Congestion Pricing

Two big stories on road pricing in the Post today. One concerns plans for local congestion tolling, and the other is a long piece on a DOT guy named Tyler Duvall who believes that road pricing, and ultimately road privatization, is the magic bullet that will make all our transportation problems go away.

The first story, on local issues, is a less painful read. Personally, I think the idea of a comprehensive road pricing system, spanning all the major roads around the region, is an excellent idea. On the other hand, the piece accurately notes that it’s a rare case when Maryland, Virginia, and the District cooperate to assemble a workable regional plan. Certainly a regional plan would be more likely if we had a sitting regional body, expressly detailed to analyze and propose regional transportation policy. But we don’t. Maybe we should look into that.

The second story is incredibly frustrating. On the one hand, you have this Duvall fellow, about whom the Post writes:

He had no transportation experience when he was plucked from his job handling corporate mergers and acquisitions at Hogan & Hartson and was offered a political appointment at the DOT in 2002.

So this is a guy without real transportation experience or economic training, who nonetheless thinks he’s found the solution to the congestion problem. Something tells me he’s not been all that concerned with reading up on network externalities, public goods, or a whole host of other economic issues that might come into play.

On the other hand, you have transit advocates who appear to see this conversation as either/or. Now that could just be the Post’s reporting, or it could be a reaction to DOT’s framing of the policy options, but the Post story reads as if transit supporters are saying don’t do pricing, do transit.

For the life of me, I can’t understand why no one is suggesting that we do both. Transit demand is growing, the adoption of road user fees will only increase such demand, and for the past 50 years we’ve busied ourselves building way, way more highway mileage than new transit capacity. Now, you start pricing roads and several things happen. 1) Congestion falls. 2) Demand for transit grows, and existing transit systems are overwhelmed. 3) You have a large pot of new money. 4) You could use that money to build new transit capacity, generating a large net increase in transportation connectivity while cushioning the cost of expensive roads and gas to commuters.

The thing about that scenario is that it calls for investments in new network capacity, which is good for the economy, but it also has a valuable redistributive function, since road pricing is going to pinch middle and low income commuters. If you price roads without transit, you place lots of those drivers in a tough spot. Either they accept the new costs and curtail spending on other goods and services, or they drastically rearrange their commuting patterns. And pattern changes won’t be easy for poorer commuters, either, since road pricing should increase the premium on homes near important business locations.

If you want to kill congestion while increasing overall access to economic centers, you do both. But the Bushies would rather hand the money from pricing to private industry, while some transit advocates would prefer to pay for improvements out of existing revenue streams. Why not go for the win-win?

Lastly: A little conspiracy blogging. The Post writes:

For Macquarie, the Dulles Toll Road has enormous appeal. The company approached Virginia in 2005 about leasing the road, pocketing motorist fees and financing the rail extension to the airport. But Virginia officials had other ideas. They wanted to keep the road in the hands of a public entity — the Metropolitan Washington Airports Authority — and let it build the rail line.

According to four former senior DOT officials, Virginia’s decision upset Duvall and then-DOT chief of staff John A. Flaherty. “They went ballistic,” one of the officials said. “[They] wanted that to be their pet project in the nation’s capital. Tyler would mention that frequently . . . that it would be better for the project to go to Macquarie.”

Duvall said the DOT is not trying to steer Virginia toward a public-private partnership for Dulles rail and that Flaherty was angered because the state did not notify the department, not by the substance of its decision. “My interest in this was solely to make sure the taxpayer was getting the right deal,” he said.

When the DOT said in January that it would not fund the rail project, Macquarie repeated its interest to Virginia officials, as did another private equity firm, the Carlyle Group, which created a $1.5 billion fund to invest in U.S. infrastructure and has hired Flaherty to head it.

Makes you think, no?


8 Responses to “Congestion Pricing”

  1. monkeyrotica Says:

    The most comprehensive scenario, which has captured the imagination of planners and government leaders, would toll every regional highway, plus all the regional parkways, including the Baltimore-Washington, George Washington, Rock Creek and Potomac, Clara Barton and Suitland parkways.

    Just one problem: four out of five of those parkways fall under the jurisdiction of the National Park Service. How are they going to get around taxing a Federally owned/run transit artery? I don’t see NPS letting them use that revenue on anything besides the parkways themselves.

  2. BeyondDC Says:

    The local tolling scenario is part of a very interesting TPB study called RMAS. Worth a look.

    Also, the Post wasn’t clear on it, but part of the point is that the money generated by those tolls *would* be used to fund transit.

  3. ryan Says:

    Monkey, that’s an interesting point, although I definitely imagine some deal could be worked out. That’s a ton of money to spend on a parkway. You can only plant so many new trees.

    BeyondDC, I shouldn’t have said that no one is talking about doing both. Obviously, a lot of people are, particularly at a local level. I’m just not sure why that’s not a part of the federal conversation. Bush admin intransigence, I’m guessing.

  4. BeyondDC Says:

    BTW, the whole point of the RMAS study is to generate “what if” discussion. Dealing with prickly details like the Park Service’s ownership of parkways (which is absolutely a tough question) is outside the study’s scope.

  5. monkeyrotica Says:

    That’s one major damned “prickly detail.” I can see cooking up some best case scenarios for generating revenue, but it’s kinda like that fantasy Metro map with stations every 50 feet. Hell, I’d like it too, but there’s the prickly detail of them not having money for basic maintenance, let along a couple trillion dollars worth of expansion.

    One deal they could cut with the Feds would be to use the tolls to augment the parkways with surface rail. DC had a fairly extensive long-haul streetcar network. In 1910, you could take the streetcar from 14th Street through Old Town to Mount Vernon along what eventually became the GW Parkway. Ran right down the middle of the road. You’ve got an awful lot of parkway median that’s being used for nothing except growing grass. An express streetcar to the Pentagon or the Mall or Rosslyn would bleed a lot of the Parkway traffic off, as well as be a magnet for tourists.

  6. AC Says:

    “Now, you start pricing roads and several things happen. 1) Congestion falls. 2) Demand for transit grows, and existing transit systems are overwhelmed. 3) You have a large pot of new money. 4) You could use that money to build new transit capacity”

    You can add another benefit: You get the information prices provide. Congestion pricing will make it easier to determine whether and when network upgrades (whether roads or rail) are worth the cost.

    And be nice to us lawyers. :)

  7. ryan Says:

    I love lawyers. That Michael Clayton guy seemed like a badass.

  8. TGq Says:

    The Washington Post article is terrible. They are trying to create a partisan issue where there is none. Environmental groups, progressive transportation advocates, and transportation scholars in academia agree that congestion pricing is a critical step toward a more sustainable (and some would argue, more just) transportation system. NYC’s proposal would funnel the revenues into public transit, exactly as you propose. Other jurisdictions may choose not to invest in transit. That may or may not be a bad choice, depending on the city, but that’s a separate question from whether congestion pricing is a good idea.

    Same with public private partnerships. In Europe and the rest of the world, PPPs are an important tool for getting infrastructure built. We’re just learning the ropes here. There have been some terrible deals — perhaps some even criminally terrible. But that’s due to the same corruption/incompetence that exists in traditional transportation finance. It doesn’t mean that PPPs are inherently evil.

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