Express Toll Lane Networks: Express Toll Lane Networks: Better Transportation for Drivers and Transit Better Transportation for Drivers and Transit UsersUsers

By Robert W. Poole, Jr.By Robert W. Poole, Jr.Director of Transportation StudiesDirector of Transportation StudiesReason Public Policy InstituteReason Public Policy Institute

Congestion: Still Getting WorseCongestion: Still Getting Worse

Annual cost = $63 billion in top 85 urban areas, an all-time high.

Has grown every year since TTI began doing studies. This is despite major investment in HOV lanes and

transit. Only 11.2% carpooled to work in 2000, vs. 13.4% in

1990. Only 4.73% rode transit to work in 2000, vs. 5.27% in

1990.

New Highway Capacity Can HelpNew Highway Capacity Can Help

TTI data show that cities that kept highway capacity in step with traffic growth did best with congestion

Anchorage, Charleston, New Orleans, Pittsburgh, and Tampa expanded capacity, had smallest growth in congestion.

25 other urban areas had worse congestion increase, as traffic significantly outpaced capacity.

45 added very little capacity; had drastic congestion increase.

But New Lanes Are Very CostlyBut New Lanes Are Very Costly

Urban expressway lanes often cost $5M to $10M/lane-mile.

Elevated urban lanes cost 3 times that much.

Cost to build, operate, and maintain works out to 19 to 90 cents/mile.

But gas tax yields 2 to 3 cents/mile.

New Approach: Managed LanesNew Approach: Managed Lanes

HOV lanes were early form of managed lanes—but most have excess capacity.

Exclusive busways are another form—but also have much excess capacity.

HOT lanes sell excess capacity, charging market price.

HOT Networks combine HOT lanes and Bus Rapid Transit.

Express Toll Lanes are another form of Managed Lanes.

ETL Networks are networks of Express Toll Lanes.

Managed Lane Projects, 2004Managed Lane Projects, 2004

HOT LanesHOT Lanes

Initial idea: sell the excess capacity to paying motorists. Four in operation: Houston (2), San Diego, and Orange

County, CA. Variable pricing works: use all capacity, free-flow at rush

hour. On 91 Express Lanes, they handle 40% of freeway’s traffic

with 33% of capacity, at rush hour. Plans under way in a dozen metro areas. But for new capacity, free passage for HOV-2s cuts heavily

into needed revenue.

Express Toll Lanes (ETLs)Express Toll Lanes (ETLs)

All cars pay market-priced toll. Super-HOVs go free (buses, van-pools) Emergency vehicles go free (police, fire,

ambulance) First project under way in Tampa. Being studied for Denver, Miami, Orlando,

Maryland, Texas. Called “FAST Lanes” in House

reauthorization bill.

Bus Rapid TransitBus Rapid Transit

Frequent express bus service in special lanes. Can be comparable to light rail, but considerably

lower cost (GAO). Strong support from FTA. Very costly to transit agency if in dedicated lanes. Much less costly if operated in HOT lanes or ETLs,

because paying drivers pay for much of the infrastructure.

Definition of ETL-BRT NetworkDefinition of ETL-BRT Network

Interconnected set of limited-access lanes on urban freeway system.

Buses and vanpools use at no charge; all others pay. Variable pricing, a la I-15, all ETC. Composed of existing HOV plus new links and interchange

connectors. Many one lane each way with central Jersey barrier; but

some (a) two-lane reversible and others (b) two lanes each way.

Advantages of NetworkAdvantages of Network

Congestion-insurance for all drivers, when they really need it.

Greater person throughput than nearly all HOV lanes, thanks to express bus service (offsets loss of free HOV-2s) paying vehicles making use of currently unused capacity seamless network offers more time-saving than HOV fragments

Partly self-funding—a major advantage. Ease of enforcement—all-electronic. Either has a valid

transponder and account or not.

Comparative Throughput of HOV Comparative Throughput of HOV Lanes and ETL NetworkLanes and ETL Network

Typ. HOV-2

Typ. HOV-3

Ideal HOV-3

ETL Network

SOVs (avg 1.1/veh) 0 0 0 1100

HOV-2s (avg 2.1/veh) 788 0 0 300

HOV-3s (avg 3.2/veh) 150 350 1200 200

Vanpool (avg 7.0/veh)

10 20 20 60

Express bus (avg 35/veh)

2 3 40 40

Vehicles/hr. 950 373 1260 1700

Persons/hr. 2275 1365 5380 4300

Reason Modeled Eight Metro Area Reason Modeled Eight Metro Area NetworksNetworks

The eight most-congested metro areas (except NYC) Los Angeles/Orange County San Francisco/San Jose/Oakland Washington, DC Seattle Houston Dallas Atlanta Miami

Modeling Eight Metro Area Modeling Eight Metro Area NetworksNetworks

For each metro area, we began with MPO’s long-range transportation plan (unconstrained) Existing HOVs and connectors Planned HOVs and connectors We added: missing links (elevated or at-grade) We added: missing connector quadrants

Miami ETL Network

Los Angeles ETL Network

Capital Cost EstimatesCapital Cost Estimates

Construction of new lanes (surface + elevated)

Construction of flyover connectors at interchanges

Conversion of existing HOV to ETL Total cost: from $2.7 billion (Miami) to

$10.8 billion (Los Angeles)

Revenue EstimatesRevenue Estimates

For peak direction at rush hour, assumed max of 1700 veh/hr, and max of 1600 paying veh/hr. (Provides for 100 buses and vanpools/lane/hr.)

Peak-period, peak-direction toll varied from 35 cents/mi in Miami to 40 cents/mi in LA.

Non-peak direction toll was one-third to one-half of that.

Much lower off-peak price for off-peak hours, holidays, and weekends.

Financing ETL NetworksFinancing ETL Networks

Toll revenue bonds based on the revenue stream. Simple rule of thumb: 10 X the annual baseline

revenue = amount that could be raised. Conservative, since revenue profile will be much

steeper over the life of the bonds than for most toll roads.

Compared amount raised with the cost of build-out. Overall, revenue bonds cover 67% of cost. Individual cities range from 43% (Miami) to 93% (San Francisco)

A Win-Win PropositionA Win-Win Proposition

Transit riders get region-wide express bus service. All motorists get “congestion insurance” on entire

freeway system. Users of regular lanes encounter somewhat less

congestion. Paying drivers on Network gain time savings and

reliability. Taxpayers get improved transportation system

without higher taxes.

The “Lexus Lane” IssueThe “Lexus Lane” Issue

Issue #1: Tolling is “regressive”

Key question is: compared to what? Fuel taxes are regressive Transportation sales taxes are regressive

With ETLs, only the users pay (and only auto users, since vans and buses go free)

Lexus Lanes, cont.Lexus Lanes, cont.

#2 Price/Quality choices are available everywhere else; why not on highways?

Private sector: airlines, telephones, restaurants

Public sector: Amtrak, Postal Service

Lexus Lanes, cont.Lexus Lanes, cont.

#3 People of all income levels use managed lanes for high-priority trips

San Diego and Orange County data, 6 and 8 years worth

Mother picking up kids from day care Gardener reaching one more client Family getting to airport on time

It’s not 10% of the people using the lanes all the time; rather, 90% of people using them 10% of the time.

Lexus Lanes, cont.Lexus Lanes, cont.

#4 Transit can be a major beneficiary of Managed Lanes

Express bus service can be guaranteed access and time savings.

Speed and reliability are sustainable long-term, unlike with HOV lanes.

Transit providers must be brought on board early, as in Houston.

Lexus Lanes, concludedLexus Lanes, concluded

#5 People overwhelmingly like this option, once they experience it.

In San Diego, 80% of users and 60% of non-users think Managed Lanes are fair, effective, and the best way to improve mobility on I-15.

Results hold for all income levels, ethnic groups, and age groups.

Key phrasing: do you favor or oppose having a time-saving option in this corridor?

ConclusionConclusion

For costly urban lane additions, we need to get maximum value for the investment.

Express Toll Lanes can be paid for largely or entirely with tolls.

Express Toll Lanes permit higher throughput of people, vehicles, or goods:

ETLs have much greater throughput, at 65 mph, at rush hour.

ETLs become “virtual busways” for Bus Rapid Transit.