Policy Blog
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May 31, 2007
Huge transportation opportunity could be missed
Minnesota has a huge opportunity to demonstrate a comprehensive attack on congestion in the I-35W corridor south of DT Minneapolis with up to $1 billion of federal money under the USDOT's Urban Partnership Agreement (UPA). Click here for a short summary.
Let's not squander a major effort
MnDOT and the Metropolitan Council should be commended for delivering a proposal to the USDOT that has a number of good policy innovations, but there is a good chance that we will miss this opportunity if we can't convince Governor Pawlenty, MnDOT and the Met Council to strengthen the initial proposal over the next 2-3 months. If we don't, the USDOT is likely to turn to the other 26 applications from across the country or choose no one at all. The USDOT has made it very clear what they want to see in a pricing demonstration and the current Minnesota proposal does not price existing road capacity as the USDOT requires.
Proposed improvement of the UPA proposal
The Citizens League, along with the Humphrey Institute and others, is proposing a refinement of the Pawlenty Administration application to the Urban Partnership Agreement.
- Click here to read the Citizens League letter to the Governor.
- Click here to read the proposed refinement of the UPA application.
Here is what we have to do to be competitive:
On a four-mile stretch of the Crosstown Commons during the upcoming reconstruction, all solo drivers during peak hours would take part in a one-year demonstration of free-flow pricing with no strings attached (which means we would get to keep everything the feds pay for and they won't require that we make the pricing permanent). Since the Crosstown reconstruction will already produce significant congestion and diversion, it is the best time to introduce free-flow pricing and increase transit and telecommuting options. Minnesota's initial free-flow pricing project (MNPASS on I-394) is a national model. It has reduced congestion and is producing excess revenue (above the costs of operation) in only its second year of operation.
Here's what we get if we are successful:
- Bus Rapid Transit (BRT) from Burnsville to DT Minneapolis built in 2008 instead of 2023.
- More park and rides to meet demand in the I-35W south corridor. (Pop quiz: if you live in Lakeville and you want to catch an express bus from Burnsville to DT Minneapolis, how early in the morning do you have to get to the park and ride in Burnsville?)
- Funding of peak time transit fare incentives with the revenue from free-flow pricing to indicate what level of modal shift to transit is probable.
- Funding to replicate the successful flex-time and telecommuting initiative by Best Buy in other worksites.
- A demonstration of free-flow pricing on a scale to reduce congestion, air pollution and vehicle crashes.
We already pay for congestion in a lot of bad ways
Free-flow pricing is putting a price on something (congestion), which all of us are paying too much of already. How much do you think congestion costs the people in your community in
- time wasted?
- pollution?
- vehicle crashes?
Free-flow pricing is not the same as tolling
The big political risk rests with the public opinion about "tolling." So before I write any more, let me state that free-flow pricing is not tolling as the public perceives tolling.
- Tolling is generally to pay for building and maintaining roads and does not typically provide additional choices to commuters with the exception of adding road capacity, and in many of our congested areas that is no longer an option.
- Free-flow pricing charges a price to solo drivers to reduce congestion and its associated costs and the revenues can be used to support transit and other alternatives to reduce congestion. The solo drivers (and transit alternatives) are guaranteed free flow and the revenue that is created can be used for other options that provide more choices for commuters.
The distinction between tolling and free-flow pricing is important, since there is a widely held political position in Minnesota that the gas tax pays for building and maintaining roads and that "tolling" these roads would be a form of double taxation. Since free-flow pricing does not pay for building and maintaining roads, but for reducing congestion and providing choices, it is not double taxation and it is not what the public thinks of as tolling.
For more details about the Urban Partnership Agreement application:
- RFP for the Urban Partnership Agreement in the Federal Register
- UPA frequently asked questions
- The initial UPA application from MnDOT and the Met Council
- Met Council bus-related facilities grant application
Minnesota support for the UPA application:
- Letter to Governor Pawlenty from I-35W Solutions Coalition Mayors
- Letter to Governor Pawlenty from Minneapolis City Council Chairs
- City of Minneapolis UPA Resolution
- Hennepin County UPA Resolution
- City of Bloomington UPA Resolution
- Minneapolis Regional Chamber of Commerce UPA Letter
- Itasca Project UPA Letter
- Humphrey Institute Letter to the UPA Selection Committee
Posted by Bob DeBoer at May 31, 2007 7:38 PM








Comments
I would like a clarification on whether the tolling would just be on the HOV lane like I394 or would be on all lanes?
Posted by: Doug Stene | May 31, 2007 11:29 PM
Great question Doug. When the Crosstown Commons reconstruction is complete, pricing would only apply to the HOV lane and some extension of that into Downtown Minneapolis. During the Crosstown Commons reconstruction, however, it isn't possible to price a single lane, so we are proposing that -- for one year out of the 3-4 years of the reconstruction -- we apply pricing for solo drivers to all the lanes, only through the construction zone and only when there is congestion (as it currently works on I-394). This is the kind of demonstration that the feds are looking for and could bring us anywhere from $200 million to $800 million to implement BRT in 2008 rather than 2023. The BRT service and telecommuting incentives must be in place when pricing begins. Under current plans, buses will not have free flow through the Crosstown Commons reconstruction. This will create free flow for the entire construction zone during the one year period. If it doesn't work or the public is against it, we can discontinue and we still have the benefit of all that the feds have paid for.
Posted by: Bob DeBoer | June 1, 2007 11:19 AM
I can see problems with making all lanes toll lanes. I don't routinely drive that section of freeway, but occasionally I may need use it. Does that mean I need to buy a transponder and setup an account that I may never need to use, just in case I need to drive that section someday? Is there going to be signs to divert people without transponders onto city streets to bypass that section of road during certain times? While a bus may work great for those that live by a transportation hub and their place of work is by another hub, but those that live and work in areas that are not easily served by a bus may have no choice but to drive. I don't know if it would jeopardize getting selected into the program, but I believe that at least 1 free lane is necessary to make the program viable.
I don't have a problem with the use of tolls on HOV lanes to make better use of those lanes. I do have a problem with tolls on all lanes and even if it is called free-flow pricing it is still a toll. If you take a simplified look at the gas tax by saying the average vehicle gets 20 mpg and with the 20 cent gas tax, each vehicle is paying a penny for each mile that they drive. The result is that the more congested a highway is, the more the drivers contribute per mile. As an example, if a section of road had 100,000 vehicles per day, they would pay $1,000 per mile per day in gas tax, where a section of road that had 10,000 vehicles per day would only pay $100 per mile per day in gas taxes. The call for tolls on congested sections of roads have nothing to do with the drivers not contributing their fair share, but those are the most profitable sections of road to collect tolls on. I support funding for public transportation, but I believe it is a metrowide benefit and it is fairer to use some kind of a metro wide tax rather than to double tax those driving a certain section of road.
Posted by: Doug Stene | June 6, 2007 12:05 AM
I think your questions are a good representation of how a lot of thoughtful people might view this. The Citizens League would only support pricing the Crosstown Commons reconstruction if free transponders were offered to anyone who thinks they might use the construction area during peak hours. That should be no problem because some of the federal money is specifically for technology. I am sure there would have to be public build-up and appropriate signage for all of this.
The one-year pricing of the Crosstown Commons reconstruction could not start until new transit infrastructure and service is ready to go, so that means more park and rides in some new locations and more capacity and more service.
The other part of the equation that needs to be moving when pricing starts is getting more employers actively offering flex time and telecommuting. That is also one of the areas that the feds will fund and the current proposal has $10 million in it to offer resources to replicate Best Buy's Results-Oriented Work Environment. The ability to get this type of choice offered more often is a cultural issue with many employers. The amount of reduction in vehicle numbers that we need at particular times to really reduce congestion is not as much as you might think, because the ripple effect once the congestion begins is so substantial.
I like your analysis about how much people pay per mile for road use through the gas tax. When it is more congested, they pay more because they burn more fuel and pay more in gas taxes. That is one current "toll" if you will. If we implement free-flow pricing, that driver pays a "toll" only when there is congestion that reduces several other "tolls" they already pay. The amount of gas tax they pay goes down by avoiding congestion. They also get the benefit of saving the time they would have wasted, the air pollution they would have caused and the higher chance of being in an accident. These are all "tolls" in my view.
I think if we polled the public, most would associate tolls with toll roads and would say that "tolls" are applied 24 hours a day, 7 days a week based on the amount of road that you use and that the money is used to build and maintain the road. Nothing about that description is accurate for free-flow pricing. That's why I don't think it is accurate to call free-flow pricing "tolling."
With that said, I think you put your finger exactly on where the public decision needs to be. Are we willing to try this to push forward our options in one corridor and possibly replicate it in other corridors? Or do we limit our transit and telecommuting options to capturing general revenue sources? We are still waiting for the first bus rapid transit (BRT) facility in the Twin Cities Metro Area. This is an excellent opportunity to provide it.
Posted by: Bob DeBoer | June 8, 2007 4:49 AM