In the next few weeks, a key panel will make recommendations to the MTA about the specifics of New York City’s congestion pricing program. The Traffic Mobility Review Board will advise on toll rates, variable pricing, credits, and how to treat for-hire trips and public and private buses, among other wonky topics.

RPA has advocated for congestion pricing for decades and strongly supports the policy. Congestion pricing has a proven track record of success in other cities and will benefit communities in the region by reducing traffic congestion and funding critical mass transit investments to keep our system moving.

Congestion pricing is simple in theory - charge drivers a fee to reduce the incentive to drive into the crowded Central Business District (CBD), raise revenue for public transit projects, and clean the air - but it comes with a complicated series of policy questions and choices, without even considering the multi-layered political environment. How exactly should the program be implemented?

This blog post lays out a set of principles for congestion pricing implementation. It is based on RPA’s independent analysis, perspectives of our coalition partners (see this letter from the Congestion Pricing Now coalition), input from RPA board members on both sides of the Hudson River, data in the MTA’s environment assessment, and economist Charlie Komanoff’s fantastic work.

Recommendations for Implementation

Equalize trip costs (e.g. offer credits for existing tolls)

For outer borough and New Jersey residents near bridges and tunnels, the issue of toll credits is a big one. Tolls are already paid at all Hudson River crossings and at some of the bridges and tunnels connecting Manhattan to Brooklyn, Queens and the Bronx. Meanwhile, the bridges owned by the NYCDOT are free. The current situation means that many people drive out of their way (e.g.“toll shop”), which pollutes and congests the neighborhoods that host the free bridges. This map shows the current cost round trip tolls and the average number of passenger vehicles that drive into the CBD using those crossings on weekdays:

RPA and many others have called for toll credits to be offered, to encourage drivers to take the fastest and most direct route instead of the cheapest one. This would reduce traffic congestion locally in neighborhoods that host bridges and tunnels.

For New Jersey, there is no free option to drive into Manhattan and hasn’t been for decades. It is currently the same price ($14.75 peak) to drive over any of the three Hudson River crossings. Credits for the existing tolls would reduce sticker shock and avoid introducing any toll shopping incentive between the George Washington Bridge and Lincoln and Holland Tunnels, ensuring toll shopping does not negatively affect places like Hoboken, Jersey City and West New York.

If the MTA decided to implement an $11 congestion pricing fee without credits (reminder: no toll rates have been decided upon yet), the cost to drive into the congestion zone would look something like this:

This would do nothing to solve the issue of toll shopping and could in fact make it worse. It also has the potential to drive down revenue from existing tolls on Port Authority and MTA bridges and tunnels, negatively affecting the operating budgets of the subways, buses and PATH system.

RPA has instead called for more ​“balanced” or ​“equalized” tolls for crossings into Manhattan, which would include credits for current tolls. The benefits of this approach are clear: it’s a good transportation policy because it would reduce traffic congestion in neighborhoods near the free crossings.

This scenario has been discussed at the TMRB public meetings and is commonly called ​“partial toll credits.” In the example below, a $10 round trip credit is given for all existing tolls drivers pay entering Manhattan. This approach would work to the cost of driving into Manhattan south of 60th Street and would reduce the toll shopping that happens today.

Most experts agree that all tunnels entering the congestion pricing zone should receive credits, but what happens to drivers using the George Washington, RFK, Henry Hudson, Whitestone, and Throgs Neck bridges? Should drivers using these bridges receive credits if they continue into the congestion pricing zone?

RPA believes the best policy would be crediting all drivers entering Manhattan for tolls paid if they continue into the congestion zone.

In this scenario, the base congestion pricing fee is $17. Drivers using the Lincoln and Holland Tunnels or George Washington Bridge would pay $14.75 to the Port Authority and $7 to the MTA to enter Manhattan. Drivers using Hugh Carey and Queens Midtown Tunnels and the RFK Bridge would pay $17 to the MTA to enter the CBD and an additional $3.88 to exit since the existing $13.88 two-way charge would exceed the $10 credits. All other drivers would pay the $17 charge (including Henry Hudson Bridge drivers since the $6.36 toll is less than the $10 credit).

Of course, these are just two possible scenarios of many options.

Exempt transit and private commuter buses

RPA and other members of the Congestion Pricing Now coalition support the exemption of both public and private commuter buses, including NJTransit buses. One of the many goals of the congestion pricing program is to disincentivize private car trips into Manhattan’s CBD and incentivize more commuters to use mass transit.

In a letter to the Traffic Mobility Review Board, the coalition defined ​‘public’ as those buses owned or operated by any municipal transportation entity (ex: MTA Bus, NJ Transit, etc.) and defines ​‘private’ as privately-owned buses that operate on behalf of any municipal transportation entity and/or provides a supplemental service that connects riders to a fixed, intermodal transportation hub located within the congestion pricing zone. Incentivizing commuters to travel by bus will decrease the number of private vehicles entering Manhattan by consolidating commuters into high-occupancy vehicles and reducing emissions per passenger mile.

Charge for-hires and taxis per trip, instead of once per day

For-Hire-Vehicles (FHVs) are a significant cause of congestion and vehicular emissions within the central business district. In the MTA’s environment assessment, the Federal Highway Administration (FHWA) determined that FHV drivers are an important environmental justice (EJ) community. As a result, the Environmental Assessment approved by FHWA limits tolling on FHVs to once per day, to be paid by the driver.

The Congestion Pricing Now coalition has been calling for eliminating the once-per-day toll and replacing it with a per-ride surcharge. RPA and other members of the coalition, along with drivers themselves, believe this will do far more to reduce congestion, protect drivers, and generate revenue for public transit.

The coalition also requested that taxi drivers be exempt from the charge because drivers have ​“suffered greatly” and ​“are already burdened by the investments taxi owners have made in medallions that are now valued at significantly less than the original investment.”

Make trucks pay more

RPA and the Congestion Pricing Now coalition believe that larger vehicles should pay more than passenger vehicles and that they should be charged an increasingly graduated amount based on the number of axles, which is a proxy for their size, weight and impact.

Similar graduated pricing schemes are currently used on existing MTA bridge and tunnel facilities. The introduction of an escalating charge per axle is a proven tolling method in the trucking industry, which provides an incentive for both private and public investment in other modes of transportation for moving goods in a more environmentally sustainable fashion.

Improve the streetscape and transit service above and below ground

While there have been some modest improvements in transit, such as more off-peak subway service, the City and MTA still need to develop a robust plan to improve transit. The MTA has enough capacity, for now, on its transit system because ridership is still down post-COVID.

However, it’s likely that ridership will continue to grow and congestion pricing will eventually mean improved transit service and more bike lanes are needed.

The NYC DOT has a strong guide in the NYC Streets Plan, but unfortunately is not meeting targets. Recent examples, such as the pivoting of the Fordham Rd bus lane by City Hall, raises further questions as to why the City is actively blocking plans to improve bus service.

Monitor the program and report publicly on its progress

Even with a well-thought-out program, it’s likely that the initial congestion pricing program will need to be evaluated and adjusted after it’s implemented. It will be imperative for the MTA and NYCDOT to monitor the program and report publicly on how it is working.

The 2019 legislation requires some reporting such as the annual financial reports, and public performance reports. Reports will address congestion changes (for FHVs and transit); vehicle miles traveled for FHVs; traffic volumes for all vehicle types; environmental/air quality improvements; congestion reduction measures; changes in transit ridership and bus speeds within the CBD; and all receipts and expenditures for the entire tolling program. New York City is also required to study the impact of tolling plan on parking within and around the Central Business District 18 months after the date the tolling program goes into effect.

Keeping the public up-to-date, and modifying the program based on issues that arise will be necessary.

What’s Next?

After the TMRB makes its recommendation to the MTA Board next month, the Board will vote on the recommendations. After that, the MTA will do some more study of the final program, and advance the scenario through the state administrative process (the same process used to authorize fare and toll increases). After another MTA vote in early 2024, congestion pricing is expected to start in the spring of next year.

Congestion pricing’s time has come. Riders deserve better transit, drivers less congestion, pedestrians safer streets, and less air pollution for everyone. Yet getting some of the key details of the program right is essential for it to be as positive as possible.