Emerging Challenges to Priced Managed Lanes (2020)

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31 This chapter includes six case examples of both successful projects, challenged implemen- tation attempts, HOV-to-HOT lane conversions, and operational added-capacity projects. In addition to using input from the survey results, the researchers interviewed individuals from six state transportation organizations (or affiliated planning organization, tolling authority, or transit agency) by phone to learn more about the context and the factors that influenced the implementation attempt (both successful and unsuccessful) of priced managed lanes. The infor- mation gathered over the phone provides the supporting material on how the agency identified and addressed the key issues confronting implementation (i.e., reaction to tolling policy, con- cerns about public-private partnerships, enforcement challenges, confusion about operating rules, etc.). Each case example provides a deeper context on the following: • Local setting and agency and stakeholder partnering. • Project development timeline (e.g., start of tolling, project phasing). • Key constituencies and complaints from audiences (e.g., “Tolls are too high”). • Communication with critical audiences (e.g., policy makers, elected officials). • Mitigation approaches (e.g., toll changes, traffic diversion, transit integration, equity pro- grams, increased enforcement). Figure 6 shows the physical location of each case example site within the United States. 95 Express, Southeast Florida The 95 Express project was an HOV-to-HOT lane conversion that sought to provide con- gestion relief by providing added capacity and travel alternatives for commuters in Southeast Florida. When it first opened, the 95 Express experienced success with reduced congestion and significant growth to person throughput as a result of increased transit service. However, an existing maximum toll cap policy limits the ability to manage demand. The limited toll price cannot discourage enough drivers from taking the lanes, causing congestion in the express lanes. The operator has attempted to mitigate the problem by adjusting the dynamic toll rate algorithm, enhancing incident management services, and implementing a public informational campaign on illegal lane crossing movements. Background Miami-Dade urban area agencies used congestion pricing and expanded the number of lanes through roadway restriping to improve mobility on one of the most heavily congested corridors in the region, I-95. In 2007, various reports and media cited that I-95 travel times were 38% longer as compared with free-flow conditions. Additionally, at the time, long-term projections C H A P T E R 4 Case Examples

32 Emerging Challenges to Priced Managed Lanes estimated that regional population growth would lead to an increase of 20% in traffic volume over the next 20 years, exasperating already congested conditions. A group of government agencies took advantage of a federal program and applied for a UPA grant in 2007 to integrate congestion pricing using tolling, transit, technology, and telecommuting. The agency partners that applied for the grant consisted of the FDOT, Miami-Dade Transportation Planning Organization, Broward County Metropolitan Planning Organization, and the Miami-Dade County Expressway Authority (McWilliams et al., 2009). The main feature of the Miami UPA program was conversion of an existing HOV facility to a HOT lane and expansion to two directional HOT lanes through restriping and reducing the widths of all lanes on I-95 from the junction of I-95 and SR 836/I-395 in downtown Miami to SR 826/Golden Glades Interchange in Miami-Dade County. Figure 7 shows the location of the 95 Express within the Southeast Florida region. This 7.3-mile section is locally referred to as Phase 1A and 1B by FDOT and the Miami area partners. A two-foot pylon buffer separates the express lanes from the nontolled general purpose lanes. Pylons were initially spaced every 10 feet when the project began operating. After observing nonpermitted cut-in (e.g., lane diving) and illegal weaving maneuvers between the 10-foot spaced pylons, the spacing was reduced to 5 feet. Registered hybrid vehicles, vanpools, and carpools of three or more people may use 95 Express without paying a toll. Registration must be renewed annually to receive the toll exemption. Registered transit, school, and intercity buses may also use the express lanes without paying a toll. Nonexempted vehicles pay a toll that varies based on real-time demand in the express lanes (McWilliams et al., 2009). Phase 1A of the 95 Express opened for operation in December 2008 in the northbound direc- tion (McWilliams et al., 2009). In January 2010, Phase 1B opened for operation in the south- bound direction in conjunction with three new express bus service routes. Miami-Dade Transit Figure 6. Physical locations of the six case example sites.

Case Examples 33 operated two of those routes and Broward County Transit operated the third route. The Miami-Dade Transit routes operated with a 15-minute headway and the Broward County Transit route ran with a 30-minute headway during weekday peak periods (FDOT, 2013). The 95 Express project resulted in an improvement to throughput and reliability on the I-95 corridor, which subsequently led to expanding the lanes to the north and developing express lanes on other corridors in the region. From July 2011 to June 2012, the 95 Express experienced an improvement in travel speeds from 20 mph in the former HOV lane to a monthly average of 56 to 63 mph in the express lanes. Drivers in the adjacent nontolled general purpose lanes experienced improved travel speeds from 15 and 20 mph (southbound and northbound, respectively) to a monthly average of 42 and 50 mph. Also, during the same period, the express lanes operated at 45 mph or more at least 99.7% of the time in the southbound direction during the morning peak and 91.2% of the time in the northbound direction during the afternoon peak period. Express bus ridership increased from an average of 1,746 riders per day in February 2008 to 4,718 riders per day during the July 2011 to June 2012 timeframe (FDOT, 2013). In 2016, FDOT opened a 14-mile extension of the 95 Express north to Broward Boulevard in Broward County, extending 95 Express for a total of 21 miles. As of the writing of this report, FDOT is currently implementing an additional 29-mile extension north on I-95 to Linton Boulevard in Palm Beach County (FDOT, n.d.). 95 Express Legend Figure 7. Location of the 95 Express, Phases 1 and 2 (Source: Texas A&M Transportation Institute).

34 Emerging Challenges to Priced Managed Lanes Challenges Despite improved performance during the first few years of operation, the 95 Express has increasingly encountered congestion on the first 7.3-mile section. This section has a maximum toll cap that limits the ability to increase the toll above a specified threshold. All other priced managed lanes in Florida do not have a maximum toll limit. Section 14-100.003(3)(d) of Florida Administrative Code states, “The maximum toll for authorized users of the express lanes on Interstate 95 between Mile Marker 4 and Mile Marker 12 will not exceed $1.50 per mile.” The same code provides the option of increasing the maximum amount based on historical data: “If those express lanes reach the maximum toll on any 45 days in a six-month period, the maximum toll will increase by $0.50 per mile effective the first day of the follow- ing month.” Additionally, Florida Statute 338.166(5) requires: “if a customer’s average travel speed for a trip in an express lane falls below 40 miles per hour, the customer must be charged the minimum express lane toll” (Florida Administrative Code, n.d.). As demand for the 95 Express has grown, the average travel speeds and overall reliability have decreased. For example, from July 2017 to June 2018, the average peak period speed in the express lanes for the northbound direction from 4:00 to 7:00 p.m. was 38 mph—less than the reliability goal of 45 mph or more during the peak period. During that same period, toll- exempt vehicles constituted 6.5% of total average peak period express lane volume, with roughly 88 percent of toll-exempt vehicles qualifying as hybrids and alternatively fueled vehicles (FDOT, 2019). Additionally, more recent findings from FDOT staff cite that carpool volume has declined during the past few years to 0.5% of total average volume in September 2019. The percentage of hybrid and alternatively fueled vehicles has increased to almost 9% of the total average peak period express lanes volume during the period from July 2018 to June 2019 (FDOT, Stakeholder Interview, October 23, 2019). Response FDOT regularly provides performance reports and face-to-face briefings to FDOT leader- ship and locally elected officials. Performance reports focus on metrics related to the speeds and volumes of both the express lanes and general-purpose lanes, as well as the highest and average toll rates. Monthly reports published online present facility performance information (FDOT, Stakeholder Interview, October 23, 2019). FDOT implemented operational and geometric design changes to improve performance. Standard operating guidelines are in place to keep express lanes open when incident duration is less than 30 minutes. FDOT improved incident management and enforcement using increased enforcement patrols and constructing additional pull-out areas to keep traffic flowing during incidents. Furthermore, the spacing of the pylons that separate the express and the general pur- pose lanes was reduced from 10 to 5 feet. This change resulted in a reduction of the number of nonpermitted cut-in (e.g., lane diving) and illegal weaving maneuvers. FDOT conducted a media outreach campaign with press releases and informational pamphlets to inform drivers about the rules for traveling in the express lanes and warn them about entering at unauthorized locations (FDOT, Stakeholder Interview, October 23, 2019). Figure 8 shows the informational pamphlet that FDOT used for the public campaign. Looking to the future, FDOT seeks to improve the overall customer service experience associated with traveling as a carpool. The current registration process is very cumbersome with many requirements, such as confirming residency with a specific geographic radius of the facility. The registration requirements necessitate all three travelers within a carpool to register with the program, not just the driver. FDOT mandated all-traveler registration as a way to ensure that SOV trips converted into carpools. Furthermore, FDOT wants to increase

Case Examples 35 carpool usage on 95 Express and on other priced managed lanes within the region. It also wants to test the use of smartphones and other connected and automated technologies, for verification of vehicle occupancy in a less cumbersome manner (FDOT, Stakeholder Inter- view, October 23, 2019). I-10 Metro ExpressLanes, Los Angeles, California The I-10 Metro ExpressLanes project is a successful HOV-to-HOT lane conversion that started tolling in February 2013. These priced managed lanes experience very high person throughput, with significant use of transit and at least 41% of volume traveling as three- person carpools based on transponder declarations. However, high demand and an increasing share of carpool violators challenge the ability to manage demand. Agency operators estimate Figure 8. Informational safety pamphlet for the 95 Express (Source: Florida DOT).

36 Emerging Challenges to Priced Managed Lanes that roughly 25% to 30% of all vehicles traveling on the I-10 ExpressLanes violate the HOV rule (Nelson, 2017). Additionally, agency staff uses dynamic toll rates to manage demand in the ExpressLanes. Prices are established based on real-time traffic density and historical trends, and they were subject to a maximum of $2.10 per mile as of May 2019 (LA Metro, Stakeholder Interview, May 7, 2019). This upper bound on toll rates is set per Metro Board policy and is not an inherent constraint within the dynamic pricing system itself. These issues challenge the ability of the priced managed lanes to maintain the 45 mph federal standard. The operator is currently attempting to mitigate the challenges by testing and implementing an automated vehicle occu- pancy detection system that uses high-resolution cameras and an image processing system to identify potential carpool violators. The operator is also developing an implementation plan for a pilot to increase the occupancy requirement for toll-free travel from its current levels (i.e., HOV2+ during off-peak periods and HOV3+ during peak periods) to five-person carpools and vanpools (LA Metro, 2018a). Background Los Angeles County has an extensive regional managed lane network. Before the I-10 ExpressLanes, Los Angeles had over 539 lane-miles of HOV lanes across the county. How- ever, the HOV lanes were consistently degraded and suffered from poor performance because of high demand and high carpool violation rates. In 2007, FHWA notified Caltrans that a few HOV lanes in the county failed to meet federal performance standards (LA Metro, 2014). The HOV lanes on I-10 were included on that list. Specifically, the HOV lanes had an average travel speed below 45 mph for at least 10% of the time during peak periods. FHWA required Caltrans to develop a mitigation plan to improve overall performance and travel speeds. Some of the mitigation offered to Caltrans at the time included eliminating a special preference for alterna- tively fueled vehicles (e.g., plug-in electric vehicles), increasing the number of HOV lanes, and converting existing HOV lanes to HOT lanes (LA Metro, 2014). Caltrans and local partners took advantage of a federal grant program to convert the HOV lanes on I-10 into HOT lanes. In 2006 and 2007, USDOT announced the UPA and CRD programs. Both the UPA and CRD programs sought to integrate congestion pricing to improve mobility in concert with the supporting elements of transit, technology, and telecommuting. The board of directors of LA Metro approved a motion unanimously to develop a congestion pricing implementation plan in June 2007. The board viewed the plan as a way to mitigate traffic congestion, improve system-wide reliability, and generate revenue from new sources. Caltrans and LA Metro received a USDOT CRD grant of $210 million in April 2008 to develop and deliver the Los Angeles CRD Program. A significant part of the grant was an HOV-to-HOT lane con- version on I-10 and I-110 in Los Angeles, with a substantial investment in transit. The transit investment included the purchase of 30 new buses for the Metro Silver Line and other services on I-10 (LA Metro, 2014). LA Metro received a large share of the grant funds because it had the primary responsibility to operate and manage the HOT lanes, in addition to providing transit for the county. The $210 million grant funded the following elements: • I-10/I-110 ExpressLanes construction and tolling and back-office infrastructure. • 34 new transit buses. • Metrolink Pomona station improvements. • El Monte Transit Center improvements. • Harbor Transitway improvements. • Artesia Transit Center improvements. • Union Station Patsaouras Transit Plaza improvements. • Transit signal priority and bus-only lane extension through Downtown LA. • City of Los Angeles Intelligent Parking Management System.

Case Examples 37 LA Metro also incorporated a low-income assistance plan, carpool loyalty program, transit rewards incentive, and net toll reinvestment program into its congestion pricing program. The low-income assistance plan enabled qualifying low-income households (no more than twice the federal poverty threshold) in Los Angeles County to receive a one-time $25 toll credit and waive the $1 per month account maintenance fee. LA Metro developed the net toll reinvest- ment program to address significant public concern about the disparate impact on poorer local residents who lived near the corridor but might not experience a direct positive impact from the program (LA Metro, 2014). The transit rewards program incentivized the use of bus service on the corridor by providing $5 in toll credits for every 16 one-way bus trips made per person during peak periods (but only for qualifying routes). LA Metro developed the net toll reinvestment program to put excess toll proceeds into the corridor after first paying the costs for operation and maintenance of the I-10 ExpressLanes (LA Metro, 2014). The net toll reinvestment grant program consists of two components: incremental transit service improvements operating on the HOT lanes and net toll grants to local jurisdictions in the corridor for roadway, transit, and active transportation improvements. Projects granted funding through the net toll grant program were required to be within 3 miles of either side of the HOT lanes (LA Metro, 2018b). The I-10 Metro ExpressLanes opened for operation in February 2013 on 14 miles of I-10, extending from Union Station/Alameda Street to I-605 in Los Angeles. The managed lanes were expanded from one to two lanes in each direction between I-710 and I-605, effectively doubling the physical capacity. However, the managed lanes remained unchanged at one lane in each direction between the western terminus at Union Station/Alameda Street and I-710. Figure 9 shows the physical location of the I-10 and I-110 Metro ExpressLanes in Los Angeles. Legend I-10 Metro ExpressLanes Figure 9. Location of the I-10 Metro ExpressLanes in Los Angeles (Source: Texas A&M Transportation Institute).

38 Emerging Challenges to Priced Managed Lanes Carpools and vanpools of three or more people have permission to use the managed lanes toll-free during peak periods, while two-person carpools are allowed toll-free use during non- peak periods. Single-occupant vehicles have to pay a dynamically priced toll that varies based on real-time traffic density in the managed lanes. The toll price updates every five minutes. The minimum toll rate during the first year was $0.25 per mile, and the maximum toll rate was $1.40 per mile (LA Metro, 2014). When the maximum toll rate constraint becomes active, the lanes enter a special mode of operation called “HOV Only” mode, wherein only qualifying HOVs are allowed to use the lanes until demand for the lanes drops to a level that can be con- trolled by the pricing algorithm again. All vehicles that travel on the express lanes are required to have transponders. Furthermore, a switchable transponder is required for any carpool to declare HOV status and receive toll-free travel (LA Metro, Stakeholder Interview, May 7, 2019). The I-10 Metro ExpressLanes experienced significant usage during their first year of opera- tion. Given the addition of a new managed lane for each direction, travel times for both the managed and general-purpose lanes decreased for the morning peak period, often the time with the highest demand. Travel speeds in the managed lane remained above the 45 mph threshold at least 90% of the time. Transit ridership for the Silver Streak bus service increased by 59% during the morning peak period and by 15% during the afternoon peak period. Fifty-six per- cent of bus riders reported a faster trip during the first year, and roughly one-third of new bus riders used to travel in SOVs (LA Metro, 2014). During the 2018 fiscal year, LA Metro had over 17,000 toll accounts regularly participate in the low-income assistance plan across the I-10 and I-110 corridors. Since the opening of the ExpressLanes, about $180,000 in transit reward credits have been issued across the I-10 and I-110 corridors. Furthermore, over $15 million was granted as part of the net toll reinvestment program ($4,784,265 in 2014 and $10,239,525 in 2016) to cities in the I-10 corridor (LA Metro, 2018b). Overall, the I-10 Metro ExpressLanes program was viewed as a success by the LA Metro Board (LA Metro, 2014). The CRD grant required 12 months of concurrent operations on I-10 that ended in February 2014. In April 2014, the LA Metro Board voted unanimously to continue operating the ExpressLanes and asked the California State Legislature for permission to continue the program indefinitely. This request was approved through Senate Bill 1298 in September 2014. LA Metro staff cited the ability to bundle multiple strategies together as a significant contributor for success. In the case of Metro ExpressLanes, some of the more significant strategies deployed in concert include dynamic tolling, enhanced transit service, the low-income assistance program, and a net toll reinvestment program (LA Metro, 2014). Challenges Some of the notable challenges LA Metro has encountered with ongoing operations include growing ExpressLanes demand, toll rate maximum constraints, and logistical limitations of enforcement. These issues challenge the ability of LA Metro to ensure the I-10 Metro ExpressLanes achieve the federal performance standard of a 45 mph travel speed at least 90% of the time. With respect to growing demand, the facility experienced a 58% increase in trips from 2014 to 2018. During 2018, the dynamic pricing system reached its maximum rate cap and reverted to HOV-only mode for a total of 55 hours—approximately double the amount of time compared to 2014. In regard to mobility performance, monthly data from Foothill Transit showed that up to 19% of its Silver Streak buses operated behind schedule in 2018, depending on the month (LA Metro, 2019). Agency staff cited a high percentage of HOV violators as one significant contributor to the performance challenges on I-10 (LA Metro, Stakeholder Interview, May 7, 2019). Approxi- mately 25% to 30% of all volume on the I-10 ExpressLanes was observed traveling with the transponder switched to toll-free HOV mode while having fewer than the number of passengers declared—whether accidentally or deliberately (Nelson, 2017). Existing occupancy enforcement

Case Examples 39 methods on I-10 rely on California Highway Patrol (CHP) roadside enforcement and using light beacons mounted at the gantries to indicate whether a given vehicle is declaring itself as an SOV, HOV2, or HOV3. This approach is limited by the number of observation points for CHP officers, the number of officers who can be dispatched for enforcement, and the time required to perform a complete enforcement stop. As a result of these logistical constraints, the number of tickets issued is relatively small compared with the total number of estimated toll evaders. During 2018, a total of 7,347 citations were issued to drivers in the ExpressLanes on I-10 and I-110 (LA Metro, Stakeholder Interview, May 7, 2019). Qualifying alternative-fuel vehicles (e.g., electric vehicles) were formerly granted toll-free travel in the ExpressLanes, further limiting LA Metro’s ability to effectively manage demand. In 2018, at least 6% of all volume came from alternatively fueled vehicles, roughly double the amount of the previous year. In March 2019, LA Metro launched its clean-air vehicle discount program that modified this policy to grant qualifying clean-air vehicles a 15% toll discount in place of the original toll-free policy in order to limit the congestion impacts of unmanaged clean-air vehicle traffic on I-10 ExpressLanes performance (LA Metro, Stakeholder Interview, May 7, 2019). Response LA Metro is piloting various technologies and considering an increase to the toll-free occupancy requirements as ways to improve travel speeds and travel-time reliability for the I-10 Metro ExpressLanes. In October 2015, LA Metro conducted a test demonstration of an automated occupancy detection system (ODS)—an image-based tool that attempts to count the number of passengers in a vehicle by looking at pictures taken from the exterior of the vehicle as it traverses a toll zone. The researchers who evaluated the October 2015 demon- stration found that the system correctly identified SOVs at least 94.1% of the time. The ODS providers also believed that a 99.9% accuracy rate could be achieved with a manual image review (i.e., personnel sitting in a back office reviewing the images). The LA Metro Board of Directors was satisfied with the results, and it approved funding in January 2018 to deploy a full proof-of-concept system at toll collection locations with a higher prevalence of vehicle occupancy misdeclaration. The design for the ODS was completed in September 2018, and a 2019 implementation date had been set (LA Metro, 2018a). The proof-of-concept system spans two separate installation locations and requires at least $11.25 million in funding to support design, construction, implementation, and initial operation (LA Metro, 2018c). LA Metro is also considering implementing a pilot program to increase the occupancy requirement for toll-free travel to five or more persons per vehicle at all times. In 2018, LA Metro performed an impact analysis for this potential policy change for the board of direc- tors in response to a motion from the board to investigate the pilot in March 2018. At the January 2019 meeting, the LA Metro Board of Directors approved the motion for staff to develop an implementation plan for a pilot program that would increase the toll-free occu- pancy requirements on I-10 to five or more persons per vehicle at all times (LA Metro, 2018a). I-405 Express Toll Lanes, Bellevue and Lynnwood, Washington The I-405 Express Toll Lanes project is unique because it simultaneously applied pricing, expanded capacity, and increased occupancy requirements during peak periods on the corridor. Additionally, the project implemented new direct access ramps and introduced unaccustomed commuters to transponder and account requirements (WSDOT, Stakeholder Interview, May 14, 2019). The I-405 Express Toll Lanes, from the onset, faced problems handling enforcement,

40 Emerging Challenges to Priced Managed Lanes managing congestion with a toll cap of $10.00, and ensuring public acceptance. To mitigate these problems, the agency has made significant strides to ease and improve concerns by, for example, focusing on design improvements, initiating policy changes, engaging in an extensive media campaign, and much more (WSDOT, Stakeholder Interview, May 14, 2019). Background Since its initial construction in the 1960s, the I-405 corridor has undergone significant trans- formations and adjustments to mitigate escalating congestion (WSDOT, 2002). In the 1990s, WSDOT implemented an HOV2+ lane on the corridor as a congestion management tool. At the time, the HOV2+ lane on the I-405 corridor had one of the lowest violation rates in the country (Chou, Miller-Hooks, and Chen, 2010). The HOV2+ lane quickly became over- utilized because of intensified demand from carpoolers (WSDOT, Stakeholder Interview, May 14, 2019). Because of severe congestion, especially during peak periods, the HOV2+ lane experienced little-to-no benefit in comparison to the general-purpose lanes (WSDOT, 2018a). Carpoolers and transit riders were consequently left with scarce benefits and dimin- ished reliability (Goodin et al., 2010). Performance declined for both the general-purpose lanes and the HOV2+ lane. Once the lanes became degraded, WSDOT responded to the poor performance by issuing a notice of intent to prepare a draft environmental impact statement in 1999 to develop a master plan for the cor- ridor (WSDOT, Stakeholder Interview, May 14, 2019). There was a notable collaboration with stakeholders and partners to develop the master plan. The master plan suggested many new improvements for the corridor, such as transit, pedestrian, and bicycle improvements; a priced managed lane system; and two new lanes in each direction. Overall, the master plan promoted multimodal solutions for a diverse audience. The environmental impact statement for the master plan was approved via a Record of Decision in October 2002, thereby giving the master plan a green light (WSDOT, n.d.e). When the SR-167 HOT lanes pilot project began in 2008, WSDOT confirmed that people were interested in paying for faster and more reliable trips. Therefore, the WSL instructed WSDOT in May 2009 to evaluate opportunities to implement priced managed lanes on the I-405 corridor. The study recommended implementing the priced managed lanes on the I-405 corridor in an incremental manner (WSDOT, 2010). The state legislature officially authorized pricing between Bellevue and Lynnwood on the I-405 corridor through House Bill 1382 in July 2011. Upon authorization, the WSL required that the I-405 Express Toll Lanes cover operation costs within the first two years of operation and achieve a performance target of 45 mph 90% of the time during peak periods. Because of these requirements, WSDOT had an internal goal of funding and revenue accrual within the first two years, as well as an internal and external goal of congestion relief (WSDOT, Stakeholder Inter- view, May 14, 2019). Since the opening of the I-405 Express Toll Lanes in September 2015, WSDOT has exceeded the cost requirement by raising approximately $75 million in revenue. However, the I-405 Express Toll Lanes are not meeting the performance target requirement since traffic moves 45 mph only 77% of the time during peak periods (WSDOT, 2018b). The I-405 Express Toll Lanes officially opened in September 2015 as an HOV-to-HOT lane conversion. The facility operates on a two-lane, 15-mile section of the I-405 corridor between Bellevue and Lynnwood. In addition to adding a pricing component, the priced managed lane project expanded and improved capacity. Currently, there is a dual-lane section and a single- lane section (WSDOT, Stakeholder Interview, May 14, 2019). WSDOT built a dynamic wide- shoulder lane on the I-405 corridor that was constructed for bus-on-shoulder use during peak periods (WSDOT, n.d.e). Figure 10 shows the physical location of the I-405 Express Toll Lanes.

Case Examples 41 The project also increased occupancy requirements during peak periods. Specifically, the lanes remain HOV2+ during off-peak periods and switch to HOV3+ during peak periods. Vehicles are required to have a switchable transponder to communicate vehicle occupancy and toll mode (WSDOT, Stakeholder Interview, May 14, 2019). The toll price fluctuates every five minutes between a minimum of $0.75 to a maximum of $10.00 depending on current vehicular speed and volume (Wood, 2019). For facility upkeep, WSDOT manages the operations and maintenance side of the I-405 Express Toll Lanes, while the Washington State Transportation Commission (WSTC) establishes toll policies and toll rates for the facility and the rest of the state. To illustrate, WSDOT handles the day-to-day management of posting the toll price on signage along the corridor. In comparison, WSTC handles the periodic assessment of perfor- mance reports to potentially make policy changes, among other things (WSDOT, Stakeholder Interview, May 14, 2019). Challenges The most predominant challenges for the I-405 Express Toll Lanes continue to be the ability to manage congestion with the current toll cap and effectively enforce the HOV exemption requirements. During the first year of operations, these challenges put significant pressure Legend I-405 Express Toll Lanes Figure 10. Location of the I-405 Express Toll Lanes (Source: Texas A&M Transportation Institute).

42 Emerging Challenges to Priced Managed Lanes on the lanes, especially when combined with a vocal group of opponents and a magnitude of operational changes. Public acceptance was an issue from the beginning because the concept of managed lanes and its specifications had to be introduced to the community. There were significant operational changes, such as new HOV occupancy requirements, new HOV hours of operation, new HOV declaration requirements, the first dual HOV lane configuration, destination-based pricing, new bus-only shoulders, an auxiliary lane removal, and restricted lane access, that impacted ingress and egress (WSDOT, Stakeholder Interview, May 14, 2019). The I-405 system was changed drastically from a continual-access HOV2+ lane to a dedicated- access HOT lane with new direct access ramps, different transponder requirements, and unfamiliar account requirements. With an alternative system, it took time for the community to realize the benefit of the I-405 Express Toll Lanes. Elected officials quickly attempted to prohibit the project via legislation because some elected officials were generally against the concept of priced managed lanes. Along with the elected officials, some of the general public was against the idea as well. Consequently, a plethora of negative social media comments were directed at the agency and the project. WSDOT encountered the significant challenge of conveying substantially com- plicated messages in the face of resistance. After implementation, there was still noteworthy congestion on the I-405 corridor. When WSDOT reported traffic improvements because of the I-405 Express Toll Lanes, a contentious issue arose. WSDOT’s traffic data were based on 10 specific trips. Because of bottleneck choke- points, many individuals had different experiences on the I-405 Express Toll Lanes depending on the particular sections traveled. Consequently, many individuals experienced deteriorating traffic, which was expressed to elected officials. The elected officials mistrusted and doubted the data provided by WSDOT, and elected officials requested expert reviews and secondary sources of data. These provided data failed to quell concerns and adverse reactions—news outlets and social media still reported that traffic performance worsened. Overall, it was difficult to ensure public acceptance in the face of conflicting messages and various levels of demand on the corridor. Similarly, the I-405 Express Toll Lanes have encountered performance problems because of a maximum toll cap. The maximum toll of $10.00 does not sufficiently quell peak demands, which causes WSDOT to fail to meet performance targets. Although the toll rate-setting pro- cess is the responsibility of the WSTC, WSDOT is free to adjust the toll algorithm between the determined minimum and maximum rate (WSDOT, Stakeholder Interview, May 14, 2019). WSDOT continually faces challenges with the toll algorithm, such that toll rates frequently do not change quickly enough during peak periods (Wood, 2019). Although WSDOT acknowl- edges that the toll cap presents a compelling challenge to traffic performance, WSDOT does not currently have a plan to remove or adjust the toll cap. However, the WSTC may consider adjust- ments to the toll cap by the summer of 2020 (WSDOT, Stakeholder Interview, May 14, 2019). Enforcement issues are particularly problematic to the success of the I-405 Express Toll Lanes. Officers have to visually and manually identify potential violators because automated enforcement technology that reliably counts the number of individuals in a vehicle does not exist. When a vehicle enters the I-405 Express Toll Lanes, an officer can identify potential viola- tors via a beacon or an individual’s switchable transponder. Drivers who declare themselves exempt from the toll switch their transponder to HOV2+ mode, consequently displaying a red rectangle. Users can easily obstruct the officer’s view of the transponder. Moreover, when vehicles declare themselves exempt, a beacon flashes, so an officer can visually validate if the vehicle meets the occupancy requirement. Violations tend to occur during the peak periods of HOV3+ (WSDOT, Stakeholder Interview, May 14, 2019). According to WSDOT, a significant number of users who declare themselves toll-exempt during peak hours are violating and cheat- ing the system (WSDOT, 2018a). Outside of peak periods, violation rates are less of a problem

Case Examples 43 (WSDOT, Stakeholder Interview, May 14, 2019). Users are not significantly wary of violating the system because it tends to be cheaper for users to violate the system and occasionally receive a fine instead of consistently pay the toll. Therefore, the benefits of cheating the system tend to be greater than complying with the system (WSDOT, Stakeholder Interview, May 14, 2019). Response WSDOT has improved public acceptance of the I-405 Express Toll Lanes project through exceptional public engagement over the years. The agency embarked on an extensive campaign involving social media, news outlets, television commercials, and other public education and outreach materials. Before the I-405 Express Lanes were implemented, WSDOT started grass- roots outreach by briefing local jurisdictions, neighborhoods, major employers, and transit agencies about the project. WSDOT created several walk-in customer service centers in the region to open two-way dialogue with the community to understand its concerns. Similarly, WSDOT put immense care into social media by creating direct platforms on Twitter, Facebook, and YouTube. On social media, the agency published several promotional videos and blog posts that addressed controversial topics, such as high toll rates. To further improve public acceptance, WSDOT mitigated concerns regarding equity and its data. Specifically, WSDOT issued free switchable transponders to avoid financial barriers of entry (WSDOT, Stakeholder Interview, May 14, 2019). Otherwise, switchable transponders have a one-time cost of $35 per transponder (WSDOT, n.d.d). A switchable transponder allows users to self-categorize as a toll-paying user or a toll-exempt user based on occupancy require- ments (WSDOT, n.d.d). Although the Good to Go! account still requires a $30 prepaid balance, users can manually replenish their account with cash. Therefore, users are not required to have a bank account or credit card. Additionally, WSDOT removed pricing on nights, weekends, and holidays after a few months of operation to mitigate overall public pushback to priced managed lanes. For data concerns, the agency extensively worked with stakeholders to create an accurate baseline before the implementation of the I-405 Express Lanes. WSDOT imple- mented third-party verifications of its data from the University of Washington and made its data publicly available online. Overall, the agency concentrated on being incredibly respon- sive, transparent, and understanding across all platforms, requiring a tremendous team effort. As a result of cumulative efforts, public acceptance of the I-405 Express Lanes has significantly increased (WSDOT, Stakeholder Interview, May 14, 2019). WSDOT focused on enhancing traffic performance through design improvements and policy changes. For example, WSDOT lengthened the intermediate access points on the I-405 Express Lanes, which improved the flow of traffic between general-purpose lanes and the priced managed lanes (Wood, 2019). The agency created an approximately 2-mile dynamic part-time shoulder- use lane that operates during periods of heavy congestion. The use of shoulders during peak periods has improved traffic performance and assists with enforcement (Miller, 2017). Moreover, WSDOT has committed to mitigating enforcement issues. As an illustration, WSL increased the citation fines for the first tier from $136 to $186 and created a second tier with a $336 citation fine. Additionally, a special provision was created for driving with a dummy, with a first-tier fine of $386 and a second-tier fine of $536 (WSDOT, Stakeholder Interview, May 14, 2019). WSDOT is further evaluating the fine structure for possible recommendations that would deter violations, such as the proposed legislation to increase the citation fines on a tiered rate structure for first, second, and third offenses. The Washington State Patrol has increasingly dedicated its time to enforcing compliance on the I-405 Express Toll Lanes by assigning specific shifts on the priced managed lanes. As such, the Washington State Patrol provided approximately 6,000 hours of enforcement from July 2017 to July 2018, issuing over

44 Emerging Challenges to Priced Managed Lanes 4,000 citations (WSDOT, 2018c). WSDOT also encourages self-enforcement through its inno- vative HERO Program, wherein users can report violators either through a hotline or online. Furthermore, the agency is exploring and inspecting technological opportunities to improve enforcement (Cothron, Skowronek, and Kuhn, 2002). Overall, the agency has made significant strides to mitigate concerns about the I-405 Express Toll Lanes via an extensive public engage- ment endeavor and responsive policy adjustments. I-66 Express Lanes Inside the Beltway, Northern Virginia The I-66 Express Lanes Inside the Beltway project is an HOV-to-HOT conversion that began toll operations in late 2017. The VDOT secretary and deputy secretary led the efforts to improve operations in the corridor while minimizing the project footprint. The facility has very high two-person carpool throughput, but SOV tolls can rise higher than $40.00 at the height of the peak period for a full trip on the 10-mile facility. The high tolls have led to some public back- lash. This backlash is being mitigated through proactive messaging about toll revenue use— specifically, multimodal improvements in the corridor. Operations in the corridor continue to smoothen, and capacity is being added that will further contribute to improved person and vehicle throughput. Background VDOT opened the I-66 Inside the Beltway Express Lanes in December 2017, running from I-495 to Route 29 in Fairfax and Arlington Counties in Northern Virginia. Figure 11 shows Legend I-66 Express Lanes Figure 11. Location of the I-66 Express Lanes (Source: Texas A&M Transportation Institute).

Case Examples 45 the physical location of the I-66 Express Lanes within Northern Virginia. The lanes previously operated as an HOV facility during the peak periods in the peak direction of flow (i.e., east- bound in the morning, westbound in the afternoon). The previous hours of HOV operation occurred from 6:30 to 9:00 a.m. and from 4:00 to 6:30 p.m. The HOV-to-HOT lane conversion extended the HOV hours to start an hour earlier and end 30 minutes later (5:30 to 9:30 a.m. toward Route 29 in Rosslyn and 3:00 to 7:00 p.m. toward I-495). The I-66 priced managed lanes are unique because there are no adjacent general-purpose lanes. If travelers choose to use the lanes during the peak period, they must pay a toll unless they meet the occupancy requirement that qualifies them for a no-cost trip. However, the previous nontolled HOV lanes disallowed SOVs during the peak period unless they were part of an exempt category. Now, they may travel on the facility by paying a toll. The Washington Metro Silver/ Orange Line, a heavy passenger rail line, also parallels the I-66 corridor. In 2011, the VDOT secretary and deputy secretary led a project development process to convert the facility from a directional HOV roadway to HOT operations. The leaders wanted to improve mobility but realized expanding the physical footprint or pavement of the highway would be difficult. The former HOV facility had several complex rules and exemptions that made enforcement problematic. For example, vehicles that used the corridor to travel to Dulles International Airport were exempt from the HOV occupancy requirement. When stopped by enforcement officers, many SOV drivers said they were traveling to the airport. However, the officers had limited ability to verify this information. Additionally, hybrid vehicles with certain special fuel license plates and off-duty law enforcement (not an official exemption, but rather a local decision) were exempt from HOV requirements. Previous studies documented violation rates as high as 16%. The complex rules and exemptions contributed to the excessive conges- tion in the lanes (VDOT, Stakeholder Interview, May 6, 2019). The facility was under study from 2011 to 2013 to address congestion and reliability within the existing footprint. Findings from the study recommended an increase in occupancy require- ments and conversion to an HOT facility. The study also recommended the removal of many of the exemptions that contributed to enforcement challenges. After consideration of increasing occupancy requirements to HOV3+, VDOT ultimately chose to continue the HOV2+ occu- pancy requirement until 2022 when the construction of the I-66 Express Lanes outside the beltway open to traffic, and the entire I-66 corridor converts from HOV2+ to HOT 3+ (VDOT, Stakeholder Interview, May 6, 2019). Specific goals for the project include reducing congestion in the corridor, providing travel choices, and moving more people through the corridor by improving transit by providing a revenue stream for multimodal improvements in the corridor. The stated performance goal for the facility is “reasonable time and speed.” While VDOT does not indicate a specific perfor- mance metric, it does use the federal standard of 45 mph 90% of the time for these HOV/HOT facilities. Speeds are typically in the 45 mph range (VDOT, Stakeholder Interview, May 6, 2019). The VDOT operates the facility with a number of rules for managing toll-exempt vehicles. HOV2+, transit vehicles, emergency vehicles, and motorcycles all travel toll-free. All other vehicles must pay a toll to travel on the facility during the peak periods. Previously exempt vehicles such as airport users, off-duty law enforcement, and hybrid vehicles no longer travel for free. The peak periods were extended to address the influx of vehicles that previously attempted to enter the facility just prior to the HOV requirement period. The peak hours are now 5:30 to 9:30 a.m. in the eastbound direction and 3:00 to 7:00 p.m. in the westbound direction. Travelers are required to have an E-ZPass transponder, and carpoolers must have an E-ZPass Flex switched to HOV mode to allow for free travel during the peak periods. The lanes are free, with no tolling or HOV requirement, at all other times, including federal holidays (VDOT, Stakeholder Interview, May 6, 2019).

46 Emerging Challenges to Priced Managed Lanes When tolling is in effect, toll rates are assessed dynamically every six minutes. There is no hard cap on the maximum toll rate. Tolls do get high during the height of the peak period, typi- cally 8:00 to 8:45 a.m. Tolls tend to spike when HOV use spikes. Tolls above $40.00 have been reported for trips traversing the entire length of the facility, about 10 miles, but these are not typical. The number of travelers who pay the high tolls are relatively very small because most trips only use a portion of the tolled corridor. Four tolling segments exist on the corridor, and the second and third segments tend to have the most congestion, wherein speeds can dip to 30 to 35 mph. Additionally, a majority of travelers are nontoll-paying HOVs, and VDOT has very little excess capacity to “sell” after meeting the demand for carpools (VDOT, Stakeholder Interview, May 6, 2019). Challenges Before the project opening, there was concern about traffic impacts on adjacent roadways. One of the mitigation objectives was to not increase congestion on alternate routes. Local residents who lived along the corridor in Arlington County included long-time residents who recalled the impacts from initial interstate construction during the 1980s, as well as residents who were committed to shorter or more transit-oriented commutes through their choice of housing location. These groups felt they were not contributing to the congestion problems, yet they were suffering the brunt of the impacts. The political landscape changed between when the project was scheduled to open in summer 2017 and when it opened in December 2017 (VDOT, Stakeholder Interview, May 6, 2019). More extensive discussions of tax policy and tolling shined a spotlight on this project. The VDOT secretary and deputy secretary had several one- on-one meetings with state legislators and local elected officials, and there were several legisla- tive requests for information (VDOT, Stakeholder Interview, May 6, 2019). The biggest challenge to the project came after opening. Because the facility is dynamically priced without a formally adopted toll cap and demand is so high in the corridor, toll charges for some trips have run as high as $47.00. During the first two weeks of operation, reports were made of several trips that cost more than $40.00 regularly. These very high rates were based on travel across the entire 10-mile corridor. The media regularly reported on the high toll rates. When travelers encountered high toll rates, they assumed that conditions were bad. They did not see this as a signal to carpool or use another mode. About 60% of the facility users were already HOVs. During the peak hour, from 8:00 to 8:45 a.m., about 66% of the travelers were carpools (VDOT, Stakeholder Interview, May 6, 2019). The most congestion and the highest tolls occurred on Segments 2 and 3 in the middle of the corridor. Many travelers took to social media to express their frustrations, using #I66tolls and #highwayrobbery to signify their sticker shock. Early news articles generated a plethora of comments, ranging from “It’s supply and demand” to “Where are the torches and pitchforks?” (Hedgpeth and Lazo, 2017). Questions of equity were also raised. Travelers expressed concerns about income equity and modal equity. Some residents cited geographic equity as an issue because it was not easy for them to join carpools, especially with park-and-ride facilities mostly located outside the Capital Beltway (VDOT, Stakeholder Interview, May 6, 2019). Response From the onset of public backlash and media reports of high toll charges, VDOT developed messaging that emphasized the project was meeting its goals. The project provided a choice for travelers that was not available before. On average, congestion on parallel routes has not

Case Examples 47 been impacted, and during some periods of peak travel, congestion was reduced. The project increased throughput while maintaining reliable trip times. VDOT reinvests all excess toll revenue into multimodal projects on and near the corridor. VDOT focuses messages for the I-66 Express Lanes on providing a choice for all travelers. Single-occupant drivers now have an option that was previously unavailable to them. Carpoolers can continue to use the lanes as before with an E-ZPass Flex transponder set to carpool mode, and transit options have been expanded in the corridor. Each of these contributes to a more reliable trip without impacting the adjacent parallel routes, which was also an objective of the project. Extending the hours of the peak period has smoothed congestion during the switch from general-purpose lanes to HOT operation. VDOT has made some adjustments to the tolling algorithm to limit high tolls. In addition, VDOT is currently expanding the number of east- bound lanes from two to three for about 4.5 miles to increase capacity and decrease inbound congestion. This project is scheduled to be complete in 2020 (VDOT, Stakeholder Interview, May 6, 2019). VDOT has also contracted with Virginia state troopers for active enforcement at each toll gantry. Additionally, the administrative fee associated with the first notice of a violation has been waived indefinitely. The fee change has resulted in improved compliance and lower violation rates. The I-66 Express Lanes is a facility in a region with several currently operating and future managed lanes. Outreach has focused on education about how higher tolls help to manage demand and encourage the use of alternate modes or higher occupancy travel. Monthly perfor- mance reporting via a dashboard illustrates this to the public. VDOT developed both a website and a smartphone application for the performance dashboard. The dashboard has a historical “look back” function that allows viewers to see past performance and toll rates. Those reports show a small number of people paying very high tolls while the majority of SOV travelers pay an average toll of $8.88 westbound and $4.60 eastbound. Travelers can use the dashboard to help plan for future trips. It allows travelers to look at travel speeds for specific periods and individual trips according to their customization. Performance monitoring and reporting also includes impacts on parallel corridors. Reporting these conditions allows VDOT to show that tolling on I-66 is not increasing congestion on these routes (VDOT, Stakeholder Interview, May 6, 2019). Proactive engagement about revenue use has also mitigated some concerns. VDOT has shown how revenues are being used and how this results in improvements in the corridor that support the project goals of increasing person throughput and providing a reliable trip. While VDOT ultimately approves the use of the funds, identification of projects and decisions on funding are made by elected leaders at the local level. The Commonwealth of Virginia and the Northern Virginia Transportation Commission (NVTC) have a targeted marketing program called the I-66 Commuter Choice Program to pro- vide transparency about funding for travel options in the I-66 corridor. This program formally prioritizes uses of excess toll revenue from I-66. The following are primary goals of the program: • Identify and fund projects that move more people. • Increase opportunities to connect from one mode of travel to another. • Improve transit service. • Reduce roadway congestion. • Increase travel options. Every year, NVTC selects projects according to its screening process and a budget provided by VDOT. NVTC recommends projects and presents them to the Commonwealth Transpor- tation Board (CTB). The CTB consists of 17 members appointed by the governor to oversee

48 Emerging Challenges to Priced Managed Lanes transportation projects and initiatives for the Commonwealth. Once approved, VDOT tracks the performance of the projects after implementation to ensure that each project meets its stated goals. Evaluation criteria for the grant program include congestion relief potential (worth 45% of the final score), geographic diversity, and multimodal balance. The criteria are reevaluated each year, and projects are not evaluated and selected in isolation but in consulta- tion with other agencies in the area so that the projects selected fit into a more comprehensive regional strategy of increasing transit use in the Northern Virginia region (Neelakantan and Grant, 2018). The first round of grants was issued in 2017 before the opening of the HOT lanes, with the intention of having additional multimodal options available to travelers at the start of tolling. VDOT allocated initial funding of $10 million, reimbursable through future toll revenue, to projects such as development of a new commuter bus service from Fairfax County to Washington, D.C., as well as a park-and-ride lot in nearby Loudon County. While the toll revenues are eligible to be used for new or improved transit services, the agency is cautious about beginning new services without being able to guarantee revenue in the future (Neelakantan and Grant, 2018). Future messaging will focus on the increase in occupancy from HOV2 to HOV3+ in 2022. VDOT staff are also concerned that the change will significantly impact operations and may lead to increased traffic on alternate routes (VDOT, Stakeholder Interview, May 6, 2019). The I-66 Outside the Beltway Express Lanes, between I-495 and University Boulevard and Route 29 in Gainesville, will open in 2022 with an HOV3+ requirement that may make this change easier. New corridor improvements, including improved transit service and additional park-and-ride lots in the corridor, could offer additional mitigation measures. I-635 East TEXpress Lanes, Dallas, Texas The LBJ East project, as it is known locally, is an HOV-to-HOT lane conversion on 10 miles of I-635 northeast of downtown Dallas. The project is one of several identified in the long-range transportation plan as part of a regional managed lanes network. Since first being included in the long-range transportation plan in 1993, the project has had several iterations. These itera- tions were the result of agreements and disagreements between local elected officials and state legislators. The result is a project that has been and will continue to be implemented in phases (NCTCOG, Stakeholder Interview, April 24, 2019). Background Phase 1 of the LBJ East project consisted of implementing an HOV lane in each direction in the median of four general-purpose lanes. It opened in 2010. Phase 2 of the project added tolls, converting the HOV lanes to HOT lanes in 2018. The current configuration of the project entails four general-purpose lanes with a managed lane in each direction with no continuous frontage roads. Phase 3 will reconfigure the facility with five general-purpose lanes; two managed lanes in each direction and three- or four-lane frontage roads from US 75 to I-30 (NCTCOG, Stakeholder Interview, April 24, 2019). Figure 12 shows the physical location of the I-635 East TEXpress Lanes in Dallas, Texas. Like most metropolitan areas that are considering priced managed lanes, the Dallas–Fort Worth region is experiencing rapid population and employment growth. In this part of the region, the northeast quadrant, a 23% population increase is expected by 2040, and employment in this area is expected to increase by 56%. NCTCOG includes the MPO for the region. The Regional Transportation Council (RTC) is composed of 44 local elected and appointed leaders and representatives of the area’s transportation providers. The RTC oversees the transportation planning process and is the transportation policy making body for the region.

Case Examples 49 The RTC has developed a managed lane strategy for the region that includes policies and programs that support an evolution toward a managed mobility system, as illustrated in Figure 13. The RTC has an overall vision for the region, which is to provide reliable trips, especially during the peak period, and to provide a choice for all travelers in the region. Because the area is in a nonattainment area for air quality, the RTC also has a responsibility to implement non-SOV travel options. To meet these goals, the RTC has proactively adopted Legend I-635 East TEXpress Lanes Figure 12. Location of the I-635 East TEXpress Lanes (Source: Texas A&M Transportation Institute). Figure 13. Vision of mobility for the Dallas–Fort Worth region (Source: NCTCOG).

50 Emerging Challenges to Priced Managed Lanes policies that speak to the evolution of managed lane operations and the technology that will support new and different operations. The policy makers recognize that goals may vary for individual projects depending on project financing, demographic or employment characteristics in the corridor, or other factors, but each project should align with the overall vision for the region (NCTCOG, Stakeholder Interview, April 24, 2019). The RTC is deliberate in its vocabulary of types of managed lanes, and policies are specific to the nature of the facility. For example, managed lane policy states that a fixed-fee schedule with periodic adjustments will be applied to meet an established speed guarantee of 50 mph. SOVs are charged a toll at all times. HOVs and transit vehicles travel free at all times. On a tolled managed lane, a fixed-fee schedule applies for the first 6 months of operation, and then it transitions to dynamic pricing. SOVs pay the full toll. During the peak period, HOV2+ users receive a 50% discount, and they must preregister and carry a transponder (NCTCOG, 2012). Currently, the LBJ East project is operating as a tolled express lane, which means that a fixed- fee schedule is applied that is appropriate to meet speed guarantees of 50 mph. As per the policy on managed lanes, there is a soft cap maximum toll rate of $0.75 per mile. It can be higher with RTC approval. Transit vehicles, HOV2+, and motorcycles travel for free. There is no discount for inherently low-emission vehicles. Trucks are not allowed because of inadequate design stan- dards. Dynamic pricing is not used. If capacity limits are reached with HOV2+ users, the RTC may consider increasing the occupancy requirements. The project will operate under the tolled managed lane policies after the completion of Phase 3, which includes dynamic pricing (after six months of a fixed-fee schedule). SOVs and HOV2 users will pay the full rate. HOV3+ users will receive a 50% discount during the peak period (6:30 to 9:00 a.m. and 3:00 to 6:30 p.m.), and they must preregister. Trucks will be allowed and charged a higher rate (NCTCOG, 2016). The RTC has developed policies that apply to every managed lane corridor, although the project goals may differ, in an effort to provide uniformity and continuity throughout the region, and it recognizes the evolution of tolled managed lanes. Challenges Since 1993, NCTCOG has incorporated many different variations of the I-635 LBJ East proj- ect in the long-range regional transportation plan. Between Phase 1 (2010) and Phase 2 (2018), the project was mired in a legislative struggle between tolling proponents and opponents, as well as by the state’s use of comprehensive development agreements, or public-private partner- ships. During the 2017 legislative session, there was a push at the state legislature to limit toll financing and the ability to use comprehensive development agreements to complete projects. In 2017, the RTC passed policy P17-01, which provided support to expedite Phase 3 of the LBJ East project. The resolution included tax-supported frontage roads, tax-supported general- purpose lanes, and dynamically priced managed lanes from US 75 to I-30. This resolution officially stated support for implementing tolled managed lanes from the locally elected officials and the general public. One Dallas councilmember hosted a town hall with roughly 300 community members who informally voiced support for the tolled managed lanes. Concurrently, at the state level, opposition to tolling was strong from state representatives and senators, and many legislators pressured the Texas Transportation Commission to not allow additional toll projects statewide (NCTCOG, Stakeholder Interview, April 24, 2019). The Texas Transportation Com- mission is a five-member body appointed by the governor that oversees the Texas Department of Transportation (TxDOT). Local elected officials focused attention on how others outside of the region were seeking to influence local decision making and supersede the wishes of the community. They felt statewide

Case Examples 51 politics were playing too large of a role in local decisions. For example, when the public was told that TxDOT could not attend public town halls because tolls might be mentioned, some citizens became enraged. They felt that their local decision making and even their public forums were being commandeered by “paid politicos” who were not from the region. Response Statewide politics had a significant influence on the development of a HOT lane on the I-635 LBJ East corridor and the planning for priced managed lanes in the future. The recent history of this project over the past 2 years exemplifies how statewide politics can affect local projects. Local elected officials and the public appeared very supportive of the project. They voiced support at city council meetings and town halls and on social media. The RTC and NCTCOG felt a responsibility to get the project implemented, but state legislators also played a significant role. In this instance, it was imperative for local elected officials to com- municate directly with state lawmakers, including the offices of the lieutenant governor and the governor. After the HOT lanes started tolling, it was easier to obtain support and funding for Phase 3. Additionally, staff from NCTCOG continually reminded local leaders, the public, and state legislators that NCTCOG, as the region’s MPO, has a legal responsibility to abide by local elected officials’ desires. In the end, the local neighborhoods and local elected officials were successful in moving the decision making back to the locals (NCTCOG, Stakeholder Interview, April 24, 2019). NCTCOG and local leaders tailored messages on the purpose of managed lanes and how those facilities can help to achieve regional goals of addressing congestion and mobility. The media have reported objectively on the project. There is an understanding of the overarching goals of improving reliability and providing for safe travel. NCTCOG also proactively devel- oped an educational toolkit for use by elected officials or partnering entities. The toolkit offers relevant and accurate information about the development of managed lanes in the Dallas–Fort Worth region. It provides information and increases awareness about the purpose and goals of priced managed lanes throughout the region. The toolkit describes the overarching policies about managing operations for HOV lanes, tolled express lanes, and policies about the use of excess revenues. It focuses on the TEXpress-branded managed lanes (NCTCOG, Stakeholder Interview, April 24, 2019). The toolkit serves to present a clear message and summarize the rationale for how the projects and programs contribute to the overall regional goals. As an example, the PowerPoint presen- tation begins with an overview of transportation in the region and future population growth expectations. The sample presentation highlights the funding challenges that currently exist and the future challenges that might exist with less revenue from the gas tax because of over- all improvements in vehicle fuel efficiency. It broaches the subject of private-sector financing and how funds can leverage additional public dollars, while recognizing that future transpor- tation projects will likely require funds from a variety of sources. The presentation ends with how the lanes are benefiting the region in terms of reduced congestion, improved air quality, and economic development—all part of the mission of NCTCOG. The toolkit consists of a PowerPoint file with a script, a pocket card, talking points, a white paper, a fact sheet, testi- monial videos, and several graphics for use on social media. The toolkit can be accessed online (NCTCOG, n.d.). In 2018, NCTCOG included the project in the Mobility 2045 long-range plan as a freeway widening project with concurrent tolled managed lanes. Over the past year, an agreement between NCTCOG, TxDOT, and FHWA has supported the ongoing development of Phase 3 of the project, which will add one general-purpose lane and one managed lane in each direction.

52 Emerging Challenges to Priced Managed Lanes The project is currently undergoing an environmental reevaluation, and construction was expected to begin in 2019 (NCTCOG, Stakeholder Interview, April 24, 2019). I-77 Express Lanes, Charlotte, North Carolina NCDOT opened the I-77 Express Lanes after a long and contentious project development process. The challenges mostly stemmed from the fact that the project combined two concepts new to North Carolina: variably priced managed lanes and a public-private partnership. Many local residents were concerned that, unlike other tolled facilities in their experience, NCDOT could not definitively state future toll rates. Additionally, some residents expanded on that concern by asserting the private concessionaire would charge them with high toll rates that NCDOT could not control over a 50-year agreement (Boraks, 2017). After NCDOT awarded the I-77 concession, a citizens group sued on multiple grounds, including assertions that both variable tolling and the public-private partnership were unconstitutional. Although NCDOT won in court at every level, strong public opposition continued. Following the 2016 election, the new governor of North Carolina and the NCDOT secretary attempted to mitigate the public acceptance challenge by conducting an independent review of the project and convening a local advisory group. After much discussion, the advisory group recommended that NCDOT buy the contract from the private concessionaire and convert one of the two HOT lanes in each direction into a general-purpose lane (NCDOT, Stakeholder Interview, May 7, 2019). Background The development of priced managed lanes on the I-77 corridor began in 2007 as part of a regional planning study that sought to improve mobility in the greater Charlotte region. That study sought to find solutions beyond a previous 17-mile HOV lane that NCDOT opened in 2002, starting from downtown Charlotte. The HOV lane was underutilized and inefficient, despite a growing regional population and worsening congestion (Charlotte Regional Trans- portation Planning Organization [CRTPO], 2007). The study evaluated whether the application of HOV, HOT, or truck-only toll facilities would help manage congestion on over 300 miles of limited-access regional highways during peak periods. The planning team was led by the Charlotte Department of Transportation and included representatives from NCDOT and the South Carolina Department of Transportation (SCDOT). SCDOT did not participate in the planning effort beyond the first initial phase of the project. In 2009, the City of Charlotte sub mitted a formal request to FHWA for a more detailed feasibility analysis, referred to as the “Fast Lanes study.” In 2010, CRTPO asked NCDOT and its partners to look at HOT lanes for three corridors in the region: I-77, US 74, and I-485 (CRTPO, 2007). Project funding was a considerable factor in the process to implement HOT lanes on I-77. The regional planning study cited the inadequacy of traditional financial resources, such as the fuel tax, to support regional transportation infrastructure. The Fast Lanes study antici- pated that a regional HOT lane network could generate $15 to $65 million in annual revenue by 2013, but that would not cover the $2.3 to $5.1 billion in capital construction cost over a 30-year timeframe (CRTPO, 2009). Particularly, the I-77 HOT lanes project failed to receive necessary funding through traditional means (Charlotte Observer, 2010). Thus, NCDOT con- sidered a public-private partnership to deliver the project rather than a traditional design- bid-build or design-build project. The public-private partnership would arrange for a private concessionaire to design, build, and operate the facility for a set number of years, guarantee- ing a portion of the toll revenue for the private entity. The region would see an immediate infusion of funding to build the project, but NCDOT would not have the ability to control

Case Examples 53 toll prices or influence operational decisions beyond the stipulations listed in the conces- sionaire agreement to follow federal standards for minimum speeds in managed lanes. The CRTPO Board unanimously approved a motion to pursue a public-private partnership for the I-77 Express Lanes (CRTPO, 2013). NCDOT changed the scope of the project during the process to pursue a private conces- sionaire. In May 2013, the I-77 Express Lanes project expanded from one to two lanes in each direction and extended the length by 10 miles to a total of 27 miles. Figure 14 shows the physical location of the I-77 Express Lanes within the Charlotte region. Of the 11 major developers expressing interest, four met NCDOT’s deadline for consideration in the project. Ultimately, only the team from Cintra submitted a proposal. NCDOT selected Cintra after evaluating the proposal against its project criteria. The financial close for the project officially occurred in May 2015 (NCDOT, 2017). Challenges Opposition to the project has been ongoing since its inception, and NCDOT continued to experience challenges after awarding the contract. The environmental review documentation Legend I-77 Express Lanes Figure 14. Location of the I-77 Express Lanes (Source: Texas A&M Transportation Institute).

54 Emerging Challenges to Priced Managed Lanes (e.g., NEPA) stipulated that the purpose of the project was to provide travel reliability in the corridor. However, travel reliability is a complicated concept to communicate to the public. The NEPA documentation did not specifically address congestion mitigation in the purpose and need statement. A citizen group noted the distinction and sued NCDOT, feeling the project was unconstitutional and would not address congestion. The State Superior Court, Court of Appeals, and Supreme Court all found in favor of NCDOT (Boraks, 2017). However, during the initial court arguments, NCDOT’s lawyers, constrained by the purpose and need statement, argued that the express lanes would provide reliable travel times rather than congestion mitiga- tion (Ochsner, 2017). NCDOT frequently experienced difficulty explaining how pricing could improve perfor- mance (NCDOT, Stakeholder Interview, May 7, 2019). Conventional economic theory states that placing or increasing a price on a good lessens demand. However, congestion on a facility leads to a decrease in capacity, or a supply in the number of spots on a roadway. Faster-moving highways move more people and vehicles. NCDOT staff tried a few techniques to explain how pricing could improve effective roadway capacity without expanding pavement, such as show- ing a shaded traffic flow curve with green, yellow, and red colors (similar to what is done by WSDOT). I-77 Mobility Partners, the private concessionaire, tried to explain how the pricing worked by comparing it to the system for pricing hotel rooms. However, NCDOT staff felt the explanations were not sufficient enough for their audiences. Staff felt there were significant gaps in education, with many residents asking if toll booths would need to be in the managed lanes. Another common question from the public asked about the expected toll rates and whether a cap would exist to limit toll rate increases. Part of the difficulty stemmed from NCDOT not including an all-general-purpose lane alternative (i.e., no managed lanes or tolling involved) in the environmental review process to accurately show the operational difference between an HOT lane and a general-purpose lane (NCDOT, 2017). Response NCDOT attempted to mitigate the public concerns about the I-77 Express Lanes through the use of an independent review and a local advisory group. In March 2017, NCDOT selected Mercator Advisors to conduct an independent review of the project. NCDOT selected Mercator because the firm had no previous involvement with the I-77 Express Lanes, and the firm had extensive transportation finance experience. The independent review assessed key risks and liabilities, reviewed stakeholder comments, and evaluated the suitability and merits of potential policy alternatives. The review specifically evaluated the potential costs and risks associated with terminating the private concessionaire contract, modifying the agreement, and negotiating the suitability of buying the project back from Cintra. Mercator did not make a specific policy recommendation as part of its review (NCDOT, 2017). Also in 2017, the governor of North Carolina convened a local advisory group to deliberate on the project. The advisory group consisted of local elected officials and community leaders, with some individuals who were in favor of the project and some who were opposed. The governor convened the group to better synthesize the response from the local community and to change the methods of community engagement. The secretary of NCDOT also committed to meeting with the group and using it as a focus group to test new ideas. The advisory group used the analysis from the Mercator report to help inform its decision-making process over the course of seven meetings (NCDOT, Stakeholder Interview, May 7, 2019). In 2018, the advisory group recommended that NCDOT buy the I-77 Express Lanes from Cintra and convert one of the two HOT lanes into a general-purpose lane. The advisory group wanted to keep at least one HOT lane in each direction as a means to generate toll revenue to

Case Examples 55 buy out the contract. Another recommendation was the addition of a peak-period shoulder lane on about 11 miles of the corridor. The shoulder lane would open to the right of the general- purpose lanes during peak periods and would provide overall congestion relief to the corridor. The advisory group included the peak shoulder lane as a way to benefit local drivers because group members felt the project primarily catered to long-distance commuters. In July 2019, CRTPO supported the peak-period shoulder lane project (Henderson, 2019). The first segment of the I-77 Express Lanes opened in early June 2019, extending from Exit 23 in Huntersville to Exit 36 in Mooresville. NCDOT opened the remaining 14 miles in the fall of 2019. During the first month of operation, I-77 Mobility Partners reported that 500,000 trips had been taken on the express lanes (I-77 Mobility Partners, 2019).