Toll Revenue Policy: Opportunities for New Revenue and Congestion Management

1. Toll Revenue Policy:Opportunities for New Revenue and Congestion Management Mark F. Muriello Assistant Director Tunnels, Bridges and Terminals November 16, 2010

2. The Port Authority of NY & NJ:Delivering Vital Connections • Tunnels and Bridges Holland Tunnel, Lincoln Tunnel. George Washington Bridge, Outerbridge Crossing, Bayonne Bridge, Goethals Bridge • Bus Terminals Port Authority Bus Terminal, George Washington Bridge Bus Station, Journal Square Transportation Center • PATH Rail Transportation • Airports J.F. Kennedy, LaGuardia, Newark Liberty, Stewart • Marine Terminals Port Newark, Port Elizabeth, Howland Hook, Brooklyn, Red Hook, Auto Marine, Greenville • Economic/Waterfront Development Resource Recovery, Industrial Parks, Teleport, Newark Legal & Communications Ctr, Hoboken • The World Trade Center Site

3. Transportation As A System • Integrated operations • Demand management • Payment choices A view that transportation assets are a system that provide mobility for people and goods manifested through: • Investment decisions • Asset Replacement • Strategic capacity enhancement

4. Congestion: A Sense of Urgency • Annual Cost exceeds $8 Billion • Peak Volumes at Key Links Exceed Capacity • Hours of Delay Expected to Grow by 60% in 20 years. • Heightened Region-wide Air Quality Concerns • Overburdened Freight Routes Hurt Competitiveness

5. Toll Policy • Address the Port Authority’s financial capacity to deliver programs. • Capacity to deliver the Capital Program. • Capacity to address ongoing Port Authority needs (i.e., state-of-good repair, mobility improvements, security, etc.) • Capacity required for future regional investments. • Address congestion throughout the regional transportation system. • Promote equity through a fair distribution of costs to users. • Advance a publicly acceptable and supportable program of charges and benefits.

6. Toll Policy Objectives • Increase the E-ZPass market share. • Encourage shifts to off-peak travel to address peak-period congestion. • Encourage mass transit and higher vehicle occupancy. • Support commercial vehicle management incentives. • Advance discounts that support congestion mitigation. • Advance toll rates that are easy to understand and implement.

7. PA Auto Toll History 1970 $ 1.00 1975 $ 1.50 1984 $ 2.00 1987 $ 3.00 1991 $ 4.00 2001 $ 5.00 $ 4.00 $ 6.00 2008 $ 8.00 $ 6.00 $ 8.00 Peak Off-Peak Cash

8. Auto Tolls Current Toll Rates (Eastbound Direction Only) Bus Tolls Off-Peak Hours Peak Hours CASH All Hours All Hours CASH All Hours $ 6.00 $ 8.00 $ 8.00 $ 4.00 $ 6.00 HOV 3+ Carpools: $2.00 per trip SIB Discount Program: $4.00 per trip for 20 trips within 35 days. Truck Tolls (Per axle) Off-Peak Hours Peak Hours Overnight Hours CASH All Hours $ 7.00 $ 8.00 $ 5.50 $ 8.00

9. Public Communication Plan Wide-ranging customer communications program and materials. • Web Site • Toll-free Telephone Information • Direct Mail • Advertisements • In-Lane Materials • Toll Plaza Handouts

10. Elected Officials & Community Groups Business & Industry Groups Special Interests Transportation Interests Stakeholder Outreach

11. Public Hearings in Two States Not a statutory or regulatory requirement. An agency policy to seek input from the general public and interested parties. • A balanced schedule of locations and times (including internet sessions) to ensure full representation of the region. • Comments also collected through written statements submitted at public hearings, and via US mail and email.

12. The New Jersey Television Network The Importance of the Media The importance of using the media effectively cannot be overstated. Newspapers, radio, and television stories and interviews: • Ensuring the facts are presented accurately. • Keeping the program in the public eye. • Informing the public about the needs and objectives.

13. Employees given comprehensive program details and explanations: • Mailed employee information package. • Program updates and details on Port Authority intranet. • Staff briefings and newsletters. • Employees became part of the communication plan with friends, family, neighbors, civic and community groups, etc. • Training the workforce: • Pricing program information • Handling customer complaints Using Employees as Ambassadors

14. What We’ve Have Accomplished Introduction of meaningful congestion pricing to the NY-NJ region. Growth in E-ZPass market share, allowing higher-speed toll plazas and the first highway-speed bridge toll plaza.

15. What We’ve Accomplished November 18, 2000 The Cost of Crossing the Hudson … Price hikes are inherently painful, but these are worth applauding, if not demanding, as a matter of fairness and as a means to fight congestion. January 18, 2001 The Case for Hikes … (The Port Authority) has devised a rate change designed to prevent a web of traffic jams from strangling bistate commerce. Public Acceptance & Support Outreach to the editorial boards of the major regional newspapers paid tremendous benefits. Most effective means of educating the public and shaping opinion.

16. What We’ve Accomplished Support and advocacy from publicly trusted and respected advocates.

17. What Do Customers Think? Is It Fair To Vary Toll Rates... Agree Disagree Disagree Agree 40% 60% 29% 71% To Support Public Transit? To Improve Congestion?

18. Travel Time Flexibility of Customers Small shifts in peak period demand have meaningful congestion benefits. 45% 30%

19. The Traffic Management Benefits 5-10 AM Pctg. Traffic Distribution

20. The Traffic Management Benefits 5-10 AM Pctg. Traffic Distribution

21. The Traffic Management Benefits Percent of Total Truck Traffic

22. E-ZPass Share: Heavy Trucks Truck participation in E-ZPass has grown significantly since the introduction of time-of-day discounts.

23. E-ZPass Share: Autos

24. Transit Ridership Growth Annual Transit Riders

25. What Does The Public Think? Paying for new road construction…. Prefer No New Roads Prefer New Tolls 41% 41% 18% Source: USA Today, Kelton Research September 13, 2010

26. The Importance of Toll Finance to States

27. Tolling Technology Is Transforming Transportation • Express Lanes / Open-Road Tolling • High-Occupancy Toll (“HOT”) lanes • Private sector investment • Non-toll applications (e.g., parking, PierPASS) • New toll projects

28. E-ZPass – How It Works Lane Mode Sign (LMS) SM Canopy Traffic Light Overhead Vehicle Profiler AVI Antenna Front VES Driver Feedback GO Camera Rear VES Sign (DFS) E-ZPASS Camera and Traffic Light Treadle Mark IV RFID Tag ABC-123 • E-ZPass Customers • Patron establishes account linked to a tag, which is placed in the vehicle • Tag is read in the toll lane • Toll is deducted from the Patron’s account Violators • Image taken of license plate • Compared to valid customer list and debited from account • Look-up request sent DMV if NOT a customer • DMV address information is used to issue a “notice of violation” to the registered owner of the vehicle

29. License Plate Look-Up Complexities • License Plates Are Complex • Multiple Plate Type Codes • Duplicate Plates • Vanity Plates • Contrast between numbers and backgrounds • Colors used in the numbers (red is bad) • Data Accuracy • Change of addresses not submitted by owners in a timely manner • Data entry variations • Rules Vary for Entering Plate Information • What plate characters must be entered • How to interpret data on the plate

30. Electronic Toll Collection: The Evolution of the Toll Industry 1980 1990 2000 2010 Development Stages Electronic Toll Collection Open-Road Tolling All-Electronic Cashless Tolling Electronic Toll Collection Open-Road Tolling All-Electronic Cashless Tolling Implementation Stages

32. An Interoperable Future:Matching Customers and Payment Methods …. So Will the Payment Methods of the Future New Payment Methods and Channels Serve and Satisfy An Array of Customers Customers Come in Various Types….