & Halliday, Inc. Sam Schwartz, PLLC January 15, 2009

2. 1 Project Goal and Overview Goal Prepare a document that lays out as many options as possible, sets the context for informed decision-making, and provides a knowledge base with respect to tolls and congestion pricing in Connecticut Areas of investigation Concept evaluation −Traffic, revenue, cost −Regional equity −Economics −Environment −Safety Implementation evaluation −Implementation steps −Federal requirements −Public/private partnerships (PPP) −Privacy Phase 2Phase 3 Today

3. 2 Today’s Agenda Overviews of Phase 2 Topics Implementation and legal issues PPP Privacy Public acceptance Summary of Phase 2 Evaluation of Candidate Tolling Concepts Schedule moving forward

4. 3 None of the Tolling Concepts Involve Toll Booths or Stopping Traffic No toll booths No stopping

5. 4 Implementation and Legal Issues

6. 5 Federal Programs Related to Tolling Today Interstate System Construction Toll Pilot Interstate System Reconstruction and Rehabilitation Toll Pilot Express Lanes Demonstration HOV/HOT Lanes Value Pricing Pilot Revenue Use Limited to Roadway XX Conducive to Congestion Pricing XXX Limited Number of Agreements XXXX Network of Facilities Can Qualify XX

7. 6 Federal Programs Related to Tolling Tomorrow? Entirely speculative, but Likely more flexibility for tolling in metro areas Likely more flexibility for states Likely more emphasis on congestion pricing

8. 7 Connecticut Statutes Legislative approval Legislature will need to approve any tolling in the State Determine how revenue will be used (e.g., Special Transportation Fund or new fund) Camera enforcement critical Cameras currently used for public safety only not law enforcement Most tolling concepts require cameras for enforcement/compliance

9. 8 Public/Private Partnerships (PPP or 3P)

10. 9 What is a Public/Private Partnership? The U.S. Department of Transportation defines it this way What does that really mean? A public/private partnership is a contractual agreement formed between public and private sector partners, which allow more private sector participation than is traditional. The agreements usually involve a government agency contracting with a private company to renovate, construct, operate, maintain, and/or manage a facility or system. While the public sector usually retains ownership in the facility or system, the private party will be given additional decision rights in determining how the project or task will be completed.

11. 10 Public/Private Roles in PPP Methods PPP Approach Responsibility for Project Element DesignConstructionMaintenanceOperationsFinancingOwnership Design, Bid, Build Fee-Based Contracting Construction Manager at Risk DB DB-W DBOM DBFO BOT BOO PrivatePublicMixture More Efficient Project DeliveryFinance Public Private Mixture

12. 11 Private Sector Participation? Private Participation Gets Confused with Other Decisions Should Users Pay? Project Selection and Priority?

13. 12 Privacy

14. 13 Privacy Issues and Potential Solutions Issue 1 – Collection of personal information Offer anonymous tags Allow one-off payment/cash payment Less an issue if there’s a nontolled alternative route Issue 2 – Retention of personal information Data encryption and protection policies Data purging policies Issue 3 – Sharing personal information with other parties Clear data access policies Limit access to customer data

15. 14 Public Acceptance

16. 15 Hurdles to Public Acceptance Cost Reluctance to pay for something that was “free” Trust Program must be perceived as efficient and practical Diversion Where will toll revenue go? Equity and fairness Peak period pricing  “Unfair to commuters” Toll express lanes  “Benefits the wealthy”

17. 16 Phase 2 Concept Evaluation

18. 17 Concept A New Toll Express Lanes On Highway Expansions Policy Rationale Pay for new capacity

19. 18 Concept A New Toll Express Lanes On Highway Expansions (continued) Would need Federal approval Well inside of Federal policy Good candidates for PPP Conceptually Public acceptance hurdles likely lower than others Alternative free routes Transit could be subsidized with toll revenue (if there is any)

20. 19 Concept B Border Tolling Major Highways Policy Rationale Have out of state travelers pay a share of the burden of the transportation system

21. 20 Concept B Border Tolling Major Highways (continued) Would need Federal approval Interstate Commerce Issue Nonrevenue risk PPP could be appropriate Privacy issues larger Less alternative free routes Public acceptance more difficult Less alternative free routes Diversion to local roads significant

22. 21 Concept C Truck-Only Tolling All Limited Access Highways Trucks to pay a larger share of highway improvement needs Policy Rationale

23. 22 Concept C Truck-Only Tolling All Limited Access Highways (continued) Would need Federal approval for Interstates Nonrevenue risk PPP could be appropriate Less of a privacy issue Truckers already have reporting requirements Public acceptance more difficult Clear need to show benefit to truckers, or they are likely to oppose Diversion to local roads may be significant

24. 23 Concept D HOV to HOT Lane Conversion Make full use of existing HOV lanes Policy Rationale

25. 24 Concept D HOV to HOT Lane Conversion (continued) Would need Federal approval Already mainstream policy No privacy issue Alternative free routes Public acceptance probably easiest of all options Tested concept No one pays for something that was previously toll-free Excess toll revenue (if there is any) could subsidize transit

26. 25 Concept E Convert Highway Shoulders to HOT Lanes Squeeze more capacity out of existing right-of-way Potential on any limited access facility Policy Rationale

27. 26 Concept E Convert Highway Shoulders to HOT Lanes (continued) Would need Federal approval for Interstates Plenty of precedent PPP Both finance and project delivery opportunities Public acceptance a challenge Safety concerns would dominate

28. 27 Concept F Toll Individual Highways Needing New Capacity and/or Reconstruction Funding for needed improvements Policy Rationale

29. 28 Concept F Toll Individual HighwaysNeeding New Capacity and/or Reconstruction (continued) Would need Federal approval Revenue can only be used for debt service, reasonable return on (private) investment, and O&M on the tolled highway PPP DBOM-type applications More of a privacy issue No choice if you want to continue using the highway Public acceptance more difficult New tolls on existing toll-free roads will be difficult to accept

30. 29 Concept G1 Toll All Limited Access Highways in Connecticut Funding improvements Policy Rationale

31. 30 Concept G1 Toll All Limited Access Highways in Connecticut (continued) Would need Federal approval for Interstates No precedent Current rules require money to stay with highway PPP For project delivery Not for finance Larger privacy issue No choice if you want to continue using the highway Public acceptance even tougher New tolls on existing toll-free roads will be difficult to accept If money used beyond highway where collected on Interstates, currently illegal

32. 31 Revenue for improvements to supplement or replace the motor fuel tax Concept G2 Statewide Tolling on All Vehicle Miles Traveled Policy Rationale

33. 32 Concept G2 Statewide Tolling on All Vehicle Miles Traveled (continued) Would need Federal approval for Interstate No precedent globally PPP For project delivery, not finance Largest privacy issue Nowhere to hide Public acceptance toughest A complete change to the way things are done today But…significant national attention on this potential

34. 33 Concept H Congested Corridor Tolling Use congestion pricing to manage demand and improve traffic flow Sample Corridor Policy Rationale

35. 34 Concept H Congested Corridor Tolling (continued) Would need Federal approval for Interstate No precedent PPP Project delivery, not finance Large privacy issue No choice if you want to continue using the highway Public acceptance tough in corridor Tolling existing toll-free corridors would be a challenge

36. 35 Moving Forward Phase 3 Concept evaluation −Traffic, revenue, cost −Regional equity −Economics −Environment −Safety Mid-January Incorporate into final report Final Report February Present Phase 3 and Final Report to TSB

37. Transportation leadership you can trust. Electronic Tolls and Congestion Pricing Study Phase Two Interim Report – Implementation Considerations Discussion