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PROJECT DESCRIPTIONS

A description of each project is provided below, in the following sections:

A-1. CONVERTING HOV LANES TO HOT LANES

Operational Projects

San Diego's Priced Express Lanes on I-15

San Diego's "FasTrak" pricing program was implemented in April 1999. Under this program, customers in single-occupant vehicles pay a toll each time they use the Interstate 15 HOV lanes. The unique feature of this pilot project is that tolls vary dynamically with the level of congestion on the HOV lanes. Fees can vary in 25-cent increments as often as every six minutes to help maintain free-flow traffic conditions on the HOV lanes. Motorists are informed of the toll rate changes through variable message signs located in advance of the entry points. The normal toll varies between $0.50 and $4.00. During very congested periods, the toll can be as high as $8.00. Toll revenues are supporting express bus service in the corridor, in addition to all operational costs of the HOT lanes, including police enforcement.

At the end of November 2002, there were 20,900 transponders issued. During November 2002, average daily traffic on the Express Lanes reached a peak of 21,345 total vehicles. This is a 132 percent increase from the 9,200 daily vehicles prior to the initiation of the program. On average, 75 percent of the daily traffic is from high occupancy vehicles (HOVs), and 25 percent is from toll paying customers. Total revenue in 2002 is estimated at $2.2 million. Approximately 50 percent of this goes to fund the Inland Breeze Express Bus Service that operates in the corridor. The remainder funds enforcement by the California Highway Patrol and operation of the Customer Service Center.

Extensive outreach was conducted to measure public response to the concept. The outreach included 25 stakeholder interviews, three focus groups, 100 intercept surveys at park and ride lots and transit centers, and a telephone survey of 800 I-15 corridor users. The surveys found that equity was not considered a major issue or obstacle to implementing pricing on the managed lanes. The majority of those interviewed in the phone survey (71 percent) felt that pricing the lanes was "fair" for travelers on the main lanes. Furthermore, 66 percent approve of the currently operating HOT lanes, and 71 percent believe that tolls are an effective way to manage demand. Both users and non-users of the dynamically priced I-15 HOT lanes strongly support the use of pricing. Support is high across all income groups, with the lowest income group expressing stronger support than the highest income group (80% vs. 70%).

QuickRide Program in Houston, Texas on I-10 and US 290

Houston's "QuickRide" pricing program was implemented on existing HOV lanes of I-10, also known as the Katy Freeway in January 1998. It was implemented on US 290 in November 2000. The HOV lanes are reversible and restricted to vehicles with three or more persons during the peak hours of the peak periods. The pricing program allows a limited number of two-person carpools to buy into the lanes during the peak hours. Participating two-person carpool vehicles pay a $2.00 per trip toll while vehicles with higher occupancies continue to travel free. Single-occupant vehicles are not allowed to use the HOV lanes. As in San Diego, the QuickRide project is completely automated and no cash transactions are handled on the facility. Results from surveys conducted on I-10 indicate that the primary source of QuickRide participants is persons who formerly traveled in single-occupant vehicles on the regular lanes. Toll revenues from several hundred vehicles each day pay for all program operational costs.

Projects Under Development

HOT Lanes on Interstate 880 in Alameda County, California

Interstate 880 is a major congested freeway in Alameda County. It has one high-occupancy vehicle (HOV) lane plus three contiguous mixed flow lanes in each direction for approximately 17 miles, from just south of Oakland to Fremont. This corridor has the highest volume of truck traffic in the region. It connects the Port of Oakland and Oakland International Airport with high technology companies in Santa Clara and southern Alameda counties and with goods distribution centers to the east. A study was done to determine whether excess capacity does exist, whether there is a market among potential users, and how to address the physical and operational issues associated with such a plan. Study results indicated that, while excess capacity exists, it is not sufficiently high to make local officials comfortable that additional priced vehicles could be accommodated. Also, the demand by light duty commercial vehicles was perceived as modest, and the California Highway Patrol expressed strong reservations about its ability to conduct effective enforcement.

HOT Lanes on I-25/US 36 in Denver

A regional study of the feasibility of HOT lanes in Denver concluded that the I-25/US 36 corridor was the most feasible location for a pilot demonstration of HOT lanes. The I-25 Bus/HOV lanes, also known as Downtown Express lanes, consist of a two-lane barrier-separated reversible facility in the median of I-25 between downtown Denver and 70th Avenue, a distance of 6.6 miles. The lanes are used by southbound traffic from 5:00 am to 10:00 am, and by northbound traffic from noon to 3:00 am. The project will convert the Downtown Express lanes into a HOT lane facility, serving additional trips and optimizing the use of the facility. Dynamic pricing of single-occupant vehicles (SOVs) is planned. Toll-payers will be excluded from access to the facility if SOV access is found to depreciate the level-of-service for HOVs and buses.

HOT Lanes on I-95 in Miami-Dade County

I-95 is one of the Miami area's most important north-south facilities. It is seriously congested during peak hours, and is projected to increase over the next 20 years. This project proposes a new lane in the median of I-95, in addition to use of the two existing HOV lanes. A moveable zipper barrier will permit multiple lane configurations of between two and three HOT lanes in the peak direction. The HOT lanes will allow multiple ingress and egress points. A private firm or consortium will be selected to design, finance, build, and operate the HOT lanes. A non-profit corporation will run the facilities and issue toll revenue bonds. The overall project, which includes new ramps and several minor improvements to the mixed flow lanes, would provide a 20 percent increase in peak hour, peak direction capacity without having to widen I-95.

A-2. CORDON TOLLS

Projects Under Development

Cordon Pricing in Lee County, Florida

The Town of Fort Myers Beach in Lee County, Florida, is an island community with a heavy influx of visitors during the tourist seasons. Access to the Town is provided by road at two points of entry. Travel within the Town can be challenging, particularly during the winter tourist season. Due to the relatively small land area and environmental issues, options for additional roadways on the island are not practical. Further, due to limited right-of-way on the only non-local road on the island, and the high financial and social costs of obtaining additional right-of-way, significant widening is not considered practical. The Town is studying the feasibility of introducing a new variable toll at both approaches to the Town.

Tolling Existing Free Bridges over the East River and Harlem River in New York

The Mayor of New York City has proposed placing tolls on 12 city-owned bridges over the East and Harlem Rivers between Manhattan and the Burroughs of Queens, Brooklyn, and the Bronx. The bridges are currently free. Tolling is proposed to begin in January 2004. The proposal does not currently involve tolls that vary by time of day or level of congestion. If this proposal goes into effect as planned, it will be the first example in the U.S. of tolls being placed on previously free facilities. The tolls are expected to bring in $600 million in new revenues annually. A report by the Bridge Tolls Advocacy Project indicates that less than two percent of people over 18 would pay more than $50 a year in East River tolls. The few who would pay dearly would be those drivers who commute over the bridges daily. They would pay tolls up to $1,500 a year. According to the study, City residents would pay 78 percent of the toll revenue, while the rest of the revenue would come from suburban residents in New Jersey and Nassau and Suffolk Counties of Long Island, New York.

A-3. FAIR LANES

Projects Under Development

FAIR Lanes in Alameda County, California on I-580 and I-680

This FAIR lanes study will focus on the congested Interstates 580 and 680 in Alameda County and will build upon the existing Interstate 680 value pricing study. The "Sunol Grade" portion of Interstate 680 is, by voter-approved ordinance, required to operate new value-priced carpool lanes, and new carpool lanes are also planned for I-580. The FAIR lanes feasibility study will examine options in this integrated corridor, including FAIR lane connector ramps at the I-580/I-680 interchange near the Dublin-Pleasanton Bay Area Rapid Transit (BART) station. Complementary measures to increase public acceptability will be implemented in the study corridor. These will include "dynamic ridesharing" and priority parking for ridesharing users at participating BART stations. Dynamic ridesharing enables travelers to respond to pricing in flexible ways that traditional ridesharing and transit options do not. It uses web-based and telephone-based systems to allow users to find carpool partners on a "real-time" basis, close to the time that travel is needed. This new type of ridesharing is expected to be more readily acceptable in the Bay Area than elsewhere, because casual carpooling with strangers is already prevalent there, and this project would add some new security features. In addition to cost and time savings (due to free use of express lanes), dynamic ridesharing would be further facilitated with reserved premium parking spaces at participating BART stations, on-demand backup services, and in-station electronic information screens providing necessary details about individual ride matches.

FAIR Lanes Simulation in Atlanta, Georgia on GA 400

A FAIR lanes simulation will be carried out along the GA 400 toll facility in the Atlanta metropolitan area. Participants choosing to travel on the slower, parallel, non-freeway free route will be offered "toll credits" that may be used on days they choose to travel on the faster GA 400 freeway route. The simulation will provide important data on travel behavior responses to the FAIR lanes concept if it is implemented in Atlanta.

B. PRICED NEW LANES

Operational Projects

Express Lanes on State Route 91 in Orange County, California

The State Route 91 (SR 91) express lanes in Orange County, California opened in December 1995 as a four-lane toll facility in the median of a 10-mile section of one of the most heavily congested highways in the U.S. Toll revenues have been adequate to pay for construction and operating costs. The toll lanes are separated from the general purpose lanes by a painted buffer and plastic pylons. As of November 1, 2001, tolls on the express lanes varied between $1.00 and $4.75, with the tolls set by time of day to reflect the level of congestion delay avoided in the adjacent free lanes, and to maintain free-flowing traffic conditions on the toll lanes. All vehicles must have a "FasTrak" transponder to travel on the express lanes. Vehicles with three or more occupants pay a reduced toll.

There were almost 139,000 transponders in circulation at the end of 2002. The facility served 9.5 million vehicles in 2002, averaging over 26,000 vehicles per day, and bringing in over $29 million in revenue. The express lanes carry 40 percent of total SR 91 traffic during heavily congested periods, even though they comprise only one-third of the total freeway capacity. This amounts to a 33 percent higher throughput per express lane, relative to the regular lanes. The higher throughput occurs because freeway vehicle throughput under free flow conditions is significantly higher than when it is congested.

Projects Under Development

Interstate 680 HOT Lanes in Alameda County, California

The Alameda County Congestion Management Agency is investigating design concepts and feasibility of new High Occupancy Toll (HOT) lanes on a 14-mile portion of I-680 connecting residential areas in the north and east to the job centers of Silicon Valley in the south. Currently, I-680 is a six-lane facility with three mixed-flow lanes in each direction. Traffic is highly congested southbound in the a.m. peak and northbound in the p.m. peak. Considerable growth in traffic demand is anticipated. A new southbound lane opened as an HOV lane in December 2003, and a new northbound lane is expected to open as an HOV lane in 2005. The study is reviewing various design concepts for HOT lanes. Major design options under consideration include: one HOT lane in each direction, two reversible HOT lanes in the peak direction, and an additional (ninth) lane in the median that would be reversible HOT.

Extension of HOT Lanes on I-15 in San Diego

The I-15 HOT lanes (described in the previous section on "Converting HOV Lanes to HOT Lanes") may be extended to create a 20-mile "Managed Lanes" facility in the median of Interstate 15 between State Route 163 and State Route 78. When completed, there will be a four-lane facility in the median with a moveable barrier, multiple access points from the regular highway lanes, and direct access ramps for buses from five transit centers. A high frequency Bus Rapid Transit (BRT) system also will be operated in these managed lanes. Seven pricing alternatives were considered. All alternatives included either dynamic or time-of-day pricing fluctuation. A preferred pricing alternative has been approved. It involves a skewed per mile rate, which would vary the toll based on where the customer enters.

HOT Lanes on State Route 1 in Santa Cruz County, California

A five-mile section of State Route 1 is proposed for widening. The facility is currently a four-lane divided freeway. The segment operates under severe congestion during weekday peak hours and extended periods on summer weekends. Within the study corridor limits there are seven interchanges. Five HOT lane alternatives were studied in detail, including: (1) one lane in each direction with barrier separation, no intermediate access; (2) one lane in each direction, with buffer separation, no intermediate access; (3) one lane in each direction with striped separation, 1 or 2 intermediate access points; (4) one lane in each direction with striped separation, continuous access; and (5) one reversible lane with barrier separation, no intermediate access. The results of the study indicated that HOT lanes in the study corridor would be subject to a number of design and operation constraints, due to the short study corridor, multiple interchanges on the adjacent main lanes, and anticipated high levels of HOV traffic. In June 2002, the Regional Transportation Commission voted not to include a HOT lane alternative in further consideration.

HOT Lanes on C-470 in Denver, Colorado

A study has been initiated to assess the design, operational, and financial feasibility, as well as expected public acceptance and use of HOT lanes as part of the potential widening of the 27-mile length of C-470 in the southwest quadrant of the Denver metro area, from US 6 to I-25. C-470 is a four-lane beltway with 18 interchanges, including the end points. Commuters are typically destined to the Denver Technological Center and adjacent offices, a regional employment hub with over 100,000 employees. The segments that do not currently experience severe congestion are all projected to experience such conditions by 2020. Future projected traffic volumes indicate that a phased implementation of added toll lanes may be viable. The study is an outgrowth of the recommendations of a recently completed regional feasibility study of "Value Express Lanes."

Priced Q-Jump Lanes in Lee County, Florida

A queue jump is a roadway facility that can be used by drivers paying a toll to bypass points on the transportation network where congestion is typically severe (colloquially, a "bottleneck"). Queue jumps planned for Lee County are elevated facilities or "flyovers" similar to an expressway ramp that would "jump" over congested intersections. Preliminary results from the study indicate that the queue jumps are likely to produce sufficient revenue to pay for themselves over the twenty to thirty year life of the structure. However, queue jumps are not likely to meet traditional bonding requirements. This pricing program will demonstrate how value pricing can be introduced on roadway facilities other than freeways, and in smaller urban areas.

HOT Lanes on I-40 in North Carolina

HOT lanes and other potential value pricing options are being explored on I-40 in the Piedmont (Greensboro, High Point, and Winston-Salem) and Research Triangle (Raleigh and Durham) areas of North Carolina. I-40 is the principal east-west corridor for the southern half of the U.S. The highway segments in the Research Triangle area are seriously over-capacity. Due to continued employment and residential growth, the segments in the Piedmont Triad are showing signs of similar affects during peak period congestion.

HOT Lanes on Highway 217 in Portland, Oregon

The Highway 217 corridor, which connects I-5 to US 36, is the major north-south transportation route in the Washington County portion of the Portland metropolitan area. It runs through two major regional centers, connects the region's high tech centers, and serves one of the highest growth areas in the region. There is a need for additional capacity in the corridor. Value pricing options are being integrated into the mix of alternatives being evaluated and considered for implementation. A prior study, the Traffic Relief Options study, evaluated value pricing in the Portland metro area from a regional perspective and recommended that value pricing be considered whenever major new highway capacity is added. The current study will develop and evaluate several HOT lane and ramp meter bypass alternatives in this corridor, including a FAIR lanes alternative on priced ramp meter bypasses.

Managed Lanes on the LBJ Freeway in Dallas, Texas

The LBJ Freeway (I-635) is the major circumferential roadway in the Dallas region. The total length of the corridor is 21 miles. Traffic on certain portions of the LBJ Freeway is heavily congested for many hours of each day. The major attractors in this portion of the Dallas/Fort Worth region include a regional mall and a thriving business district. Currently, the facility consists of eight general purpose lanes and one HOV lane in each direction. The facility may be upgraded with up to six HOT lanes (three in each direction). The proposed lane configuration would vary - the west section would have six HOT lanes, the east section from I-75 would have four HOT lanes, and the rest of the facility would have two HOT lanes. The LBJ Managed Lanes project design uses variable tolling to provide free-flowing traffic conditions and to support Bus Rapid Transit.

Managed Lanes on the Katy Freeway in Houston, Texas

Katy Freeway (I-10), in the western portion of Houston, is a heavily congested urban interstate facility. The existing freeway is 23 miles in length and consists of six general-purpose main lanes (three in each direction), with two-lane continuous one-way frontage roads in each direction for most of its length. Additionally, the freeway has a one-lane reversible high occupancy vehicle (HOV) lane between I-610 and State Highway 6, and one HOV lane in each direction between State Highway 6 and the Grand Parkway (State Highway 99). West Houston is one of the fastest growing areas in the Houston metropolitan region. Population and employment along the corridor is projected to increase by 40 percent in the near future, with population in certain portions of the corridor expected to grow by up to 130 percent. The freeway is proposed to be expanded to eight general-purpose lanes, four in each direction, with continuous three-lane frontage roads in each direction. In addition, in the center of the facility from I-610 west to State Highway 6, four HOT lanes are proposed, two in each direction. From State Highway 6 to the Grand Parkway, two HOT lanes are proposed, one in each direction. A FAIR lanes alternative will be included among the alternatives to be studied.

C. PRICING ON TOLL FACILITIES

Operational Projects

Bridge Pricing in Lee County, Florida

In August 1998, Lee County implemented a value pricing strategy on two toll bridges between the cities of Ft. Myers and Cape Coral. The project created a peak/off-peak pricing structure offering bridge users a discount toll during times before and after the peak traffic periods. Under the pricing plan, a 50 percent toll discount is provided for trips made during the half-hour period before the morning peak of 7:00-9:00 a.m. and in the 2-hour period following the morning peak. In the evening, the discount period is during the two hours before the evening peak of 4:00-6:30 p.m. and during the half hour after the peak. The program has been successful in inducing significant shifts in traffic out of the peak congestion period. Surveys indicate that over 71 percent of eligible motorists (i.e., those with vehicle transponders) shifted their time of travel at least once a week to obtain a toll discount amounting to just 25 cents (Burris et al 2002).

Variable Tolls on Hudson River Crossings in New York

The Port Authority of New York and New Jersey adopted a variable toll strategy for users of the electronic toll collection system (E-ZPass) in March 2001. The Port Authority provides a 20 percent discount for off-peak tolls on its bridges and tunnels crossing the Hudson River between New York and New Jersey. An estimated 121.4 million vehicles and approximately 65 million interstate transit system riders use the interstate crossings annually. Studies show that morning peak period traffic in May 2001 reduced by seven percent compared to the same month in 2000. Evening peak period traffic dropped by four percent; and overall traffic remained stable (Port Authority of New York and New Jersey 2001).

Variable Tolls on the New Jersey Turnpike

The New Jersey Turnpike Authority operates a 148-mile facility with 28 interchanges. It is one of the most heavily traveled roadways in the country with average daily trips exceeding 500,000 vehicles. The Turnpike's variable pricing program began in the fall of 2000. The program provides for tolls that are about seven percent higher during peak traffic hours than during off-peak periods for users of the electronic toll collection system. The price differential is scheduled to increase in a phased manner over several years.

The introduction of variable tolls has improved traffic flow and provided associated air pollution and energy consumption benefits. Preliminary data show that value pricing is working to shift traffic out of the peak period. Most of the recent growth in traffic on the Turnpike has been in the off-peak hours, with total traffic up by around seven percent, but morning peak traffic up by only six percent and afternoon peak traffic up by only four percent. The proportion of daily Turnpike traffic accounted for by the morning peak dropped from 14 percent to 13.8 percent, and the afternoon peak's share of traffic decreased from 14.7 percent to 14.3 percent.

Variable Tolls on the San Joaquin Hills Toll Road on Orange County, California

The San Joaquin Hills Toll Road (State Route 73) is 15 miles long and extends from Interstate 5 near San Juan Capistrano to Interstate 405 in Newport Beach. It provides an alternative to heavily congested portions of I-5 and I-405, two north-south freeways in the southern portion of the Los Angeles metropolitan area. It carries in excess of 2.3 million vehicles annually on a six-lane facility. Currently the Toll Road is near capacity during peak periods. A small peak period premium of 25 cents was implemented at most entrances to the facility in February 2002. The premium was calibrated to reduce congestion and spread peak demand to shoulder and off-peak periods, while maintaining revenues at levels required to maintain the covenants on the Agency's revenue bonds. Evaluation results showed that there was a net reduction of 2.7 percent in total traffic along with a net increase of 5.8 percent in toll revenue due to the premium tolls.

Projects Under Development

Open Road Tolling along the Sawgrass Expressway in Broward County, Florida

In February 2003, Florida began a pilot project to combine Open Road Tolling and value pricing on the Sawgrass Expressway. Open Road Tolling (ORT) utilizes electronic toll collection to create a tolled highway system free from toll plazas and delays. This technology has the potential to change the toll industry by providing improved customer service, lower operating and maintenance costs, and potential savings in capital costs. Under ORT, toll roads would be open to everyone and completely transparent to customers. There would be no toll plazas, tollbooths, or lane restrictions. All traffic would operate at highway speeds, yet every vehicle would pay a toll. Toll collection would occur through equipment located on overhead gantries. Eliminating the toll plazas themselves and the merging and weaving that occur while entering and exiting the plazas enhance roadway capacity and safety. Customers with a transponder would already have a pre-paid account with the toll agency. The toll charge would be automatically debited from their accounts. If customers do not have a transponder, their license tags would be photographed and the owners sent a monthly bill, including a surcharge reflecting the additional handling costs. The surcharge would induce frequent customers to use the transponders.

Variable Tolls for Heavy Vehicles In Lee County, Florida

The on-going operational Variable Pricing Program in Lee County (see above) is currently restricted to light duty vehicles. This project will expand the existing program to allow larger vehicles to participate in the program and encourage them to travel during off-peak times. The program is anticipated to be operational in summer 2003.

Variable Tolls on the Pennsylvania Turnpike

The Pennsylvania Turnpike Commission is currently implementing electronic toll collection for travel between many of the interchanges along its toll facilities. This will allow the Turnpike to implement variable tolls. The project involves a study of the potential for value pricing strategies to alleviate congestion; to facilitate the timely, efficient, and economical movement of commercial vehicles to industrial and commercial destinations; and to improve the movement of daily commuter vehicles to and from the workplace. A pilot test will be initiated soon.

Pricing Options on the Florida Turnpike in Miami-Dade County, Florida

The Florida Turnpike Enterprise recently completed a study of the feasibility of implementing value pricing on a 21-mile section of the Homestead Extension of Florida's Turnpike (HEFT) in Southwest Miami-Dade County. The facility can be divided into two unique and distinct segments. The southern segment extends from SR 874 to SR 836. It is approximately eight miles long and includes four interchanges. The northern segment extends from SR 836 to I-75. It is approximately 13 miles long and includes six interchanges. For the southern segment, the study recommended widening the HEFT from six to eight lanes in the short-term. The long-term recommendation (by 2010) was to add two reversible elevated Express Lanes, to be value priced. The recommendation for the northern segment was to widen from four to six lanes in the short-term. The long term recommendation for the northern section was to add an additional four lanes at ground level by 2015, to be designated as value-priced express lanes.

D-1. USAGE-BASED VEHICLE CHARGES

Car Sharing in the City of San Francisco

City CarShare is the nation's only non-profit, fully automated car-sharing program. It is located throughout the City of San Francisco, and expanding rapidly throughout the Bay Area. Today there are 2,300 members sharing 85 vehicles, located in the cities of San Francisco, Oakland, Berkeley, Palo Alto, and Mountain View, and at twelve Bay Area Rapid Transit stations. Surveys of members and a comparable group of non-members (located in similar neighborhoods, but without convenient car sharing) suggest modest increases in driving from members coming from car-less households, but also sizable travel time savings, suggesting that cars were used to replace some of the least convenient off-peak transit trips. Future surveys will seek to identify how vehicle ownership and residential location choices, when combined with the availability of car sharing, affect travel patterns.

Test of Mileage-Based Insurance in Atlanta, Georgia

This test is designed to assess the effects of converting fixed automotive insurance costs into variable driving costs. To establish baseline travel patterns, the research team is monitoring the driving patterns of a pool of 875 household participants for one year with no pricing treatments. In the second year of the study, insurance rates for study participants will be assessed on a per-mile basis, such that if they continue their pre-existing driving patterns, their annual insurance premiums will remain unchanged. Participants that reduce their household miles of travel will receive insurance rebates in accordance with their mileage-based rate schedule. The research team will monitor the changes in driving patterns and will use statistical analyses of household characteristics, vehicle travel, and relevant employer survey data (parking costs, transit accessibility, etc.) to examine the relationships between the incentives offered and the travel behavior changes.

Variabilization of Fixed Auto Costs in Minnesota

The Minnesota Department of Transportation has begun a demonstration of how drivers would change their travel behavior if some of the fixed costs of owning and operating a vehicle were converted to variable costs. The pilot project will simulate changes in vehicle lease pricing that substantially reduce fixed lease costs but charge for every mile of travel. (About 30 percent of new vehicles in the U.S. are acquired through leases.) The project will also simulate the conversion of state sales taxes and vehicle registration fees on automotive leases to mileage charges.

Approximately 300 vehicle owners and/or leaseholders will be enrolled in a longitudinal study intended to examine the effects of alternative government and private sector fee structures. Upon completion of a baseline assessment, drivers will be offered individually tailored financial incentives. Tests will be focused on developing the best possible understanding of price elasticities and how they vary by income, location, annual mileage driven, and other factors. The project will use, as appropriate, Intelligent Transportation System (ITS), Global Positioning System (GPS), and cellular technology to record and report vehicle mileage, locations where driven, and time-of-day. A range of price-signal frequencies will be tested within each experiment category to evaluate driver response. A possible outcome of this demonstration might be a reassessment of government motor vehicle fee structures that will help to address growing peak period travel. This demonstration may also help lease companies structure incentives to reduce miles driven over the life of the lease, thus improving resale value of vehicles.

Oregon's Mileage-Based Road User Fee Evaluation

This pilot is identifying and evaluating mechanisms to supplement or replace Oregon's statewide fuel tax. A Road User Fee Task Force (RUFTF, pronounced "Rough Tough") was formed in November 2001. The RUFTF has considered over 20 potential revenue sources to ultimately replace the fuel tax on gasoline as the primary funding source for the state's road and highway system. The task force decided to go forward with a test of a vehicle miles traveled (VMT) fee collected at the fuel pump, with data generated by either a simple GPS device or odometer sensor with automated vehicle identification (AVI) technology. Under either technology, the data would be transmitted to a reader at the fuel pump via radio frequency.

The Task Force concluded that the costs for implementing and operating a VMT fee will be extensive, much more than for the gas tax, but that the fuel pump collection option may prove affordable. It also determined that area pricing is feasible with the GPS technology option. Retrofitting a GPS device for every passenger vehicle in the state, however, will be cost prohibitive. The task force thus will recommend to the Oregon Legislature that a mandate be imposed that every new vehicle sold in the state be equipped with a properly configured GPS device. This would take over 20 years for full market penetration. Area pricing would not be implemented until every vehicle subject to area pricing is equipped with the device.

Global Positioning System (GPS) Based Pricing in the Puget Sound Region of Washington State

In this pilot, meters will be placed in the vehicles of voluntary participants. Different prices per mile will be imposed depending upon the location and time of travel. Drivers will be made aware of the pricing both though maps and other printed material, as well as a real-time read-out on the in-vehicle meter. The location and time of travel of the vehicle will be determined by an integrated GPS antenna/receiver. The GPS approach has been selected because it offers a cost-effective method of pricing ubiquitously. By relying on "In-Vehicle Meters," the need for expensive wayside antennae is eliminated, and even arterial roads can be priced cost-effectively. At the start of the pilot, participants will receive a billing account with a positive cash balance. Any cumulative in-vehicle meter charges will be debited against this balance. Any funds remaining in the account at the end of the pilot may be kept by the participants. This "hold-harmless" study design gives participants the opportunity to participate without committing their own funds, yet gives them the incentive to adjust their driving behavior so as to enjoy the surplus remaining in the account at the end of the experiment.

D-2. "CASH-OUT" STRATEGIES

Parking Cash-Out and Pricing in King County, Washington

The King County Parking Cash Out demonstration project is designed to implement Parking Cash Out and other parking management strategies in downtown high-rises in cooperation with building owners and employers; to provide building owners or managers with incentives to shift existing parking supply to carpool, vanpool, or short-term parking; and to reduce the supply and increase the cost of single-occupant monthly vehicle parking. The serious downturn in the Seattle economy has stalled implementation. However, preliminary results indicate that for the 167 employees offered Parking Cash Out thus far, 17 (over 10 percent) took the cash in lieu of the parking, resulting in an annualized reduction of over 82,000 vehicle miles traveled.

Cash-Out of Cars in King County, Washington

The "Way to Go, Seattle!" demonstration project asks households to use one less car and keep daily records of how they got around. Households are paid a weekly stipend (the average national cost of owning a second vehicle) during this time to simulate the financial savings they would realize if they were to actually sell one of their cars. Daily records, odometer readings, and anecdotal stories are analyzed to document costs and to understand whether or not households made significant behavior changes such as consolidating trips, carpooling, taking transit, biking, or walking. Results indicate that participating households averaged 58 fewer miles per week during the periods they were required to refrain from using their cars. Of the 45 participating households in the first two phases of the pilot, seven (16%) sold their cars after the pilot ended, four (9%) pledged not to replace their cars after their vehicles were retired, and six (13%) plan to sell their cars. Four households that had expressed interest in participating in the pilot instead sold their vehicles as soon as they learned about the cost savings that would result and about available transportation alternatives.

E. REGIONAL PRICING INITIATIVES

Value Lane Study in Phoenix, Arizona

The concept of "Value Lanes" includes both HOV lanes and HOT lanes. This study was completed in 2002. It provided information to policy makers on the feasibility of converting HOV lanes to HOT lanes. It recommended that an Action Plan be put in place, to include public education on the need for an HOV/HOT system, legislative changes needed to facilitate implementation of Value Lanes, and implementation of Value Lanes using one or two Pilot Programs.

Value Pricing Outreach and Education in Minnesota

A 30-member task force of state legislators, mayors, and business, environmental and transportation leaders examined value pricing options in Minnesota and concluded that the state should proceed with a demonstration project. Towards this end, the task force is overseeing:

Feasibility of Pricing at Ten Locations in Maryland

In the 2001 legislative session, the Maryland General Assembly directed the Maryland Department of Transportation (MDOT) to examine the potential for variable pricing strategies in highway project planning; and include such strategies in metropolitan and Statewide transportation planning to boost transportation efficiency and equity, expand travel choices, and reduce emissions. In June 2001, former Governor Parris N. Glendening decided to remove consideration of High Occupancy Toll (HOT) lanes from Maryland transportation plans. The former Governor's decision was based on the perceived inequity of linking an easier commute with a person's ability to pay. However, in the fall of 2002, the former Governor's Office of Smart Growth initiated a revised feasibility study of value pricing. The feasibility study will investigate and address equity issues that arose during the previous project, using the concept of "credits" (as in FAIR lanes) and smart card technology. The revised study scope includes developing initial alternatives, appraising new technology, developing a plan for public outreach, defining a concept test plan, and devising an implementation plan and evaluation process.

Regional Value Pricing Evaluation and Feasibility Study in Dallas, Texas

The North Central Texas Council of Governments (NCTCOG), as the Metropolitan Planning Organization (MPO) for the Dallas-Fort Worth Metropolitan Area, supports a policy to explore potential ways to maximize High Occupancy Vehicle (HOV) lane capacity, manage facilities through pricing, and expand the use of tollways. The regional study will establish criteria, policies, and procedures to identify potential candidates for a short-term value pricing demonstration project, and study the applicability of value pricing concepts in existing corridors. The study will also propose managed facilities for the next metropolitan transportation plan.

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United States Department of Transportation - Federal Highway Administration