Monday, May 22, 2023

Balancing Equity and Efficiency: The Case for Congestion Pricing on Highway 37.

 "Road Pricing in Singapore."
© 2007 VK35.
Highway 37 is once again making headlines. A recent article by Susan Wood for The North Bay Business Journal announced that the California Transportation Commission has endorsed a Metropolitan Transportation Commission proposal to institute a toll on State Route 37. The exact toll figure is yet to be established, but it's expected to reflect the $7 charge for San Francisco Bay Area bridges, projected to rise to $8 by 2025. The toll approval includes two amendments, namely regional income-based discounts and revised guidelines for toll hearings. The projected toll's purpose is to help fund the $430 million expansion of the highway, currently carrying over 35,000 vehicles per day, predominantly from Solano County and the City of Vallejo.

The toll implementation on Highway 37 should consider the integration of a congestion pricing system, where fees vary based on traffic volume. This approach addresses several critical policy principles. Higher charges during busy hours promote vertical equity, as those choosing to drive at such times are often more financially able. It might also enhance efficiency by discouraging traffic during peak times, facilitating more effective highway use. Despite being more intricate than a single flat toll, current technology can simplify comprehension and compliance with variable pricing. Revenue sufficiency might be amplified by earning more during peak periods, contributing to highway upgrades. Congestion pricing might spur economic growth by reducing traffic and rendering the highway more attractive to businesses and commuters. It may also be more politically acceptable than a flat toll, as it provides drivers the option to evade higher costs by traveling during quieter periods. This approach's potential improvements in efficiency and equity might enhance the overall effectiveness of the toll policy. Hence, the adoption of congestion pricing for Highway 37 could better align with the tenets of an effective and fair policy, optimize the highway's efficiency, and secure the required revenue for its upgrades.

In contrast, a flat toll without supplemental congestion pricing has inherent shortcomings. While it exhibits horizontal equity by holding all drivers equally responsible, it lacks vertical equity as it is uniformly applied regardless of income. Public acceptability varies, with some considering it essential and others protesting the increased commuting cost. The toll is intended to cover a substantial portion of the $430 million needed for road enhancements, but a $250 million funding shortfall suggests potential insufficiency. Without price signals to enhance roadway efficiency or encouragement for better usage, a flat toll may prove deficient in areas like vertical equity and revenue sufficiency. Consequently, it could be less politically viable.

Friday, May 19, 2023

Potpourri for Friday, May 19, 2023.

"CA-37 at Sears Point."
© 2007 Aztecrosales.
The Thursday edition of the Press Democrat headlined three stories, each focusing on local roadway issues. The first, by Susan Wood, reported that the Metropolitan Transportation Commission had unanimously agreed to impose a toll on California's State Route 37. The toll aims to generate funding for upcoming enhancements to the highway. These include adding a lane and raising the entire route to combat flooding. The widening project, costing $430 million, and a $6 billion flood prevention initiative are due to start in 2025 and will span multiple years until completion. However, it's important to note that no plans have been formulated to manage potential increased traffic on the Napa River Bridge, a possible alternative route for those wishing to avoid the toll.

Madison Smalstig wrote about commencement of a $29 million repair program targeting nearly 50 miles of Sonoma County roads. The project, planned for this summer, involves paving, sealing cracks, and removing vegetation to address the poor conditions of these roads. Despite over $203 million invested in the past, the overall condition of the county's extensive 1,368-mile road network has only marginally improved. To elevate the roads to a "good" to "very good" standard, the county estimates a necessary investment of $954 million over two decades, amounting to about $47.7 million annually. The topic of road financing issues and the subpar condition of Sonoma County's roads has been a recurring theme on this blog.

Lastly, Amelia Parreira describes a new development in Petaluma. The City Council gave a green light to proceed with the proposed Caulfield crosstown connector bridge. Estimated to cost $48.5 million, the project involves the construction of a 300-foot movable bridge over the Petaluma River. Expected to be operational by 2026, the bridge will improve citywide connectivity and reduce traffic congestion. It will not only serve drivers but also provide a more accessible route for pedestrians and cyclists. Given the longstanding bottleneck at D Street and the peculiar layout near the 101/116 interchange in Southern Petaluma, the construction of this bridge, first proposed in 2006, seems like a logical solution. This highlights the prolonged timelines all too often required to implement meaningful transportation projects in Sonoma County.