Tolling as a Finance Tool and the MnPASS System

June 2012

Nick ThompsonMinnesota Department of Transportation

Tolling Purpose by Type General Tolling primarily used to raise revenue

for facility development and management. Every vehicle pays.

Cordon Tolling manages access to defined urban zone to reduce urban congestion; revenues are used to cover operational costs, excess revenues may be used to enhance transit service

Express Lanes Congestion Pricing primarily used to manage demand and ensure facility performance; may or may not raise excess revenue. Users have choice not to pay.

Express Lanes Tolling Example

SR 91, California◦ Privately financed facility built in the median of

the existing SR 91 corridor ◦ Four lanes, 10 miles long◦ Two access points◦ All users pay, but there is a free alternative◦ Prices vary by time of day, day of week, day of

year◦ Peak period rate is $8.95 ◦ Revenue $35.4 M / year

GENERAL TOLLING SR 520, Seattle,

Washington◦ Tolls reinstated on

existing floating bridge in December 2011.

◦ Change from all free to all drivers pay

◦ Revenue used to finance new $2 billion bridge replacement

◦ Revenue: $60 M /yr growing to $120M/yr

EXPRESS TOLL I-95, Miami, Florida

◦ Converted to High Occupancy Toll Lane in 2009 to tolling.

◦ Time of day pricing◦ Almost all drivers pay◦ Revenue covers private

contribution to construction and profit

◦ Peak rate $8◦ Revenue generated: $12

million/year

Examples

A healthy, multimodal transportation system is a critical element to the region’s economic vitality and quality of life

Key challenges ◦ Aging infrastructure ◦ Congestion/mobility ◦ Rising costs ◦ Tight fiscal constraints

Key strategies in state and regional long range (20 yr.) transportation plans ◦ Low Cost/High Benefit solutions◦ Multimodal investments◦ MnPASS System

Context for MnPASS

What isMnPASS?

▸MnPASS – MN’s congestion pricing brand name

▸Operates during peak weekday AM & PM rush hours – free and open to all during non-peak ▸ Buses, carpools (2+) & motorcycles use for free – solo drivers can choose to use for a fee avg. $1.25-$1.50

Insert infographic here

MnPASS on I-35E

Steady annual growth since opening in 2005◦ currently 23,000 transponder holders

Over 90% satisfaction rate among customers◦ reliability and choice valued most◦ customers stay customers

Transit users and operators strongly support system◦ transit riders & carpoolers represent >80% of MnPASS users ◦ Transit/carpoolers do not pay to use the system

User demographics representative of corridor population

2011 Revenue/Expenditures◦ Revenue: Tolls/Fees-$2.64M◦ Operations & Maintenance Expenses: $2.5M◦ Purpose is to maintain congestion free speeds (50-55mph) in MnPASS

lanes, not to maximize revenue

MnPASS System Use & Performance

Faster, safer more reliable travel options

Regional transit system improvement

More efficient, cost-effective congestion management

MnPASS is a market based approach that better aligns user cost and benefit

Highway performance and people throughput maximization for future generations

Why is MnPASS a key strategy?

Reliability – Travel time reliability is critical to the region’s economy, transit system and quality of life

Sustainability – ◦ Peak period mobility investments are the highest cost infrastructure

investments we make◦ Last mobility investment chance for many corridors (including 35E)◦ Investment benefits must be sustained for the long term (20-30 yrs.)◦ Contains the pressure for future investments

MnPASS is the most efficient and cost-effective way to ensure such reliability and sustainability ◦ Traditional general purpose lane expansion cannot provide this level

reliability and sustainability

Why MnPASS, cont.

I-35E MnPASS Project - typical cross-section