HighLight Heading
July 2003
Officials discuss federal, state toll initiatives at U of M forum
Mark Kennedy
Doug Differt
Marthand Nookala
Carol Flynn
Al Steger
Ann Rest
Dick Day
Thanks to recently passed state legislation, tolls could be a reality on I-394 in the west metro area by late next year. And if proposed federal legislation is enacted, freeways on the interstate system, including the Twin Cities beltway, could be expanded using tollway revenues.
These two initiatives were the focus of a roundtable titled "FAST Lanes: Federal and State Outlooks on Minnesota's Newest Transportation Tool," sponsored by the Humphrey Institute's State and Local Policy Program (SLPP) and CTS on June 16 in Minneapolis. Several local TV news programs covered the event.
Dean J. Brian Atwood of the Humphrey Institute gave the welcoming remarks. Laurie McGinnis, CTS associate director, then introduced U.S. Rep. Mark Kennedy, a member of the House Transportation and Infrastructure Committee.
The FAST Act
Kennedy presented highlights of his Freeing Alternatives for Speedy Transportation (FAST) Act, which he and Rep. Adam Smith introduced in the House on April 10. The legislation is needed because of three current crises, he declared, the first of which is funding: "We're just not funding [our] transportation needs." Moreover, because the current finance system relies on the gas tax, projections for a growing number of higher mileage vehicles mean less revenue will be available. "Clearly, we need to be looking for a different resource to fund the very significant transportation needs we have," he said.
Second is the crisis in confidence. "People just don't have the confidence that [their] transportation dollars are going to be used in a way that will solve their problems and that they will get a good return for their money," Kennedy said.
The third crisis is in innovation. His bill is intended to encourage innovation and technology, he said, particularly at the state and local levels.
The FAST Act removes federal restrictions on collecting tolls to finance new lanes on the interstate system, Kennedy said, with three important conditions. First, fees are collected voluntarily on new lanes only, and must be dedicated to the corridor in which they are paid. Second, fees are charged electronically to avoid traffic slowdowns at toll booths. And third, when the road is paid for, the fee collection goes away.
Many benefits derive from the bill, Kennedy asserted. Funding capacity rises to supplement the gas tax, and dollars are freed up for use in other projects that don't fit the FAST Lane model. Money is also saved because projects can be completed more quickly, reducing the cost of purchasing expensive right-of-ways. And the bill encourages states to partner with the private sector to build, finance, and operate the new lanes.
Because it offers "a true user choice," the bill will aid motorists across the economic and demographic spectrum, Kennedy said. Even those who don't use the lane will benefit from less traffic on the existing lanes. And transit and carpool users, who will pay no fee or a reduced fee, will be able to rely on more dependable ride times.
The bill, with more than 34 cosponsors in the House, has "a lot of very big positives and we're moving forward," Kennedy said.
Minnesota's legislation
The forum then turned to a new Minnesota law that allows the express lanes on I-394 to be tolled. Passed this spring, the legislation will permit single-occupant vehicles to use the high-occupancy vehicle (HOV) lanes for a fee, said Deputy Commissioner Doug Differt of Mn/DOT. Unlike previous attempts to implement pricing in the state, this bill passed owing to a number of factors: congestion is growing; businesses need stable delivery times; the public is dissatisfied with underutilized HOV lanes; and political support is rising. "We're not talking about building our way out of congestion," he said, "but utilizing the capacity we have to the extent we can."
As team leader for the initiative, Mn/DOT will work with a steering committee made up of the Federal Highway Administration (FHWA), the Metropolitan Council, and the Department of Public Safety, along with other partners such as the Humphrey Institute, to move ahead. He cautioned, however, that "public acceptance is always an issue," and outreach and education are key to garner grassroots support.
Marthand Nookala, director of Mn/DOT's Operations, Safety, and Technology Division, then explained some of the specifics of the I-394 initiative.
He first shared some lessons learned from express lanes in other states, such as SR 91 in Orange County, Cal., with 25,000 paid users per day. For example:
- Public support is high: between 80 to 90 percent for both users and nonusers.
- Because the price rises with demand, express lanes can maintain posted speeds.
- Speeds on adjacent general-purpose lanes have increased.
- Demand for bus and carpool use has increased.
- Equity issues can be addressed by allowing drivers to choose to use express lanes, improving bus service in the corridor, and continuing to provide free, adjacent lanes.
"There was a myth in olden days [that a toll lane is] a Lexus lane," Nookala said, "but the new saying is it's a Lumina lane."Solo drivers on I-394 will be able to choose to pay for using the express lanes, while bus and carpool users will use the lane for free. By adjusting the fee charged to solo drivers, posted speeds will be maintained and priority and service level for buses and carpools willbe preserved. "That's the number one priority," Nookala said. "We're not going to penalize them."
In Phase 1 of the initiative, Mn/DOT will deploy technologies on the existing infrastructure. Phase 2 is expected to include revised geometric design features, such as tunnel reconfiguration, possibly paid for with revenue from Phase 1, Nookala said.
Pricing roundtable
The final portion of the forum was a roundtable discussion moderated by former state senator Carol Flynn and featuring Alan Steger of the FHWA; Sen. Ann Rest, author of the state senate legislation; Sen. Dick Day; Natalio Diaz of the Metropolitan Council; and Mn/DOT's Differt.
Steger said he is asked if the FHWA will allow HOV lanes to be opened to tolls. His answer: "an unqualified yes." Not only is the FHWA receptive to the concept, it is "quite excited about it," he said. "Value pricing, as proposed here, is totally acceptable under current law and regulations."
Sen. Rest said she sets value pricing in a much larger context. Quoting the synthesis report of the Transportation and Regional Growth (TRG) Study published earlier this year by CTS, Rest said that "congestion is the symptom–not the problem–of larger transportation and regional growth issues." Another important point is the public's attitude toward roads and public goods. Because public goods are an entitlement, people think they are free. But even an untolled road is not "free of charge," she stressed; rather, a better description would be that it's "at no additional cost to you."
Expanding on Rest's comments, Flynn also cited the TRG study, in particular its findings that general revenues such as the property tax support roadway infrastructure. "There is a need for us to recognize we all contribute to one another's transportation," she said, "whether it's through the bus or the country road."
Diaz advised keeping the legislation in proper perspective. "It's not the panacea to resolve all our problems," he said. "In the overall context, traditional funding sources, whether license plates or gas tax, will have to be a workhorse for many years to come." In summary, though, he is "very pleased something may happen soon, very pleased about the long-term financial implications, and that a multimodal approach is being taken."
Sen. Day said "the reason we're looking at this is because people don't seem to want to get out of their cars." Across the country, many areas have closed sane lanes because they aren't used. "We tried to modify the driving public and their behavior, but they didn't buy into it very well." He believes it will take time for people to get used to tolls, but they are very workable.
Differt noted that previous attempts at pricing Minnesota lanes had trouble with the "political piece, not the engineering part." The department is making plans for public participation and wants to make sure it "hears from everybody possible," he said.
In the forum wrap-up Lee Munnich, SLPP director, remarked that value pricing is just a tool, and its success depends on how the public accepts it. Ultimately, the question the public will ask is, will it work? In closing, he noted how SLPP, which has been studying value pricing for a number of years, will be holding roundtables with I-394 corridor residents.