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Suggested Citation:"Table of Contents." National Academies of Sciences, Engineering, and Medicine. 2020. Business Models to Facilitate Deployment of Connected Vehicle Infrastructure to Support Automated Vehicle Operations. Washington, DC: The National Academies Press. doi: 10.17226/25946.
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Suggested Citation:"Table of Contents." National Academies of Sciences, Engineering, and Medicine. 2020. Business Models to Facilitate Deployment of Connected Vehicle Infrastructure to Support Automated Vehicle Operations. Washington, DC: The National Academies Press. doi: 10.17226/25946.
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Suggested Citation:"Table of Contents." National Academies of Sciences, Engineering, and Medicine. 2020. Business Models to Facilitate Deployment of Connected Vehicle Infrastructure to Support Automated Vehicle Operations. Washington, DC: The National Academies Press. doi: 10.17226/25946.
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Suggested Citation:"Table of Contents." National Academies of Sciences, Engineering, and Medicine. 2020. Business Models to Facilitate Deployment of Connected Vehicle Infrastructure to Support Automated Vehicle Operations. Washington, DC: The National Academies Press. doi: 10.17226/25946.
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Suggested Citation:"Table of Contents." National Academies of Sciences, Engineering, and Medicine. 2020. Business Models to Facilitate Deployment of Connected Vehicle Infrastructure to Support Automated Vehicle Operations. Washington, DC: The National Academies Press. doi: 10.17226/25946.
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Suggested Citation:"Table of Contents." National Academies of Sciences, Engineering, and Medicine. 2020. Business Models to Facilitate Deployment of Connected Vehicle Infrastructure to Support Automated Vehicle Operations. Washington, DC: The National Academies Press. doi: 10.17226/25946.
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Suggested Citation:"Table of Contents." National Academies of Sciences, Engineering, and Medicine. 2020. Business Models to Facilitate Deployment of Connected Vehicle Infrastructure to Support Automated Vehicle Operations. Washington, DC: The National Academies Press. doi: 10.17226/25946.
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Suggested Citation:"Table of Contents." National Academies of Sciences, Engineering, and Medicine. 2020. Business Models to Facilitate Deployment of Connected Vehicle Infrastructure to Support Automated Vehicle Operations. Washington, DC: The National Academies Press. doi: 10.17226/25946.
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ii TABLE OF CONTENTS SUMMARY .................................................................................................................................. X CHAPTER 1: INTRODUCTION AND BACKGROUND ........................................................ 1 Purpose of this Study ....................................................................................................... 2 Definition and Use of Key Terms .................................................................................... 2 Connected Vehicle ............................................................................................... 2 Connected Vehicle Applications ......................................................................... 3 Connected Vehicle Communications................................................................... 4 Connected Vehicle Infrastructure ........................................................................ 4 Automated Vehicle .............................................................................................. 6 Investment Decision-making Terms .................................................................... 6 Historical Context and Trends ......................................................................................... 8 The Evolution of Transportation Systems Management and Operations, Intelligent Transportation System, and Connected Customers ............................ 8 National Research and Planning for Connected Vehicles and Infrastructure ........................................................................................................ 8 Motivations for Public Investments in Connected Vehicle Infrastructure ....................... 9 Costs and Uncertainties Influencing Public Investments in Connected Vehicle Infrastructure .................................................................................................................. 12 Uncertainties Influencing Department of Transportation Decision-making ..... 13 Relationship of V2I Communications to Automated Vehicles Operation ........ 14 How to Move Forward: Connected Vehicle Infrastructure Investment Decision Options in an Uncertain Environment ......................................................................................... 15 Research Approach Summary ........................................................................................ 15 Report Organization ....................................................................................................... 16 CHAPTER 2: ISSUES INFLUENCING PUBLIC AGENCY INVESTMENT IN CONNECTED VEHICLE INFRASTRUCTURE ................................................................... 18 Methodology and Data Sources ..................................................................................... 18 Benefits of V2I Applications and Need for Public Connected Vehicle Infrastructure Investment ...................................................................................................................... 19 V2I Applications of Interest to State Departments of Transportation ............... 19 Types of V2I Application Benefits .................................................................... 24 Observations on V2I Application Benefits ........................................................ 25 CV Infrastructure Investment Value Proposition .............................................. 28 V2I Application Deployment Readiness ........................................................................ 29 Assessing Readiness by CV Infrastructure Component .................................... 29 Assessing Readiness of V2I Applications Based on Department of Transportation Pilot and Test Bed Activities and Plans .................................... 35

iii Connected Vehicle Infrastructure Costs ........................................................................ 39 Connected Vehicle Infrastructure Investment Cost Categories ......................... 40 Connected Vehicle Infrastructure Investment Cost Data .................................. 43 Chapter Summary .......................................................................................................... 49 CHAPTER 3: CONNECTED VEHICLE INVESTMENT DECISION PROCESS AND OPTIONS ........................................................................................................................... 51 Connected Vehicle Infrastructure Investment Prioritization ......................................... 51 Shortlisting Connected Vehicle Infrastructure Investments to Support Applications ... 53 Identifying the Scale of Investments Needed to Deploy the Connected Vehicle investments and the Business cases to be made ............................................................. 61 Chapter Summary .......................................................................................................... 61 CHAPTER 4: METHODS AND DATA TO DEVELOP, EVALUATE, AND PRESENT THE BUSINESS CASE ........................................................................................... 63 Creating an Effective Business Case For Connected Vehicle Investments ................... 64 The Problem Statement ...................................................................................... 64 Investment Options ............................................................................................ 65 Strategic Case ................................................................................................................. 66 Economic Case ............................................................................................................... 67 Benefit Cost Analysis Tool ................................................................................ 68 Financial Case ................................................................................................................ 71 Funding Sources ................................................................................................ 71 Developing a Financial Case ............................................................................. 73 Deployment Case ........................................................................................................... 74 Comparison of Connected Vehicle Deployment with Intelligent Transportation Systems Projects ........................................................................ 74 Evaluating the Suitability of Intelligent Transportation System Procurement Models for Connected Vehicle Deployments .............................. 76 Procurement Lessons Learned from Existing CV Deployments ....................... 78 Making a Case for Connected Vehicle Deployment ......................................... 79 Business Case Summaries of Planned V2I Deployments .............................................. 82 Colorado Department of Transportation Internet of Roads ............................... 83 Port Authority of New York and New Jersey Lincoln Tunnel Exclusive Bus Lane Connected Automated Bus Project .................................................... 85 FDOT I-75 Florida’s Regional Advanced Mobility Elements .......................... 86 Observations from the Business Case Analysis of the Sample Projects............ 88 Chapter Summary .......................................................................................................... 89

iv CHAPTER 5: IMPLEMENTATION PLANNING FOR CONNECTED VEHICLE INFRASTRUCTURE PROJECTS ........................................................................................... 91 Business Model Focus Areas Specific to Connected Vehicle Investments ................... 91 Connected Vehicle Investment Resources and Risks .................................................... 92 Human Resource Needs ..................................................................................... 92 Technological Resources ................................................................................... 93 Financial Resources ........................................................................................... 93 Connected Vehicle Investment Delivery ....................................................................... 96 Business Model Options ................................................................................................ 97 Traditional Model of Public Sector Systems Ownership and Development Using Purchased Commercial Capabilities........................................................ 98 Public-Private Partnership Model ...................................................................... 98 Connected Vehicle as a Service Procurement Model ........................................ 99 Future Outlook for Business Models ........................................................................... 100 Chapter Summary ........................................................................................................ 100 CHAPTER 6: CONCLUSIONS AND SUGGESTED RESEARCH .................................... 102 Key Findings ................................................................................................................ 102 Suggested Research...................................................................................................... 105 GLOSSARY............................................................................................................................... 106 REFERENCES AND BIBLIOGRAPHY ............................................................................... 109 APPENDIX A. CONNECTED VEHICLE DEPLOYMENTS AS OF 2019 ....................... 116 APPENDIX B: CONNECTED VEHICLE INFRASTRUCTURE COST DATA COLLECTED FROM CURRENT DEPLOYMENTS.......................................................... 121 APPENDIX C: CONNECTED VEHICLE INFRASTRUCTURE COMPONENT COST SHARES FROM SELECT PILOTS AND PROJECTS ........................................... 128 APPENDIX D: BENEFIT-COST ANALYSIS TOOL .......................................................... 133 D.1 Selected V2I Applications ........................................................................................... 133 D.2 Using the Benefit Cost Analysis Tool.......................................................................... 134 D.2.1 Organization and Structure .............................................................................. 135 D.2.2 Benefit Inputs ................................................................................................... 137 D.2.3 Cost Inputs ....................................................................................................... 149 D.2.4 Benefit Cost Analysis Calculation ................................................................... 150 D.2.5 Using the Benefit-Cost Analysis Tool for a Different Application or Combination of Applications ........................................................................... 152 D.2.6 Scenario Analysis Using the Benefit Cost Analysis Tool ............................... 153

v LIST OF TABLES Table 1. Example State DOT CV Strategic and Program Plan Statements Supporting Investment ......................................................................................................................................11 Table 2. CV Applications’ Dependence on V2I and V2V .............................................................20 Table 3. Dynamic Mobility Application Program Bundles ...........................................................23 Table 4. V2I Applications Requiring CV Infrastructure Investment .............................................26 Table 5. CV Infrastructure Components, their Readiness Assessment and Impact on CV Infrastructure Investment Decision-making ..................................................................................31 Table 6. Existing V2I Applications – Deployed or Deploying ......................................................35 Table 7. Select Active V2I Application Deployments...................................................................39 Table 8. CV Infrastructure Cost Categories ...................................................................................41 Table 9. CV Deployment Projects Providing CV Infrastructure Cost Information .......................44 Table 10. CV Infrastructure Component Unit Costs .....................................................................45 Table 11. Rough Order of Magnitude Costs for Select V2I Investments ......................................47 Table 12. Relative Costs of CV Infrastructure Investment Requirements – Expert Judgment .....48 Table 13. V2I Applications, DOT Goal Area, and the Roadway Types for Deployment .............54 Table 14. Example V2I Applications Sequencing to Identify CV Investment Priorities for Urban Freeways .............................................................................................................................56 Table 15. Example V2I Applications Sequencing CV Investment Priorities for Rural Freeways and V2I ..........................................................................................................................57 Table 16. Example V2I Applications Sequencing CV Investment Priorities for Urban/Suburban Arterials ..............................................................................................................58 Table 17. Example V2I Applications Sequencing CV Investment Priorities for Urban/Suburban Arterials ..............................................................................................................60 Table 18. Steps for Defining the Problem Statement ....................................................................65 Table 19. Steps for Developing Investment Options .....................................................................65 Table 20. Example Goals, Objectives, and Performance Measures from Long range Transportation Plans that are Relevant for CV Investment Analysis ............................................66 Table 21. V2I Applications Analyzed in the BCA Tool ................................................................69 Table 22. Typical Sources of Funding ...........................................................................................72 Table 23. Basic Procurement Packages Proposed by NCHRP Project 03-77 for ITS Delivery..........................................................................................................................................75 Table 24. Sample Risk Register (Adopted from Tampa CV Pilot Deployment)...........................94

vi LIST OF FIGURES Figure 1. Types of Vehicle Connectivity .........................................................................................3 Figure 2. Installed Roadside Unit ....................................................................................................5 Figure 3. The Spectrum of Automated Driving ...............................................................................7 Figure 4. Connected Vehicle Deployment Environment ...............................................................30 Figure 5. Existing V2I Applications Deployed or Deploying, by Number ...................................37 Figure 6. The Business Case Structure ..........................................................................................64

vii LIST OF ACRONYMS AND ABBREVIATIONS AASHTO American Association of State Highway and Transportation Officials ADAS Advanced Driver Assistance Systems ASD After Market Safety Device ATIS Advanced Traveler Information System AV Automated Vehicle CACC Cooperative Adaptive Cruise Control CAT Cooperative Automated Transportation CAV Connected Automated Vehicles CDOT Colorado Department of Transportation CSW Curve Speed Warning CV Connected Vehicle C-V2X Cellular Vehicle-to-Everything CVRIA Connected Vehicle Reference Implementation Architecture DMA Dynamic Mobility Applications DOT Department of Transportation DSRC Dedicated Short-Range Communications Eco-App/Dep Eco-Approach and Departure at Signalized Intersections Eco-TS timing Eco-Traffic Signal Timing EVP Emergency Vehicle Preemption FCC Federal Communications Commission FCW Forward Collision Warning FDOT Florida Department of Transportation FRAME Florida's Regional Advanced Mobility Elements FSP Freight Signal Priority FHWA Federal Highway Administration GDOT Georgia Department of Transportation HMI Human Machine Interface ICT Information and Communication Technology IoR Internet of Roads

viii INC-ZONE Incident Scene Work Zone Alerts for Drivers and Workers ITS Intelligent Transportation Systems ITS JPO US Department of Transportation Intelligent Transportation Systems-Joint Program Office MDOT Michigan Department of Transportation MPR (CV) Market Penetration Rate NCHRP National Cooperative Highway Research Program NHTSA National Highway Transportation Safety Administration O&M Operation and Maintenance OBU On-board Unit OEM Original Equipment Manufacturer OVW Oversize Vehicle Warning P3 Public-Private Partnerships PED-SIG Mobile Accessible Pedestrian Signal System PSM Personal Safety Message Q-WARN Queue Warning RCVW Railroad Crossing Violation Warning RLVW Red Light Violation Warning ROI Return on Investment ROW Right-of-way RSU Roadside Unit RSZW Reduced Speed Zone Warning RW alert Road Weather Alert SCMS Security Credential Management System SPaT Signal Phase and Timing SWIW Spot Weather Information Warning THEA Tampa Hillsborough Expressway Authority TMC Traffic Management Center TSMO Transportation Systems Management and Operations TSP Transit Signal Priority UDOT Utah Department of Transportation

ix USDOT US Department of Transportation V2I Vehicle-To-Infrastructure V2V Vehicle-To-Vehicle V2X Vehicle-To-Everything VDTO Vehicle Data for Traffic Operations WSDOT Washington State Department of Transportation

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State Departments of Transportation (DOTs) and other government agencies recognize the value of connected vehicle (CV) technologies in helping achieve the strategic objectives of saving lives and relieving congestion. Several agencies are currently planning and preparing for a future where CV technologies could become a part of their routine business operations. A core consideration in any such planning effort is an assessment of the need for and the nature of public CV infrastructure investments to support applications based on CV technologies.

The TRB National Cooperative Highway Research Program's NCHRP Web-Only Document 289: Business Models to Facilitate Deployment of Connected Vehicle Infrastructure to Support Automated Vehicle Operations presents methods to identify the most plausible CV infrastructure investments, shows how to build effective business case arguments, and details specific business model options during project procurement and delivery.

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