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Congestion Pricing | Transportation Alternatives

Manhattan's Congested Streets Congestion pricing is the most powerful policy tool at the hands of City officials to improve our City's air quality, and protect our quality of life by reducing unnecessary driving, promoting environmentally sound transportation, and financing 21st Century improvements to our aging transportation infrastructure. Congestion charges have proven effective (and popular) in cities around the world.

Congestion pricing is the practice of charging motorists more to use a roadway, bridge or tunnel during periods of the heaviest use. Its purpose is to reduce automobile use during periods of peak congestion, thereby easing traffic and encouraging commuters to walk, bike or take mass transit as an alternative.

Mayor Bloomberg's PlaNYC, long-term sustainability plan calls for a system similar to the one instituted in London in 2003. Cars that enter Manhattan south of 86th Street will be charged $8 between 6 am and 6 pm. The revenues collected through the charge will be used solely to fund expansions and improvements to our regional transit system and acheive a state of good repair on city streets and on the transit system. The benefits of this plan across all five boroughs are significant.

Benefits of Congestion Pricing

21st Century Transit Improvements in All Five Boroughs

New York City has not expanded its transit system significantly for over 50 years. The fees generated from the congestion charge will enable a broad range of improvements in mass transit, such as subway expansion, Bus Rapid Transit (BRT) to East Queens and South Brooklyn, fast ferry service from the Rockaways and across the East River, as well as safer bicycling and walking infrastructure. Many of these improvements would be cost prohibitive without the revenue generated from a congestion charge. Current estimates, based on an $8 charge for entering Manhattan south of 86th Street, place annual revenue from the charge at roughly $400 million in the first year and up to $900 million by 2030.

Reduced Traffic and Congestion

When a congestion charge is implemented, a small but significant number of motorists alter the time of their commute to avoid the charge, or adopt a more efficient means of transportation such as walking, bicycling or mass transit. This relatively small decrease in traffic leads to an enormous reduction in delays and congestion. Mayor Bloomberg's proposal anticipates a 6.5% reduction in the number of vehicles entering Manhattan south of 86th Street. The effect will be even more dramatic during peak hours when an 11% traffic reduction will result in a 20-40% reduction in time loss to traffic delays.

Faster Bus Service

The City's bus system is mired in traffic. Many buses, especially on clogged arteries like Flatbush Avenue in Brooklyn, travel at a snail's pace. Reduced congestion means more reliable, faster bus service across NYC. In addition, taking cars off the street creates room for innovative projects like Bus Rapid Transit (PDF). With physically-separated lanes, these buses will carry huge volumes of passengers without traffic delays. The current plan calls for dedicated bus lanes across all East River bridges, dramatically speeding up interborough bus service

Less Thru-Traffic on Neighborhood Streets

Manhattan-bound traffic flows through the outer boroughs and Upper Manhattan, flooding them with oppressive commuter thru-traffic each and every day. That traffic pollutes neighborhood air and clogs neighborhood streets, eroding our quality of life (PDF). Neighborhoods just outside the CBD will see an enormous reduction in thru-traffic if a congestion charge is implemented.

A 2006 Partnership for NYC study foreseeing traffic reduction similar to London estimated traffic reductions in Downtown Brooklyn (-29%), Williamsburg/Greenpoint (-24%), Long Island City (-27%), Harlem (-14%), the South Bronx (-5%) and Flushing (-3%). A subsequent study, based specifically on the PlaNYC proposal forecasts more modest, but still citywide, traffic reduction.

Improved Air Quality and Reduced CO2 Emissions

After Los Angeles, New York City has the worst air quality of any US city, and asthma sends thousands of New York's children to the hospital each year. To compound matters, background pollutants are found in greater concentrations along heavily-trafficked corridors (PDF), particularly in Harlem and the South Bronx. Congestion pricing will decrease carbon monoxide, nitrogen oxide, volatile organic compounds and overall emissions dramatically within the charge zone, and citywide.

Faster Commutes for Those Who Must Drive

Reduced congestion will benefit those who continue to drive, in the form of faster, more predictable commutes. Essential trips, particularly emergency vehicles, delivery vehicles and small business owners, will become less susceptible to traffic-related delays. A driver saving 12 minutes per day on their driving commute (6 minutes each way) will save more than 48 hours per year (more than one week's work) in driving time.

Frequently asked Questions and Answers

Below are some of the most common questions that residents, workers and businesses owners have about Congestion Pricing.

Don't people from the outer boroughs rely on the cars to commute to Manhattan?

Only 5% of commuters in Brooklyn, Queens, Staten Island and the Bronx commute to the Manhattan CBD by private car. Of that number, 80% have time-competitive mass transit available. Only 51% of household in the outer boroughs even own cars.

Is Congestion Pricing a tax on the working class?

No. Among commuters who live beyond walking distance to a subway station, workers earning less than $25,000 are TWICE as likely to take the subway as drive, and THREE TIMES as likely to take bus, subway or commuter rail than drive. Among commuters who earn between $25,000 and $50,000 a year, transit remains the preferred option to driving, by a 3-1 margin. Only among commuters earning more than $50,000 a year is driving more popular than the subway, though subway, bus and commuter rail use is greater than automobile use.

How will small businesses afford to drive their trucks to and from the City to make deliveries?

Most delivery vehicles will be charged a flat $8 per day, regardless of how often they enter and exit the zone. The City has not yet defined "trucks" which are subject to a higher charge, but the truck definition appears unlikely to include delivery vans and other 2-axle vehicles with a maximum gross weight under 7000 lbs. Moreover, reduced traffic congestion will significantly lower the amount of time trucks spend stuck in traffic, so the productivity increase will make up for (and in many cases, exceed) the charge. A plumber who charges $50 an hour could potentially schedule an additional job each day as a result; a florist might need fewer trucks to make the same number of deliveries. In London the overall effect of the charge on small businesses since 2003 has ranged from neutral to positive.

Will congestion pricing require large toll plazas to collect fees?

No. New York City would use a combination of EZ Pass technology, combined with a system that has been employed in London that relies on cameras that scan license plate numbers. Neither requires cars to slow down. The charge will then be assessed to a driver's EZ Pass account, or can be paid electronically, by mail or at designated retailers.

What impact will congestion pricing have on the City's economy?

Despite fears to the contrary, London's economy suffered no ill economic effects from its Congestion Charge. Retailers didn't see sales fall, and the cost of doing business in the city has decreased substantially. Because New York's proposed congestion charge is lower than that of London ($8 versus $13), an even more modest impact is anticipated here. With respect to tourism, the number of tourists visiting New York has continued to grow despite rapidly increasing costs in hotel rooms and other expenses.

Won't all of those drivers switching to transit result in a transit overload?

Only 10% of motorists affected by the congestion charge will switch to transit, resulting in a 2% increase in Manhattan-bound ridership, spread across dozens of transit lines. In anticipation of this modest increase, Mayor Bloomberg has proposed transit improvements across all five boroughs to alleviate congested bus and train lines. These improvements are targeted at neighborhoods with the highest drive-to-work rates, and include new express bus routes, bus/HOV lanes on the East River bridges, building out the Bicycle Master Plan, new ferry service and improving intra-city commuter rail access.