7 Converging Forces Driving Transportation Transformation… and „ Congestion Congestion Charging „ Finance Experience, Opportunities, „ Security Motivation „ Public health & safety „ Climate change by Michael Replogle Environmental Defense and the Institute for Transportation „ Economic and Development Policy competitiveness Presentation to Environmentally Sustainable Transport „ Quality of life Conference, 17 March 2008,

Road Pricing and Congestion Charging: We Can’t Build Our Way Out of Congestion What Is It? Transportation systems worldwide are undergoing a shift „ Charge for use of road or area from supply side techniques to demand management „ Fixed or time-of-day fees

Supply side Demand side „ Paid in a variety of ways: HOV Electronic payment New Area Parking lanes Cash payment highways license or control fee Prepayment Adding lanes Congestion charges Public Cordon transport tolls improvements HOT lanes Taxation Public transport policy Toll roads priority

Adapted from Derek Turner Consulting

What Role for 2005: Highest CO2 & Warmest Year: Road Pricing? Transportation A Major Contributor Increasing fuel use increases CO the leading greenhouse gas „ Manage roads for 2, highest productivity „ Cut pollution, fuel use, Traffic Volume to CBD (AM Peak) Vehicle Population Car Population 350 CO2, congestion

300 Singapore „ Generate revenue for Traffic public transport & high 250 ALS implementation performance transport 200 (June 1975) ERP implementation infrastructure/services 150 (Sept 1998) * * * * * * 100 „ Or build more roads 50 faster (spurring more

traffic and pollution) Source: Ralph J. Cicerone, Finding Climate Change and Being Source: NASA Goddard Institute for Space Studies 0 Useful, National Council for Science and Environment, 2006 1975 1980 1985 1990 1995 2000 2005 (Before ALS) Data are scaled to 100 for base year 1975 (before ALS)

1 Time-of-Day Road Pricing Is Practical Many Approaches to Congestion Charges Time-of-Day Road Pricing Is Practical With Automated Toll Collection „ Cordon entry permit

Payment at toll plaza – e.g. Norway cordon systems „ Coin machine & attended toll collection: 300 vehicles/hour capacity „ Automated toll collection: 1600+ vehicles/hour per lane capacity „ Area License using Direct Short Range Communication (DSRC) transponders Paper license or Transit Pass for visual inspection, database option – e.g., Singapore 1970s Trondheim, Norway Virtual license with digital camera enforcement – e.g.,

Electronic Road Pricing – e.g., truck pricing systems Swiss, Austrian, German

„ Corridor or spot tolls approach - e.g., most toll lanes

„ Workplace parking levy, parking excise tax, and cash-in-lieu-of-parking incentives

Denver motorway toll collection

Oslo’s Cordon Road Laser Charging System detection and DSRC German Truck Tolling

„ 2005: Introduced €0.12/km toll on trucks over 12 tons on 12,000 km autobahn system Rear „ Uses Global Positioning System (GPS) and camera 500,000 on-board units „ 1 million toll transactions/day Front camera „ Revenue pays for transport improvements „ Cut freight greenhouse gas emissions 7%

Source: Andrea Kossak, http://www.hhh.umn.edu/img/assets/20164/Kossak%20-%20Pricing%20in%20Germany.pdf Source: Kristian Wærst, Norwegian Public Roads Administration

Road Pricing and Congestion Charging: Road Pricing and Congestion Charging: How? Where? „ Urban centers facing serious Traveler response to changes „ Motorways where current or future congestion in price of travel: threatens loss of peak period capacity „ When travel is done „ Corridors or regions where added revenue is „ How travel is done needed from vehicle users „ Where goods and people travel „ Corridors where road user fees may achieve „ Incidence of total travel other objectives – e.g., emission based fees to manage pollution hot spots, truck tolls to divert goods movement to rail or other corridors

2 Some Recent Developments Singapore in the 70’s… in Congestion Charging

„ 1970s: Singapore cordon charge, full Oslo Toll Ring electronic road pricing (ERP) in 1996 „ 1986: Bergen, Norway, toll ring „ 1990-2003: Oslo, Trondheim & other Norwegian cities adopt toll rings „ 1995-96: Southern California high occupancy toll lanes (I-15, SR-91) „ 2000: of NY bridges „ 2002-2004: Swiss, Austrian truck tolls „ 2004: London cordon charge „ 2005: Germany tolls autobahn trucks „ 2006: congestion charge „ 2005: Minnesota, Colorado HOT lanes Source: LTA

Singapore today… 1998: Singapore Electronic Road Pricing (ERP) after 30 years of road pricing In-Vehicle Unit (IU) & Cash Card

Now competing successfully with the US for the world’s best and brightest… Gantries

CBD and motorway toll rates adjusted 4x/year to keep Central traffic speeds Computer& Processing at peak system System performance Enforcement Cameras

Toll Rates Set to Achieve London’s Congestion Charge: Guarding Performance Standards Economic Vitality, Climate, Health

• Review every 3-months „ Mayor Livingston promised • Adjust up/down to ensure congestion pricing to protect efficient use of roads environment, economy „ Won 2 elections on this platform Cut inner London traffic levels 15% Expressways 45 kph 65 kph Cut road transport delays 25% Increase speeds 15% inside zone Increase Decrease Improve conditions outside zone Speed buses, boost reliability Net revenue of £130m/year Achieve a modal shift Increase Decrease CBD/ „ Two-third majority still approves 20 kph 30 kph Other Roads

3 Congestion Charging for High Tolling Existing Lanes: Acceptable When It Boosts Performance Networks Performance, Choices

Stockholm Central Area Charge Public opinion of cordon charge in Traffic reduced overall by ¼ Stockholm for - against: Queue times down 30-50% Before start of tolling: 31% - 62% Emissions down 14% After 6 months: 52% - 40% After 9 months: 67% approval

Overall Traffic Reduction (Map & Graph) Cordon Area Traffic 6am-7pm CO2 Emission Reduction

”Stockholm the congestion tax”

Boosting Travel Choices Is Crucial Time-of-Day-Tolls Fund Public Transport, Cut Stockholm Congestion Charge implemented to boost public transport Congestion: NY-NJ Hudson River Crossings New government will reinstate congestion charge to fund roads

Road charging „ Peak period tolls raised in 2000 from plus better plus better US$4 to US$5 with transit service toll transponders resulted in: „ 7% traffic shift to ¾ 45,000 more off-peak public transport „ Carpooling, public passengers/day transport use increased 20%+ ¾ Faster bus 725 buses daily ¾ Faster bus „ Revenue boost of carry 35,000 speeds $400 million used passengers on to fund better I-495 contra- public transport flow lane approaching Lincoln Tunnel

Source: http://www.stockholmsforsoket.se/upload/Infomaterial%20MAK/Gunnar%20MAK%20Impacts%20juni%2006%20low.pdf

Performance-Focused Stop-and-Go Motorways: Bad Delay, Bad Pollution Government Incentives Spur Bi-Partisan Innovation 5 am Urban Partnership Agreements: $850 m for New York City, San Francisco, Miami, Minneapolis, 6 am Seattle „ Congestion pricing existing roads 9 am „ Traffic operations 7 am „ Bus Rapid Transit 8 am „ Telework, PAYD insurance

US$8 a day tolls to enter Manhattan proposed to fund public transport Traffic Speed and Volume I-66 East, Northern VA, Wednesday March 7, 2007

4 Congestion Pricing of New Capacity 2 toll managed lanes carry as much peak hour traffic – at 3 times the speed - as moved in 4 free, but congested lanes

Traffic in Peak Hours on Eastbound Average Traffic Speed Peak Hours Eastbound SR91 Friday Afternoons 2004 SR 91 Friday Afternoons 2004 e

1800 70 1600 60 1400 50 1200 1000 40 800 30 600 20 400 10 200 Miles Per Hour 0 0

Vehicles Per Hour Per Lan Congested Toll Managed Congested Toll Managed General Purpose Lanes General Lanes Lanes Purpose Lanes

So why not consider toll management of existing lanes?

Report to Congress on the Value Pricing Pilot Program Through March 2004, US Federal Highway Administration (2004), available at: http://knowledge.fhwa.dot.gov/cops/hcx.nsf/All+Documents/AD276ECC2E3A077885257005006B5614/$FILE/March%202004%20Report%20of%20Congress.pdf

US Motorists Paying to Use Managed Lanes: Road Pricing and Congestion Charging: Saving Time, Funding Better Public Transport How Much?

US Dollars Capital Operating costs Revenues costs (annual) (annual) URBAN SCHEMES London $180 M. $180 M. $360 M. Stockholm $260 M. $26 M. $105 M. Singapore $130 M. $9 M. $52 M. NATIONAL SCHEMES

„ 1996 underused San Diego High Occupancy Vehicle (HOV) lanes Germany: 2005 $2,880 M. $810 M. $2,860 M. converted to High Occupancy Toll (HOT) lanes funding new bus services „ Charge can vary every 6 minutes to manage congestion: US$.07-.50/km Austria: 2004 $485 M. $46 M. $1,000 M. „ 2005 Minnesota HOT lanes adopt similar strategy Switzerland: 2001 $270 M. $46 M. $1,050 M. „ But many other US regions use tolls just to build more roads faster

Cost-Effectiveness Matters Lessons from European Conference of Transport Ministers on Road Charges Cost of London Stockholm Singapore Germany Swiss Road Cordon Cordon Cordon truck toll truck toll „ Cost-effectiveness & public acceptance, not technical feasibility, Pricing in (ANPR (DSRC (DSRC (GPS (DSRC & are the key issues for road charging 2005* based) based) based) based) GPS based) „ Decision to implement road charging is driven by the perceived urgency of congestion, financing, environmental problems the Average €7.4/day €2.7/day €0-2/trip €0.12 (40 €0.67 (40 system is designed to address Charge (now €11.8) ton truck) ton truck) „ Absolutely critical to success: clarity of policy objectives for Operating 48% 25% 7% 16% 4% introducing charging & complete and unambiguous Cost as % specification of functions the contracting authority requires of of Revenue the system Annual cost 55% 40% 40% 23% 8% „ Advice on system specification and procurement should be (including sought from experts and officials who have worked on existing capital) as % of charging systems internationally revenue „ Procurement requires a major effort by contracting authority Source: European Conference on Transport Ministers, 2006, http://www.cemt.org/topics/taxes/Paris06/Conclusions.pdf * 2006 costs are shown for Stockholm Source: European Conference on Transport Ministers, 2006, http://www.cemt.org/topics/taxes/Paris06/Conclusions.pdf

5 Implementing Road Pricing For More Information Step-by-Step

Michael Replogle „ Articulate system objectives Transportation Director, Environmental Defense „ Affirm legal authority: who can implement? Under President and Founder, Institute for Transportation and Development Policy what conditions? On which facilities? Emeritus Member, Transportation Research „ Area Board (TRB) Committee on Transportation in Determine implementation framework: the Developing Countries license fee? Cordon charge? Corridor time-of-day tolls? Member, TRB Committee on Road Pricing Use of toll revenues? „ Design & evaluate road pricing plan 1875 Connecticut Ave. NW Washington, DC 20009 „ Adopt system plan, financing scheme [email protected] 202-387-3500 „ Procure management & technology services: system development, integration, www.environmentaldefense.org/go/transportation www.itdp.org operation, enforcement, evaluation, marketing

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