District of Columbia Government2000-14th Street, NWWashington, DC 20009(202) 673-6813

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Value Pricing in D.C. and the Region

Metropolitan Washington Council of GovernmentsValue Pricing for Transportation in the Washington

Region

June 4th, 2003

The Government of the District of Columbia

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N Challenges – Political issues

1. Some applications of value pricing could be seen as a “commuter tax”. The District's home rule charter prohibits taxing the income of non-residents. Tolls are typically viewed as surrogates for non-resident income taxes. Even if not challenged in court, it is presumed that Congress would repeal tolls.

2. Regional coordination. Any D.C. effort would have to be part of a region-wide effort. Otherwise a relative increase in costs of locating in or traveling to D.C. could push development out to surrounding areas.

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N Challenges – Political issues (cont.)

3. All public sector price increases are politically tough.

4. Conflict between technological capabilities and privacy issues. Seen in reluctance of some to use EZ Passes for fear of having their whereabouts tracked.

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N Challenges - Others

• Space. The limited area of the District gives value pricing that much more potential -- we can’t build our way out of congestion. However, space limitations make some value pricing approaches trickier. For example, HOT lanes would be applied to existing lanes more often than to new ones.

• Equity issues. As anywhere, the perceived fairness of value pricing efforts would be an issue.

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N Value pricing in D.C.

1. Metrorail peak-time service is value-priced.

2. D.C.’s metered parking is value-priced, albeit somewhat crudely:– Rates are higher (and metered periods sometimes longer (e.g., MCI

Center area) in congested areas

– Meters are generally free on nights and weekends

3. Private sector garages are often value-priced (“In by 8, out by 5” rates encourage off-peak travel).

4. Application for FHWA value pricing grant submitted in early 2002 for pilot project on value pricing of parking. Project elements:

– Adjust meters in particularly congested areas during times of peak demand to match market prices

– Eliminate free parking for non-residents on residential streets in particularly congested areas

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N Value pricing in D.C. (cont.)

5. D.C. Councilmember Mendelson has proposed legislation aimed at contributing to regional Clean Air Act compliance by charging a $20 monthly fee on employment-related parking spaces that are not already subject to the collection of District parking taxes. This would reduce the subsidization of these spaces.

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N Value pricing’s future in D.C., region

1. Parking. DDOT is still considering going forward with pilot effort though federal value pricing funding will likely be unavailable. (It should be noted that a particular challenge in advancing this proposed pilot is D.C. Council action: It’s passed in recent years -- and proposed again this year -- legislation imposing a moratorium on parking meter fees on Saturdays and on other days between 6:30 PM and 7:00 AM. It’s also expressed reluctance about raising meter rates above current levels.)

2. PAYDAYS (Pay as You Drive and You Save). DDOT is already exploring how to contribute to the effort to bring mileage-based insurance options to the District.

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N Value pricing’s future in D.C. (cont.)

3. Is there more that Metro can do?– Increase the price for "peak-of-the-peak" travel through the

maximum load points.– Increase capacity to accommodate any mode shifts caused by

value-pricing of roadways and parking.We’ll leave these to our Metro colleague to comment on.

4. Tolls. The District must work with our suburban friends to urge Congress to resolve the aforementioned legal and political issues to allow value pricing as a means of congestion relief, capacity enhancement and air quality improvement. Once this happens, the District can consider tolling (either conventional or Singapore/ London-style), HOT lanes, and other similar approaches.

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N Value pricing’s future in D.C. (cont.)

5. Possible uses for value pricing revenue. In addition to the standard approaches, the District would be particularly interested in using toll or other revenue to continue to improve transit in the city.

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N Conclusion

• The District is the core of the metropolitan region. Any value pricing projects implemented here (or the use of pricing-generated revenue for transit improvements or other efforts) will help the entire region.

• Political challenges abound. We’ll need the region’s support in order to pursue the many worthwhile value pricing opportunities.