Congestion Pricing The Latest Weapon the U.S. War on Traffic Congestion. Darren Henderson, AICP

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Congestion Pricing The Latest Weapon the U.S. War on Traffic Congestion Darren Henderson, AICP

Today s s Discussion How bad is congestion? What has been done about it? What else can be done?

How Bad is Congestion? U.S. travel demand continues to grow rapidly Population growth, suburban development and economic prosperity are factors Only 41% of needed capacity has been added 5 4 3 2 1 0 25 20 15 10 1 0 Travel Demand and in the Added USA Capacity in the USA Travel Demand (Billions VMT Daily) Added Capacity to Freeways and Major Roads (Thousands Annual Lane Miles) 1982 1995 2005 Year Source: Texas Transportation Institute (2007)

How Bad is Congestion? Congestion caused 4.2 billion hours of delay in the U.S.A. in 2005 About 38 hours per traveler annually Delay has increased 425% since 1982 Value in Billions 5 4 3 2 Travel Demand in and the Travel USA Delay in the USA Travel Travel Demand Demand (Billions (VMT VMT Daily) Daily) Travel Delay (Billions Hours Annually) 1 0 1982 1995 2005 Year Source: Texas Transportation Institute (2007)

How Bad is Congestion? Congestion cost the U.S. economy over $78 billion in 2005 About $710 per traveler 2.9 billion gallons of fuel were wasted $US Billions (2005) $80 $60 $40 $20 Annual Metropolitan Congestion Cost in USA $0 1982 1995 2005 Year Source: Texas Transportation Institute (2007)

How Bad is Congestion? In Australia, travel demand is also growing rapidly Travel demand in Australian cities grew 26% from 1995 to 2005 U.S. travel demand grew 34% for same period Billions of Vehicle Kilometres Traveled 150.0 100.0 Annual Metropolitan Travel Demand in Australia 50.0 1990 1995 2000 2005 Year Source: Bureau of Transport and Regional Economics (2007)

How Bad is Congestion? Congestion caused over 650 million hours of delay in Australian cities in 2005 Cost the Australian economy almost $AUD 9.4 billion in 2005 Congestion costs Australia about the same per capita as the U.S.A. Millions Hours 700 600 500 400 300 200 100 0 Annual Metropolitan Travel Delay in Australia 1990 1995 2000 2005 Year Source: Bureau of Transport and Regional Economics (2007)

How Bad is Congestion? Congestion is not necessarily a bad thing Indicator of a vibrant economy People will wait for something they want Congestion is too much demand for a good thing Guests wait to ride Finding Nemo Submarines Disneyland, Anaheim, California

How Bad is Congestion? Riders at theme parks will accept an hour of delay to take a 3 minute ride The wait time (delay) can be 10 to 20 times the ride (travel) time Splash Mountain Magic Kingdom, Orlando, Florida Guests wait for Splash Mountain Magic Kingdom, Orlando, Florida

What has been done about it? Traditionally, the U.S. has addressed travel demand by building new infrastructure The Interstate Highway System has been the most extensive transportation program in history Highway Lane Mileage Highway System Mileage in the U.S.A. 4,000,000 3,900,000 3,800,000 3,700,000 3,600,000 3,500,000 3,400,000 3,300,000 3,200,000 3,100,000 3,000,000 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 Year Source: FHWA (2008)

What has been done about it? The unprecedented expansion of U.S. highways has accelerated travel demand Development patterns, transportation technologies and the national economy have evolved to capitalize on highway infrastructure Has created a highway based society Suburban development near Las Vegas, Nevada

What has been done about it? Alternative modes have been promoted to reduce demand for highways Despite massive investments and growing demand, mode share for alternative modes remains extremely low 2005 Vehicle Miles Traveled in U.S.A. by Mode Highway All other modes Source: FHWA (2008)

What has been done about it? Travel demand has outpaced the ability to build sufficient highway capacity HOV lanes have been used to increase highway productivity HOV lanes provide time savings as an incentive to carpool or use transit I-110 HOV Lanes, Los Angeles, California

What has been done about it? Currently over 130 HOV facilities in North America

What has been done about it? HOV lanes have been effective at moving more people in fewer vehicles Nearly always move more people than adjacent general-purpose PERSON-TRIPS ON ORANGE COUNTY FREEWAYS (PM PEAK HOUR - PM PEAK DIRECTION) lanes 7,000 Can move two 6,000 to four times 5,000 4,000 the number of 3,000 people per lane PERSON TRIPS PER LANE (PTPL) 2,000 1,000 0 I-5 at Los Alisos I-5 at Tustin Ranch I-5 at Main I-5 at Harbor I-5 at Broadway I-405 at Von Karman HOV ROUTE I-405 at Ward SR-55 at Warner SR-55 at Walnut SR-57 at Yorba Linda SR-91 at Harbor HOV Lanes Other Lanes Source: Caltrans District 12 (2002)

What has been done about it? HOV lanes are often accused of being under- utilized Uncongested traffic is essential to HOV lanes travel reliability and time savings Next to a congested lane, HOV lanes can look empty even though they are moving more people I-405 HOV Lane Los Angeles, California

What has been done about it? What has been done about it? In some areas, over-utilization is really the problem for HOV lanes HOV volumes of over 1,500 vehicles per hour typically HOV volumes of over 1,500 vehicles per hour typically bring speeds in the lanes below 45 mph (72 km/h) Additional management is needed to optimize lane performance and effectiveness 1,600 1,400 1,200 1,000 800 600 400 200 HOV LANE PEAK VOLUME IN LOS ANGELES COUNTY (PEAK HOUR - PEAK DIRECTION) Optimal Threshold (1,500VPHPL) VEHICLES-PER-HOUR-PER-LANE (VPHPL) 0 10 WB (Alameda to Baldwin) 14 SB (San Fernando to Escondido Cyn) 57 SB (Orange County to 60) 60 WB (Brea Canyon to SBD County) 91 WB (110 to Orange County) 105 WB (405 to 605) 110 NB (91 to 105) 110 NB (105 to Adams) 118 EB (Ventura County to 5) 134 WB (101/170 to 210) 170 SB (101/134 to 5) 210 NB (134 to Sunflower) 405 NB (Orange County to 110) 405 NB (110 to Century) 405 SB (101 to 5) 605 SB (South to 10) HOV STUDY ROUTES Source: PB (Los Angeles County HOV Performance Program, 2003)

What has been done about it? Theme parks use demand management to provide waiting guests more choices FASTPASS allows Disney guests to get a time and avoid a line Guests can choose to wait in the standby line if they don t t want to use FASTPASS

What has been done about it? Technology provides the opportunity for better management of HOV demand Pricing can be used to sell additional capacity in HOV lanes I-394 HOT Lanes Variable pricing Minneapolis, Minnesota levels regulate demand and ensure speeds are maintained

What has been done about it? Eligibility and access can t t fully regulate demand Additional management is generally necessary

What has been done about it? Pricing provides a comprehensive approach Better responds to changing conditions over time

What has been done about it? Nine projects in U.S. currently use pricing

What has been done about it? Almost all existing HOT projects are conversions of HOV lanes to add pricing SR-91 was constructed as express toll lanes Pricing most recently started on existing HOV lanes in Miami and Seattle I-10 in Houston currently being reconstructed I-95 Express Lanes Miami, Florida IH-10 Katy Freeway Houston, Texas

What has been done about it? $10.00 for 8 miles is currently the highest toll Variable pricing has been effective at better regulating demand in managed lanes Toll revenues generally cover operations and maintenance only Value Priced Managed Lanes FY06 Operating Income 25 SR-91 Express Lanes, Anaheim, California FY 06 Operating Income (in $millions) 20 15 10 5 0 (5) $20.58 -$0.08 -$0.15 SR-91 Express Lanes I-15 Express Lanes I-394 HOT Lanes

What else can be done? In addition to pricing, active traffic management systems are being introduced Active traffic management uses technology to dynamically manage congestion in response to prevailing traffic conditions Improves safety and increases throughput to maximize efficiency of the system

What else can be done? Active traffic management systems include dynamic speed harmonization Speed limits are adjusted to better regulate traffic As traffic flow increases, speeds are decreased to maintain maximum throughput Speeds can be decreased in advance of congested traffic or incidents M42 Variable Mandatory Speed Limits Birmingham, England I-270 Variable Speed Limits St. Louis, Missouri

What else can be done? Active traffic management systems also include variable lane control Makes additional capacity available during peak traffic conditions Uses overhead signage and pavement markings to indicate lane status Can close lanes in advance of incidents Active traffic management concept for I-35WI Minneapolis, Minnesota Sydney Harbour Bridge Sydney, Australia

What else can be done? Active traffic management can substantially improve safety and trip reliability Results from M42 pilot indicates Over 50% reduction in crashes Over 25% reduction in peak period travel times Over 25% improvement in trip reliability Source: UK Highways Agency (2008)

What else can be done? Intelligent Parking systems can accommodate variable pricing Incorporates demand based pricing for parking Pricing adjusted to achieve optimal occupancy rates

What else can be done? Intelligent meters are capable of two-way way communications Reports space use, payment and violations Information used to monitor area occupancy Availability can be posted for public Commuter Parking Availability Sign Metra 80 th Ave Station, Tinley Park, Illinois

What else can be done Cordon pricing has been considered for implementation in New York City PlaNYC 2030 integrated potential managed lanes, a pilot cordon pricing program, and SMART Financing F Authority

What else can be done Cordon pricing was key to New York City addressing congestion in the CBD and generating necessary transportation revenues NYC was unable to secure necessary State legislation due to failure in consensus building between City and State elected representatives

What else can be done? Congestion pricing is the latest weapon in the U.S. war on traffic congestion Variable pricing and active traffic management maximize the efficiency of existing transportation infrastructure HOT lanes, speed harmonization and lane control, variable parking pricing and cordon pricing have emerged as integral elements of congestion reduction strategies

Questions and.

Darren Henderson, AICP PB, Houston, TX 0011-1-281 281-589-59005900 hendersond@pbworld.com