17.1 Facility Pricing

Mitigate congestion through reduction of trips and VMT.

Description

Facility pricing is levied on one or several roadways that link residential areas to downtown commercial districts. Fees may be imposed on new or existing roads, but it is usually more politically acceptable to impose fees on new facilities because people would not view the policy as taking away a free service. In order for a pricing measure to be considered an application of facility pricing, the purpose of the measure must be to reduce congestion.

Single facility projects are best suited for a corridor connecting residential neighborhoods with downtown areas. However, there are at least two disadvantages to this option, increasing VMT and moving congestion.

Total VMT may actually increase as a consequence of imposing fees on the most direct route that people travel due to drivers diverting to non-toll alternate routes. Drivers may continue to avoid the fees by driving on the alternate routes, thereby merely shifting congestion to non-priced areas of the city.

Among the congestion pricing measures, single facility projects are generally the easiest type of policy to enact according to the EPA Office of Mobile Sources. Some of the reasons that single facility projects are easy to implement include:

• Simplest to design and require the least up-front investment of government resources;

• Easily monitored and evaluated, especially if the facility has few entrances, exits, and alternate routes; and

• Relatively more politically acceptable because they focus on only one route. Under single facility programs, there may be alternative free routes people can choose, whereas regional network pricing projects may result in people being charged no matter which route they use.

Regional network pricing levies fees on drivers traveling on a network of similar roads (e.g., highways). Unlike facility pricing, network pricing applies fees on multiple roads going in many directions. This fee structure results in a more accurate cost for vehicle use than facility pricing because more of the trip is included within the boundary of the system. Fees may be collected from a series of tollbooths along the network or from entrance and exit ramps on controlled access facilities.

Because regional network pricing is more comprehensive than facility pricing, it has a greater potential to eliminate many free alternative routes. However, if a viable public transit system is unavailable in the area, then this measure could be difficult to implement. If drivers have a choice in choosing one mode of transit over another, regional network pricing may be very effective in reducing congestion and improving air quality because of its comprehensiveness. The measure can provide strong incentive for people to ride in carpools, use public transit, or adjust their travel time in the face of high tolls.

If the network of roads to be priced encompasses several jurisdictions, coordination among transportation officials and agencies is crucial to implementation and success of the measure.

A regional pricing strategy may be analyzed in the same way as facility pricing with the analysis conducted for each roadway affected by the strategy.

Application

Highways or controlled access facilities between residential areas and central commercial areas. This strategy should only be used for CMAQ purposes.

$$\text{Daily Emission Reduction (grams/day)} = A + B + C + D$$

$$A = (\mathit{VT}_{R} \times \mathit{TEF}_{\mathit{AUTO}}) + (\mathit{VMT}_{R} \times \mathit{EF}_{B})$$

Reduction in auto start emissions from trip reductions plus the reduction in auto running exhaust emissions from trip reductions

$$B = \mathit{VT}_{S} \times \mathit{TL}_{B} \times (\mathit{EF}_{B} - \mathit{EF}_{A})$$

Reduction in auto running exhaust emissions from trips shifted to a no cost or lower cost time period

$$C = \mathit{VT}_{\mathit{ALT}} \times (\mathit{TL}_{B} \times \mathit{EF}_{B} - \mathit{TL}_{A} \times \mathit{EF}_{A})$$

Reduction in auto running exhaust emissions from trips on an alternate facility during the same time period

$$D = \mathit{VT}_{\mathit{NC}} \times \mathit{TL}_{B} \times (\mathit{EF}_{B} - \mathit{EF}_{A})$$

Reduction in auto running exhaust emissions due to a speed change for trips remaining on the facility after implementation

$$\mathit{VMT}_{R} = \mathit{VT}_{R} \times \mathit{TL}_{B}$$

$$\mathit{VT}_{R} = \epsilon \times (\mathit{FEE}_{B} - \mathit{FEE}_{A}) \times \mathit{VT}_{B}$$

$$\mathit{VT}_{S} = \epsilon \times (\mathit{FEE}_{B} - \mathit{FEE}_{A}) \times \mathit{VT}_{B}$$

The price elasticity for use of the facility multiplied by the difference in the fee for use of the facility before and after strategy implementation multiplied by the number of vehicle trips before implementation

$$\mathit{VT}_{B} = \mathit{VT}_{R} + \mathit{VT}_{S} + \mathit{VT}_{\mathit{ALT}} + \mathit{VT}_{\mathit{NC}}$$

Vehicle trips on facility before implementation of measure mathematically equals to remaining vehicle trips on the facility after implementation plus resulting trip changes (VT_S + VT_ALT + VT_NC)

Variables	(Unit)	Definitions
$\mathit{EF}_{A}$	(grams/mile)	Speed-based running exhaust emission factor after implementation on affected roadway
$\mathit{EF}_{B}$	(grams/mile)	Speed-based running exhaust emission factor on affected roadway before implementation
$\mathit{FEE}_{A}$	(percent)	Price for facility use after implementation of measure
$\mathit{FEE}_{B}$	(percent)	Price for facility use before implementation of measure
$\mathit{TEF}_{\mathit{AUTO}}$	(grams/trip)	Auto trip-end emission factor (NOX, VOC, PM, or CO)
$\mathit{TL}_{A}$	(mile)	Average auto trip length after implementation of measure
$\mathit{TL}_{B}$	(mile)	Average auto trip length before implementation of measure
$\mathit{VMT}_{R}$		Reduction in daily automobile VMT
$\mathit{VT}_{\mathit{ALT}}$	(trip)	Vehicle trips on alternate facility
$\mathit{VT}_{B}$	(trip)	Vehicle trips on facility before implementation of measure
$\mathit{VT}_{\mathit{NC}}$	(trip)	Vehicle trips remaining on facility after implementation
$\mathit{VT}_{R}$	(trip)	Reduction in number of daily automobile vehicle trips
$\mathit{VT}_{S}$	(trip)	Vehicle trips on facility shifted to no cost or lower cost time period
$\epsilon$		Price elasticity for mode and time shift

Source: Texas A&M Transportation Institute