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Interstate 80 Tolling Feasibility Study, Phase 2 Final Report

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Interstate 80 Tolling Feasibility Study, Phase 2 Final Report Prepared by: Parsons Brinckerhoff November 2009 Prepared For: Wyoming Department of Transportation Wyoming Department of Transportation Phase 2 I-80 Tolling Feasibility Study Table of Contents Executive Summary ........................................................................................ 1 Introduction ................................................................................................... 6 1.1 Consulting Engagement ...................................................................................................... 6 1.2 Phase 2 Methodology .......................................................................................................... 7 1.3 Corridor Description ............................................................................................................ 7 2 The Roadway Concept ............................................................................. 12 2.1 Costing Methodology ........................................................................................................ 12 2.2 Capital Cost Estimate ........................................................................................................ 14 2.3 Safety Improvements........................................................................................................ 15 3 The Tolling Concept ................................................................................. 16 3.1 Tolling Point Locations ...................................................................................................... 16 3.2 Tolling Technology ........................................................................................................... 17 3.3 Emerging Tolling Technologies ........................................................................................... 20 3.4 Interoperability ................................................................................................................ 22 4 Refinement of Traffic and Revenue Analysis ........................................... 25 4.1 Fuel Price Revision............................................................................................................ 25 4.2 Major Diversion Route Assumption Revisions ....................................................................... 26 4.3 Revised I-80 Traffic Forecasts ............................................................................................ 27 4.4 Updated Base Case Revenue Forecast................................................................................. 30 4.5 Alternate Tolling Scenarios ................................................................................................ 33 4.6 Sensitivity Analysis ........................................................................................................... 36 5 Multi-State Corridor Coalitions ................................................................ 40 6 Fiscal and Other Impacts Analysis........................................................... 43 6.1 State Revenue Impacts ..................................................................................................... 43 6.2 Local Revenue Impacts ..................................................................................................... 46 6.3 Federal Funding Impacts ................................................................................................... 47 6.4 Roadway Maintenance Outlays ........................................................................................... 48 6.5 Local Business Impacts ..................................................................................................... 49 6.6 Construction Impacts ........................................................................................................ 52 6.7 Total Fiscal Impacts by Year .............................................................................................. 55 7 Construction Business Cycles .................................................................. 56 7.1 US Construction Economy ................................................................................................. 56 7.2 Construction Escalation and Business Cycles ........................................................................ 58 7.3 Project Specific Cost Drivers .............................................................................................. 60 i Wyoming Department of Transportation Phase 2 I-80 Tolling Feasibility Study 7.4 Construction Cycle Conclusions .......................................................................................... 62 8 Federal Funding Programs ...................................................................... 63 8.1 FHWA Tolling Pilot Programs ............................................................................................. 65 9 Financial Feasibility and Scenarios .......................................................... 67 9.1 Financial Market Changes .................................................................................................. 67 9.2 Financial Scenarios ........................................................................................................... 67 9.3 Financial Conclusions ........................................................................................................ 71 10 Public Outreach ....................................................................................... 73 Appendix A: Public Comments Appendix B: Financial Sensitivities ii Wyoming Department of Transportation Phase 2 I-80 Tolling Feasibility Study Executive Summary Due to the high proportion of cross-State trucking operations on I-80 and the severe roadway wear caused by trucks, the Wyoming Department of Transportation (WYDOT) is falling behind in maintaining the condition of the roadway. Federal funding and unsustainable supplements from other State sources are simply inadequate to pay for the maintenance of I-80. Interstate tolling is restricted by FHWA except under certain programs which are generally competitive and otherwise limiting in the number and types of projects that qualify. Solving congestion issues is usually the reason tolling is implemented, but in the case of I-80 in Wyoming, tolling is being studied as a means to pay for roadway maintenance and possible expansion. This feasibility study builds off the previous (Phase 1) study completed in October 2008, and includes a more detailed overview of the capital needs of the corridor, various tolling technologies and revenue collection processes, financial scenarios, and the results of a public information effort. A brief summary of the key findings and conclusions of the full study are presented below. Traffic Growth Will Resume with Trucks Representing More than Half of Total Traffic Although there was a slight decline in traffic on I-80 in 2008 and 2009, presumably due to the national economic downturn, traffic on I-80 has increased steadily over the past 30 years. Average traffic counts from the most recent month available (April) showed an 8.2 percent decrease between 2007 and 2008 and an additional 5.5 percent decrease between 2008 and 2009. Average daily traffic (ADT) is expected to total about 12,000 vehicles in 2009, down from 13,400 in 2007. Consistent with the 30-year trend, traffic growth is expected to return in 2010 and a growth rate averaging 2 percent per year is expected between 2010 and 2030, resulting in an ADT level of 18,400 in 2030. The distribution of traffic between cars and trucks is expected to be maintained at approximately 50/50 with a slightly higher truck growth rate, especially after 2020. This traffic growth trend will increase the need for maintenance funding to rehabilitate the I-80 corridor. The Tolling Concept Focuses on a Single Tolling Point Along I-80 Several scenarios were studied that vary the tolling approach and the time when tolling would begin (i.e. before or after construction). The Base Case assumption is that the entire length of I-80 in Wyoming would be expanded from two to three lanes in each direction. The Base Case assumes it is built in five segments which would be financed individually at the time construction of each respective segment begins. Tolling (and debt Exhibit ES1: Conceptual Tolling Enforcement Zone (Base repayment) would begin at Case) the time each individual segment is completed, but at lower initial toll rates that reflect only the phases of work completed. In 2025, when the project is fully completed, the full toll rate would be collected and the full revenue potential of the TOLLING facility would be realized. ENFORCEMENT ZONE To minimize costs and geographically segregate the tolling operation from major population centers, the Base Case assumes that a single tolling point in the center of 1 Wyoming Department of Transportation Phase 2 I-80 Tolling Feasibility Study the State would be used. It would be located somewhere in the span between Rawlins and Rock Springs, which is largely unpopulated. The Base Case incorporates a tolling enforcement zone to reduce or eliminate truck diversion around the tolling point using local roads. Within this zone, denoted by the orange shaded area in Exhibit ES1, trucks would be restricted to Interstates, US Highways, or certain Wyoming State Routes. These limitations could be imposed by weight restrictions on local roads. While alternative routes will exist, these options are not likely to be considered cost effective by truckers
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