Description
Implementing dynamic or usage-based pricing strategies for roadways, such as congestion pricing or VMT based pricing, discourages unnecessary Single Occupancy Vehicles trips and generates revenue for sustainable transportation investments. Implementation strategies include conducting audits using roadway pricing frameworks to evaluate equity impacts and fee structures, studying VMT -based road pricing on high-traffic regional arterials, and promoting graduated per-mile charges during peak hours.
Implementation Details
- Support corridor studies for VMT-based road pricing on high-traffic regional arterials and segments..
- Promote graduated per-mile charges during peak hours as an alternative to flat congestion fees, especially in tourism-heavy zones.
- Explore policy mechanisms for reinvesting pricing revenues into expanded transit service and first-last mile projects in environmental justice areas.
Mitigation Potential
Roadway pricing discourages the use on Single Occupancy Vehicle trips or non-essential trips. 2006 Minnesota pilot program found a weekday VMT decrease of 6.6% (8.1% on weekends). An Oregon pilot study found a 12% decrease for drivers paying a per-mile fee. Reduction is likely to vary based on the fee structure and implementation technology
For more details, see Victoria Transport Policy Institute – Road Pricing for VMT reduction quantification.
Linked Strategies
Equity Considerations
Ensure pricing structures are income-adjusted or paired with subsidies for low-income households. Avoid disproportionately burdening rural or transit-inaccessible areas by offering travel alternatives or exemptions. Use revenue from pricing programs to reinvest in affordable transportation services in disadvantaged communities.
Funding Sources
Likely to require a technology solution and be more expensive than collecting fuel taxes. Funding sources include the Surface Transportation Block Grant & Congestion Mitigation and Air Quality Programs (Southern California Council of Governments), and the Sustainable Transportation Planning Grant Program: Sustainable Communities: Competitive and Technical (Caltrans).
Examples/Case Studies
I-15 San Diego County Congestion Pricing Project Monitoring and Evaluation Services Task 13 Phase II Year Three Overall Report
The I-15 Congestion Pricing Project aimed to analyze the impacts of implementing congestion pricing on traffic patterns, travel behavior, and overall system performance along the I-15 corridor. Throughout the three-year evaluation period, significant improvements in traffic flow were observed, including reduced peak period congestion and more consistent travel speeds. These improvements led to shorter average travel times and fewer delays for commuters.
San Francisco Congestion Pricing Study
San Francisco explored tiered congestion pricing with equity exemptions, focused on reducing peak-hour vehicle demand and reinvesting revenues in underserved communities.