Intelligent Transportation Systems (ITS) & Operations

Tolling and Pricing of Federal-Aid Highways

Executive Summary

Why Consider Tolling and/or Pricing?

Tolling and pricing strategies (includes both a fixed-price toll or varying 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 (includes any facility that has previously used Federal-Aid funds) requires legal authority from the Federal government, through the U.S. Department of Transportation.

What Does Federal Legislation Say About Tolling and Pricing?

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. These opportunities can be summarized as:

• Value Pricing Pilot Program (SAFETEA-LU Section 1604(a)).
• Express Lane Demonstration Program (SAFETEA-LU Section 1604(b)).
• Interstate System Construction Toll Pilot Program (SAFETEA-LU Section 1604(c)).
• Interstate System Reconstruction and Rehabilitation Pilot Program (TEA-21 Section 1216(b)).
• High Occupancy Vehicle (HOV) Facilities (SAFETEA-LU Section 1121, amended 23 U.S.C. Section 166).
• 23 U.S.C. Section 129 Tolling Agreements.

How Can My Agency Get Federal Authorization to Implement a Tolling or Pricing Project?

The Federal Highway Administration (FHWA) has established a collaborative process for a State or other public entity to work with FHWA in identifying and applying to the appropriate program or provision. This process can be summarized as follows:

• Submit an “Expression of Interest” to the FHWA Tolling and Pricing Team. The information items requested and a sample template is available at: http://www.ops.fhwa.dot.gov/tolling_pricing/participation.htm. The Tolling and Pricing Team will work with the applicant to identify the most appropriate program or provision to pursue.
• Submit a formal application for tolling and pricing authority to the appropriate FHWA program office for formal review, ultimately leading to a decision on approval. If the project is approved, a formal tolling agreement will then be prepared.

Want More Information on Tolling and/or Pricing of Federal-Aid Highways?

More detailed information on these opportunities and the collaborative process is available at the FHWA Tolling and Pricing web site: http://www.ops.fhwa.dot.gov/tolling_pricing/index.htm. Contact James Colyar, FHWA Washington Division, at james.colyar@dot.gov or (360) 753-9408 for further information.