Congestion Relief Pricing Information
This page provides links to websites with information on congestion relief pricing - also known as "Value" pricing or "variable" pricing. Additional links or comments should be sent to trans@capecodcommission.org or to Transportation Staff, Cape Cod Commission, PO BOX 226, Barnstable, MA 02630-0226.
The University of Minnesota maintains a Value (Congestion) Pricing website.
Information on Congestion Pricing is also available at the U.S. EPA's Office of Mobile Sources. See Market Incentives under Transportation/Air Quality Planning
Two sites with information on Toronto's Electronic Toll Route - Highway 407 - are at Canadian Highways International and Ontario Transportation Capital Corporation
.
Issue Paper
on
Congestion Relief Pricing
October 6, 1998
Cape Cod Commission
Transportation Staff
Summary
This paper is intended to serve as a guide in the discussion of charging fees to motorists. While a specific program is not recommended in this paper, several changes outside of Cape Cod - new federal legislation and state-of-the-art transportation technology, and changes within Cape Cod - record traffic levels and amount of developed land, have made the concept of tolling motorists entering Cape Cod seem more realistic. Congestion Relief Pricing is seen as a logical component of real-time traffic management as well as a funding source for transportation alternatives:
It's about saving time.
It's about adding choices.
Introduction
Cape Cod, by virtue of its geography, is mostly an island. To gain automobile access from the mainland to the southeastern half of Bourne, as well as the fourteen other towns of Barnstable County, motorists must drive over the Cape Cod Canal on one of two bridges - either the Bourne Bridge or the Sagamore Bridge. These bridges, built in the 1930's, were both constructed to serve the two-lane highways of the time. Nowadays, traffic flows and congestion in the Canal Area have spawned a number of major construction plans and concepts, including the Sagamore Rotary Grade Separation, Sandwich Road Parkway, relocation of Exit One, and modification of the Bourne Rotary.
Once a vehicle has crossed the canal, it contributes to traffic problems in other areas of the Cape. Most of Cape Cod is served by picturesque two lane roads - which in the opinion of many - help define the character of Cape Cod and are worthy of preservation.
Traffic Congestion and Land Use
Traffic on Cape Cod has been growing steadily - on the order of about 2% a year over the past 5 years. A review of traffic data available from Mass Highway's permanent counting stations at the canal bridges shows an annual average of 90,000 bridge crossings a day in 1997, up from 68,000 crossings per day ten years earlier. Crossings during the summer months of 1997 averaged about 123,000 vehicles per day.
On highways leading to the canal, multi-mile backups are commonplace on summer weekends. The diversion of through traffic taking shortcuts through Bournedale's rural roads is a major reason for the nomination of a District of Critical Planning Concern (DCPC). While the planning is underway to formulate a DCPC for Bournedale with a goal of maintain or improve traffic flow and safety, development continues throughout the rest of the County.
Every residence or commercial establishment constructed in Barnstable County has the potential to increase traffic over the canal bridges. From 1980 to 1990, the population of Barnstable County grew by 38,680 persons - a growth rate of 26%. Cape Cod has the second highest population growth rate of all the Massachusetts counties. This population increase and traffic generation has strained the existing road network. The strain is most evident during the summer months when the population triples.
A review of the Cape's Transportation Improvement Program shows funding shortages for needed transportation projects. For fiscal years 1995-1997, only $5.8 million of a programmed $51 million has been awarded - about 11.4%.
New Legislation - New Opportunity
The Transportation Equity Act for the 21st Century ("TEA-21") was signed into law in June of this year, and continues several of the programs of the previous bill, the Intermodal Surface Transportation Efficiency Act ("ISTEA") of 1991. TEA-21 reflects the federal government's view that "transportation is about more than concrete, asphalt, and steel: it is about people, and about providing them with the opportunity to lead safer, healthier, and more fulfilling lives."
The summary of TEA-21 includes a new program for Value Pricing, previously referred to as Congestion Pricing:
To promote economic efficiency in the use of highways and support congestion reduction, air quality, energy conservation, and transit productivity goals, the Act provides authorizations totaling $51 million for FY's 1999-2003 for the Value Pricing Pilot program. This program replaces the Congestion Pricing Pilot program authorized by ISTEA, and provides funding to support the costs of implementing value pricing projects included in up to 15 new State and local value pricing programs. Funding to support implementation projects can be provided for no longer that 3 years from the time a project is implemented. Funds are also provided to support pre-implementation costs, including public participation costs, pre-project planning, and others for a maximum of 3 years. Any value pricing project under this program may involve the use of tolls on the Interstate System. The Act provides that a State may permit vehicles with fewer than two occupants to operate in high occupancy vehicle lanes if such vehicles are operating as part of a value pricing program. Potential financial effects on low-income drivers shall be considered as part of any value pricing program, and mitigation measures to correct potential adverse financial effects on low-income drivers may be included as part of the value pricing program.
New Technology
Many existing toll facilities make use of transponders. As an example, the Mass Pike has a program called "Fast Lane." Users can open an account and receive a credit
card sized device, attach it to the windshield of their car, and pass through the toll plaza without stopping. Equipment at the plaza read the transponder electronically and automatically debit the account. Fast Lane is compatible with other systems; motorists can travel all the way to Buffalo, New York or Washington D.C. without stopping for tolls.
In Toronto, Highway 407 adds an important feature that allows cars that are not equipped with transponders to use the facility. Using digital video technology, a computer reads a license plate - matches it against the Motor Vehicle Registry's database, and sends out a monthly bill. Highway 407 includes variable pricing: higher fees during the morning and evening commuting times causes discretionary trips to shift to other times of the day, easing congestion for those paying the higher rates.
What Others are Doing
In July of this year, FHWA delivered a report to Congress entitled "Reducing Traffic Congestion: Using Market Prices to Enhance Mobility." The report summarizes results of variable pricing projects such as State Road 91 in Orange County, California; the Katy Freeway in Houston, Texas; and three bridges in Lee County, Florida.
Results of these projects show that:
"Time savings via priced lanes is measurable and meaningful to the road users"
"More efficient use is being made of available lane capacity."
"Mobility improvements are being supported with project revenues."
Feasibility studies are being sponsored in many parts of the country. Many projects are underway on the international scene in addition to Toronto's innovations. Three cities in Norway - Trondheim, Oslo, and Bergen - have implemented cordon charges (i.e., fees charged at all entrance points to a particular area) over the past ten years. In Trondheim, daytime electronic variable pricing was introduced in 1991. Inbound traffic has declined by ten percent during toll periods while non-toll period traffic has increased by 9 percent. Weekday bus travel has increased by 7 percent. Revenues are being used for road infrastructure, public transit, and pedestrian and bicycle facilities.
Singapore introduced peak pricing in 1975 and the system was updated to a fully automated electronic charging system in the spring of 1998. Since a 1989 evening peak surcharge was implemented, a sharp reduction in traffic resulted as well as a 20 percent increase in average travel speeds. Air pollution has been significantly reduced, and business activities and rents in the downtown area have not suffered.
Goals to Consider
For a Congestion Pricing program to be effective, it should:
Reduce congestion during peak times
Support transportation alternatives for affected users
Every effort should be made to achieve "revenue neutrality." This is saying, in effect, that tolling should not be a tax. Money collected by the tolling should be used for such things as improved public transit and local transportation system improvements. It may be appropriate to waive fees for residents or to provide credit for a certain number of free trips per month.
Next Steps
Investigations should be continue into the structure of a congestion relief pricing program including coordination with the FHWA Pricing Team to develop a plan for public consensus. Such a program must include a strong public participation process to ensure that Cape Codders join in any decision regarding who pays, how much is paid, and how the revenue is spent.
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