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MEMORANDUM
Subject: VDOT's Application to Toll Interstate 81 Under Section 1216(b) of TEA-21 Date: March 20, 2003
From: /s/ Original signed by:
Vincent Mammano for
Roberto Fonseca-Martinez
Division Administrator HDA-VA		 Refer To:  
To: Dwight A. Horne, Director, Office of Program Administration

VDOT has submitted an application (attached), under 1216(b) of TEA 21, to toll Interstate 81.Our office reviewed the application and finds it to be satisfactory As discussed with your office and VDOT there are several future actions and deliverables that are necessary for a complete approval under this program. These items are listed in Section E (Understanding of required future actions). Based on the information in the application and the commitments in Section E, the Virginia Division recommends that one of the three available slots under this pilot program is assign to Virginia DOT for Interstate 81.

As you know VDOT has received two proposals under their Public Private Transportation Act, to improve I-81. Both of the proposals include tolling as part of the projects.

We request your review and approval of this application. If you have any questions, please contact Vince Mammano at 804-775-3355.

Commonwealth of Virginia Letter Head

March 5, 2003

Mr. Roberto Fonseca-Martinez
Division Administrator
Federal Highway Administration
P. 0. Box 10249
Richmond, Virginia 23240

Re:Application I-81 Section 1216(b)
Transportation Equity Act for the 21st Century

Dear Mr. Fonseca-Martinez:

I want to thank your staff and officials of the Federal Highway Administration (FHWA) in the Washington office who have taken the time to assist the Virginia Department of Transportation (VDOT) in our application for tolling I-81 under Section 1216(b) of the Transportation Equity Act for the 21st Century. Enclosed herewith is our revised application that I believe will allow you to approve VDOT's request using a multiple--phase approval process.

We fully recognize that with the approval of VDOT's I-81 facility as one of the three facilities that are allowed under the pilot program for tolling, there are several future actions and deliverables that need to be accomplished to FHWA's satisfaction. In this regard, I would call your attention to Section E (Understanding of required future actions) of our application dated February 24, 2003. These deliverables will be provided in accordance with a mutually agreeable timeline between your office and ours. We recognize that some of these deliverables are required for the Phase 1 approval while others may occur with the Phase 2 approval.

In summary, I trust VDOT's revised application has provided the necessary information for FHWA to give favorable approval for tolling approximately 325 miles of I-81 under a pilot project under Section 1216(b) of the Transportation Equity Act for the 21st Century.VDOT staff and I are ready to answer questions or provide additional information as required. Once approval is received, our Project Manager Rich Prezioso will begin the discussions with your staff on the timeline for providing the deliverables required.

Thank you for your attention and favorable consideration.

Sincerely

/Original signed by/
C. F. Gee, P.E.

Enclosure

Cc:

  • Mr. Philip A. Shucet
  • Mr. Claude D. Garver, Jr., P.E.
  • Dr. Gary A. Allen
  • Mr. Malcolm T. Kerley, P.E.
  • Ms. Barbara W. Reese
  • Mr. Jeffrey C. Southard
  • Mr. Gregory A. Whirley
  • Mr. Don West - FHWA

Virginia Department Of Transportation

TEA-21 § 1216(B) Application

February 24, 2003

Objective And Request

The Virginia Department of Transportation (VDOT) is submitting this application under Section 1216(b) of the Transportation Equity Act for the 21st Century (TEA--21), Pub. L. No. 105-85(1998), and requesting approval from the Secretary of Transportation to participate in the Interstate Reconstruction and Rehabilitation Pilot Program. The facility being requested for consideration for tolling is I-81 from the Tennessee/Virginia state line to the West Virginia/Virginia state line, a distance of approximately 325 miles.

Recognizing the existing federal apportionments to Virginia and the statewide needs for those funds, it is clear that the reconstruction and rehabilitation of this facility cannot be achieved or functionally improved within a reasonable timeframe without the collection of tolls. Item (3) Eligibility, of paragraph b of Section 1216 outlines four areas that need to be included in an application to the Secretary. Outlined in a format that is consistent with the model application provided by FHWA, is Virginia's approach to those four areas. We specifically ask for a multiple-phase approval. We recognize that each phase will require additional documents for FHWA's approval. Section E specifically, and several other sections outline what we believe are required deliverables that will need to be provided in accordance with a mutually established and agreed upon timeline.

Application Requirements

  1. An identification of the facility on the Interstate System proposed to be a toll facility, including age, condition, and intensity of use of the facility.
    1. Location

      Interstate Highway 81 extends along the western portion of Virginia from the Tennessee border in the south to the West Virginia border in the north (See attached state map.) This interstate travels through 21 cities and towns and 12 counties. The proposed improvements will run 325 miles, the entire length of I-81 from the City of Bristol at the Tennessee state line to Frederick County at the West Virginia state line. Metropolitan Areas affected include Harrisonburg, Roanoke, Christiansburg/Blacksburg, Bristol and Winchester.

    2. Description

      Interstate 81 is a major interstate facility in the eastern United States, serving as a vital link to the populous northeast United States and Canada and southern gulf ports. This interstate carries a substantial volume of commercial truck traffic, thus making it a critical facility for the economy. The majority of Virginia's 325-mile portion of I-81 is a divided highway with two lanes in each direction and traverses the beautiful Shenandoah Valley with rolling terrain. The American Automobile Association has declared Virginia's portion of I-81 as one of the ten most scenic highways in the United States.Additionally, I-81 has 90 interchanges and connects with Interstates 64, 66,77, 381, and 581. As currently configured, there are no HOV lanes or truck/commercial lanes on the current highway.

      I-81 is significant to the area's transportation needs for several reasons. It is one of the top eight routes in the United States carrying commercial truck traffic between the raw materials generated in the south and the finished products created in the industrial northeast. The interstate also provides mobility to commuters as the local route of choice in the many towns and cities. I-81 also supports the transportation needs of the many colleges and universities located along this corridor. Additionally, the corridor has many historic and natural resources, which results in a large volume of tourist and recreational vehicles accessing western Virginia's natural beauty.

      As a result of these varied uses when combined with the terrain, traffic congestion can cause safety concerns as well as lost economic dollars to the region and to the country. Furthermore, the terrain complicates the efficiency of the facility where long, steep upgrades effectively reduce the capacity of the right-most lane as heavy truck traffic creeps uphill. Only through improvements can these issues be eliminated.

      The proposed facility could have its capacity increased in three distinct ways:widening to an appropriate number of lanes in each direction in accordance with the appropriate design from traffic projections, reconstructing interchanges in accordance with current traffic and design requirements, and implementing traffic management strategies. In the short term, by implementing such interim improvements as truck climbing lanes, longer on and off ramps and signage and communication systems early on in the project,an improved level of service may be achieved. VDOT is evaluating all possible approaches for improvement to I-81 and its level of service which may but not necessarily be limited to include adding additional lanes,reconstruction of interchanges, or widening of two inside lanes in each direction dedicated to commercial trucks and two outside lanes in each direction dedicated to passenger vehicles, including buses and recreational vehicles. The widening could also consist of a standard type of construction that would add existing lanes without separation but would also consist of appropriate interchange reconfiguration consistent with project traffic volume. Virginia DOT is evaluating all possible approaches.

      "Boothless" tolling, using state-of-the-art electronic tolling systems at appropriate locations along the corridor would be evaluated to the maximum extent possible. If tolling was limited to trucks only, as currently allowed in Virginia law, a ticketed approach at the entrance point could allow for an electronic read or the issuance of a paper ticket. Trucks equipped with a transponder, an electronic reader, the toll is deducted at the exit point from the prepaid account. If the truck is not equipped with a transponder, the paper ticket is presented and the toll fare is paid in cash. This same approach could also be used if all vehicles are tolled.

      This approach eliminates the toll collection points on the roadway itself,which would require stopping vehicles not equipped with transponders. In that sense, it is a "boothless" or barrier-free, except at the entrances and exits where stopping or slowing is required. If there were entrances or exits where merges occur and stopping is not necessary, open lanes would provide non-stop reads for vehicles equipped with transponders.

      The tolling process in this type of configuration is typically determined by the transponder classification, the number of axles on the vehicle and the distance traveled. Transponders are classified when issued (but may be transferred among multiple vehicles, so the transponder should not be the sole determinant of classification.) Multiple treadles, loops, etc. count the number of axles on the vehicle and those counts verify the vehicle classification. Of course, other factors can be used in determining the tolling process. For example, some authorities also use weight as a factor in determining the toll rate structure via scales embedded in the road at toll collection points. In addition to the above approach, we feel that technology has advanced to the stage that the road could be tolled with no booth, i.e., totally electronically with cameras and an appropriate billing system. VDOT will be evaluating the system in Toronto, Canada as well as other locations to ensure our approach will be the most efficient one.

      At this time, in accordance with Virginia State Law Chapter 593, 2002 Acts of the Assembly, passenger vehicles cannot be tolled. Therefore, at this time, we would ask in our request for approval to have flexibility in the classification of vehicles to be tolled.

    3. Age

      Virginia's Interstate 81 is more than thirty years old. Construction of I-81 started in December 1957 with the first section of I-81 opened to traffic in early 1959. By November 1963, 85 miles were completed. Over the next eight years, other sections of the highway were open to traffic with the final section from Dixie Caverns to Christiansburg opened on December 21, 1971 thus completing the entire 325 miles of interstate.

    4. Condition

      The overall condition of the facility is "fair" to "good" based on many factors including: pavement conditions, bridge condition and appraisal ratings, safety issues, level of service, and maintenance requirements. VDOT can provide information in these various areas as may be needed.

      The geometric features of Virginia's portion of I-81 has been classified as rolling terrain, with some areas showing rock outcrops and large rock cuts, as well as urban and rural-related travel.

      The current pavement condition based on VDOT's Combined Condition Index (CCI) shows that 21 % of the 313 miles rated in the northbound (NB) direction are in "fair" to "very poor" condition with 42% of the NB facility in "good" condition. Twelve percent of the 317 miles rated in the southbound(SB) direction are in "fair" to "poor" condition with 49% of the SB facility in "good" condition. The current facility has actively been resurfaced with 54%or 169 miles of the NB lanes and 48% or 152 miles of the SB lanes being resurfaced within the last five years. Additionally, the following main distresses have been found throughout the corridor: rideability, cracking (fatigue, centerline joint and reflective;) and patching (isolated spots with lengthy inlays.) Additionally, the secondary distresses of rutting and flushing are occurring. It is apparent that a good number of sections throughout the corridor are reaching the end of their useful service life. These sections will need additional rehabilitation and/or total reconstruction in the future.

      The majority of the bridge structures along I-81 are in "fair" to "good" condition. Eighty-nine percent (89%) of the bridges were built before 1970 with 26% of the bridges over 40 years old. Of the 291 main-line bridges, 180 of them or 62% have been reconstructed with 28 bridges being reconstructed within the last ten years. Eighteen (18) of the bridges are structurally deficient, while 64 of the 291 main-line bridges are functionally obsolete.

      Several of the safety issues surrounding I-81 include speeding, crashes, and design that has become dated. VDOT has implemented several safety improvements to address some of these safety issues. To address speeding,speed limit reductions in the metropolitan areas surrounding Harrisonburg and Roanoke were implemented.

      To assist with the associated problems with accidents and motorist breakdowns, VDOT launched a Safety Service Patrol to aid motorists with medical and vehicle problems. Additionally, guardrail was upgraded along I-81 and rumble strips were installed to reduce "run off road" accidents. The recent and future installation of Overhead Variable Message Boards will assist in the communication of real-time traffic information to motorists. Along with the message boards, a highway advisory radio system was implemented to provide additional information on road conditions. To address some of the design issues surrounding interchanges that were designed up to 45 years ago when there was much less traffic, especially truck traffic, engineers are currently looking at interchanges to identify places where acceleration/deceleration lanes can be lengthened for safer merging movements. Furthermore, a real-time traffic, traveler, and tourism information service for Virginia's I-81 Corridor called "511 Virginia" was implemented. This service provides travelers, tourists, and local residents along Interstate 81 in Virginia with easily accessible, up-to-date information on: Real-time Travel Alerts, Current Road and Traffic Conditions, Food and Lodging, Traveler Services, Tourist Attractions, Current Events, and Trip Routing. These measures, improve the current operation, but not the future capacity of the facility; and thus, there is a need for a major reconstruction/rehabilitation of the facility.

      The current traffic volumes of I-81 range from 32,000 ADT in Marion to 64,000 ADT in Roanoke. The facility currently provides a level of service (LOS) of a "C" or better, except in the Roanoke and I-81/I-64 overlay areas. By the year 2010, a significant reduction in the level of service is expected with a LOS of "D" or worse occurring on approximately one-third of the 325 main-line miles, as well as the stop-and-go conditions occurring on various ramps, ramp junctions and intersections. Using AASHTO Green Book standards, a LOS of "B" is specified for rural interstate in the design year. This being the case, currently 90% of I-81 is functioning at less than the desirable LOS. Using a design year of 2025, it is projected that the vast majority of I-81 will be operating at or near failure during peak hours without reconstruction/rehabilitation and widening of the corridor.

    5. Intensity

      The traffic volume on I-81 is extremely heavy and currently ranges from 32,000 ADT to 64,000 ADT along the facility. Originally, the design for I-81 anticipated 15% truck traffic; however, since the completion, traffic has tripled and the commercial truck traffic is in the range of 24 to 34% (Exhibit 1.) Overall, traffic growth is expected to be 3.5% annually. The peak hour level of service throughout the corridor is a "C" or better except for two locations along the corridor. However, by the year 2010, approximately one--third of I-81 will be at a level of "D" or worse along with many ramps, ramp junctions and intersections with stop-and-go traffic conditions reducing the operating speeds, especially from the Roanoke area through the Harrisonburg area.

      We are concerned with the accidents on the I-81 corridor, especially the ones involving trucks. During a recent 18-month period, there were 2,681 total accidents on I-81 with 41 deaths and 1,528 total injuries. Of that total, 825 were accidents involving commercial trucks resulting in 15 deaths and 449 injuries.

  2. In the case of a facility that affects a metropolitan area, an assurance that the metropolitan planning organization established under section 134 of title 23, United States Code, for the area has been consulted concerning the placement and amount of tolls on the facility.

    MPO Consultation - I-81 will effect five MPOs. The two existing MPOs are in the Roanoke and Bristol areas.

    As a result of the 2000 Census, three new Metropolitan Planning Organizations (MPO) will be established-Harrisonburg, Winchester and Christiansburg/Blacksburg. All of these new organizations, once they have been established, will be contacted and consulted concerning this request. It is our commitment to FHWA that within six months of these MPOs first meeting, we will have contacted and consulted with each concerning the tolling on I-81 and will have provided written documentation to FHWA of that consultation. Due to previous publicity, both the Roanoke and Bristol MPOs are aware that the tolling of I-81 is something VDOT is considering. However, we do not have a specific written document to provide that shows that consultation. By July of 2003, we will have supporting documentation that proper consultation has occurred with these two MPOs concerning VDOT's request to toll I-81 under Section 1216(b). It is understood and recognized that proceeding with a project of this magnitude will require the involvement of all of these MPOs. It is also understood that if federal funds are used on work in the MPOs' area, that all federal requirements concerning the MPOs will be strictly attended to.

  3. An analysis demonstrating that the facility could not be maintained or improved to meet current or future needs from the State's apportionments and allocations made available by this Act (including amendments made by this Act) and from revenues for highways from any other source without toll revenues.

    Financial Analysis

    The 325-mile facility cannot otherwise be functionally improved without the collection of tolls because current federal and state funding is not adequate to improve the facility in the foreseeable future. The project from a very preliminary point of view is estimated to cost at least $7 billion if construction is completed in 15 years.

    The cost of the project can change depending on the section built and the time of the construction. Under consideration are several options, two of which are two additional north and southbound lanes or one additional lane both north and southbound. Each combination can have many different scenarios for truck climbing lanes and complete or partial interchange reconstruction and in some areas, three additional lanes in each direction. At this stage, we would request that the project cost be considered very preliminary in nature and based on the principles used for our GASB 34 assessment for a mile of roadway. I have attached the documents submitted for GASB 34 and a sheet showing a preliminary cost estimate. The preliminary cost estimate using the GASB 34 base number per lane mile, a 15-year timeframe, a 3% inflation rate, building four new lanes, rebuilding four existing lanes, spot locations for two more new lanes, reconstruction of 90 interchanges and various engineering and construction cost, the project will cost $7.3 billion. With the many variables at this stage it is conceivable for the project to cost $8, $9 and$10 billion.

    The Virginia Transportation Development Plan for 2002-2007 outlined that the current amount of funding tentatively available as of July 1, 2002 is approximately $212 million. I can provide copies of that plan if necessary,and would specifically call your attention to page 10 for the Bristol District, pages 227-230 for the Salem District and pages 248-251 for the Staunton District. The pages outline the projects currently in the plan. As outlined, it is clear funding is not available to the degree needed.

    VDOT recognizes that it will take several options to improve the facility including "pay-as-you-go," financing tolling, federal earmarks and debt.VDOT's original "pay-as-you-go" plan for one additional lane in each direction does not include separating trucks and cars or for new truck facilities. Using traditional "pay-as-you-go" funding methods, the widening and rehabilitation of Virginia's 325 miles will take 30 to 50 years.

    Whether federal earmarks will be available as a realistic option is unknown at this time. TEA-21 reauthorization in 2003-2004 should give an indication of its feasibility. We believe a combination of all of these sources along with toll revenue bonds offers the best case for funding an improved I-81. With such an approach, an improved facility could be delivered in a shorter timeframe than the 30 to 50 years otherwise projected. Due to the cost and immediate need to increase capacity and improve safety for the entire corridor, the state cannot wait 30 to 50 years. Reducing the time frame would, of course, reduce the estimated cost as well.

    The exact amount of money to be borrowed will be dependent upon the final scope of work to be determined as well as more detailed traffic and cost analysis. We will provide this information as part of Phase Two; however,we expect as part of the process to enter into several agreements with FHWA for the tolling period and amount.

  4. Facility Management Plan
    1. Toll Implementation Plan

      VDOT has managed several tolling projects both on the interstate and primary highway systems. These include the Richmond-Petersburg Turnpike (I-95), Virginia Beach Expressway (I-264), Hampton Roads Tunnels (I-64),Dulles Toll Road, Powhite Parkway Extension, Coleman Bridge, and Route 895. In addition, the Department works cooperatively with other interstate toll facilities on overall toll policy and collection. However, we believe "boothless" tolling of vehicles including commercial trucks, using state-of-the-art electronic tolling systems at entrances and exits along the corridor,will be implemented. One facility we will be examining is the one located in Toronto, Canada with enhancements that may have taken place in the industry since the opening of Toronto's facility.

      In the Toronto System, all vehicles entering the roadway pass under a canopy or series of canopies of video cameras and detectors. Pictures of each vehicle are taken and a match is made to the license plate. When the vehicle leaves the facility, it passes through a similar set of canopies. With this information,the billing office can determine the toll to be charged and then bill accordingly. Legislative changes may be required to implement the system.

      It is recognized that the earliest we can toll any part of I-81 is when we have a substantial section under construction. Such an acknowledgement will be included in the agreements outlined in Section E.

    2. Schedule and Finance Plan

      VDOT has not developed the details on schedule or finance until we have some assurance from FHWA that this concept can proceed as one of the facilities that can be reconstructed through the use of tolls. VDOT does, however, have proposals that have been submitted under Virginia's PPTA Act of 1995. These are solicited proposals and can be viewed on VDOT's website: http://www.virginiadot.org/projects/constSTAN-I81-public-proposal.asp; however, I believe your office has the two proposals we submitted and are reviewing each under separate correspondence. A copy of the solicitation (RFP) can be provided. As mentioned earlier, we will, as part of the phasing approval process, develop standard Financial and Project Management Plans. These plans will be patterned after the plans developed for the Woodrow Wilson Bridge. I can provide you a copy or an example if needed.

    3. Responsible Agency

      The Virginia Department of Transportation will be responsible for implementation and administration of this pilot project.

    4. Privatizing the Maintenance and Operations of the Facility

      There are several ways in which VDOT can privatize the maintenance and operational aspects of the facility. Our asset management contracting process will allow for this possibility. We currently have an asset management contract with VMS for maintaining 200+ miles of interstate roadways (I-95 and I-81). This is an outcome-based contract and can be provided if needed.

      Regardless, VDOT will retain the legal and administrative control of this facility.

  5. Understanding of Required Future Actions

    It is understood that VDOT is responsible for developing and/or providing several documents or agreements that are required as part of Phase 1 or Phase 2 approval. These include the following:

    1. Providing written verification that all MPOs have been consulted concerning VDOT's approach to tolling on I-81.
       
    2. Developing an acceptable Pilot Study Work Plan

      A Pilot Study Work Plan will not only address the construction and operation characteristics planned but other financial benefits to the I-81 roadway in Virginia as well as to the entire interstate system in Virginia.We would anticipate that the Pilot Study Work Plan would help to address the most efficient, effective, economical, and expeditious ways to advance projects such as this so that lessons learned can be applied to future federal, state and local tolling projects.

      The Pilot Study Work Plan would address how to evaluate the effects of tolling on the ability to provide other classes of funding, impacts of shifting funds to other programs, traffic operational improvements to traffic flow and safety, potentially the results in safety, congestion and capacity, if commercial vehicles are separated. The work Plan will, of course, address when analysis and reports will be provided recognizing that an annual basis will be considered the minimum time frame allowed. Included in the Work Plan will be the basis for detailed financial and project management plans as would be required on FHWA mega projects. The financial plan and project management plan we would expect to be separate, stand-alone documents.

    3. NEPA process

      VDOT fully recognizes that we are required to complete the NEPA process in a timely manner and, if we do not do so, our acceptance by FHWA as a pilot project may be withdrawn. It is recognized that the NEPA impacts of this proposed pilot project will not only involve those associated with the reconstruction/rehabilitation activities but those associated with converting a free interstate facility to a toll facility, such as potential changes in travel patterns, construction of toll collection facilities and economic equity issues.

    4. An agreement or agreements that include the following items:
      1. FHWA and VDOT will need to enter into an agreement providing that all toll revenues received from the operation of atoll facility will only be used for debt service, reasonable return on investment of private funding, and costs for proper operation and maintenance.
      2. FHWA and VDOT will need to enter in an agreement providing for regular (at least, annual) audits to ensure compliance with FHWA requirements. This agreement will also allow for access to all records upon reasonable notice.
      3. FHWA and VDOT will need to enter into an agreement specifically addressing the period of toll collections, that will be a minimum of ten years, and the plan for the facility to become a free facility at the end of the toll collection time period.
      4. VDOT fully recognizes and will enter into a separate agreement with FHWA, if needed, that the requirements of NEPA will be completed as required. It is fully understood that any authority given to toll I-81 is contingent upon satisfactory completion of the NEPA process.
    5. A Plan outlining how we will ensure the interests of local, regional and interstate travelers as it relates to tolling are included as part of the project review processes. This plan will provide at least for public information meetings, public hearings, presentations for community service groups' web sites, etc.
       
    6. An environmental scoping analysis of the proposed project impacts to the social, economic, and environmental resources located in the vicinity of the project. This analysis will show what effect the proposed construction, as well as the imposition of tolls may have on resources as:
      • Current or planned land use
      • Historic, cultural, natural or recreational resources
      • Economic or community resources
      • Safety and livability
      • Ambient light, noise and air quality levels
      • Sensitive Receptors
      • Minority and low-income populations

      FHWA and VDOT will, as a first step, agree how such scoping will fit in with the NEPA processes and Record of Decisions such that neither are compromised.

    7. A basic financial plan that will be patterned on the same format as the current Woodrow Wilson Financial Plan. It should be understood that the first plan will be very general in detail, but a basis for more detailed refinement annually as the project advances.
       
    8. A basic project management plan that as with the financial plan will be very general in detail but a basis for more detailed refinement annually as the project advances.

    It is understood that the first item to be provided is a proposed timeline for project development and an agreed to timeline for providing the deliverables outlined above or stating certain requirements such as the NEPA process. Upon FHWA's approval of VDOT's application, we would start the development of these timelines and seek to reach mutual concurrence within six months.

Summary

VDOT appreciates FHWA's favorable approval of our application.

Map of Virginia showing I-81 corridor
This page last modified on 03/25/08