Congestion Charging
Presentation for California
Environmental Dialogue



 Ed Pike, P.E.
 July 13, 2010
International Council on Clean Transportation
  Goal of the ICCT is to dramatically reduce conventional pollutant and greenhouse
   gas emissions from all transportation sources in order to improve air quality and
   human health, and mitigate climate change.
  Promotes best practices and
   comprehensive solutions to:
      Improve vehicle emissions and efficiency
      Increase fuel quality and sustainability
       of alternative fuels
      Reduce pollution from the in-use fleet, and
      Curtail emissions from international
       goods movement.
  The Council is made up of leading
   regulators and experts from around
   the world.


                                                                               Slide 2
                                                                                     
                                                      www.theicct.org
Congestion Charging Topics
  What is congestion charging?

  Two international examples: London and
   Singapore

  ICCT-sponsored Santa Clara County,
    California study
What is a Congestion Charge ?
  When roadways are congested, each
   additional driver imposes an additional delay
   on every other driver
  Congestion Charges during congested times
   encourage different transit modes/times
  When congestion goes down, travel becomes
   faster and more reliable
  Unlike revenue tolls, congestion charges are
   not imposed 24/7
London Congestion Charge
  Major surface congestion causes
   delay and uncertainty for drivers
   and surface transit users (most
   travelers use transit)
  Cordon fee around dense
   downtown initially established in
   2005 and later expanded
London Congestion Charge
London Congestion Charge
  Initially 5 pounds, now at 8 pounds ($12)
    with exemptions
  Pay via Internet, text, retail location, phone




                                                    Slide 7
London Congestion Charge
  Cut traffic by 20-30% in original zone

  Increased bus ridership and cycling

  CO2 dropped 15-20%, Nitrogen Oxides & Fine
   Particulates by 10%

  No evidence of impact on business & economic
   activity
London Congestion Charge
  Over $180 million in net revenue for bus and
   other transportation improvements (FY
   2007/8)
  High operating costs for camera-based
   system, FastTrak type system under
   investigation
Singapore Congestion Charge
  Electronic Road Pricing started in 1970’s and
   updated to electronic system with smartcards
   on-board the vehicle & camera enforcement




                    © 2005 Mailer Diablo
Singapore Congestion Charge
  Price adjusted to keep traffic between 45-65
   kph (28-40 mph)
  Price increase in 2008 (peak fee $3 US)
   accompanied by vehicle tax decrease
Singapore Congestion Charge
  Transit share increased from 40% then to
   60% now
  Traffic decreased 31% in first ten years
   despite 77% increase in vehicle ownership
What about California ?
  Worst traffic in US – large city (San Jose area)
   and very large city (LA area) categories
  Congestion typically dips during recession,
   then rebounds (red=worst, green=best)




          source: Valley Transportation Authority “2008 Monitoring and
           Conformance Report”
Santa Clara County Study
  ICCT sponsored congestion charging study
    for Santa Clara County - investigate
    feasibility in area with diffuse development
    patterns rather than compact urban core
  Lead model development by consultant
    Charles Komanoff
  Feasibility-type study, not implementation
   -type study
Santa Clara County Study
  Pricing levels (per mile) set at different levels
   for different weekday times
  Off-peak, weekend travel not charged
  Freeways & major arterials would be tolled
  Average per trip charge during congestion
   hours: $1.73
Santa Clara County Study
  Shaving peak traffic during congested hours
   can make a big difference
  Graph based on over 1000 Santa Clara
   County data points
Santa Clara County Study
  Estimated 2012 benefits to society outweigh costs
  Amount of net benefit depends on amount of
   traffic reduction in response to charge
   (“elasticity”), gas prices, drivers’ time valuation
Santa Clara County Study
  Decreased travel time is largest projected
   benefit, followed by gasoline savings
  Pollution reductions are added benefit
  Reduced crash costs anticipated but not
   determined
  Based on 2012 (assuming congestion growth
   just under 1% per year)
Santa Clara County Study
  System administration and “lost amenity” are
   largest costs (lost amenity is due to a trip that
   the driver decided not to take due to charge)
  Congestion Charge payments/revenue are
   both a cost and a benefit – substantial
   revenue after paying system costs
   –  Need to invest in transit to encourage switching
   –  Can use for transportation purposes, target low
      -income, and/or rebate
Santa Clara County Study
  Average driver sees time savings benefit
   about equal to charge paid
  –  However, costs may seem more tangible than
     benefits prior to implementation
  Transit users see benefits
  –  Need transit upgrades to accommodate &
     encourage increased ridership when charge starts
  Substantial net charge revenue
  –  Could be distributed per capita, targeted to low
     -income, additional transportation uses, etc Slide 20
Privacy Options
  Anonymous cash accounts
  Smart card option would not need to collect
    data on vehicle or driver (except for evaders)
  “Firewalls” on data usage
  Prompt data deletion
Conclusion
  Congestion Charging has been implemented
   successfully
  Expected congestion benefits exceed
   expected costs in Santa Clara County by a
   wide margin, with additional pollution
   reduction as a bonus
  However, potential Catch-22: costs may seem
   more tangible than the benefits before
   implementation
  –  Education, outreach, leadership necessary   Slide 22
Contact Information
Ed Pike, P.E.
ed@theicct.org
(415) 202-5753
www.theicct.org

Congestion charging paper:
http://www.theicct.org/programs
  /climate_change/congestion_charging_paper_
Back-up Slides




                 Slide 24
Area-wide charging technology
           examples

–  European area-wide charging examples
   •  7500 miles of highway in Germany using GPS for
      truck tolls
   •  1800 miles in Austria & Czech Republic using
      overhead gantries & transponders for truck tolls




                                                    Slide 25
“HOT” Lanes vs Carpool Lanes
Bay Bridge vehicle tolls
  Base toll of $5
  Increased by $1 weekday on-peak, decreased
    by $1 weekday off-peak
  New carpools toll for $2.50 (half of base toll)
  Implemented July 1
  Revenue Toll not Congestion Charge, but
    with a partial congestion component


                                                Slide 27

Congestion Charging: Presentation for California Enviromental Dialog

  • 1.
    Congestion Charging Presentation forCalifornia Environmental Dialogue Ed Pike, P.E. July 13, 2010
  • 2.
    International Council onClean Transportation   Goal of the ICCT is to dramatically reduce conventional pollutant and greenhouse gas emissions from all transportation sources in order to improve air quality and human health, and mitigate climate change.   Promotes best practices and comprehensive solutions to:   Improve vehicle emissions and efficiency   Increase fuel quality and sustainability of alternative fuels   Reduce pollution from the in-use fleet, and   Curtail emissions from international goods movement.   The Council is made up of leading regulators and experts from around the world. Slide 2 www.theicct.org
  • 3.
    Congestion Charging Topics  What is congestion charging?   Two international examples: London and Singapore   ICCT-sponsored Santa Clara County, California study
  • 4.
    What is aCongestion Charge ?   When roadways are congested, each additional driver imposes an additional delay on every other driver   Congestion Charges during congested times encourage different transit modes/times   When congestion goes down, travel becomes faster and more reliable   Unlike revenue tolls, congestion charges are not imposed 24/7
  • 5.
    London Congestion Charge  Major surface congestion causes delay and uncertainty for drivers and surface transit users (most travelers use transit)   Cordon fee around dense downtown initially established in 2005 and later expanded
  • 6.
  • 7.
    London Congestion Charge  Initially 5 pounds, now at 8 pounds ($12) with exemptions   Pay via Internet, text, retail location, phone Slide 7
  • 8.
    London Congestion Charge  Cut traffic by 20-30% in original zone   Increased bus ridership and cycling   CO2 dropped 15-20%, Nitrogen Oxides & Fine Particulates by 10%   No evidence of impact on business & economic activity
  • 9.
    London Congestion Charge  Over $180 million in net revenue for bus and other transportation improvements (FY 2007/8)   High operating costs for camera-based system, FastTrak type system under investigation
  • 10.
    Singapore Congestion Charge  Electronic Road Pricing started in 1970’s and updated to electronic system with smartcards on-board the vehicle & camera enforcement © 2005 Mailer Diablo
  • 11.
    Singapore Congestion Charge  Price adjusted to keep traffic between 45-65 kph (28-40 mph)   Price increase in 2008 (peak fee $3 US) accompanied by vehicle tax decrease
  • 12.
    Singapore Congestion Charge  Transit share increased from 40% then to 60% now   Traffic decreased 31% in first ten years despite 77% increase in vehicle ownership
  • 13.
    What about California?   Worst traffic in US – large city (San Jose area) and very large city (LA area) categories   Congestion typically dips during recession, then rebounds (red=worst, green=best) source: Valley Transportation Authority “2008 Monitoring and Conformance Report”
  • 14.
    Santa Clara CountyStudy   ICCT sponsored congestion charging study for Santa Clara County - investigate feasibility in area with diffuse development patterns rather than compact urban core   Lead model development by consultant Charles Komanoff   Feasibility-type study, not implementation -type study
  • 15.
    Santa Clara CountyStudy   Pricing levels (per mile) set at different levels for different weekday times   Off-peak, weekend travel not charged   Freeways & major arterials would be tolled   Average per trip charge during congestion hours: $1.73
  • 16.
    Santa Clara CountyStudy   Shaving peak traffic during congested hours can make a big difference   Graph based on over 1000 Santa Clara County data points
  • 17.
    Santa Clara CountyStudy   Estimated 2012 benefits to society outweigh costs   Amount of net benefit depends on amount of traffic reduction in response to charge (“elasticity”), gas prices, drivers’ time valuation
  • 18.
    Santa Clara CountyStudy   Decreased travel time is largest projected benefit, followed by gasoline savings   Pollution reductions are added benefit   Reduced crash costs anticipated but not determined   Based on 2012 (assuming congestion growth just under 1% per year)
  • 19.
    Santa Clara CountyStudy   System administration and “lost amenity” are largest costs (lost amenity is due to a trip that the driver decided not to take due to charge)   Congestion Charge payments/revenue are both a cost and a benefit – substantial revenue after paying system costs –  Need to invest in transit to encourage switching –  Can use for transportation purposes, target low -income, and/or rebate
  • 20.
    Santa Clara CountyStudy   Average driver sees time savings benefit about equal to charge paid –  However, costs may seem more tangible than benefits prior to implementation   Transit users see benefits –  Need transit upgrades to accommodate & encourage increased ridership when charge starts   Substantial net charge revenue –  Could be distributed per capita, targeted to low -income, additional transportation uses, etc Slide 20
  • 21.
    Privacy Options   Anonymouscash accounts   Smart card option would not need to collect data on vehicle or driver (except for evaders)   “Firewalls” on data usage   Prompt data deletion
  • 22.
    Conclusion   Congestion Charginghas been implemented successfully   Expected congestion benefits exceed expected costs in Santa Clara County by a wide margin, with additional pollution reduction as a bonus   However, potential Catch-22: costs may seem more tangible than the benefits before implementation –  Education, outreach, leadership necessary Slide 22
  • 23.
    Contact Information Ed Pike,P.E. [email protected] (415) 202-5753 www.theicct.org Congestion charging paper: http://www.theicct.org/programs /climate_change/congestion_charging_paper_
  • 24.
  • 25.
    Area-wide charging technology examples –  European area-wide charging examples •  7500 miles of highway in Germany using GPS for truck tolls •  1800 miles in Austria & Czech Republic using overhead gantries & transponders for truck tolls Slide 25
  • 26.
    “HOT” Lanes vsCarpool Lanes
  • 27.
    Bay Bridge vehicletolls   Base toll of $5   Increased by $1 weekday on-peak, decreased by $1 weekday off-peak   New carpools toll for $2.50 (half of base toll)   Implemented July 1   Revenue Toll not Congestion Charge, but with a partial congestion component Slide 27