The HOTter the better

High-occupancy toll lanes increase capacity and reduce congestion—and drivers actually like them.

Now in many cities around the U.S., those individual drivers will have a new option: Pay a toll to jump in that free-flowing lane and zoom ahead. Transportation agencies are increasingly turning to (HOT) high-occupancy toll lanes to reduce congestion and increase mobility.

HOT lanes and other managed highway projects are attracting attention because, unlike HOV lanes, they serve a larger segment of the commuting population. Due to the difficulties of forming true car pools, HOV lanes have failed to deliver on their promise.

HOT lanes, on the contrary, have proven their worth by reducing congestion, providing revenue for their upkeep and gaining the backing of politicians and drivers. These projects add capacity to roadways by either providing new lanes or making HOV lanes open to more drivers. The benefits extend to non-HOT-lane drivers; research on SR-91 express lanes in Orange County by Edward Sullivan, professor at California Polytechnic State University, found that average peak-period speeds in the adjacent lanes increased from 15 mph to 32 mph and that peak-period congestion has dropped from four hours to less than three hours.

At the same time, managed lanes provide the revenue to pay their own way. In this era of declining gas tax revenues, a reliable income source is invaluable to transportation agencies. Tolls can fund the conversion of HOV to HOT lanes; they also can be used to pay off debt used to build new roads. Creative financing strategies such as federally backed loans such as the Transportation Infrastructure Finance and Innovation Act and state infrastructure banks are growing in importance around the U.S. since they provide up-front dollars to get projects on the ground immediately. However, most of these projects need some kind of tolling element to provide long-term revenue to service this debt. Managed lanes also make a good fit for public-private projects. The private sector is playing a growing role in highway development as agencies look for new financing sources and the private sector seeks out new opportunities.

The general public has generally demonstrated its support of HOT lanes. A survey of drivers on I-15 found that 91% of lane users agreed the lanes were “a good idea.” More than 70% of non-users agreed the lanes reduced congestion. Despite the occasional criticism that HOT lanes are “Lexus lanes” that will only be used by wealthy drivers, 80% of I-15 drivers in the lowest income bracket supported the concept of paying to use the faster lane.

Another major factor in why HOT lanes work today is technology. The tagless tolling technologies available in recent years make managed lanes possible. Tollbooths would slow down lane access and wouldn’t be feasible for most HOV-lane conversion projects. Toll staff would increase costs. As electronic tolling technology continues to improve and gain acceptance in the marketplace, HOT lanes will only increase in feasibility.

Transportation agencies need to ask themselves tough questions to determine how to approach their HOT-lane projects.

First, what is your primary goal? HOT lanes can serve many purposes. The relative value of these different goals will shape your approach. If the primary aim is to encourage ride-sharing, then HOV drivers should get substantial discounts on HOT lanes if not drive free. If the primary aim is to generate revenue, all drivers should pay to take the road. If the purpose is to provide a free-flowing lane at all times, value pricing should probably be employed. Every region and agency will have different needs and goals; understanding them will lead to the right solution. Second, what support is available? Do drivers use HOV lanes now? Can you channel that driving pattern into support for your strategy? Or is public opinion against HOV lanes, considering them a waste? Is this an opportunity to convert an underused facility? How open is political leadership to innovative strategies or creative financing? Is there a leader that could be tapped to become a political champion for your project?

The Cato Institute called HOT lanes “a rare policy innovation that improves economic efficiency and is politically feasible as well” and declare that “their time has come.” By carefully examining options and answering critical questions of support and need, transportation agencies can shape a managed lanes strategy that can improve mobility and decrease congestion in their area. TME