Description
Parking cash‑out programs provide employees with a financial incentive if they choose to commute by non‑SOV modes. Instead of receiving a free or subsidized parking space, employees may opt out of the employer provided parking and receive compensation while using alternative modes such as transit, carpooling, biking, or walking.
Implementation Details
- Inventory employee provided parking, on‑site parking, or validated parking, to establish a clear cash‑out amount.
- Offer employees a clear choice between retaining a parking space or receiving a cash payment when they opt out of parking.
- Promote sufficient alternative modes of transportation, such as transit, carpooling, or active transportation, near the place of employment.
Mitigation Potential
Reducing the cost of non-SOV forms increases the likelihood of commute trips shifting away from single occupancy travel. Reduction in VMT result from the decrease in personal vehicle usage.
For more details, see Victoria Transport Policy Institute – Financial Incentives for VMT reduction quantification.
Linked Strategies
Equity Considerations
Cash-out programs provide financial benefits to all employees who rely on alternative modes of transportation. This ensures employees who do not drive alone receive a benefit comparable to those who previously received free parking.
Funding Sources
Cash-Out incentives will most likely be managed by employers or property managers and require minimal funding. Funding will be from reallocation of existing parking costs, rather than requiring a new funding source.
Implemented in TAM Area
Current TDM Implementation
Under California’s Parking Cash-Out Law, employers with more than 50 employees who lease and subsidize parking must offer a cash-out option in lieu of a parking space. Some employers offer additional benefits, like the County of Marin, who offers a $360 incentive every six months for employees who carpool, walk, or bike to work at least 40 days.
TDM Benefit Locations
Even employers that are not obligated by the 50 employee required cash-out policy can implement a cash-out program to motivate employees to use alternate modes. Large employers in the county, like large biotech companies and hotels, should consider offering additional benefits to expand this TDM measure.