Managed Lanes: More than a Revenue Tool

Managed Lanes More than a Revenue Tool

© Parsons Brinckerhoff, 2012.

2012 CHARLOTTE CHAMBER

TRANSPORTATION SUMMIT

David Ungemah Parsons Brinckerhoff National Managed Lanes Director

April 13, 2012 © Parsons Brinckerhoff, 2012. 2

We’re Paying Less, Driving More


As Fuel Economies Go Up,

Revenues Go Down


20 mpg 30 mpg 50 mpg 0 mpg

NC Tax Fed Tax NC Tax Fed Tax NC Tax Fed Tax NC Tax Fed Tax

0.39$ 0.18$ 0.39$ 0.18$ 0.39$ 0.18$ 0.39$ 0.18$

20,000 392$ 184$ 261$ 123$ 157$ 74$ -$ -$

15,000 294$ 138$ 196$ 92$ 118$ 55$ -$ -$

10,000 196$ 92$ 131$ 61$ 78$ 37$ -$ -$

Light Duty Truck Passenger Vehicle Hybrid Electric Vehicle

Miles / Year

Restoring Purchasing Power

• Federal tax increase of 10¢ just to restore purchasing power from 1998 (AASHTO)


A Story of Fiscal Concerns

• A Nation of Debtors

• National: $15.6 Trillion

• State: $1.1 Trillion

• Local: $1.7 Trillion

• Long term policy needs

• Social Security: $7 Trillion

• Trust fund exhausted in 2036

• Medicare gap: $38 Trillion

• Trust fund exhausted in 2014


Transportation Consequences

• Transportation maintenance and improvement is expensive ($5+ Trillion)

• … But doing nothing is also expensive …

• … Yet it’s unlikely to change given all the other issues this country faces.


Increase In Urban

Congestion

Inflation & Wage

Decline

Erosion of Economic

Vitality

Depression Of Total

Tax Revenue

Reduction in

New Capacity

The Widening

Transportation

Funding &

Service Gap

Looking Ahead


• “One Size Fits All” doesn’t work anymore

• Restore the “User Pays” principle

• New technologies open new doors

THE LINK TO MANAGED

LANES

OK, so now what?


Fighting Congestion

• Reduces Capacity When Needed Most

• Hinders Commerce

• Costs $100+ Billion Annually

• Expensive Infrastructure to Resolve


What If?

• Guaranteed Congestion Free Freeway Lanes

• Safe and Reliable Travel

• Long Term Return on Investment


What are Managed Lanes?

What are they?

• Dedicated Lanes

• “Freeway within a Freeway”

• Proactively Managed

• Real-time response to supply and demand

• Preservation of Capacity

What are the benefits?

• Greater throughput

• Transit & carpools

• Travel time reliability

• Decreased fuel consumption

• Improved air quality

• Revenue generation


Managed Lanes Design

• Initially tolled managed lanes were fully-separated

facilities.

SR-91

I-15

I-25

I-10

4/23/2012 14 © Parsons Brinckerhoff, 2011

Managed Lanes Design

• New Managed Lanes are more integrated into the

freeway with less physical separation.

SR-167

I-35W

4/23/2012 15 © Parsons Brinckerhoff, 2011

I-95

I-85

More Efficiency


Each lane is moving 1400 vehicles at 25 mph

Each lane is moving 1500 vehicles at 60 mph

Transit Compatibility


Managed Lanes Generate

Revenue


The Challenge of Managed

Lanes

• I’ve already paid for it!

• Don’t trust government with more of my money

• Tolls never go away!

• Unfair to (fill in the blank)


Gee, Wally. Why would you put a toll on a freeway?

Imagining the Benefits

• There is no reason to put up with congestion anymore

• Active observation and management

• Restores user pay principle

• Helps pay for the specific capacity needed


WHAT’S HAPPENING IN

NORTH CAROLINA?


Charlotte Region Fast Lanes


I-77 Public-Private Partnership

• New Managed Lanes

• Convert existing HOV lane

• Extend facility north / south

• Expand two lanes in each direction

• Private Partners

• Revenue risk by private entity

• 50 Year agreement

• Maximize private financing; minimize public funds

• Dynamic pricing


FINAL THOUGHTS


What If We Could…

• Build projects by leveraging new funding without increasing taxes?

• Empower local governments to invest in needed roadways?

• Right-size our highway system, so as to reduce project costs and other impacts?


Managed Lanes: More than a Revenue Tool

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