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Implementing Congestion-Based Tolls on Currently Free Highways: What - - PowerPoint PPT Presentation
Implementing Congestion-Based Tolls on Currently Free Highways: What - - PowerPoint PPT Presentation
Implementing Congestion-Based Tolls on Currently Free Highways: What are the Economic Benefits? Patrick DeCorla-Souza, USDOT Build America Bureau and FHWA Center for Innovative Finance Support IBTTA Summit on Finance and Policy, Philadelphia,
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Hypothetical Congestion Pricing Concept
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Example: I-66 Freeway in Northern Virginia
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Entire facility designated as HOV when built
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Converted to HOT facility
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Peak traffic flows at average speeds more than 50mph
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Extrapolation to Regionwide Network
▪ Create an “instant” HOT network ▪ Use of toll revenues:
▪ Address equity concerns ▪ Freeway reconstruction
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Reconstruct Freeway System
Recent TRB study:
▪ Deferred maintenance coming due ▪ Inadequate revenue
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Leverage transformative technologies
▪ Automated transit
vehicles on free-flowing freeways
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Enhance transit system to accommodate “tolled off” drivers
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- Automated transit vehicles with human
drivers for first mile/last mile - reduced costs
- Optimally-sized vehicles - flexible routes,
demand responsive
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Implementation using public-private partnerships
▪ Technology and operational risks ▪ Financing ▪ Acceleration of project delivery
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Evaluation P3-VALUE Analytical Tool
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Types of projects
▪ Highway and multimodal investments ▪ Tolling and congestion pricing:
▪ New highway ▪ New managed lanes ▪ Conversion of general purpose lanes to managed lanes ▪ New tolls on existing toll-free highway
▪ Public-Private Partnerships
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Economic Analysis Approach
Project
- Benefits vs. costs with conventional delivery
Timing
- Acceleration of implementation with financing
P3
- Cost, schedule and quality of service
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Analytical Process: Comparing “PSC” to P3
P3 Differences
Economic Analysis Financial Analysis Project Inputs
Risk Costs Revenue Financing & Tax Travel Characteristics PSC P3 Option PSC P3 Option Financial Impacts Impacts Cost & Schedule Quality of Service
PSC = Public Sector Comparator (Conventional delivery)
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Analysis Results: Financial and Economic Impacts
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Key Model Inputs
▪ 100-mile freeway network ▪ Traffic growth rate – 1.00% per year ▪ Congestion level:
▪ Small metro – Level of Service E ▪ Large metro – Level of Service F
10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 90,000 Small metro Large metro
Before After Peak period traffic volume
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Key Model Inputs (contd.)
▪ Initial average toll rate:
▪ Small metro – 12 cents/mi ▪ Large metro – 15 cents/mi
▪ Initial transit use (“tolled off”
drivers): ▪ Small metro – 20% ▪ Large metro – 27%
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Variable toll vs. Average toll
Variable toll VMT fee
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Outputs: Financial Impacts ($M in Net Present Value)
$0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 Small metro Large metro
Revenues Costs
Including freeway reconstruction and O&M costs
Assuming conventional public delivery
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Outputs: Economic Impacts ($ M, Net Present Value)
$0 $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000 $80,000 Small metro Large metro
Benefits Costs
Including freeway reconstruction and O&M costs
Assuming conventional public delivery
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Outputs: P3 Value for Money ($ M, Net Present Value)
$0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 $4,000 $4,500 Small metro Large metro
Economic Benefits Financial Benefits Additional benefits of P3 relative to conventional delivery
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Gaining political and public support
▪ Analysis for specific metro area ▪ Strategies to gain acceptance:
▪ Trial followed by referendum ▪ Incentive grants ▪ Transit choices in advance ▪ Address equity concerns
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Summary
▪ Net economic benefits ▪ Revenue for reconstruction and O&M of freeways ▪ Additionally:
▪ Enhanced travel choices ▪ Existing right-of-way footprint
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P3-VALUE
▪ Quick-response evaluation ▪ Available: https://www.fhwa.dot.gov/ipd/p3/toolkit/download/ ▪ Training: https://www.fhwa.dot.gov/ipd/p3/p3_training/
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FHWA’s P3 Toolkit
Fact Sheets Primers Guidebooks
Analytical Tools
▪ FHWA P3 Toolkit ▪ Risk Valuation & Allocation ▪ Value for Money Analysis ▪ Financial Structuring ▪ Analytical Studies ▪ Conducting Procurements ▪ Monitoring & Oversight ▪ Highway Concessions ▪ Establishing a P3 Program ▪ Risk Assessment ▪ Value for Money Assessment ▪ Financial Structuring & Assessment ▪ Risk Assessment ▪ Value for Money Assessment ▪ Benefit-Cost Analysis for P3 Delivery ▪ P3 Project Financing ▪ Model Contracts ▪ Successful P3 Practices ▪ P3 Procurement Guide (forthcoming) P3-SCREEN ▪ P3 viability evaluation prior to project development P3-VALUE ▪ Risk Assessment ▪ Value for Money ▪ Benefit-Cost Analysis ▪ Financial Viability Assessment Webinar recordings on are also available on the web.
https://www.fhwa.dot.gov/ipd/p3/toolkit/
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