U.S. Department of Transportation
Federal Highway Administration
1200 New Jersey Avenue, SE
Washington, DC 20590
202-366-4000
Washington Division
Background
Tolling and pricing strategies (e.g., strategies that vary the price of a toll based on the time of day or traffic volume) are increasingly emerging as necessary and useful tools to finance projects, manage congestion, improve air quality, and facilitate the creation of public-private partnerships. However, all tolling and pricing of Federal-aid highway system facilities requires legal authority from the Federal government, through the U.S. Department of Transportation. The purpose of this paper is to summarize the various opportunities for tolling and pricing of federal-aid highways and the process for requesting permission to toll a federal-aid highway. This paper directly references material from the January 6, 2006 Federal Register Notice on this subject.
Tolling and Pricing Programs and Provisions
Title 23 of the United States Code (23 U.S.C.), Section 301, generally prohibits the imposition of tolls on federal-aid highway facilities. However, SAFETEA-LU legislation, along with previous provisions, offers States and other public entities an enhanced variety of opportunities to toll motor vehicles to finance Interstate construction and reconstruction, promote efficiency in the use of highways, reduce traffic congestion, and/or improve air quality. There are now six tolling and pricing programs or provisions that allow tolling or pricing of federal-aid highways:
More detailed information on these programs and provisions is contained in the Federal Tolling Programs and Provisions Decision Support Guidance matrix at the end of this paper.
Process for Requesting Permission to Toll a Federal-Aid Facility
The six programs and provisions described above can be potentially confusing because of their range of specific purposes. In an effort to minimize this potential confusion, FHWA has established a collaborative process for a State or other public entity to work with the FHWA “Tolling and Pricing Team” in identifying the appropriate program or provision and applying to a specific program or provision. This process can be summarized as follows:
Further Information
While this paper presents a summary of this subject, further information can be found from a variety of sources:
Federal Tolling Programs and Provisions Decision Support Guidance
Issues/Federal Requirements |
Value Pricing |
Express Lanes Demonstration Program (Sec. 1604(b) of SAFETEA-LU) |
Interstate Construction Toll Pilot (Sec. 1604(c) of SAFETEA-LU) |
Interstate Rehab & Reconstruction (Sec. 1216(b) of TEA-21) |
HOV Facilities |
23 U.S.C. Section 129 |
Funding |
$12 mil for each of the FYs 2006-2009 |
None |
None |
None |
None |
None |
State |
Only 15 States may participate |
15 demonstration projects eligible in any state |
3 facilities on the Interstate eligible |
3 facilities on the Interstate eligible |
Unlimited participation |
Unlimited participation |
Deadlines for Participation |
Expressions of Interest- August 1 each year for the subsequent fiscal year. |
September 30, 2008 |
August 10, 2015 |
None |
None |
None |
Eligible Projects |
||||||
Conversion of Interstate HOV lanes to new HOT lanes |
No |
Yes |
No |
Yes |
Yes |
No |
Development of new Interstate HOT or Managed Lanes |
Yes |
Yes |
No |
Yes |
Yes |
No |
Tolling to Rehab and Reconstruct |
No |
No |
No |
Yes |
Yes |
Yes |
Tolling to finance expansion of a highway |
No |
Yes |
No |
Yes |
Yes |
Yes |
Tolling to construct a new Interstate facility (other than HOT/Managed Lane) |
No |
No |
Yes |
No |
No |
Yes |
Tolling existing free interstate |
Yes |
Yes |
No |
Yes |
Yes |
Yes |
Tolling Requirements |
||||||
Ability to toll vehicles that do not meet the established occupancy requirements for the HOV lanes (if HOV occupancy set at 3+, can charge 2 occupants |
No |
Yes |
Yes |
Yes |
Yes (except for motorcycles and bicycles) |
Yes |
Required use of non-cash electronic technology toll collections |
No |
Yes |
No |
No |
Yes |
No |
Manage demand by varying toll |
Yes |
Yes |
No |
No |
Yes |
No |
Required to limit or discontinue tolling program if facility is degraded |
No |
Yes |
No |
No |
Yes |
No |
Toll agreement |
Yes |
Yes |
Yes |
Yes |
Yes |
Yes |
Revenue Restrictions |
||||||
Use of toll revenue |
Debt service, reasonable rate of return on investment, and maintenance and operations of toll facility Also, project implementation costs and mitigation measures for low income users |
Debt service, reasonable return on investment, and maintenance and operations of toll facility. If state certifies project is adequately maintained and operated, may be used for any other purpose relating to a highway or transit purpose carried out under Title 23 or Title 49. |
Debt service, reasonable return on investment, and maintenance and operations of toll facility |
Debt service, reasonable return on investment, and maintenance and operations of toll facility |
Debt service, reasonable return on investment, and maintenance and operations of toll facility |
Debt service, reasonable return on investment, and maintenance and operations of toll facility |
Use of toll revenue for transit operating costs (non-Title 23) |
Yes |
No |
No |
No |
No |
No |
Use of excess toll revenue |
Must be eligible under Title 23 |
If state certifies project is adequately maintained and operated, may be used for any other purpose relating to a highway or transit purpose carried out under Title 23 or Title 49. |
Only on facility |
Only on facility |
Must be eligible under Title 23 - give priority to projects for developing alternatives to SOV travel and projects for improving safety |
Must be eligible under Title 23 |
Other Restrictions |
||||||
Evaluation of value pricing aspects, including if appropriate, the effects on low income drivers |
Yes |
No |
N/A |
N/A |
No |
N/A |
Requirement for state to enforce HOV violations |
No |
Yes |
No |
No |
Yes |
No |
Requires states to establish a performance monitoring, evaluation and reporting program for HOV facility |
No |
Yes-Performance goals for each project required |
No |
No |
Yes |
No |
Required to submit annual certification indicating meeting Federal requirements for HOT lanes |
Yes |
Yes |
No |
No |
Yes |
No |
Non-Compete Agreement required |
No |
No |
Yes |
No |
No |
No |
Can the facility use IM funds? |
Yes |
Yes |
No |
No |
Yes |
Yes |