I-680 Value Pricing: A HOT I-680 Value Pricing: A HOT Lane Demonstration Project Lane Demonstration Project of “Smart Carpool Lanes”of “Smart Carpool Lanes”

I-680 Value Pricing: A HOT I-680 Value Pricing: A HOT Lane Demonstration Project Lane Demonstration Project of “Smart Carpool Lanes”of “Smart Carpool Lanes”

Sponsor: Alameda County CongestionSponsor: Alameda County CongestionManagement AgencyManagement Agency

20032003

Sponsor: Alameda County CongestionSponsor: Alameda County CongestionManagement AgencyManagement Agency

20032003

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Why High-Occupancy-Toll Why High-Occupancy-Toll (“HOT”) (“HOT”) Lanes?Lanes? Provide another option for travelersProvide another option for travelers

More efficient use of HOV lane and freeway More efficient use of HOV lane and freeway capacitycapacity

Generate revenue for transportation Generate revenue for transportation improvementsimprovements

Maintain public support for HOV lanesMaintain public support for HOV lanes

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Why I-680?Why I-680?

New HOV lanes plannedNew HOV lanes planned

14-mile freeway distance with heavy 14-mile freeway distance with heavy congestion and directional commute trafficcongestion and directional commute traffic

Relatively few interim on/off users –Silicon Relatively few interim on/off users –Silicon Valley jobs on south endValley jobs on south end

Sufficient right-of-waySufficient right-of-way

Financial needsFinancial needs

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How will tolls be collected?How will tolls be collected?

All electronic toll collection (no toll All electronic toll collection (no toll booths). booths).

Same technology as the current Same technology as the current Fastrak system used for collection on Fastrak system used for collection on all San Francisco Bay Area bridges.all San Francisco Bay Area bridges.

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How does a driver know where How does a driver know where to enter or exit the HOV/HOT to enter or exit the HOV/HOT lane?lane? Combined HOV/HOT lane will be Combined HOV/HOT lane will be

separated form the regular freeway separated form the regular freeway lanes by solid double yellow stripes.lanes by solid double yellow stripes.

Vehicles may legally enter or exit the Vehicles may legally enter or exit the HOV/HOT only at designated locations, HOV/HOT only at designated locations, where there is a gap in the solid where there is a gap in the solid stripes. stripes.

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How will it be enforced?How will it be enforced?

Enforcement will be primarily done by Enforcement will be primarily done by California Highway Patrol.California Highway Patrol.

A light will flash on an overhead reader A light will flash on an overhead reader indicating when a toll-paying vehicle is indicating when a toll-paying vehicle is using the lane.using the lane.

Enforcement will be supplemented with Enforcement will be supplemented with video surveillance cameras as video surveillance cameras as deterrent.deterrent.

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How will toll levels be set?How will toll levels be set?

Highest toll during peak-periods, lower Highest toll during peak-periods, lower shoulder and off-peak, nominal nighttimeshoulder and off-peak, nominal nighttime

Tolls will be adjusted up or down periodically Tolls will be adjusted up or down periodically depending on demanddepending on demand

Toll adjusted to ensure the combined Toll adjusted to ensure the combined HOV/HOT lane is never congestedHOV/HOT lane is never congested

HOVs HOVs alwaysalways ride for free ride for free

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Toll –setting methodologyToll –setting methodology

Begin with travel demand forecasts from regional Begin with travel demand forecasts from regional model with no tollsmodel with no tolls

Using ECONorthwest Toll Optimization Model Using ECONorthwest Toll Optimization Model (TOM), derive first-run toll structure(TOM), derive first-run toll structure

TOM solves for tolls that meet efficiency, revenue TOM solves for tolls that meet efficiency, revenue maximization, throughput or other desired goals, maximization, throughput or other desired goals, interacting with regional modelinteracting with regional model

Adjust toll levels and hourly traffic volumes for tolled Adjust toll levels and hourly traffic volumes for tolled and untolled lanes until efficiency criteria are and untolled lanes until efficiency criteria are optimizedoptimized

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Toll-setting methodologyToll-setting methodology

Users’ toll/non-toll decision based on tradeoff Users’ toll/non-toll decision based on tradeoff between travel time savings and paying tollbetween travel time savings and paying toll

Importance of continuous distribution of Importance of continuous distribution of users value-of-time for toll-settingusers value-of-time for toll-setting

Account for peak-spreading over timeAccount for peak-spreading over time

5 toll levels: 2 peaks, 2 shoulders, off-peak5 toll levels: 2 peaks, 2 shoulders, off-peak

2+ & 3+ carpool policies tested; with and 2+ & 3+ carpool policies tested; with and without intermediate accesswithout intermediate access

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Peak Toll Levels in 2006 Peak Toll Levels in 2006 (2002 $) (2002 $)

2+ carpool 2+ carpool 3+ carpool3+ carpool

Southbound Southbound

(AM peak)(AM peak)

$3.13$3.13

($0.22 /mile)($0.22 /mile)

$4.04$4.04

($0.29/mile($0.29/mile

NorthboundNorthbound

(PM peak)(PM peak)

$4.62$4.62

($0.33/mile($0.33/mile

$5.23$5.23

($0.37/mile)($0.37/mile)

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How much will the toll be?How much will the toll be?

Expected starting peak toll between Expected starting peak toll between $3.00 and $4.00$3.00 and $4.00

Toll will be adjusted up or down Toll will be adjusted up or down depending on demanddepending on demand

Toll adjusted to ensure the combined Toll adjusted to ensure the combined HOV/HOT lane is never congestedHOV/HOT lane is never congested

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Gross HOT Lane Revenues Gross HOT Lane Revenues

Total revenuesTotal revenues

– Tolls would generate between $6.3 and $14.7 Tolls would generate between $6.3 and $14.7 million in revenues in 2006; between $12.3 million in revenues in 2006; between $12.3 and $31.9 million in 2025.and $31.9 million in 2025.

For all Alternatives, carpool policy has For all Alternatives, carpool policy has dramatic effect on revenuedramatic effect on revenue

– HOV 3+ policy generates significantly more HOV 3+ policy generates significantly more revenue.revenue.

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Net Operating Income Net Operating Income

At realistic 4 % discount rate, 20-year net At realistic 4 % discount rate, 20-year net present value of operating incomes (million present value of operating incomes (million 2002 dollars), for 2+ and 3+ carpool policies 2002 dollars), for 2+ and 3+ carpool policies and with and without intermediate access (IA)and with and without intermediate access (IA)

HOV 2+HOV 2+ HOV 3+HOV 3+

No IANo IA $142$142 $207$207

IAIA $83$83 $228$228

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How will toll revenues be How will toll revenues be spent?spent? Pay for HOT lane operationsPay for HOT lane operations

Improved bus service on I-680 corridorImproved bus service on I-680 corridor

Capital improvements on I-680 corridorCapital improvements on I-680 corridor

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What will we learn from the What will we learn from the demonstration project?demonstration project?

Do drivers see HOT lane as worthwhile?Do drivers see HOT lane as worthwhile?

How much are they willing to pay?How much are they willing to pay?

How many vehicles and people can move How many vehicles and people can move through the corridor? At what speeds?through the corridor? At what speeds?

Can smooth traffic flow be maintained?Can smooth traffic flow be maintained?

How much revenue will be generated?How much revenue will be generated?

Will it be perceived as fair?Will it be perceived as fair?

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What are the challenges?What are the challenges?

Enforcement & toll collection Enforcement & toll collection effectivenesseffectiveness

Impact on HOVsImpact on HOVs

Constraint on access to HOV/HOT laneConstraint on access to HOV/HOT lane

Institutional arrangements/managementInstitutional arrangements/management

Bay Area drivers’ unfamiliarity with toll Bay Area drivers’ unfamiliarity with toll roads and restricted access HOV lanesroads and restricted access HOV lanes

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Other Northern California Other Northern California StudiesStudies I-880 commercial vehiclesI-880 commercial vehicles

Sonoma/Marin US 101 HOT LanesSonoma/Marin US 101 HOT Lanes

Santa Cruz Highway 1Santa Cruz Highway 1

Bay Bridge Congestion PricingBay Bridge Congestion Pricing