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International Scan: Reducing Congestion and Funding Transportation Using Road Pricing

International Scan: Reducing Congestion and Funding Transportation Using Road Pricing. American Association of State Highway and Transportation Officials Federal Highway Administration Federal Transit Administration National Cooperative Highway Research Program May 2010. Why Road Pricing?.

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International Scan: Reducing Congestion and Funding Transportation Using Road Pricing

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  1. International Scan:Reducing Congestion and Funding Transportation Using Road Pricing American Association of State Highway and Transportation Officials Federal Highway Administration Federal Transit Administration National Cooperative Highway Research Program May 2010

  2. Why Road Pricing? • Demand Management • Reduce traffic congestion, promote environmental goals, improve cost of doing business, and support community livability based on amount of traffic reduction sought (i.e. congestion pricing, cordon/urban area pricing, facility pricing) • Revenue Generation • Pay for roadway infrastructure, operations and/or transportation system capacity with charges road user charges (i.e. flat toll rates, variable charges, distance based user fees)

  3. US Road Pricing Context • Traffic congestion in major urban areas is a significant and growing problem • Lack of sustainable funding sources for multimodal surface transportation is a growing concern • Enhanced environmental, sustainability and livability concerns related to the roadway network and its use • Variable road pricing limited primarily to High Occupancy Toll (HOT) lane projects and a few existing toll road facilities. No large area or regional variable road pricing projects have been implemented • Opportunity to learn from the experience of others who have implemented road pricing as a transportation demand management tool and/or for revenue generation

  4. Purpose of the Scan “Identify new ideas and workable models for integrating variable road pricing approaches into state, local and regional policies, programs, and practices.”

  5. Scan Team Participants PANYNJ FHWA FTA VDOT GA DOT Mn/DOT WSDOT 5

  6. Scan Sites American Association of State Highway and Transportation Officials National Cooperative Highway Research Program U.S. Department of Transportation Federal Highway Administration Federal Transit Administration • Revenue Generation • Germany • Czech Republic • Revenue Generation & Demand Mgmt. • Netherlands Demand Management • Stockholm • London • Singapore 6

  7. Stockholm Congestion Tax • Key milestones • Trial (Jan-July 2006) • Vote (Sept 2006) • System reopens (Aug 2007) • Results • 20% reduction in traffic • 10-14% decrease of emissions; 2-10% better air quality • Net revenues of £137 million ($220 million) in 2008 • Swedish Road Administration (Managing Authority) • Purpose • Reduce congestion (primary) • Increase accessibility, promote transit and reduce emissions (secondary) • Description • Cordon around center city • Time of day pricing structure • License plate reader technology • Lidingo Rule • 30% of vehicles are exempt

  8. London Congestion Charge • Purpose • Reduce Congestion (primary) • Promote Transit and Reduce Emissions (secondary) • Description • Area charge in center city • Flat daily fee structure • License plate reader technology • 90% discount for residents within the zone • 30% of vehicles are exempt • Key milestones • Open (Feb 2003) • Western extension (Feb 2007) • Repeal of Western Extension (2010) • Results • 25% and 19% reduction in traffic (central and western extension respectively) • Net revenues of £137 million ($220 million) in 2008 • Transport for London (Managing Authority)

  9. Singapore Electronic Road Pricing • Purpose • Congestion Management (primary) • Promote Transit (secondary) • Description • Cordon around city center, with expressway pricing – rates vary by time of day • Fee structure adjusted quarterly based on 85th percentile speed • Transponder based with value-added services via smart card • No exemptions • Key milestones • Open (1975) • Electronic charging (1998) • Results • Smart card technology protects user privacy • Achieved target speeds of 45-65 kph on expressways 20-30 kph on arterials • Net revenues of SGD 100 million ($75 million) in 2008 • Land Transport Authority (Managing Authority)

  10. German Truck Tolling • Purpose • Revenue Generation (primary) • Reduce emissions, mode shift to rail and water (secondary) • Description • GPS based with DSRC interrogation and license plate reader enforcement • Fee based on distance, vehicle type and emissions class • 35% are foreign trucks • Key milestones • System opens (January 2005) • Results • Violations < 2% • Empty truck trips declined by 7% • 58% shift from dirtier (Euro class 1,2,3) to cleaner trucks (euro class 4,5) • Revenues of 3.5 billion Euros ($5 billion) in 2008 • Net revenues split 50% roads, 38% rail, 12% waterways • Ministry of Transport (Managing Authority)

  11. Czech Truck Tolling • Purpose • Revenue Generation (primary) • Description • Transponder/DSRC based with license plate reader enforcement • Fee based on distance, vehicle type and emissions class • 40% are foreign trucks • Special law prohibiting truck operations on Sundays and peak times on Friday evening and Saturday morning • Key milestones • System opens, all trucks 12,000 kg or more pay (Jan 2007) • Expansion to include trucks 3,500 kg or more (Jan 2010) • Results • Average toll rate of $0.35 per mile on freeways • Revenues of 6 billion CZK ($350 million) in 2008 • Ministry of Transport (Managing Authority)

  12. Netherlands Distance-Based Charge • Purpose • Reduce Congestion, Generate Revenue to replace fixed taxes, shift to “User Pays” Principle (primary) • Promote Transit and Reduce Emissions (secondary) • Description • Shifting from purchase and ownership tax to a distance-base fee structure • GPS based with DSRC interrogation and license plate reader enforcement • Fee based on distance, vehicle type, emissions class and time of day • Key milestones • All trucks (2012) • All vehicles (2018) • Forecasted Results (2020) • 10%-15% reduction in VMT • 10% reduction in CO2 emissions • 6% increase in usage of public transit • Revenue neutral (offset by reduction in other transportation taxes) • Ministry of Transport (Managing Authority)

  13. International Road Pricing Scan What were the major findings?

  14. Host countries with clearly defined and well-understood policy goals achieved their targeted outcomes most effectively. • Congestion management in Stockholm, London and Singapore • Revenue Generation in Germany and Czech Republic • Dutch user pays, revenue neutral, tax consolidation approach

  15. Public Support for Pricing Project Stockholm Vote Implementation of Pricing Project Edinburgh & Manchester Referendums Outreach and Education Period Demonstration Period 2. A large-scale demonstration project is a powerful tool for public acceptance, allowing people to experience the benefits of congestion pricing. • Stockholm trial demonstrated the benefits of congestion pricing first-hand Source: CURACAO State of the Art Interim Report, April 26, 2008. p. 94,

  16. 3. Thorough planning and performance measurement ensures achievement of overall goals • Helps to manage the pricing program as an element of overall transportation system performance • Singapore: price adjusted quarterly to maintain targeted minimum speeds and using advanced analytics and traffic models to better understand network impacts of pricing on parking and transit. • Post-implementation planning and performance assessments used in Germany, London and Stockholm to ensure cost efficiency and operating effectiveness.

  17. 4. Linking the pricing structure to benefits received by users contributes to public acceptance and helps to avoid the potential negative impacts from traffic diversion. • German truck toll rates are set to reflect infrastructure life cycle costs from trucks. Rates are low enough to ensure no significant diversion of truck traffic to non-tolled alternatives • Singapore’s ERP has most dynamic and flexible pricing structure of the sites visited • Swedish toll rates on new roadway infrastructure are set to reflect the value of reduced travel time and operating costs relative to existing non-priced routes

  18. 5. Public outreach and communications key component of the program at every stage. • prior to making the implementation decision, • during the program design process • during the operational phase.

  19. 6. Open-source system designs offer long-term advantages to manage costs of implementation and operations, ensure system flexibility and scalability, and establish a foundation for system interoperability. • Dutch plan would have allowed multiple vendor solutions to create a competitive environment • Singapore’s second generation smart card designed to be interoperable with the transit fare media, retail purchases and parking payment systems

  20. 7. Interoperability among states and countries is recognized as a critical issue that needs to be addressed at high levels. • Existing toll systems with large sunk costs in proprietary applications and equipment heighten the challenge of transition • EU has adopted Directive 2004/52/EC • Intergovernmental coordination in sharing national vehicle registry information between agencies is key to operations, enforcement, and interoperable systems of the future

  21. 8. Equity and privacy concerns are addressed by host countries through exemptions, revenue use, technology, and business rules. • Exemptions used in London and Stockholm to address issues of equity. • Privacy addressed in Singapore through use of a “smart cash card” that does not contain user data. • The Dutch plan addressed privacy through a smart client and on-board data aggregation • Using toll revenues to fund transit and other modes represents a transportation system view

  22. 9. The urban area pricing projects integrated public transit investments and land use planning in order to manage congestion. • Stockholm and London made robust investments in public transit and alternative modes leading up to and following the introduction of road pricing. • Singapore has adopted and committed funding to realize a master transportation plan which integrates road pricing, transit, roadway expansion and land use.

  23. Next Steps • Extend and enhance outreach and education efforts to communicate international lessons and broaden the US discussion • Conduct further research to better understand key factors that contributed to success • Identify how these road pricing lessons learned are applicable in the US context at the national, state and regional levels to address economic and mobility needs • Develop a road pricing toolkit to aid implementation considerations • Address best practices in procurement and technology choices

  24. Road Pricing Works !!!

  25. For more information contact: Mark F. Muriello mmuriello@panynj.gov 212-425-4836 Summary Report: http://international.fhwa.dot.gov/pubs/roadpricing/roadpricing.pdf

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