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HOT Lanes and Tolling

Operations and Enforcement

Safety

Funding/Business Requirements


HOT Lanes and Tolling

What are HOT lanes?
HOT lanes are tolled lanes that operate alongside existing highway lanes to provide users with a faster and more reliable travel option. The Capital Beltway HOT Lanes Project is building two new HOT lanes in each direction of I-495 (the Capital Beltway) from the Springfield Interchange to just north of the Dulles Toll Road (14 miles).

Will all vehicles have to pay a toll to travel on the Capital Beltway HOT Lanes?
Buses, carpools (HOV-3+), motorcycles and emergency vehicles will be able to access the Capital Beltway HOT lanes for free while drivers with fewer than three occupants can choose to pay a toll to use the HOT lanes.

What will the toll rate be?
Tolls for the HOT lanes will change based on real-time traffic conditions to manage the number of toll-paying customers entering the HOT lanes and keep them congestion free. This variable toll price strategy will make sure the lanes are always free flowing. Sensors along the road will continuously monitor traffic levels and speed.

When traffic increases, tolls will go up. When traffic decreases, tolls will go down. Because the tolls are based on real-time traffic conditions, it's impossible for us to predict exactly what the tolls will be at any given time. We expect they will range from as low as 10 cents a mile in light traffic conditions to around a dollar a mile in some high-demand sections of the Beltway at peak times. The average trip cost is estimated to be between $5 and $6.

Experience on existing HOT lanes across the country has been that toll-paying customers do not choose to use HOT lanes every day - most customers use them a couple of times a week when they need a faster or more reliable travel time.

Is there a cap on toll rates?
There will be no toll cap, as tolls must be able to increase to the level necessary to manage real-time traffic demand and keep the lanes congestion free. VDOT remains the owner and will oversee the toll road at all times.

Won't HOT lanes just benefit the rich?
Research on existing HOT lanes users in other parts of the country reveals that people of all incomes choose to pay tolls when they need a faster, more reliable travel time, such as when they need to pick up a child from daycare or make an important business meeting on time.

A study of the SR-91 Express Lanes in California revealed that only 25 percent of motorists who choose HOT lanes fall within the highest income level.

Further, tolls generated on the HOT lanes will underpin critically needed transportation improvements in the Capital Beltway Corridor, including added capacity and a first-time introduction of HOV and reliable transit options to the Beltway and Tysons Corner.

How will I pay the tolls?
The HOT lanes will be fully electronic toll lanes. Customers will pay tolls with E-ZPass - eliminating the need to stop or slow down for traditional toll booths.

How will I know ahead of time what the toll will be so I can decide whether to use the lanes?
Electronic signs will provide motorists with the latest toll rates. Motorists will see at least two electronic message signs well before they enter the HOT lanes so they will have plenty of time to choose whether to use HOT lanes or travel on the regular lanes for free.

Our team is working with experts, conducting an in-depth driver behavioral study, to determine the most effective methods of displaying the toll information and pricing via roadway signage. Information also will be available on the Web and through other technology-based channels.

Will the tolls change while I am in the lane?
Electronic signs will communicate the latest toll rates for drivers. Drivers will lock in their price to their destination when they enter the lanes, and will be charged per distance traveled. In the event of a major incident, signs on the HOT lanes will communicate any necessary information to inform drivers and manage traffic.

How can you guarantee to maintain free-flowing conditions in the HOT lanes?
The HOT lanes will use dynamic or congestion pricing to manage the number of toll-paying customers in the HOT lanes and keep them free-flowing. On average, we expect vehicles to be traveling 55 miles per hour, even during peak travel times. The HOT lanes operator has a business incentive to keep traffic moving, as travelers will not pay a toll unless they can depend on a faster and more reliable travel time.

HOT lanes that use dynamic toll prices in other U.S. cities have proven to provide faster, more reliable travel times. For example, travelers save about 20 minutes per trip on HOT lanes on I-10 in Houston; in Southern California, SR-91 customers estimated they shaved nearly 30 minutes off their morning and afternoon commutes; in Minneapolis, those using the express lanes generally experience a 20 mph increase in their speed; and average speed during AM peak on the Katy Freeway in Houston, Texas was 25 mph on the general purpose lanes and 59 mph on the HOT lanes.

Aggressive incident management tactics, such as closed-circuit video cameras and traffic sensors that identify incidents on the HOT lanes within a few minutes, and dedicated incident response crews, as well as strict enforcement of HOV access and tolling in the HOT lanes also will be critical to maintaining free-flowing travel conditions in the HOT lanes.

Will the lanes be tolled 24 hours-a-day for non-HOV motorists?
Tolls always will be in effect for non-HOV motorists on the HOT lanes. Toll prices will vary depending on traffic levels and will be higher during congested periods and lower during less-congested periods. Motorists always will have a choice to pay to use HOT lanes or use the regular lanes for free. HOV drivers can enjoy free travel on the lanes all the time.

Will hybrids be allowed to travel free in the lanes?
Per Virginia law, hybrid drivers will not travel free in the lanes. Like all drivers, hybrid drivers may choose to pay a toll to access the free-flowing HOT lanes or use the regular lanes for free.

Will commercial trucks be allowed to use the HOT lanes?
Mid-sized trucks such as local delivery trucks may pay a toll to use the HOT lanes. Large, 18-wheel trucks will not be allowed to access the HOT lanes.

Will motorcycles ride the HOT lanes for free as they do the HOV lanes?
Yes. Motorcycles will be permitted to use the HOT lanes free of charge.

Operations and Enforcement

How will the operator distinguish between HOVs and toll-paying customers?
Detailed planning is still underway, but current plans require all users on the HOT lanes to have an E-ZPass or a new, switchable transponder. The switchable transponder will be just like an E-ZPass transponder, but will provide a convenient way to switch between HOV and toll-paying modes with the addition of a switch. If the transponder is switched to HOV mode and the vehicle is carrying three or more passengers, the driver will not be charged a toll. If the tag is switched to toll mode, the tag will operate just like a traditional E-ZPass transponder and can be used to pay tolls on any other road that accepts E-ZPass.

Are all users of the HOT lanes required to have a transponder?
Yes. All vehicles traveling on the HOT lanes will be required to have a transponder. Only those vehicles that want to have the option of switching between traveling as an HOV or toll-paying customer need to have a new, switchable transponder. Customers who expect to always travel the lanes as a toll-paying customer may use a traditional E-ZPass transponder.

Will there be a customer fee for obtaining the new, switchable transponder?
Detailed planning for the switchable transponder is still underway, but customer costs likely will involve a nominal down payment or deposit, similar to obtaining a traditional E-ZPass transponder today. Our team is dedicated to ensuring that the switchable transponders are convenient to access and cost effective. Motorists who choose to obtain a switchable transponder will benefit as it will allow them the flexibility to travel the lanes as either HOV or a toll-paying customer.

What would happen if a driver used the HOT lanes without an E-ZPass by mistake?
Our priority is to ensure clear signage and a robust public education campaign so drivers know the rules of the road and how to use HOT lanes. Our business is customer-oriented and we are committed to ensuring that using the lanes is safe and convenient for everyone. There may be times, however, when drivers will use the HOT lanes without an E-ZPass by mistake.

If a driver uses the HOT lanes without an E-ZPass, it is likely that a letter will be sent to the driver explaining the correct way to use the HOT lanes and requesting payment of the toll and an administration fee. If the driver does not respond, the issue could escalate resulting in the driver receiving a summons ranging from $50 to $1,000, in addition to being charged the cost of the toll and an administrative fee.

How are out-of-towners going to understand that they need an E-ZPass to access the HOT Lanes?
Our priority is to ensure clear signage so all drivers know the rules of the road and how to use the HOT lanes. Fortunately, more than 10 million people traveling along the East Coast already have an E-ZPass, so it will be convenient for them to use the HOT lanes. Our team also is exploring other customer-friendly strategies, such as a toll-free number, so that long-distance travelers can obtain information on how to use the HOT lanes. These tactics will be complemented by an aggressive public education campaign, with a particular focus on long-distance travelers. We will partner with such transportation organizations as AAA-National to make sure that our information reaches drivers traveling up and down the East Coast.

Our research tells us that 90 percent of HOT lanes users will be local drivers traveling during peak travel times.

How will access and tolling in the lanes be enforced?
Enforcement of HOV access and tolling in the HOT lanes will be critical to keeping the lanes free-flowing at all times. Protecting customer privacy will be paramount in the deployment of all enforcement strategies.

First and foremost, all HOT lanes users will be required to have an E-ZPass or switchable tag transponder. A transponder reader will check for the presence of a transponder and if there is no transponder detected, the driver will be ticketed the cost of the toll and an administrative fee through the same kind of license plate detection/photo enforcement used on Virginia toll roads today.

Secondly, state police that are fully funded by Transurban (the operator) will be stationed in the HOT lanes corridor checking for HOV violators. By using visual assessment and equipment that will alert them of vehicles that are claiming to be HOV on their switchable tag transponder, but are not carrying the necessary 3+ occupants, law enforcement officers will be the first defense against HOV violators.

Finally, advanced occupancy detection technology that is able to count the number of people in a vehicle may be used to aid law enforcement officers in their HOV enforcement by notifying them of potential violators. This targeted enforcement approach is expected to reduce significantly the current 20 percent HOV violation rate.

What is the occupancy detection technology and has it been used on other highway projects?
Planning efforts for the occupancy detection technology are underway. Our research indicates that near infrared technology is the most promising technology for occupancy counting, as it is able to sense the presence of a human being. The particular device we are anticipating using has been tested in the U.K. and is being seriously considered by other highway projects in the United States. This technology is similar to that which is used at many retail or grocery stores to automatically open doors. We are confident that this technology will be effective in aiding law enforcement officers, who will have ultimate determination of HOT lane violators. Protecting customer privacy will be paramount in the deployment of all enforcement strategies.

Safety

What safety measures will be in place to manage incidents on the lanes?
The HOT lanes are designed to promote driver safety. The increased law enforcement located throughout the HOT lanes corridor will be among the most visible safety measures in place. In addition to HOV violation enforcement, these officers will enforce safe driving and will be available to respond immediately to incidents on the lanes.

Closed-circuit video cameras and traffic sensors will continuously monitor the lanes and identify incidents on the HOT lanes within a few minutes. Private, dedicated incident response crews will be deployed to manage incidents quickly, in cooperation with first responders and emergency service providers. Electronic signs will alert motorists to incidents ahead.

Won't the HOT lanes make the bottleneck at the American Legion Bridge headed into Maryland worse?
We recognize that the American Legion Bridge is highly congested and often a problem for drivers in the region. And, the Capital Beltway HOT lanes certainly won't fix all traffic troubles on the entire Beltway. However, the project is cognizant of the issues at the American Legion Bridge, and as a result, our project terminates at Old Dominion Drive (just north of the Dulles Toll Road), rather than the original northern terminus from the project's earlier design, which was at Georgetown Pike. This earlier termination of the project will allow vehicles to more gradually merge from the wider HOT lanes corridor (6 lanes) to the original Beltway configuration (4 lanes). Furthermore, both Maryland and Virginia are engaged in a longer-term Mobility Study for the Capital Beltway, which would potentially identify other enhancements for such Beltway bottlenecks as the American Legion Bridge.

Will the HOT lanes promote increased cut-through traffic in local neighborhoods?
The HOT lanes are designed to make the Capital Beltway flow more efficiently - keeping drivers on the interstate and out of local neighborhoods. During construction, VDOT is working with local officials and adjacent communities to manage spillover traffic through increased enforcement and other traffic-calming measures such as speed bumps, variable message signs, etc..

Funding/Business Requirements

Why couldn't the Commonwealth just finance this project on its own?
With all the transportation needs, the Commonwealth does not have sufficient funding to dedicate to this project. This one project would consume more than a year of all construction funding available statewide.

Was there a competitive procurement process for the project?
VDOT conducted a formal solicitation for competing proposals and an independent review process before moving this project forward. In addition, VDOT commissioned an independent consulting firm to verify all construction cost estimates.

Was the General Assembly involved in selecting Fluor-Transurban for the contract?
No. Fluor-Transurban went through a formal procurement process with VDOT, including review by an independent advisory panel. The procurement did, however, follow the guidelines established by the General Assembly under the Public Private Transportation Act of 1995.

Under the agreement, can Fluor-Transurban veto further expansion of the Beltway or improvements to surrounding roads?
No. The private partners have no ability to restrict the Commonwealth from making improvements or expansions to the region's roadways. VDOT has agreed to provide the private partners the opportunity to propose to build additional tolled lanes on the Capital Beltway if congestion would ever warrant them.

What is the cost estimate for the Capital Beltway HOT Lanes project and from where is the funding?
The current cost estimate for the Capital Beltway HOT Lanes is $1.9 billion. The Commonwealth of Virginia is contributing $409 million; $349 million is being provided by private equity funded by Transurban and Fluor; $1.2 billion is funded by loans and bonds backed by Transurban and Fluor.

What will happen if the HOT lanes fail financially? Will taxpayers be left to pay the debt on the project?
We are confident the project will be a success. Transurban and Fluor are both highly respected and strong global companies with a wealth of experience in these kinds of projects. One of the benefits of the public-private partnership is that risk is shifted to the private sector. In the event that the project was not a success, Virginia would still own the new lanes, but would not be responsible for the debt. The banks would restructure the debt and a new partner would likely take on the project, with Virginia's approval.

Why is the length of the term on the agreement so long?
The 80-year contract term (5 years construction / 75 years operation) makes the project work financially - allowing for sufficient time for tolls to generate the revenue necessary to operate the road, pay back debt and allow for a fair rate of return on equity invested.

Will the Commonwealth have to pay Fluor-Transurban if carpooling increases on the Beltway?
To ensure HOV-3 will always be free and that there is no disincentive for carpool and transit use on the HOT lanes, the Commonwealth will make partial payments to the Concessionaire in the unlikely event that HOV use exceeds mutually agreed upon numbers. This provision is intended to ensure that unforeseeable changes in travel patterns don't restrict HOT lanes ability to generate enough revenue to pay for the operations and maintenance of the lanes, as well as paying back construction debt. We believe, at this time, it is unlikely that HOV will increase at a rate significant enough to impact the project and trigger this arrangement.

What kind of profit will the private companies make on this project?
At this stage it is too early to make profit projections. It all depends on how successful the project is and how well the private partners manage the project. Under the partnership agreement if the project is a financial success, the Commonwealth will share in that success based upon agreed terms. If the project fails, the private sector will bear the financial loss alone.

How will toll revenues be spent?
Toll revenues will first be used to maintain and operate the HOT lanes, then to pay back the debt on the road. The private partners will also fund all the maintenance replacement needed to keep the road up to VDOT standards throughout the life of the agreement. If the private partners are successful in managing the project, additional revenue will go back to their investors. Revenue above agreed benchmarks will be shared with the Commonwealth to fund transportation programs and projects in the corridor.