The Road Weather Management Benefit Cost Analysis Compendium Quality Assurance Statement The Federal Highway Administration (FHWA) provides high-quality information to serve Government, industry, and the public in a manner that promotes public understanding. Standards and policies are used to ensure and maximize the quality, objectivity, utility, and integrity of its information. FHWA periodically reviews quality issues and adjusts its programs and processes to ensure continuous quality improvement. Notice This document is disseminated under the sponsorship of the Department of Transportation in the interest of information exchange. The United States Government assumes no liability for its contents or use thereof. The Road Weather Management Benefit Cost Analysis Compendium TECHNICAL REPORT DOCUMENTATION PAGE 1. Report No. 2. Government Accession No. 3. Recipient's Catalog No. FHWA-HOP-14-033 4. Title and Subtitle 5. Report Date Road Weather Management Benefit Cost Analysis Compendium August 2014 6. Performing Organization Code 7. Author(s) 8. Performing Organization Report No. Michael Lawrence, Paul Nguyen, Jonathan Skolnick, Jim Hunt, Roemer Alfelor N/A 9. Performing Organization Name and Address 10. Work Unit No. (TRAIS) Leidos 11251 Roger Bacon Drive Reston, Virginia 20190 11. Contract or Grant No. Jack Faucett Associates 4915 St. Elmo Ave, Suite 205 DTFH61-12-D-00050 Bethesda, Maryland 20814 12. Sponsoring Agency Name and Address 13. Type of Report and Period Covered U.S. Department of Transportation Federal Highway Administration Office of Freight Management and Operations 14. Sponsoring Agency Code 1200 New Jersey Avenue, SE Washington, DC 20590 HOP 15. Supplementary Notes Far right image on cover source: Idaho Transportation Department Bottom image on cover source: Paul Pisano, Federal Highway Administration 16. Abstract The Road Weather Management (RWM) Benefit Cost Analysis (BCA) Compendium provides information about benefit cost analyses conducted around the country for specific RWM technologies or operational strategies. The actual project evaluations involve the use of custom spreadsheets developed by the agency or its contractors, or the application of available software tools to the BCA. The Compendium also includes hypothetical cases designed to demonstrate how BCA can be used for a specific RWM technology or operational strategy. FHWA has developed a sketch planning BCA tool —the Tool for Operations Benefit/Cost (TOPS-BC)—for application to TSMO projects, including RWM projects. For the hypothetical cases, TOPS-BC is used to assist in the measurement of benefits and costs and in the calculation of the benefit cost ratio. Each case demonstrates how planners conducted, or could conduct, a BCA on one or more RWM technologies or strategies. There are 17 cases studies presented in the RWM Compendium, and each addresses one or more specific BCA issues or procedures. 17. Key Words 18. Distribution Statement Road weather management, benefit cost analysis, transportation No restrictions operations, TOPS-BC, economic analysis tools 19. Security Classif. (of this report) 20. Security Classif. (of this page) 21. No. of Pages 22. Price Unclassified Unclassified 133 Form DOT F 1700.7 (8-72) The Road Weather Management Benefit Cost Analysis Compendium Table of Contents TECHNICAL REPORT DOCUMENTATION PAGE ......................................................................... II 1 INTRODUCTION ................................................................................................................ 1-1 Project Background and Purpose ......................................................................................................................... 1-1 The FHWA TSMO and RWM Compendia ....................................................................................................... 1-1 The FHWA Operations Benefit/Cost Analysis Desk Reference ................................................................... 1-2 Road Weather Management Strategies ................................................................................................................ 1-2 2 FUNDAMENTALS OF BENEFIT COST ANALYSIS ................................................................. 2-1 Economic Fundamentals ....................................................................................................................................... 2-3 Inflation ................................................................................................................................................................................. 2-4 Time Value of Resources ........................................................................................................................................................ 2-4 The Role of the Discount Rate ............................................................................................................................................... 2-4 Selecting a Discount Rate ....................................................................................................................................................... 2-6 Benefit Cost Analysis ............................................................................................................................................. 2-6 The Benefit Cost Analysis Process.......................................................................................................................................... 2-7 Benefit and Cost Elements to Include ..................................................................................................................................... 2-8 Comparing Benefits to Costs.................................................................................................................................................2 -12 Misunderstandings ...............................................................................................................................................................2 -13 Avoiding Pitfalls ..................................................................................................................................................................2 -14 Presenting the Results of a BCA ..........................................................................................................................................2 -14 3 INTRODUCTION TO BCA TOOLS ...................................................................................... 3-1 TOPS-BC – A Tool for Benefit Cost Analysis of RWM Strategies ............................................................... 3-5 Data Requirements ................................................................................................................................................................ 3-6 Updating the Parameters Page ............................................................................................................................................... 3-7 TOPS-BC Current Safety Impact Defaults ........................................................................................................ 3-9 How to Use the Compendium .......................................................................................................................... 3-11 4 CASE STUDIES FOR SURVEILLANCE, MONITORING & PREDICTION ................................. 4-1 Case Study 4.1 – Michigan DOT Regional Road Weather Management Information Systems (RWMIS) Pre-deployment Studies .......................................................................................................................... 4-2 Case Study 4.2 – Utah DOT’s Weather Operations/ RWMIS Program ....................................................... 4-5 5 CASE STUDIES FOR INFORMATION DISSEMINATION ........................................................ 5-1 Case Study 5.1 – Rural ITS Deployment – Oregon’s Automated Wind Warning System ......................... 5-2 CASE STUDY 5.2 – SALT LAKE CITY’S TRAFFIC OPERATIONS CENTER (TOC) STUDY ............................ 5-9 6 CASE STUDIES FOR DECISION SUPPORT, CONTROL & TREATMENT ................................ 6-1 Case Study 6.1 – Minnesota Department of Transportation Gate Operations ............................................ 6-2 Case Study 6.2 – Hypothetical Road Closure Feasibility .................................................................................. 6-7 Case Study 6.3 – Hypothetical Freeway Systems: Dynamic Traffic Signal (DTS) Control Systems Deployment and Feasibility ................................................................................................................. 6-14 7 CASE STUDIES FOR WEATHER RESPONSE OR TREATMENT .............................................. 7-1 The Road Weather Management Benefit Cost Analysis Compendium Case Study 7.1 – Maintenance Decision Support System (MDSS) Implementation: the City and County of Denver .................................................................................................................................................. 7-2 Case Study 7.2 – Pooled Fund Maintenance Decision Support System (MDSS) Implementation ........... 7-6 Case Study 7.3 – Hypothetical Maintenance Decision Support System (MDSS) Implementation ........ 7-11 Case Study 7.4 – Washington’s Automated Anti-icing System Study ......................................................... 7-17 Case Study 7.5 – Bridge Prioritization for Installation of Anti-icing Systems in Nebraska ..................... 7-22 Case Study 7.6 – De-icing in Iowa ...................................................................................................................