Michael Replogle Environmental Defense March 2007 CFEE Public Private Partnerships Conference
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Transcript of Michael Replogle Environmental Defense March 2007 CFEE Public Private Partnerships Conference
Tolling and Public Private Partnerships:How Can They Help California Achieve High Performance Transportation?
Michael ReplogleEnvironmental DefenseMarch 2007 CFEE Public Private Partnerships ConferenceNapa, California
A Means To What End?
► Tolls and PPPs are tools not outcomes
► Outcomes depend on how tools are applied
Tolls and PPP Deals Can Be Designed To:
► Finance transportation► Save motorists time► Improve reliability &
customer service► Boost transit choices► Curb fuel use and
emissions► Reduce harm to
communities and the environment
But Tolls and PPP Deals Can Alternatively:
► Increase congestion on existing roads
► Spur pollution, fuel use, GHG emissions
► Facilitate sprawl ► Spur public backlash
against tolls and PPPs
Will California Use Tolls and PPPs to:
► Build more roads faster?► Increase short-term cash flow?
Or to► Manage transportation systems for
high performance: mobility, travel choices, environment, public health?
► Develop profitable strategies to respond to climate change challenges facing road industry
Build and Sustain Public Support for PPPs With:
► Timely public review, input, oversight of PPP goals and frameworks
► Performance-focused contracts that avoid non-compete agreements
► Independent monitoring, performance oversight
► Tolls set but not retained by operator - deposited to public fund
Build and Sustain Public Support for PPPs With:
► Use of toll and concession proceeds to finance integrated metropolitan transportation networks for better performance, expanded choices
► Fix-it-first planning comparing cost-effectiveness of O&M and capital investment alternatives meeting goals
► Public equity in project deals
Can We Reframe Tolls to Emphasize Performance Not Revenue?
► Toll-managed lanes carry 2x more traffic at 3x higher speed vs. unmanaged “free” lanes
► Investors could unlock more asset value by managing existing lanes than building new lanes
Traffic in Peak Hours on Eastbound SR91 Friday Afternoons 2004
0200400600800
10001200140016001800
CongestedGeneral
Purpose Lanes
Toll ManagedLanes
Vehi
cles
Per
Hou
r Per
Lan
e
HOT Lanes Help, But Toll Management of Entire Motorways is Cheaper, More Effective
Full motorway tolling delivers greater congestion relief with much lower toll rates compared to median HOT lanes
Singapore in the 70’s…before road pricing
Source: LTA
Singapore today…after 30 years of road pricing
CBD and motorway toll rates adjusted 4x/year to keep traffic speeds at peak system performance
Public has approved of tolls on formerly free roads when used to improve public transport, cut congestion, boost travel speeds:
London Singapore Oslo
Tolling Existing Lanes: Acceptable When It Boosts Performance, Choices
Source: Kristian Wærst, Norwegian Public Roads Administration
Don’t Know1%
Approve88%
Disapprove11%
San Diego’s I-15 HOT Lane is Popular
Popular opinion on cordon charge in Stockholm for - against::BeforeBefore tolling (12/05): tolling (12/05): 3131%% - - 62%%AfterAfter tolling (6/06): tolling (6/06): 52%52% - 40%%February 2007: February 2007: 67%-67%-31%31%
TrondheimBergenStockholm
Payment Mechanisms and Toll Increases► Rigid toll caps limit ability to manage road capacity for
high performance and improved travel choices► Apply toll rate caps to average daily toll collections -- not
to the peak hour tolls for individual road segments
Toll Rate Caps Can Affect Performance
Contract for System Performance
Payment based on speeds and volumes by 2km road segment
Congestion Management Payment Contract Darrington to Dishforth A1 Highway in Yorkshire, UK
Base concessionaire payment on how effectively they move vehicles, people, and goods, with incentives for superior congestion relief
Get to Yes With Performance Agreements
LAX International Airport» Enforceable Community
Benefits Agreement» Groups agreed to support
airport expansion planSan Pedro Bay Clean Air Plan» Expansion of ports while cutting
emissions with health standardLondon » Emission-based tolls encourage
clean vehiclesTXU Buyout » Environmental agreements
helping to secure deal
Making Environmental Performance Matter for Public or Private Financed Transportation
► Establish environmental performance goals-» Curb air pollution hotspots» Cut corridor greenhouse gases» Curb thermal and pollution loads to streams» Cut noise near roads
► Establish independent performance monitoring► Use performance payments/penalties to reward superior
performance and ensure targets are met, re-tendering the agreement should operator/contractor default
3 M’s of Pollution Hotspots: Measure, Monitor, Mitigate
► Large local health impacts from fine particle vehicle emissions
► PPPs should ensure good monitoring► Regional, corridor, local strategies can
cut this pollution, including:» Emission-based truck tolls» Truck lanes, new clean rail services» Diesel retrofits/cleanup» Cleanest construction equipment» Put roads in tunnels and filter air» Exposure management
Link level benzine emissions PhiladelphiaSource: Richard Cook, US EPA
For More Information
Michael ReplogleTransportation DirectorEnvironmental Defense
1875 Connecticut Ave. NWWashington, DC 20009
www.environmentaldefense.org/go/transportation