Value Pricing Pilot Program: Lessons Learned – Appendix B

• An 18-month regional pricing study was initiated by the Maryland Department of Transportation in 1999.
• The study’s objective was to determine the feasibility of a broad range of variable pricing strategies and to develop a series of recommendations for implementation.  Possible pilot projects identified for the initial examination included:
  • I‑270 between the Capital Beltway and Frederick County (converting existing HOV lanes to HOT lanes);
  • U.S. 50 in Prince George’s County (converting to-be-constructed HOV lanes to HOT lanes);
  • Memorial “Bay” Bridge (higher-peak tolls to shift traffic to off-peak times);
  • Maryland portion of the Capital Beltway (I‑495/I‑95);
  • MD 210;
  • I‑95 (between Capital and Baltimore beltways);
  • Fort McHenry Tunnel;
  • Baltimore Harbor Tunnel Thruway;
  • Francis Scott Key Bridge; and
  • I‑95 between the Fort McHenry Tunnel and the Delaware state line.
• Early study findings were presented in public hearings in early 2001.  Although Maryland’s study team had worked closely with a Stakeholder Committee and a Steering Committee to assess the interests of all road users in Maryland, public reaction, as reflected in newspapers and on the radio, was quite negative.  Opposition was particularly focused on the possibility of HOT lanes being included in the study’s recommendations.  As a result the Governor issued a press release on June 21, 2001, calling for the removal of any proposals to study or implement HOT lanes.  The Governor’s view was that HOT lanes were inequitable and linked an easier commute to a person’s ability to pay.  The study was stopped and a final report was not issued (Walton, 2005).
• In the fall of 2002, the Governor’s Office of Smart Growth initiated a revised feasibility study of value pricing options, with a focus on equity issues that arose in the earlier review.  The revised study scope included potential use of “credits” or FAIR lanes, use of smart card technology, development of a plan for Public outreach, definition of a concept test plan, and development of an implementation plan and evaluation process.
• By 2004, planning studies for several highway projects in Maryland incorporated HOT lane facilities, including new toll lanes being considered on I‑270, I‑495 (Capital Beltway), I‑695 (Baltimore Beltway) and I‑95 north of Baltimore.  Because these are to be newly constructed facilities the terminology “Express Toll Lanes,” is being used to describe them and potentially all vehicles may pay a fee for entry into the lanes.
• In July 2005, a Value Pricing Pilot program was executed between FHWA, MDOT, and the Maryland Transportation Authority (MdTA) to authorize collection of tolls on new express lanes on the I‑95/JFK Expressway in Baltimore.  This project is scheduled for completion in 2011.  Study is underway for improvement of an additional 10-mile section immediately north of these express lanes, with a possibility of the express lanes being extended.
• In 2007, the Maryland State Highway Administration continued with its examination of priced lanes (now being termed managed lanes) on I‑270 and I‑495 from the I‑270/I‑370 interchange to the I‑495/SR 193 interchange in Virginia.  The corridor being studied would connect Maryland’s Intercounty Connector (a planned toll facility) with planned I‑495 HOT lanes in Virginia.

• No information

• The Maryland State Assembly reinforced the road pricing examination in its 2001 session by directing the MDOT to examine the potential of variable pricing strategies in highway project planning.
• MDOT worked with relevant County and city agencies and Transportation Management Associations in the identified areas, including formation of advisory committees to assist in review of technological options, aid in public outreach and partnership building and contribute ideas and expertise on the design of potential pilot tests.

• Public outreach has been a key element of all of the pricing efforts in Maryland, including project brochures, web sites, public meetings, hearings, open house workshops, and local advisory groups.

• The HOT lane projects on I‑270 in Montgomery County and to-be-constructed HOV lanes along U.S. 50 in Prince Georges County would involve the use of monthly “hang tags” serving as passes for entry into existing HOV lanes.  Similar to the early version of I‑15 in San Diego.

• Because of the history of pricing project development in Maryland, equity has been a major focus of studies and implementation efforts.

•  Impact information unavailable.

• Phase I of the regional pricing study screened alternative pricing strategies to determine which might be appropriate in each corridor and which could be eliminated.
• Phase II included technical studies, including travel demand modeling, pricing strategy development, toll collection technologies, enforcement options, equity concerns, legal issues, infrastructure requirements, and lane separation methods.

• The Minnesota Department of Transportation is initiating a project to explore the feasibility of implementing the “FAST Miles” pricing concept in the State.
• The project’s goals are to explore the feasibility of this innovative pricing concept to eliminate recurring congestion on limited-access highway systems using a possibly more publicly acceptable form of road pricing, along with an integrated multimodal strategy to encourage shifts of solo-driving commuters to alternative modes.
• The project was originally expected to begin in spring 2007, though the anticipated start date is now spring 2008.
• Under the FAST Miles concept, each motorist is provided a number of dollar credits per month, which can be applied to use priced lanes.  Once credits are exhausted, the motorist is then charged the going rate to use the priced lanes.
• FAST Miles is intended to promote carpooling by allowing motorists to “pool” individual credits.  Depending on road use charges, savings for carpoolers and public transit users can be substantial.  Occupants of multiple occupancy vehicles are rewarded by both improved access to free flowing traffic lanes and lower use costs.
• Unused toll credits can be rebated through reduced vehicle registration fees or property taxes.
• The project team is prepared to solicit proposals from private sector and academic partners to execute the first phase of this project since receiving funding in FY 2006.

• VPPP grant totaled $60,000 in FY 2006 for outreach and implementation test.

• A panel of pricing experts and local officials will be established to examine the benefits and barriers to implementing FAST Miles.

• A task force of national, state, and local leaders will be assembled, with representatives from the VII (Vehicle Infrastructure Integration as per the ITS Joint Program Office initiative) coalition.

• No information available.

• No information available.

• No information available.

• No information available.

• The study of the potential for value pricing in the Washington region, analyses several different scenarios for adding new priced highway lanes, pricing existing highways, and enhancing bus services.
• Since the project was funded by the FHWA in 2003, the National Capital Transportation Planning Board has made substantial progress in examining such a network through a variety of efforts, including:  hosting a value pricing conference; the establishment of a TPB value pricing task force; the adoption of goals for a regional system of variably priced lanes; and the inclusion o three major variably priced projects in the constrained long-range regional transportation plan (CLRP).
• This study evaluated the potential benefits and performance of a regional network of variably priced lanes.  Tasks performed include:
  • Scenario Development – Development and refinement of three variably priced lanes scenarios.
  • Scenario A – Add two new toll lanes to each direction of every freeway in the region.  Add one toll lane in each direction to major arterials outside the beltway.  This scenario only tolls new capacity.
  • Scenario B – Starting from Scenario A, toll all D.C. river crossings, remove added VPLs from the District and instead toll all lanes of the freeways.  Link tolled freeways with additional tolled facilities.  Relieve bottlenecks in the variably priced network outside the beltway by adding additional tolled lanes.
  • Scenario C – In addition to Scenario B, toll the existing parkways in the region.
• Scenarios AP, BP and CP are prioritized versions of Scenarios A, B and C, where priced lanes are removed based on lack of demand.
• The enhanced transit scenarios APT, BPT and CPT include enhancements to the transit networks that use the variably priced lanes.  APT and BPT include reduced run times and headways on existing (2030) bus routes that can operate on the value priced lanes.  CPT includes enhanced and new bus routes that operate on the region’s parkways.
• Scenario Analysis:  assessment of potential demand and revenue; potential costs; viability of transit; measures of effectiveness; land use impacts; and connectivity to the regional core and activity clusters.
• Assessment of Impacts of Pricing Scenarios on Different Populations:  A study of how the pricing scenarios may impact traditionally transportation-disadvantaged groups, including low-income populations, minorities and persons with disabilities.
• Initial analysis of “Starting Point” Scenario aimed to ensure free flow and toll rates were varied significantly by segment, direction and time of day.  PM peak tolls ranged from $0.20 to $4 per mile in 2010 dollars.
• Sensitivity tests of impacts of transit enhancements to portions of the VPL network.  Interested in seeing potential changes in:  Toll rates, Total revenue, HOV usage, Vehicle miles traveled (VMT), Transit mode-share, and Speeds on mixed use lanes.
• Next steps of regional study under the grant from FHWA Value Pricing Pilot Program are to incorporate D.C. bridges and other facilities into an expanded test network, conduct additional sensitivity tests and microsimulation studies, and analyze land use impacts (RMAS).

In 2005, the FHWA awarded in $240,000 in VPPP funding.
Breakdown of costs for the variably priced scenarios, in millions.

Twenty-Year Revenues, in millions, $2010, based on 2030 demand.

• National Capital Region Transportation Planning Board Value Pricing Task Force created in the fall of 2003 to examine the benefits of value pricing for the Washington region.  Goals approved by TPB in April 2005.

• Not addressed in this study.

• This study utilizes the TPB regional travel demand model to forecast the demand and performance characteristics of a network of variably priced lanes for a series of scenarios.  The model represents the region’s jobs and households with over 2000 transportation analysis zones (TAZ), and includes tens of thousands of links in highway and transit networks.  Each model run takes approximately 16 hours of computer processor time.

Example of results from the demographic assessment of the 2006 CLRP.

Number and percent of minority, low-income and disabled individuals located in areas experiencing change in accessibility to jobs by automobile, 2002 to 2030

• Initial results of the impacts of enhancing transit service levels on Beltway and I‑95/395 HOT Lane transit routes concluded the following impacts:
  • Decrease in toll rates and HOV use;
  • Increase in transit use;
  • Slight increase in VMT;
  • Total revenue essentially unchanged; and
  • Slight increase in speeds on mixed use lanes;
  • Findings to date include:
  • Toll levels will have to vary by segment, direction and time of day;
  • Transit services will affect demand and toll levels, and need to be explicitly incorporated;
  • Full network of VPLs has higher value than the sum of the individual segments (the “network effect”);
  • Access and egress issues need to be addressed; and
  • Summary of changes in measures of effectiveness across scenarios, as a percentage change from the base 2006 CLRP.

• Study scenario assumptions include:
  • All scenarios are for the year 2030, and all toll values and revenue calculations are in 2010 dollars.
  • Variable tolls will be used on the lanes to prevent congestion and maintain freely flowing traffic.
  • Occupancy requirements for all HOV lanes will be increased to at least three people or more, based on planning assumptions in the region’s long-range plan.
  • The variably priced facilities will be physically separated from the other lanes, where possible.
  • Access and egress points will be primarily focused around the regional activity clusters.
  • At least one variably priced lane will be provided in the peak direction.