Managing Transportation Demand

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1 Managing Transportation Demand Company 2006 Kevin Shannon Executive Director Association for Commuter Transportation

2 American Perspectives ACT - US Intro TDM in US Major National Programs 511 Traveler Information Best Workplaces for Commuters High Occupany Vehicle & Toll Lanes (HOV/HOT) Commuter Benefits TDM and Trends

3 ACT Is 850 members TDM professionals Public Agencies Non-Profits Employers Universities State / Local Govts. MPOs, DOTs TMAs, TMOs Consultants Turner, Disney, Microsoft, Starbucks, Best Buy, Wal-Mart, Bayer, Safeway

4 ACT Provides Advocacy Networking Timely publications Research Access Conferences Regional Chapters Awards Partnerships

5 ACT - Issue Focus Councils Employer TMA Vanpool Public Policy University Telework 511 HOT/HOV

6 ACT Services Publications TDM e-review TDM Review Special Publications Members-Only Web site Conference: Seattle - Sept 9-12, 2007

7 ACT Partners US DOT: FHWA, FTA US EPA - BWC Program AMPO, AASHTO, APTA, GSA, Telework Exchange, NCTR, ITS-A, ITAC, AARP State/Local level ACT - UK (Canada, Neth, Aus/NZ, Japan?)

8 Transportation Demand Management (TDM) What is TDM? Strategies to influence travel behavior by mode, time of day, cost, route, or frequency to reduce traffic congestion and air pollution, and to improve the efficiency of the existing transportation system.

10 Strategies-Mode Transit Walk Bike Vanpool Carpool Telework

11 Time, Route, Location Flextime, staggered work hours, compressed work week Real time or advanced route planning services Live near your Work worksite location and design On site services

12 TDM - Who? People Transportation Planners - Governments Environmental, air quality officials Non-profit service providers, TMAs Human Resources managers Parking and transportation managers Real estate and facilities managers Business Districts (BIDs, CIDs) Telework managers / trainers Public transportation managers Rideshare coordinators Employers Public relations / marketing officials Vendors (vanpools, information providers, shuttles, transit benefits)

13 TDM - What? Market-based Initiatives Direct marketing Employer outreach and training Web site resources and information Incentives, rewards, PR campaigns and promotions Disincentives (regulations) Pricing Strategies Locally targeted Measured and evaluated

14 TDM - How? Publicly funded local programs (CMAQ mainly) (Congestion Mitigation and Air Quality funds) Regional / local contracted programs through non-profits Employer sponsored HR or benefits programs or transportation programs Voluntary programs mainly Regulated programs (limited, CA, WA, OR; or local ordinances)

15 TDM-When? NOW The time is right- High gas prices Economic & political climate Congestion costs rising Environmental concerns

16 TDM Motivation(s) Public/Govt: Reduce Congestion Improve System Performance Reduce Energy Dependence Improve Air Quality TDM air credit in Atlanta, Houston, Dallas only Calif AQ mandates removed Individual: Quality of Life Money Savings Less on Enviro/AQ

17 Strategic Positioning - Individual ACCOMPLISHMENT FREEDOM / INDEPENDENCE PERSONAL HAPPINESS PEACE OF MIND LESS STRESS LEVERAGE POINT IN CONTROL (CONTROL / QUALITY OF LIFE) MORE PRODUCTIVE DO OTHER THINGS PERSONAL SAFETY CAN BUY OTHER THINGS HEALTHY SOCIALIZE SAVES ME TIME SAVES ME MONEY LESS POLLUTION PUBLIC TRANSPORTATION WALKING SINGLE OCCUPANCY VEHICLE E-COMMERCE TELE-COMMUTING CARPOOL OR VANPOOL

18 TDM Motivations Atlanta Cash for Commuters incentives registrations Gas $ spikes /1/2005 7/1/2005 9/1/ /1/2005 TDM: Recognition of value and benefits; incentives effective, DC shift in marketing; short vs long-term debate

20 511 From Vision to Phone Call Iowa Florida Kentucky Utah San Francisco Nebraska

21 Background What is 511? An easy to remember abbreviated threedigit dialing code and website URL Phone a speed dial to a ten-digit telephone number Web used to co-brand traveler information services

22 511 Deployment Status Accessible by 74% of Population in 2007 = 511 Operational ( Live ) = Expect 2007 Launch D.C. Alaska Hawaii as of May 1, 2006 Puerto Rico

23 511 Deployment Status 511 Calls by Category of Information 6/21/01 through 5/31/06 Traffic: 76.00% Road Conditions: 46.05% Weather: Construction: 18.64% 24.55% Transit: 4.89%

24 511 Deployment Status Rideshare, Car / Van Pool Information on 5 of 30 Services Arizona Sacramento / Northern California San Francisco Bay Area Southeast Florida Utah Colorado (Planning)

Effective Practices Ridesharing Enhanced content Generally most appropriate in dense urban areas Effective Practices: San Francisco Bay Area Service offered on

25 Effective Practices Ridesharing Enhanced content Generally most appropriate in dense urban areas Effective Practices: San Francisco Bay Area Service offered on both web and phone Callers can be transferred to a ridesharing service based on their location Website users set schedules, addresses, transportation preferences

27 National Coordinating Activity - Employer Best Practices The Program: Voluntary business-government partnership to ease traffic congestion, save fuel, improve national energy security, and reduce ozone forming pollutants and greenhouse gas emissions The Challenge: Reduce single occupancy vehicle commuting by getting employers to offer employees the National Standard of Excellence for commuter benefits

Criteria for National Standard of Excellence for Commuter Benefits Coordinate communication Designate point of contact Centralize information Communicate commuter benefits Offer commuter benefits

28 Criteria for National Standard of Excellence for Commuter Benefits Coordinate communication Designate point of contact Centralize information Communicate commuter benefits Offer commuter benefits package Emergency Ride Home One of four Primary Options Three or more Supporting Options Meet performance benchmark Report success to EPA Primary options (choose 1) $30 transit/vanpool subsidy Parking cash out 6% or greater telecommuting

29 Program Results Over 3,500,000 commuters covered by end of 2006 Nationwide Best Workplaces for Commuters employers Congestion relief 4.1 billion vehicle miles traveled reduced Annual energy and pollution savings: 207+ million gallons gasoline 3,500+ tons N0x 1.8 million metric tons CO2 Metro campaigns in 2006 will include: Phoenix; Tucson; Dallas (North Texas); Houston; New England; Triangle Region, NC; SF Bay Area; Sacramento; South Florida; WA State Different levels of success and penetration across country

30 HOV/HOT/Priced Lanes High Occupancy Vehicle (HOV) High Occupancy Toll (HOT) Enhance System Efficiency and Throughput Express bus network; Bus Rapid Transit Vanpools and carpools encouraged Add System Revenue / Finance Challenges Long-Term: Pricing Network and Variable Tolls

31 HOV/HOT/Priced Lanes Pricing (to manage demand) Value Pricing Pilot Express Lanes HOV to HOT Tolling (for financing) Public-Private Initiatives Interstate Pilots: -Construction -Reconstruction (Chicago Skyway)

32 HOV/HOT/Priced Lanes High Occupancy Vehicle (HOV) Lanes Options: HOV-2, HOV-3 or greater Time Limited (peak period) Reversible (A.M. and P.M.) Dedicated Lanes Priced SOV for Alternative Fueled Vehicle

33 HOV/HOT HOT/Priced Lanes High Occupancy Toll Lanes Congestion Pricing, Value Pricing Options: Variable Pricing (peak and off-peak) Distance Based Discount/Free for Carpoolers Electronic Recording

34 Priced Lanes Have Worked SR 91 - Southern Calif. Toll-payers save minutes Trip time is reliable Priced Free Speed (mph)

35 Priced Lanes Have Worked SR 91 - So Cal.: HOT lanes carry more vehicles per lane 1,600 1, Vehicles per lane 0 Priced Free

36 Commuter Benefits Internal Revenue Service Code Section 132(f) (US tax authority) Qualified Transportation Fringes Requires employer involvement Permits employers to subsidize employees transit and vanpool costs Allows commuters to use pre-tax dollars to pay for transit and vanpool costs (or combination employer and employee)

37 Where Do Tax Savings Come From? Employees can save potentially on three types of taxes Federal income tax State income tax Federal payroll tax (FICA) Employers can save on two types of taxes Federal payroll taxes (FICA) Employee salary write-off on corporate income taxes

38 Maximum Tax-Free Benefits $105 per month for transit $105 per month for commuter highway vehicles $205 per month for qualified parking Eligible: Bus, Rail, Ferry, Subway, Shuttle bus, Subscription bus, vanpool Ineligible: Walk, Bicycle, Carpool, Telecommute

39 TDM Trends Travel Behavior is Complex! Individuals/Consumers, Businesses, Governments, Transportation System Emotional/Rational - Money, Environment, Energy, Security, Stress, Quality of Life

40 Trends & TDM Information: IM/TM, Craig s list, Google Transit, Traffic.com Vehicles: GPS, Car Sharing, Pay-as-you-go insurance Financing: Efficiency of Travel, Comparative Strategies, Tolling Social / Individualized Marketing and Targeting More Work at Home / Telework Aging Boomers and Travel TDM: +/- for Variety of Strategies and Options

41 Trends & TDM Energy: Spikes, Emergencies, Increased Recognition of Impact Workplace: More Employer Flexibility, More Employee Stress Emergency Preparedness/Biz Continuity: TDM as Tool for Disasters, Bird Flu, Security More Health Impacts and Analysis (UK assessments) More Environmental (Climate Change) Focus Iraq, US Elections TDM: +/- for Variety of Strategies and Options

Market & Conditions Coordinate, Integrate with Other

42 Conclusions TDM is Not in Isolation Consider/Promote Costs & Trade-offs TDM is Tool - Not an Outcome Target Local Programs to Market & Conditions Coordinate, Integrate with Other Tools/Strategies Work at Various Levels Employers Consumer / Individual Government - All Levels

TDM & Technology Personal: Cell phones, PDA, Telework Community: ITS, 511, Traveler Information, Broadband expansion Vehicle: XM, GPS, DVDs, MPGs, AFVs, Car sharing

43 TDM & Technology Personal: Cell phones, PDA, Telework Community: ITS, 511, Traveler Information, Broadband expansion Vehicle: XM, GPS, DVDs, MPGs, AFVs, Car sharing Transportation System: 511, ITS, Tolling TDM: Info and services for decision making and behavior change; San Fran 511, Car sharing, Wi-fi on trains; TW platforms;iming, new businesses

TDM & Transportation Financing/Funding Always Under Scrutiny Decrease in Gas Tax Revenue HOT/Congestion Pricing Public-Private, CIDs, Cost Sharing Homeland

44 TDM & Transportation Financing/Funding Always Under Scrutiny Decrease in Gas Tax Revenue HOT/Congestion Pricing Public-Private, CIDs, Cost Sharing Homeland Security TDM: Find champion, provide relevance, identify creative financing mechanisms, demonstrate results in $ terms, private shuttles growing, bulk discount cuts

45 TDM & Transportation System Management & Operations Reliability / Predictability / Efficiency Cost Efficiency Community Impact TDM: NTOC, Lack of standard data, relative impact versus others, soft factors, complementary of all modes, one of many solutions

46 TDM & Communities, Health, Obesity, Aging Land Use Incorporating Options Livable Communities Growing Correlation of Travel and Health/Obesity Population Growing Boomer and Mobility Needs Shifting TDM: Opportunities for new partnerships, markets, messages; land use challenges remain

TDM & Workforce Environment Distributed workplaces Technology allows mobility Employee Flexibility Requested Increased Employer Involvement Transportation Seen as Benefit Businesses Emerge to

47 TDM & Workforce Environment Distributed workplaces Technology allows mobility Employee Flexibility Requested Increased Employer Involvement Transportation Seen as Benefit Businesses Emerge to Serve TDM Used as Business Continuity Tool TDM: TW, communications, flex schedules, benefits, COOP, new business opportunities (iwork, s/w, devices, info services); employee management concerns

TDM & Emergency Preparedness, Biz Continuity, COOP Evacuation Planning - New Orleans, Houston Homeland Security Preparedness Business Continuity, Service Disruption Weather / Natural

48 TDM & Emergency Preparedness, Biz Continuity, COOP Evacuation Planning - New Orleans, Houston Homeland Security Preparedness Business Continuity, Service Disruption Weather / Natural Events London Bombings NYC Transit Strike Bird Flu, SARS, Pandemics TDM: TW major option, TDM relevant tools; FL TW program; learn from businesses; security funds and state/local planning

49 TDM & Energy Recognition of Gas Price Impact Technology vs Behavior Benefits Alternatives & Options: TW, CP, VP Spikes Differ from Gradual Rise

50 TDM & Energy Atlanta Cash for Commuters incentives registrations 0 5/1/2005 7/1/2005 9/1/ /1/2005 TDM: Recognition of value and benefits; incentives effective, DC shift in marketing; short vs long-term debate

TDM & Research, Measurement/Evaluation ROI and Operational Efficiency Comparative Strategies National Standard Data Lacking Individualized and

51 TDM & Research, Measurement/Evaluation ROI and Operational Efficiency Comparative Strategies National Standard Data Lacking Individualized and Social Marketing TDM: Increasing R&M; evaluation required; need standard data; helps to focus programs; individualized and social marketing growing

For additional information about ACT please contact: ACT National Headquarters phone: PO Box facsimile:

For additional information about ACT please contact: ACT National Headquarters phone: PO Box facsimile: This publication was made possible through a cooperative agreement between the Association for Commuter Transportation (ACT) and the United States Department of Transportation - Federal Highway Administration.