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Decision-Making Guide: Evaluating Road Pricing Potential for Local Areas and Conditions 9 tests of mileage fee systems with both traffic management and transportation finance purposes. The University of Iowa is in the process of conducting several more trials in urban areas around the country. A mileage fee also can be varied by vehicle emission class and/or weight, serving the objectives of reducing emissions and accounting for added road wear from heavier vehicles. It also can be designed to vary by time of day with a higher rate during peak hours, as in a pilot program conducted in Portland, Oregon, thus helping to reduce peak-period congestion when some drivers choose to alter their time of travel to avoid a higher charge. Unlike some other pricing con- cepts, the concept of mileage fees is applicable not only locally or regionally; rather implementa- tion has been discussed at the state and national levels too. There is debate in the literature about whether PAYD insurance falls within the category of distance-based pricing. Although the insurance charges are based on the distance traveled by users, they are not intended primarily to address congestion but instead to account for accident risks. For this reason, detailed discussion under the category of distance-based pricing in the following sections of the report will focus primarily on public sector initiated or studied VMT/mileage fees. 1.1.6 Parking Pricing Parking pricing strategies are applicable on and off street at spaces controlled by municipalities and can be of the following types: Revising or instituting rates to vary by times and/or locations of peak use, for example higher in congested zones and/or peak times of day Rates progressing by length of time parked, for example more costly rates for second or sub- sequent hours parked Charges applied by actual time parked versus by time blocks; examples include daily versus monthly parking charges and rates by minutes instead of by hours or all day rates In San Francisco, the SFpark program seeks to encourage drivers to park in garages and lots through new on- and off-street parking pricing that is more in line with demand. The on-street goal is to ensure that one parking space is available on every metered block to reduce cruising and associated congestion. An important anticipated benefit is improved transit speeds and reli- ability on the MUNI light rail system and reduced greenhouse gases. In New York, through the Park Smart program, the City aims to increase parking space availability and public safety and to reduce double parking, pollution, and congestion through new peak and off-peak meter rates. The City is holding a trial of this program in Greenwich Village, Park Slope, and Upper East Side neighborhoods. The next section describes how these six road pricing concepts apply to a variety of planning goals, to local conditions, and to the local policy context. The section also provides planning and communication lessons geared towards achieving maximum acceptability and successful implementation. 1.2 Local Community Goals Road pricing is effective in meeting many current community and state transportation planning goals. These include congestion management, reduction of VMT and emissions, more efficient uti- lization of highway capacity and parking spaces, generation of revenues supporting transportation, and encouragement of sustainability and livability. These goals can be met by one or more of the six road pricing concepts discussed in the previous section. Exhibit 1 shows common planning goals and how the six pricing concepts compare in meet- ing them. The table is meant to guide readers to the most appropriate strategy or strategies to

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10 Road Pricing: Public Perceptions and Program Development Exhibit 1. Community and regional goals achievable by road pricing concepts. Road Pricing Concepts Conversion of Existing Variable Variable HOV or Pricing on Pricing on Other New or Existing Mileage COMMUNITY AND REGIONAL Lanes to Revamped Toll Areawide or VMT Parking GOALS HOT Lanes Facilities Facilities Pricing Fees Pricing Reduce or prevent + + ++ ++ + + congestion at peak hours or congested locations Reduce auto use and + + ++ ++ ++ + encourage alternatives to reduce VMT to support sustainability goals Encourage shift to other + ++ ++ ++ + + modes, time periods, or routes for efficient utilization of capacity Delay or forgo capacity + ++ + + enhancements Raise revenues for + + ++ ++ ++ + transportation investment, provided surplus revenues are available Ensure better utilization of ++ HOV lanes Reduce emissions and + + + + + + improve safety Improve transit speed and + + ++ reliability Improve experience of ++ + ++ using public spaces, shopping and doing business for visitors and residents Reduce searching for ++ parking and increase parking turnover to ensure better use of existing capacity Note +: supportive; ++: very supportive examine further in the following sections of this document, given the most important trans- portation problems and goals in their particular region and state. The table shows some variation in the degree to which each of the pricing concepts support a particular goal by a + for supportive and ++ for especially supportive. For example, depending on the geographic extent of a new parking pricing program in a congested area and the volume of traf- fic bound for the priced parking, parking pricing can reduce searching for parking, a common source of congestion in some downtowns. However, areawide pricing can be expected to be more potent in a similar area and situation as it can apply to all traffic entering, exiting or circulating within a zone, if so structured, presuming a sufficient price and with no excessive exemptions. Like- wise, variable pricing on existing toll facilities can be very effective in reducing congestion, again presuming sufficient pricing, as it can apply to all vehicles or those with significant traffic volumes on the subject facility. The reader should note that the goals achievable by different pricing con-