The Urban Partnership Agreement UPA Program

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The Urban Partnership Agreement (UPA) Program
February 2008
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Presentation Overview

• What is Congestion Pricing
• Why is it needed
• How does it work
• What are the benefits
• What is the US DOT Initiative
• A little about the 4 projects outside NY
• More detail on the NYC Congestion Pricing
  Initiative
• Answer questions, take comments

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The Crisis of Congestion A Tax on the Nation

• The financial cost of congestion
• 3.7 billion hours of travel delay and 2.3 billion
  gallons of wasted fuel.
• This plus unreliability, extra inventory, and
  environmental costs across all modes equals
  almost 200 billion annually.
• The cost to families and civic life
• Traffic congestion affects virtually every aspect
  of peoples lives where people live, where they
  work, where they shop, and how much they pay for
  goods and services.

Congestion on I-95 in Northern Virginia
Texas Transportation Institute, 2005 Urban
Mobility Report USDOT internal analysis
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Wasted Hours Across America

• Over the past 20 years in the 85 largest U.S.
  cities, the number of hours lost each year by an
  average driver to congestion increased from 17 to
  almost 50.
• In the 13 largest cities, drivers now spend the
  equivalent of almost 8 work days each year stuck
  in traffic.

Annual Hours Lost to Congestion Per Peak Hour
Driver Very Large Metro Areas, 1983 v. 2003
Texas Transportation Institute, 2005 Urban
Mobility Report
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What is Congestion Pricing

• A charge that varies by traffic volumes or time
  of day to balance supply and demand
• It shifts purely discretionary travel to off-peak
  
• It increases vehicle throughput, allowing more
  cars to move through the same physical space
• A little means a lot reducing peak period
  travelers by just 3-8 can reduce delays by up to
  50

Peak period throughput, CA SR-91,priced vs.
unpriced lanes
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Congestion Pricing Brings Supply and Demand
into Alignment

• Failure to properly price travel on highways is a
  root cause of congestion.
• The price of highway travel (gas taxes,
  registration fees, etc.) bears little or no
  relationship to the cost of congestion.
• Unlike other public utilities, the public
  expectation is that the service is free or does
  not change with changes in demand.
• Allocating transportation services via pricing is
  more efficient than rationing by delay.
• Pricing can supply revenues that can further
  contribute to reducing congestion.

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Congestion Pricing Is Not the Same As Tolling

• Tolling
• Flat tolls generally
• Purpose is to collect revenue to pay for
  construction and operation
• Congestion Pricing
• Generally tolls vary by level of demand
• Purpose is to manage demand to maximize
  efficiency and reduce delay

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Congestion Pricing - The Options
Variably or Dynamically Priced Lanes (Existing)
HOV to HOT Conversion (Use Excess Capacity)
Variably or Dynamically Priced Lanes (New)
Region - Wide Charges
Cordon or Area Pricing
Variable Tolls on Toll Facilities
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Congestion Pricing Benefits to Drivers

• Reduced delays
• Reduced stress
• More deliveries per hour
• More time with family and friends
• Predictability of trip times
• Higher throughput more customers served

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Congestion Pricing Benefits to Transit
Congestion pricing
Opportunities for New Capacity
Increased price for peak period highway use
Higher transit ridership
Less highway congestion
Higher transit speeds more reliable transit
service
Higher transit ridership lower costs for
transit providers
More frequent service lower fares
The Virtuous Cycle
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Congestion Pricing Benefits to Government

• Provides quality transportation services without
  tax increases or large capital expenditures
• Saves lives by shortening incident response times
  for emergency personnel
• Serves as a funding source
• Annual revenue stream
• Securitization/Bonding
• Concession payment
• Retains businesses and expands tax base

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Congestion Pricing Other Societal Benefits

• Significant fuel savings
• Reduced vehicle emissions
• Decreased inventory carrying costs for businesses
• Better land use decisions
• Reduced housing market distortions
• Expansion of opportunities for civic participation

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Congestion Pricing Public Opinion
In real world situations, public opinion
indicates an openness to accept pricing as an
alternative to congestion

• Nearly 60 of those surveyed said that allowing
  single occupancy cars to use HOV lanes on I-394
  in Minnesota is a good idea Support was
  consistent among all income groups
• Only 5 months after downtown cordon pricing was
  introduced in Stockholm, over 60 of those
  surveyed said they would vote to make cordon
  pricing permanent
• Over 70 of respondents in a California SR-91
  survey supported allowing lower-occupancy
  vehicles to bypass congestion by paying a fee to
  use the HOV lane
• By a 2-to-1 margin, respondents to a 2005
  Washington Post poll preferred tolls over taxes
  for financing highway construction or expansion
  58 also favored allowing toll buy-in to carpool
  lanes.

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Congestion Pricing Ease of Implementation

• Implementation is relatively easy given current
  technology
• Dashboard/window mounted transponders (e.g., E-Z
  Pass)
• Optical recognition of license plates to confirm
  enrollment (e.g., London cordon pricing)
• GPS devices or odometer sensors (e.g., Oregons
  highway finance trial under FHWAs Value Pricing
  Pilot Program)
• Technology allows for pricing the use of either
  individual roadways or broader geographic areas
• Technology can also supplement or replace
  traditional enforcement mechanisms, improving
  system performance

Free flowing traffic on California SR-91
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Congestion Pricing Domestic Examples
I-394 MnPass Express Lanes allow single occupancy
cars to use 11 miles of carpool (HOV) lanes
between downtown Minneapolis and the western
suburbs. Fees vary every 6 min. based on
real-time traffic levels.
Express Lanes on California SR-91 charge all
users of the 10-mile stretch between Anaheim and
Riverside, with discounted rates for cars with 3
occupants.
Single occupancy cars pay to use an 8-mile
(FasTrak) stretch of I-15 outside of San Diego.
Some of the proceeds are used to fund transit
projects and operations. Fees vary based on entry
points and real-time traffic levels.
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Congestion Pricing Overseas Examples

• Stockholm
• Downtown cordon pricing has reduced traffic in
  the downtown area by 25, creating free flow
  highway conditions virtually every day for 7
  months. It has also increased transit ridership
  by 5 and reduced vehicle emissions by 14 fees
  vary by time of day
• London
• Downtown cordon pricing has increased vehicle
  speed by 37, reduced delays by 30, and
  decreased taxi travel costs by as much as 40
  fees are currently uniform, but will soon move to
  a variable structure
• Singapore
• Fully automated electronic fee collection system
  (the first of its kind in the world) has reduced
  traffic by 13 and increased vehicle speed 22
  fees are variable

Chart courtesy of the Wall Street Journal
(8/29/06)
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Urban Partnership Agreements Congestion Pricing

• Congestion Pricing is a key component of the
  USDOT Congestion Initiative (Relieve Urban
  Congestion element) - Urban Partnerships.
• Integrated 4T Strategy .
• TOLLING (pricing) Key Element
• Direct user charge based on use of facility
  varies based on level of congestion
• Toll collection via electronic means (no booths)
• Transit
• Telecommuting/Travel Demand Management
• Technology
• About 850 million in USDOT Discretionary Funds.

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The UPA Program in Brief

• Key aspects
• Four Ts
• Five Urban Partners Miami, Minneapolis-St. Paul,
  New York City, San Francisco, Seattle
• 94 separate projects
• All areas committed to aggressive implementation
  (in operation by 9/09)

• What USDOT provided
• 850 million
• Expedited Federal approvals and flexibility
• Departmental expertise and personnel

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Selection Process
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Goals and Relationship to Departmental Priorities

• Program goals
• Strategically targeting discretionary funding
  toward congestion reduction
• Supporting innovative transportation policies at
  the metropolitan level
• Demonstrating the ability of the Four Ts to
  reduce urban traffic
• Relationship to other Departmental priorities
• Serves as a primary component of the Departments
  Congestion Initiative
• Supports the Departments strategic goal of
  reducing congestion
• Multi-modal UPA review team

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A Strategic Deployment of Discretionary Dollars
A move from fragmented modal programs
to a coordinated, strategic use of limited
discretionary funding
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June 07 Short-List of 9 Preliminary Urban
Partners
Seattle
Minneapolis-St. Paul
New York City
San Francisco
Denver
San Diego
Atlanta
Dallas
Miami
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August 07 5 Areas Designated as Urban Partners
Seattle
Minneapolis-St. Paul
New York City
San Francisco
Miami
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DOTs Mgmt. Structure for UPA Implementation
S1
Modal leadership
OST leadership
FTA oversight
FHWA oversight
OST oversight
RITA oversight
UPA team
City-specific points of contact MiamiMinneapolis
New York City San FranciscoSeattle
Existing tolling / pricing team
Subject matter experts TollingTransit Telecommut
ing/TDMTechnologyEnvironment/PlanningEvaluation
/Performance Mgmt.
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Minneapolis St. Paul Urban Partner

• Create 15 miles of continuously priced lanes on
  I-35W between downtown Minneapolis and the
  southern suburbs
• Existing HOV lanes converted to
  dynamically-priced HOT lanes
• Existing HOT lanes extended
• Convert narrow bus-only shoulder lanes to wider
  Priced Dynamic Shoulder Lanes
• 133.3 M

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Miami Urban Partner

• Create 21 miles of HOT lanes on I-95 from Fort
  Lauderdale to downtown Miami
• Raise HOV limit from HOV2 to HOV3
• Expand 10-lane highway to 12 lanes (by reducing
  the width of the existing lanes from 12 to 11
  feet and using a portion of the shoulder)
• 62.9M

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Seattle Urban Partner

• Variable pricing on the State Route 520 floating
  bridge.
• King County crossing that currently carries about
  160,000 people per day between Seattle and its
  Eastside suburbs.
• Tolls on the existing bridge are intended to help
  pay for the new bridge.
• 138.7 M

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San Francisco Urban Partner

• Variable pricing on Doyle Drive, the 1.5 mile
  elevated roadway leading to the Golden Gate
  Bridge
• Will charge an extra one-way-fee above the 5
  toll on the Golden Gate Bridge
• Revenues will help pay to reconstruct the 70-year
  old Doyle Drive
• 158.736M

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New York City Urban Partner

• Cordon/area pricing
• Mayors Plan
• Will charge drivers 8 and trucks 21 a day to
  enter or leave Manhattan below 86th Street on
  weekdays during the workday
• Those who drive only within the congestion zone
  would pay 4 a day for cars, 5.50 for trucks
• 354.51 M

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New York City Urban Partner

• Mayors Cordon Pricing Plan
• 6.7 VMT reduction
• 224m capital cost
• 649m gross revenue (annual)
• 229m operating costs
• 420m net revenue

• 86th Street northern boundary
• Free periphery
• Intra-zonal charge
• Inbound and outbound charge

New York State DOT Commission Presentation
1/10/08
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NYC Congestion Mitigation Commission
Recommendation to NYS Legislature

• 60th Street northern boundary
• Charged periphery
• No intra-zonal charge
• Inbound charge only

• 6.8 VMT reduction
• 73m capital cost
• 582m gross revenue (annual)
• 62m operating costs
• 520m net revenue

• 1 surcharge on taxi and for-hire vehicle trips
  in the CBD
• Increase meter rates in the CBD
• Eliminate Manhattan resident parking tax
  exemption in the CBD

New York State DOT Commission Presentation
1/10/08
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New York City Urban Partner

• The signed Urban Partnership Agreement allowed
  funding even if the Mayors plan were to be
  modified as part of the political process, so
  long as at least an a 6.7 reduction in vehicle
  miles traveled (VMT) below 86th Street in
  Manhattan would be realized.
• The New York City Urban Partner is comprised of
  the NewYork City Department of Transportation
  (NYC DOT), the New York Metropolitan
  Transportation Authority (MTA), and the New
  York State Department of Transportation (NY
  DOT).

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New York City Urban Partner Key Components

• Institute a broad area pricing system in
  Manhattan south of 60th Street
• Construct new transit facilities, including two
  bus depots, a bus lay-up facility, park-n-ride
  facilities, and pedestrian improvements
• Construct a series of bus rapid transit ("BRT")
  and/or bus-based corridors
• Implement transit technologies, including Transit
  Signal Priority leading to and in selected
  Manhattan transit corridors
• Make improvements to regional ferry service
• Collect and analyze transportation data to
  support the West of Hudson regional
  transportation analysis
• Construct an East River bus lane and
• Purchase and operate additional buses to meet the
  mobility needs of New York City.

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New York City Urban Partner - Funding

• In exchange for these commitments, the Department
  intends to allocate 354.51 million in Federal
  grant funding for actions (i) through (vi),
  according to the terms of a grant agreement (or a
  series of grant agreements) to be negotiated by
  the Department and the Urban Partner
• Value Pricing Activities 10.40 million
• Transit Facilities 213.61 million
• Bus Projects 112.70 million
• Improvement to Regional Ferry Service 15.80
  million
• Alternatives Analysis Data 2.00 million
•  
• NY will be responsible for funding actions bus
  purchase and East River bus lane

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New York City Urban Partner - Benefits

• This cordon pricing system, along with the
  concurrent increases in transit services and
  implementation of other supporting strategies
  described below, is anticipated to
• Reduce vehicle trips into and within the pricing
  zone by about 100,000, i.e., seven percent of the
  current 1.5 million daily total
• Increase traffic speeds by seven percent
• Expected air quality benefits within the zone
  include
• 9 percent reduction in carbon monoxide
• 7 percent reduction in nitrogen oxides
• 12 percent reduction in volatile organic
  compounds

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New York City Urban Partner Implementation
Issues

• Reducing the impact on limited-income driivers
• New Jersey toll offsets
• Dedicating the money for transit
• Impact of Traffic Diversion on other facilities
• To avoid toll
• Because cant avoid toll change demand patterns
• Shift the peak
• Overspill
• Increase loading on transit at certain points
• Shift congestion to outer boroughs
• Overtaxed HOV capacity
• Counterblow lanes
• Carpools
• Increased demand for park/ride facilities and
  impact on local roads

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For More Information on Congestion Pricing

• Visit
• www.fightgridlocknow.gov
• www.fhwa.dot.gov/congestion/index.htm
• www.ops.fhwa.dot.gov/
• ops.fhwa.dot.gov/freight/safetea_lu/
• 1305_tpf.htm

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Questions, Comments, and Discussion