Transportation leadership you can trust.

Electronic Tolls and Congestion Pricing StudyPhase Two Interim Report –Implementation Considerations

presented to

Connecticut Transportation Strategy Board

presented by

Cambridge Systematics, Inc.

with

Urbitran, a division of DMJM Harris/AECOM IBI GroupFitzgerald & Halliday, Inc.Sam Schwartz, PLLC

January 15, 2009

presented to

Connecticut Transportation Strategy Board

presented by

Cambridge Systematics, Inc.

with

Urbitran, a division of DMJM Harris/AECOM IBI GroupFitzgerald & Halliday, Inc.Sam Schwartz, PLLC

January 15, 2009

2

Project Goal and Overview

Goal

• Prepare a document that lays out as many options as possible, sets the context for informed decision-making, and provides a knowledge base with respect to tolls and congestion pricing in Connecticut

Areas of investigation

• Concept evaluation− Traffic, revenue, cost

− Regional equity

− Economics

− Environment

− Safety

• Implementation evaluation− Implementation steps

− Federal requirements

− Public/private partnerships (PPP)

− Privacy

Phase 2 Phase 3

Today

3

Today’s Agenda

Overviews of Phase 2 Topics

• Implementation and legal issues

• PPP

• Privacy

• Public acceptance

Summary of Phase 2 Evaluation of Candidate Tolling Concepts

Schedule moving forward

4

None of the Tolling ConceptsInvolve Toll Booths or Stopping Traffic

No toll boothsNo toll booths

No stoppingNo stopping

5

Implementation and

Legal Issues

6

Federal Programs Related to TollingToday

Interstate System

Construction Toll Pilot

Interstate System

Reconstruction and

Rehabilitation Toll Pilot

Express Lanes Demonstration

HOV/HOT Lanes

Value Pricing

Pilot

Revenue Use Limited to Roadway

X X

Conducive to Congestion Pricing

X X X

Limited Number of Agreements

X X X X

Network of Facilities Can Qualify

X X

7

Federal Programs Related to TollingTomorrow?

Entirely speculative, but

• Likely more flexibility for tolling in metro areas

• Likely more flexibility for states

• Likely more emphasis on congestion pricing

8

Connecticut Statutes

Legislative approval

• Legislature will need to approve any tolling in the State

• Determine how revenue will be used (e.g., Special Transportation Fund or new fund)

Camera enforcement critical

• Cameras currently used for public safety only not law enforcement

• Most tolling concepts require cameras for enforcement/compliance

9

Public/Private Partnerships (PPP or 3P)

10

What is a Public/Private Partnership?

The U.S. Department of Transportation defines it this way

What does that really mean?

A public/private partnership is a contractual agreement A public/private partnership is a contractual agreement formed between public and private sector partners, which formed between public and private sector partners, which allow more private sector participation than is traditional. allow more private sector participation than is traditional. The agreements usually involve a government agency The agreements usually involve a government agency contracting with a private company to renovate, construct, contracting with a private company to renovate, construct, operate, maintain, and/or manage a facility or system. operate, maintain, and/or manage a facility or system. While the public sector usually retains ownership in the While the public sector usually retains ownership in the facility or system, the private party will be given additional facility or system, the private party will be given additional decision rights in determining how the project or task will decision rights in determining how the project or task will be completed.be completed.

11

Public/Private Roles in PPP Methods

PPP Approach

Responsibility for Project Element

Design Construction Maintenance Operations Financing Ownership

Design, Bid, Build

Fee-Based Contracting

Construction Manager at Risk

DB

DB-W

DBOM

DBFO

BOT

BOO

Private PublicMixture

More Efficient Project Delivery Finance

Public

PrivatePrivate

MixtureMixture

12

Private Sector Participation?Private Sector Participation?

Private Participation Gets Confused with Other Decisions

Should Users Pay?Should Users Pay? Project Selection and Priority?

Project Selection and Priority?

13

Privacy

14

Privacy Issues and Potential Solutions

Issue 1 – Collection of personal information

• Offer anonymous tags

• Allow one-off payment/cash payment

• Less an issue if there’s a nontolled alternative route

Issue 2 – Retention of personal information

• Data encryption and protection policies

• Data purging policies

Issue 3 – Sharing personal information with other parties

• Clear data access policies

• Limit access to customer data

15

Public Acceptance

16

Hurdles to Public Acceptance

Cost

• Reluctance to pay for something that was “free”

Trust

• Program must be perceived as efficient and practical

Diversion

Where will toll revenue go?

Equity and fairness

• Peak period pricing “Unfair to commuters”

• Toll express lanes “Benefits the wealthy”

17

Phase 2 Concept Evaluation

18

Concept ANew Toll Express Lanes On Highway Expansions

Policy Rationale

• Pay for new capacity

19

Concept ANew Toll Express Lanes On Highway Expansions (continued)

Would need Federal approval

• Well inside of Federal policy

Good candidates for PPP

• Conceptually

Public acceptance hurdles likely lower than others

• Alternative free routes

• Transit could be subsidized with toll revenue (if there is any)

20

Concept BBorder Tolling Major Highways

Policy Rationale

• Have out of state travelers pay a share of the burden of the transportation system

21

Concept BBorder Tolling Major Highways (continued)

Would need Federal approval

• Interstate Commerce Issue

Nonrevenue risk PPP could be appropriate

Privacy issues larger

• Less alternative free routes

Public acceptance more difficult

• Less alternative free routes

• Diversion to local roads significant

22

Concept CTruck-Only Tolling All Limited Access Highways

• Trucks to pay a larger share of highway improvement needs

Policy Rationale

23

Concept CTruck-Only Tolling All Limited Access Highways (continued)

Would need Federal approval for Interstates

Nonrevenue risk PPP could be appropriate

Less of a privacy issue

• Truckers already have reporting requirements

Public acceptance more difficult

• Clear need to show benefit to truckers, or they are likely to oppose

• Diversion to local roads may be significant

24

Concept D HOV to HOT Lane Conversion

• Make full use of existing HOV lanes

Policy Rationale

25

Concept D HOV to HOT Lane Conversion (continued)

Would need Federal approval

• Already mainstream policy

No privacy issue

• Alternative free routes

Public acceptance probably easiest of all options

• Tested concept

• No one pays for something that was previously toll-free

• Excess toll revenue (if there is any) could subsidize transit

26

Concept E Convert Highway Shoulders to HOT Lanes

• Squeeze more capacity out of existing right-of-way

• Potential on any limited access facility

Policy Rationale

27

Concept E Convert Highway Shoulders to HOT Lanes (continued)

Would need Federal approval for Interstates

• Plenty of precedent

PPP

• Both finance and project delivery opportunities

Public acceptance a challenge

• Safety concerns would dominate

28

Concept FToll Individual Highways Needing New Capacity and/or Reconstruction

• Funding for needed improvements

Policy Rationale

29

Concept FToll Individual HighwaysNeeding New Capacity and/or Reconstruction (continued)

Would need Federal approval

• Revenue can only be used for debt service, reasonable return on (private) investment, and O&M on the tolled highway

PPP

• DBOM-type applications

More of a privacy issue

• No choice if you want to continue using the highway

Public acceptance more difficult

• New tolls on existing toll-free roads will be difficult to accept

30

Concept G1 Toll All Limited Access Highways in Connecticut

• Funding improvements

Policy Rationale

31

Concept G1 Toll All Limited Access Highways in Connecticut (continued)

Would need Federal approval for Interstates

• No precedent

• Current rules require money to stay with highway

PPP

• For project delivery

• Not for finance

Larger privacy issue

• No choice if you want to continue using the highway

Public acceptance even tougher

• New tolls on existing toll-free roads will be difficult to accept

• If money used beyond highway where collected on Interstates, currently illegal

32

• Revenue for improvements to supplement or replace the motor fuel tax

Concept G2 Statewide Tolling on All Vehicle Miles Traveled

Policy Rationale

33

Concept G2 Statewide Tolling on All Vehicle Miles Traveled (continued)

Would need Federal approval for Interstate

• No precedent globally

PPP

• For project delivery, not finance

Largest privacy issue

• Nowhere to hide

Public acceptance toughest

• A complete change to the way things are done today

• But…significant national attention on this potential

34

Concept H Congested Corridor Tolling

• Use congestion pricing to manage demand and improve traffic flow

Sample Corridor

Policy Rationale

35

Concept H Congested Corridor Tolling (continued)

Would need Federal approval for Interstate

• No precedent

PPP

• Project delivery, not finance

Large privacy issue

• No choice if you want to continue using the highway

Public acceptance tough in corridor

• Tolling existing toll-free corridors would be a challenge

36

Moving Forward

Phase 3

• Concept evaluation− Traffic, revenue, cost

− Regional equity

− Economics

− Environment

− Safety

• Mid-January

• Incorporate into final report

Final Report

• February

Present Phase 3 and Final Report to TSB

Transportation leadership you can trust.

Electronic Tolls and Congestion Pricing StudyPhase Two Interim Report –Implementation Considerations

DiscussionDiscussion