FY 2003 Value Pricing Pilot Program
Project Grant Awards

A brief description of each FY 2003 awards categorized by project type follows along with a table showing grant award amounts. More detailed descriptions of the proposals follow the table.

A. Variable Tolls on Existing Free Roads (including Conversion of HOV Lanes to HOT Lanes)

• The Colorado DOT would implement the first HOT lane project into a downtown location, with multiple ingress and egress points.
• The Port Authority of New York and New Jersey, in conjunction with New Jersey DOT, proposes to study ways to increase the service level for buses through more reliable travel times and potentially increasing bus ridership by converting a general purpose tolled lane to a premium priced lane.
• The Virginia DOT would conduct a study to evaluate the feasibility of value pricing concepts across the Northern Virginia metropolitan area.

B. Variable Tolls on Added Lanes

• Lee County DOT in conjunction with Florida DOT is proposing the first test of value priced Queue Jump lanes.
• Florida DOT's HOT lanes project in Miami would provide a 20% increase in peak hour, peak direction capacity without having to widen I-95, by adding a new reversible HOT lane in the median.
• Texas DOT's HOT Lane study is expected to show congestion-reducing benefits of HOT lanes on a 15-mile stretch of the Northeast Corridor in San Antonio.

C. Variable Tolls on Existing Toll Facilities

• The Illinois State Toll Highway Authority, in conjunction with Illinois DOT, would employ variable pricing incentives to shift traffic out of peak travel periods and encourage use of electronic toll payment.
• The Ohio Turnpike, in conjunction with Ohio DOT, would develop a pricing structure to alleviate truck-caused arterial roadway congestion, with minimal construction of new bypass routes and without substantially increasing turnpike congestion.

VALUE PRICING PILOT PROGRAM - FY 2003 GRANT AWARDS BY PROJECT TYPE

Project Descriptions

HOT Lane on I-25

Grantee: Colorado DOT

Project: HOT lane on I-25

FHWA Funds: $1,078,474

• History: A regional feasibility study of HOT lanes including HOT lanes on I-25/US 36 was funded with ISTEA funds awarded to the State of Colorado under the Congestion Pricing Pilot Program. The study concluded that the I-25/US 36 corridor was the most feasible location for a pilot demonstration of HOT lanes. The total project cost for the feasibility study was $552,000, including $133,735 in Federal funds. In 2002, CDOT received $1,721,526 toward its request for $4 million in Federal funds for implementation of the project. The amount of $1,734,474 requested in FY 2003 VPPP funds represents the balance of funding. (Total project cost estimates were reduced after refinement of the proposal).

• The proposed value pricing program would manage and partially alleviate severe congestion during the peak periods, as well as yield greater utilization of the I-25 HOV lanes. The plan would convert the Downtown Express HOV facility into a HOT lane facility, serving additional trips and optimizing the use of the facility. This HOT lane facility would feature dynamic pricing of single-occupant vehicles (SOV).

• Toll-paying SOVs would be excluded from access to the facility if SOV access were found to depreciate the level of service for HOVs and buses.

• The HOT lanes would be the first demonstration in the United States of value pricing directly into and out of a large central business district.

Expected Results/Benefits: This projects would be the first demonstration of HOT lanes into a downtown location, with multiple ingress and egress.

HOT Lanes on I-95 in Miami-Dade County

Grantee: Florida Department of Transportation

Project: Pre-implementation project for HOT Lanes on I-95 in Miami-Dade County in Florida

FHWA Funds: $508,000

• History: This is a new project.

• This funding would pay for an investment grade traffic and revenue study, market research and outreach efforts and development of monitoring and evaluation plans. A preliminary feasibility study was already completed with FDOT funds. Funds have not been requested for later phases - preliminary design and engineering, and the design-build phase.

• A proposed new lane would be in the median. A moveable zipper barrier would permit multiple lane configurations of between two and three HOT lanes in the peak direction. The additional lanes would use the two existing HOV lanes. The HOT lanes would allow multiple ingress and egress points.

• FDOT hopes to carry out this project via a public-private partnership. A private firm or consortium would be selected to design, finance, build and operate the HOT lanes. FDOT would make use of a non-profit corporation to run the facilities and issue the toll revenue bonds. FDOT would not permit a non-compete clause in the public-private partnership agreement.

Expected Results/Benefits: The overall project, which includes new ramps and several minor improvements to the mixed flow lanes, would provide a 20% increase in peak hour, peak direction capacity without having to widen I-95. The project's estimated benefits, in terms of travel time savings and reduced vehicle operating costs, are $3.77 B and the cost is about $600 M. This produces a very impressive benefit-cost ratio in excess of 6.0.

Priced Queue Jump Lanes in Lee County

Grantee: Florida Department of Transportation/Lee County DOT

Project: Implementation of Queue Jumps in Lee County Florida

FHWA Funds: $1,069,120

• History: This funding would follow on a $309,280 grant provided in FY 2000 for a feasibility study of Queue Jumps in Lee County, Florida. The feasibility analysis indicated that while queue jumps did not appear to be a good candidate for traditional toll bond financing, they are nonetheless financially feasible. The analysis has shown favorable public acceptance. Lee County DOT and FDOT are experienced partners in efforts to introduce pricing.

• About $12 million is requested for construction, but has been determined to be ineligible for funding from the VPPP. An additional $600,000 for construction engineering inspection also appears to be ineligible. The requested funds are for two separate Queue Jump projects, with $1,336,400 requested for the Queue Jump at Summerlin Road and San Carlos Boulevard, and $1,604,000 requested for the Queue Jump at Metro Parkway and Colonial Boulevard, plus $175,330 requested for outreach efforts.

• These funds would pay for critical project development and design costs. Funds are also requested for Electronic Toll Collection (ETC) and Visual Enforcement Systems. Costs for monitoring and evaluation efforts and outreach tasks are also included in this request.

• A Queue Jump is a facility that can be used to bypass points on the transportation network where congestion is particularly severe and occurs in a predictable pattern. Tolls would vary by time of day and would be levied electronically, and would be tied in with the County's existing ETC system. A significant characteristic of queue jumps is their ability to generate revenue for needed roadway improvements while simultaneously contributing to travel demand management.

• Goals of this effort include traffic demand management using variable pricing; evaluation of various types of pricing programs; information on the impact of pricing at "point" locations; reduced emissions from reduced congestion; increased overall effectiveness of the County's existing variable pricing program; and fast-tracking of infrastructure improvements.

Expected Results/Benefits: These funds would provide for the establishment of the first test of a value priced Queue Jump. Testing this concept and evaluating its effectiveness would provide very useful information for other areas considering priced Queue Jumps.

Variable Tolls on Illinois Northwest Tollway

Grantee: Illinois State Toll Highway Authority

Project: Variable Pricing on the Northwest Tollway/I-90

FHWA Funds: $360,000

• History: This is a new project. The Tollway has experienced considerable growth in traffic volumes. In 2001, the Authority explored restructuring as a result of the Governor's recommendation to eliminate all tolls.

• The Illinois Tollway Authority is evaluating variable toll options for the eastern section of the Northwest Tollway, approximately 25 miles in length. The purpose of the project is to evaluate potential variable pricing strategies that could be used as tools to manage travel demand on the Northwest Tollway.

• The study will include extensive market research and outreach, traffic and socioeconomic impact analysis, and identification of alternative pricing strategies. A final implementation phase will establish variable pricing on designated Tollway facilities.

Expected Results/Benefits: The study is expected to determine how to provide pricing incentives to shift traffic out of peak travel periods and encourage use of ETC. Benefits would include improved travel times and reduced delays on the Tollway.

Express Bus/ HOT Lane Study for the Lincoln Tunnel

Grantee: New Jersey DOT

Project: Express Bus/HOT Lane Study for the Lincoln Tunnel

FHWA Funds: $670,033

• History: The Port Authority of New York and New Jersey (PANYNJ) implemented variable pricing on the major crossings over the Hudson River in 2001. The Value Pricing Pilot Program is currently funding a monitoring and evaluation study to analyze the impacts of the variable pricing structure.

• The objective of this proposal is to determine whether value pricing might be used to allow non-bus traffic to use the excess capacity of a potential second Exclusive Bus Lane on NJ Route 495 leading to the Lincoln Tunnel and Midtown Manhattan.

• This study will consider whether pricing is an appropriate mechanism to manage the demand of non-bus traffic wishing to take advantage of the reliability and the improved service levels on the new bus lane.

• This project will evaluate an array of pricing alternatives that allow a vehicle mix that ensures a travel time advantage in the new managed lane, while also improving overall passenger throughput and travel time reliability during the weekday a.m. peak period.

Expected Results/Benefits: The major benefit of this study is in the increased service level for buses through more reliable travel times. This enhanced service would meet increased demand for buses and may potentially increase bus ridership.

Truck Toll Pricing on Ohio Turnpike

Grantee: Ohio Department of Transportation

Project: Study of turnpike truck toll discounts to alleviate arterial roadway congestion

FHWA Funds: $200,000

• History: This is a new proposal.

• Truck use on the Ohio Turnpike is low relative to total truck travel in the corridor that encompasses both the turnpike and many parallel arterial roadways. As a result of the recent expansion of the turnpike, turnpike capacity is underutilized. By contrast, parallel State routes are more congested, and some of these routes carry 30-50% trucks.

• The proposal clearly shows the link between arterial congestion and the turnpike tolls and cites a study finding that 70% of truck drivers using an arterial roadway through one town are doing so to avoid a turnpike toll.

• Because of arterial truck traffic, local government officials have been pressuring the State to build bypass roadways around their towns. The proposal estimates the cost to construct all requested bypasses would exceed $100 million. This study would explore turnpike truck toll discounts as an alternative to, or at least a means to reduce the need for, construction of bypasses.

• Project goals are to identify whether value pricing can attract traffic from parallel routes onto the turnpike, and to develop and recommend a pricing strategy to encourage trucks to use the less congested Ohio Turnpike.

• The project includes substantial public outreach and participation by government and non-governmental organizations.

Expected Results/Benefits: A pricing structure would be developed to alleviate truck-caused arterial roadway congestion with no or minimal construction of new bypass routes and without substantially increasing turnpike congestion.

HOT Lanes on I-35

Grantee: Texas DOT

Project: I-35 HOT lane study

FHWA Funds: $160,000

• History: The San Antonio district of the Texas Department of Transportation (TxDOT) is evaluating managed lane options for a 15-mile section of the Northeast Corridor (I-35). Public involvement has been a key in developing I-35 project to date. Pre-project studies have provided some guidance in developing managed lanes, including incorporation of value pricing. Although TxDOT is an existing partner with value pricing projects in Dallas and Houston, this is San Antonio's first request for VPPP funds.

• The purpose of the project is to evaluate potential operating strategies, including value pricing, that could be used as tools to manage travel demand on I-35. Alternative pricing scenarios can be utilized to allow certain user groups into the managed lanes at different stages over the facility's life.

• Implementation of managed lanes is highly likely, as it is already part of the planned freeway expansion project.

• Plans for additional public input (via public meetings and individual stakeholder meetings) are planned.

Expected Results/Benefits: The I-35 HOT lane study is expected to show congestion-reducing benefits on a 15-mile stretch of the Northeast Corridor.

HOT Lanes in Northern Virginia

Grantee: Virginia DOT

Project: Regional Value Pricing Evaluation Study

FHWA Funds: $500,741 ($843,040 requested)

• History: This is a new project. Recently a referendum proposed on the ballot in Northern Virginia to increase the sale tax in the region failed leaving the region searching for innovative and creative methods for addressing their critical transportation needs.

• The Virginia Department of Transportation's regional study and public outreach plan will determine where value pricing applications are reasonable. The purpose of the project is to evaluate potential value pricing options that could be used as tools to manage travel demand in the region and reduce the need for vehicle use.

• The region currently has an extensive network of HOV lanes and significant rail and bus services. While the HOV lanes in some corridors are highly successful, there are corridors where HOV lanes operate well below capacity.

• While the study as proposed will evaluate corridors throughout the region. The Capital Beltway (I-495) will receive particular attention in light of the results of the recent Environmental Impact Study and VDOT's consideration of a proposal to implement HOT lanes on I-495 under Virginia's Public Private Transportation Act.

• This study will focus a significant amount of effort in educating the public about pricing. An effective public outreach component is integral to successfully implementing pricing.

Expected Results/Benefits: This study will ultimately lead to potential implementation of value pricing concepts across the Northern Virginia metropolitan area.