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Road Pricing: Tolling Programs

Tolling Program Administration

Tolling Memorandum of Understanding Sample Template

September 2013

Download sample template (.docx)

 

MEMORANDUM OF UNDERSTANDING (MOU)
BETWEEN THE
FHWA ______________________ DIVISION OFFICE (Division)
AND THE
______________________ DEPARTMENT OF TRANSPORTATION (__DOT)

 

WHEREAS, the __DOT desires to construct (insert description of the project), (insert the toll limits) (hereinafter referred to as the "Toll Facility"); and

WHEREAS, under Section 1512 of the Moving Ahead for Progress in the 21st Century Act (MAP-21), Pub. L. No. 112-141, Congress modified 23 U.S.C. 129(a) to, among other things, eliminate the requirement for a toll agreement to be executed between the State and the FHWA as a prerequisite to toll authority for a Federal-aid highway project; and

WHEREAS, the Division and __DOT desire to enter into this MOU in order to reflect the mutual understanding that 23 U.S.C. 129(a), as amended by MAP-21, applies to the Toll Facility; and

WHEREAS, this project to construct the Toll Facility meets the following toll eligibility requirement in 23 U.S.C. 129(a)(1):


(insert applicable toll authority from list below)

  1. initial construction of a toll highway, bridge, or tunnel or approach to the highway, bridge, or tunnel;
  2. initial construction of 1 or more lanes or other improvements that increase the capacity of a highway, bridge, or tunnel (other than a highway on the Interstate System) and conversion of that highway, bridge, or tunnel to a tolled facility, if the number of toll-free lanes, excluding auxiliary lanes, after construction is not less than the number of toll-free lanes, excluding auxiliary lanes, before the construction;
  3. initial construction of 1 or more lanes or other improvements that increase the capacity of a highway, bridge, or tunnel on the Interstate System and conversion of that highway, bridge, or tunnel to a tolled facility, if the number of toll-free non-HOV lanes, excluding auxiliary lanes, after such construction is not less than the number of toll-free non-HOV lanes, excluding auxiliary lanes, before such construction;
  4. reconstruction, resurfacing, restoration, rehabilitation, or replacement of a toll highway, bridge, or tunnel or approach to the highway, bridge, or tunnel;
  5. reconstruction or replacement of a toll-free bridge or tunnel and conversion of the bridge or tunnel to a toll facility;
  6. reconstruction of a toll-free Federal-aid highway (other than a highway on the Interstate System) and conversion of the highway to a toll facility;
  7. reconstruction, restoration, or rehabilitation of a highway on the Interstate System if the number of toll-free non-HOV lanes, excluding auxiliary lanes, after reconstruction, restoration, or rehabilitation is not less than the number of toll-free non-HOV lanes, excluding auxiliary lanes, before reconstruction, restoration, or rehabilitation;
  8. conversion of a high occupancy vehicle lane on a highway, bridge, or tunnel to a toll facility;

NOW THEREFORE, the Division and __DOT hereby agree as follows:

  1. __DOT shall comply with 23 U.S.C. 129(a) (also insert "and 23 U.S.C. 166" here if an HOV lane is involved), as amended by MAP-21, with respect to project and the operation of the Toll Facility.
  1. As provided at 23 U.S.C. 129(a)(3), as amended by Section 1512 of MAP-21, __DOT shall use the toll revenues collected from the operation of the Toll Facility only for:
    1. debt service with respect to the projects on or for which the tolls are authorized, including funding of reasonable reserves and debt service on refinancing;
    2. a reasonable return on investment of any private person financing the project, as determined by the State or interstate compact of States concerned;
    3. any costs necessary for the improvement and proper operation and maintenance of the Toll Facility, including reconstruction, resurfacing, restoration, and rehabilitation;
    4. if the Toll Facility is subject to a public-private partnership agreement, payments that the party holding the right to toll revenues owes to the other party under the public-private partnership agreement; and
    5. if __DOT certifies annually that the Toll Facility is being adequately maintained, any other purpose for which Federal funds may be obligated by a State under title 23, United States Code.
  2. As provided under 23 U.S.C. 129(a)(3)(B), as amended by Section 1512 of MAP-21, __DOT shall, upon reasonable notice, make all its records pertaining to the toll facility subject to audit by the FHWA. Also, __DOT agrees to annually audit the records of the Toll Facility for compliance with the toll revenue use restrictions of 23 U.S.C. 129(a)(3), as amended by MAP-21, and report the results thereof to the Division. In lieu of the __DOT performing said audit, a report of an independent auditor furnished to the Division may satisfy the requirements of this section.
  3. __DOT will submit the annual maintenance certification and audit report to the Division by the end of each fiscal year.

IN WITNESS THEREOF, the parties hereto have caused this MOU to be duly executed, on the date of the last signature below.

 


STATE OF ______________________ DEPARTMENT OF TRANSPORTATION

BY: ____________________________________________,

DATE: ______________________


FEDERAL HIGHWAY ADMINISTRATION ______________________ DIVISION

BY: ____________________________________________,

DATE: ______________________