I-70 Mountain Corridor Traffic Congestion Policy Analysis INSTITUTE FOR PUBLIC POLICY STUDIES UNIVERSITY OF DENVER JEANNI BARNTHOUSE MASTER OF PUBLIC POLICY CANDIDATE JUNE 2016 ADVISOR: LAPO SALUCCI CBA ADVISOR: ANDREW SHERBO Contents EXECUTIVE SUMMARY .................................................................................................................................1 INTRODUCTION............................................................................................................................................2 Traffic Congestion Along Major Transportation Corridors: A National Issue .................................2 Problem Definition..........................................................................................................................2 Economic Rationale for Government Intervention.........................................................................4 A. Negative Internalities.....................................................................................................5 Human Health Impacts and Travel Inefficiencies...............................................................5 B. Negative Externalities ....................................................................................................5 C. Business Capital Losses ..................................................................................................7 D. The Need for Government Intervention........................................................................7 METHODS.....................................................................................................................................................7 Federal and State Policy Resources ................................................................................................8 Literature Review............................................................................................................................8 Interviews........................................................................................................................................9 ISSUE ANALYSIS ............................................................................................................................................9 Role of Federal Government & Transportation Infrastructure.......................................................9 Federal Environmental Regulation ..................................................................................10 Colorado’s Compliance with NEPA and I-70 Mountain Corridor.....................................11 Statewide Transportation Planning ..............................................................................................12 CDOT Transportation Regions..........................................................................................12 Statewide Transportation Planning .................................................................................13 Statewide Transportation Improvement Program ..........................................................14 Intermountain Transportation Planning Region ..............................................................14 Denver Regional Council of Governments.......................................................................15 Transportation Commission.............................................................................................15 Government Funding for Transportation .....................................................................................16 Federal Funding ...............................................................................................................17 State Funding ...................................................................................................................19 Population Growth........................................................................................................................23 Increasing Recreational Travel Demand .......................................................................................24 Rural Mountain vs. Urban Traffic Congestion...............................................................................24 Previous Interventions ..................................................................................................................26 Future Technology ........................................................................................................................26 Costs & Economic Impacts............................................................................................................27 Time and Resource Inefficiency .......................................................................................27 Vehicle Operating Costs...................................................................................................28 Fatalities and injuries due to automobile accidents ........................................................28 Tourism & Recreation ......................................................................................................29 Commercial Freight..........................................................................................................31 Fuel Economy...................................................................................................................31 Environmental & Health Impacts..................................................................................................32 Air and Noise Pollution ....................................................................................................32 Stakeholder Interests....................................................................................................................33 Stakeholder Groups .........................................................................................................33 Stakeholder Positions....................................................................................................................33 Partisan Politics................................................................................................................33 PROPOSED SOLUTIONS ..............................................................................................................................34 Status Quo.....................................................................................................................................34 Alternative #1: High-Occupancy Vehicle (HOV3) ..........................................................................37 Requirements and Challenges for Implementation.........................................................38 Alternative #2: Toll Lanes..............................................................................................................38 Requirements and Challenges for Implementation.........................................................39 Alternative #3: Increasing Bus Transit Ridership ..........................................................................40 Requirements and Challenges for Implementation.........................................................41 COST-BENEFIT ANALYSIS ............................................................................................................................42 Methodology.................................................................................................................................42 Approach & Timeframe....................................................................................................42 Method for Evaluation.....................................................................................................43 Social Discount Rate, Inflation and Future Projections ...................................................43 Cost and Benefit Inputs....................................................................................................44 Cost Benefit Matrix Discussion .....................................................................................................44 Sensitivity Analysis Matrices and Discussion ................................................................................46 Political Feasibility Matrix and Discussion ....................................................................................47 CBA Results ...................................................................................................................................47 CBA Assumptions & Limitations.......................................................................................48 STRATEGIC RECOMMENDATIONS..............................................................................................................48 WEAKNESSES AND LIMITATIONS ...............................................................................................................50 LIST OF FIGURES Figure 1: Map of I-70 Mountain Corridor Region .......................................................................................4 Figure 2: Negative Effects of Air Pollutants on the Human Body..............................................................5 Figure 3: Map of CDOT Regions ............................................................................................................... 13 Figure 4. Map of Intermountain TPR........................................................................................................ 14 Figure 5. Map of DRCOG Transportation Planning Region..................................................................... 15 Figure 6. Map of Transportation Commission Districts .......................................................................... 16 Figure 7: Transportation Funding Flows to Government Agencies ........................................................ 16 Figure 8: Map of Colorado Ski Areas ....................................................................................................... 29 Figure 9: Bustang West Line Map............................................................................................................ 36 List of Charts Chart 1: Air Pollutants from Source Sector in Colorado ............................................................................6 Chart 2: Overview of NEPA Process ......................................................................................................... 10 Chart 3: Federal Highway Expenditures & Revenue Sources................................................................. 17 Chart 4: State of Colorado Transportation Revenues & Expenditures .................................................. 20 Chart 5: Colorado's Projected Population Growth 1990-2040 .............................................................. 24 Chart 6: I-70 Directional Traffic Vehicle Counts (2015) ......................................................................... 25 List of Tables Table 1: Summary of Mechanism for Colorado Transportation ............................................................. 23 Table 2: Cost-Benefit Inputs ..................................................................................................................... 44 Table 3: CBA Matrix................................................................................................................................... 45 Table 4: Simplified CBA ........................................................................................................................... 46 Table 5: Sensitivity Analysis of Toll Lanes ............................................................................................... 47 Table 6: Political Feasibility Matrix .......................................................................................................... 47 Acknowledgements Though my name appears on the cover of this memorandum, a great many people have contributed to its production. I owe my gratitude to all those people who have made this memorandum possible. I want to take this opportunity to express my gratitude to everyone who supported me throughout the course of this MPP program. I express my gratitude to my advisor Professor Lapo Salucci. I have been fortunate to have an advisor who provided insightful comments and constructive criticisms at different stages in my research that were thought provoking and helped to focus my ideas. To my CBA advisor, Professor Andrew Sherbo, I am deeply grateful for your insight and willingness to accommodate meetings during non-office hours. And to Alexis Senger for challenging me in her class, by setting high standards, while encouraging and guiding me to meet those standards. I am thankful to the University of Denver Institute for Public Policy Staff, Erin Dietrich and Debbie Gaylinn for their continued administrative support and direction throughout the program. I am grateful for Steve Farber, for allowing me the opportunity to attend graduate school to pursue my passion for policy. I would like to acknowledge Dr. Rebecca Garvoille, for her continued friendship, insight and thought provoking ideas. Many friends have supported me and helped me overcome setbacks and helped me stay focused on my graduate memorandum. I would like particularly thank Claire Carroll, Anastasia Darwish, Whitney Newcomer, Jamie Pierson and Sophie Poppie, for their continued encouragement and friendship. Many thanks to Susan Griffin and Marsha Stewart for listening and the continued belief in my abilities. Especially, I am extremely thankful for Keith Stefanik, for his knowledge, his patience with me through the process and him being supportive every step of the way. And for Rozi, always making me feel special by wagging her tail and cuddling, no matter what hour of the day. Most importantly, none of this would have been possible without the love and support from my family. My immediate family to whom this memorandum is dedicated to has been a constant source of love, concern, support, and strength all of these years. As well as, my extended family that have aided and encouraged me throughout graduate school, especially Priscilla Moore, whom encouraged me the most to continue my education at a graduate level. ACRONYMS & ABBREVIATIONS ADIS-Advanced Driver Information Systems HTF-Highway Trust Fund AGS-Advanced Guideway System HUTF-Highway Users Tax Fund CAA-Clean Air Act LPA-Local Public Agencies CBA-Cost Benefit Analysis MPO-Metropolitan Planning Organization CDOT-Colorado Department of Transportation MT-Metric Ton CO-Carbon Monoxide NAAQS-National Ambient Air Quality Standards CRS-Colorado Revised Statutes NEPA-National Environmental Policy Act DEIS-Draft Environmental Impact Statement NOx-Nitrogen Oxide DOT-United States Department of Transportation NPV-Net Present Value OEDIT-Office of Economic Development DRCOG-Denver Regional Council of Governments P3-Public-Private Partnership DTP-Denver Transit Partners PEIS-Programmatic Environmental Impact Statement EA-Environmental Assessment EPA-Environmental Protection Agency PM-Particulate Matter ROD-Record of Decision FASTER-Funding Advancement for Surface Transportation and Economic Recovery RTD-Regional Transportation District FHWA-Federal Highway Administration SHF-State Highway Fund FONSI-Finding of No Significant Impact STIP-Statewide Transportation Improvement Program FTA-Federal Transit Administration HOT-High Occupancy Toll HOV-High Occupancy Vehicle HPTE-High Performance Transportation Enterprise SWP-Statewide Transportation Plan TABOR-Taxpayer’s Bill of Rights TIFIA-Transportation Infrastructure Finance and Innovation Act TPR-Transportation Planning Region Executive Summary “As long as the Interstate is the highway supporting our society, economy, and national security, it will forever need to be the beneficiary of our attention and investment. The ribbon cuttings will never end!” ~Dan McNichol~ Traffic congestion has become an increasingly important topic for policymakers in the United States. As populations continue to grow, traffic volumes during peak travel times are expected to continually increase causing greater delays. These delays impact health and exacerbate travel inefficiencies for commuters, resulting in increased pollution. Although, Colorado has many outdoor recreational activities to offer, tourist and residents are having difficulty commuting along the I-70 Mountain Corridor in a timely manner due to these negative impacts of increased traffic congestion. This policy memorandum examines the extensive issues related to the excessive traffic congestion on Colorado’s I-70 Mountain Corridor and offers strategic mitigation recommendations. A thorough examination of governmental regulation mechanisms were reviewed in the analysis, taking into account the complexities surrounding transportation infrastructure projects. The analysis further examines alternatives to the existing status quo. The memorandum finds that the development and implementation of an alternative to the status quo is necessary to decrease traffic congestion along the I-70 Mountain Corridor. The following interventions are considered in the analysis: HOV3, increasing capacity of the corridor with two additional lanes, requiring a minimum of three passengers per vehicle, Toll Lanes, increasing capacity of the corridor with two additional lanes, with fluctuating fees per vehicle based on traffic demands, and increased bus ridership, through a bus service with fees for riders. Of the three interventions, Toll Lanes are projected to have the least fiscal impact on taxpayers while alleviating traffic congestion along the I-70 Mountain Corridor. Barnthouse 2 Introduction Traffic Congestion Along Major Transportation Corridors: A National Issue Traffic congestion along major interstate corridors is a widespread issue across the United States. Traffic not only impedes mobility but also has a number of negative consequences including lost time for commuters and leisure travelers, hindering economic growth through travel inefficiencies, loss of capital for businesses, and an increase in pollution. Each year Americans travel an extra 6.9 billion hours and purchase an extra 3.1 billion gallons of fuel due to congestion, creating a total traffic congestion cost of $160 billion a year.1 Additionally, traffic influencing events like accidents or weather further increase the traffic congestion on roads and cause a decrease of capacity capabilities for transportation infrastructure. I-70 in Colorado is a particular example of the economic and health costs posed by traffic congestion along a major highway corridor in a mountain environment. Problem Definition I-70 is the only east to west interstate highway in Colorado. Traversing the Southern Rocky Mountains, I-70 is an important transportation artery, used to move 11,000 tons of commercial goods and nearly 11 million automobiles from the Great Plains across Colorado and into to Western states via Utah each year.2 The I-70 Mountain Corridor is the section of interstate between C-470, outside of Denver, to Glenwood Springs; providing an economic gateway to Colorado’s multi-million dollar outdoor recreation industry.3 (Figure 1). Nearly 72 million tourists traveled to Colorado to enjoy recreational opportunities in the Southern Rockies last year, 23% of these tourists used I-70 to access the mountain resorts for skiing in the winter and outdoor activities in the summer.4 However, traffic congestion in the region is not only a potential danger to motorists but it costs drivers in Colorado an extra $1.35 billion annually.5 Further, traffic congestion is an inconvenience and an economic drain to local communities. 1 “2015 Urban Mobility Scorecard,” accessed February 6, 2016, http://d2dtl5nnlpfr0r.cloudfront.net/tti.tamu.edu/documents/mobility-scorecard-2015.pdf. 2 “Freight Analysis Framework (FAF),” accessed February 6, 2016, http://faf.ornl.gov/fafweb/FUT.aspx. 3 “Construction Timeline — Colorado Department of Transportation - CDOT,” accessed October 20, 2015, https://www.codot.gov/about/CDOTHistory/50th-anniversary/interstate-70/construction-timeline.html. 4 “Travelers Stuffed $17.3 Billion into Colorado Tourism Coffers in 2013 - The Denver Post,” accessed February 6, 2016, http://www.denverpost.com/business/ci_26236834/travelers-stuffed-17-3-billion-into-colorado-tourism. 5 “Performance Landing Page — Colorado Department of Transportation - CDOT,” accessed February 6, 2016, https://www.codot.gov/performance. Barnthouse 3 The development of world-class ski areas, such as Vail and Aspen, and the continued amenitydriven population growth in and around the Mountain Corridor continues to increase traffic, adding an additional 150,000 vehicles a year.6 Such increased traffic volumes create a loss of $25 million a year in tourism spending in the Mountain Resort Region, which decrease tax revenues for the state, counties, and localities. Further, traffic congestion on I-70 Mountain Corridor creates a loss of $85 million for residents commuting along the corridor as well as decreasing businesses productivity by $728 million annually.7 Despite short-term mitigation efforts by the Colorado Department of Transportation (CDOT), the I-70 Mountain Corridor has become increasingly congested with vehicular traffic volumes. In fact, during peak travel times, traffic volumes on the I-70 Mountain Corridor far exceed the highway’s current capacity, creating heavy traffic congestion that adversely affects Colorado’s multi-million dollar recreational economy, travel efficiency and the health of motorists and residents alike. Precise Problem Definition During peak travel times, traffic volumes on the I-70 Mountain Corridor far exceed the highway’s current capacity, creating heavy traffic congestion that adversely affects Colorado’s multi-million dollar recreational economy, the travel efficiency of the I-70 Corridor and the health of motorists and residents. Given the previous and projected population growth in Colorado, traffic volumes during peak travel times is expected to continue to increase over the coming decade, causing further congestion and delays. Colorado’s population grew by over fifty-eight percent between 1990 and 2015. Further, the Mountain Resort Region population increased by about eighty-four percent during the same time frame.8 Colorado’s population is estimated at 5.4 million and is expected to increase by an additional twenty-two percent within the next ten years. 9 While CDOT has explored methods for addressing transportation issues along the I-70 Mountain Corridor, additional alternatives need to be assessed in order to identify 6 “CDOT Tackling I-70 Mountain Corridor - The Denver Post,” accessed February 6, 2016, http://www.denverpost.com/news/ci_25504609/cdot-tackling-i-70-mountain-corridor. 7 “The Impact of I70 Congestion on Colorado-Denver to Grand Junction,” accessed February 6, 2016, http://www.developmentresearch.net/Sample%20Projects/Economic%20and%20Fiscal%20Impact%20Analysis/I70%20Impact_ 042507.pdf. 8 “The Impact of I70 Congestion on Colorado-Denver to Grand Junction,” accessed February 6, 2016, http://www.developmentresearch.net/Sample%20Projects/Economic%20and%20Fiscal%20Impact%20Analysis/I70%20Impact_ 042507.pdf. 9 “QuickFacts-Colorado, United States Census Bureau,” accessed March 7, 2016, http://www.census.gov/quickfacts/table/PST045215/08. Barnthouse 4 and implement an effective long-term strategy to decrease vehicular congestion. This policy analysis presents several feasible alternatives to help meet existing and future travel demands, while also increasing travel mobility along the I-70 Mountain Corridor. Figure 1 below depicts the region that encompasses the I-70 Mountain Corridor. Figure 1: Map of I-70 Mountain Corridor Region Source: DRCOG Briefing Oct062010 Economic Rationale for Government Intervention Traffic congestion along the I-70 Mountain Corridor warrants definition as a public problem that should be addressed using public resources. It is both a market failure and a government failure that results in broader economic and social costs to the state. Government has proven abilities in developing the complex network of transportation infrastructure, with freeways providing the backbone to almost every metropolitan area in the country. However, transportation reliability has worsened over time and the United States transportation infrastructure is not keeping pace with demands.10 America has a failing infrastructure system and the government continues to underestimate the costs associated to keep up with demands and develop effective infrastructure. I-70 Mountain Corridor is a prime example of the lack of transportation reliability in the United States. Traffic congestion along I-70’s Mountain Corridor has 10 America may not be able to completely build its way out of traffic congestion. Barnthouse 5 created direct negative impacts on Colorado’s economy, transportation efficiency, and the health of residents and visitors, requiring government intervention. A. Negative Internalities Human Health Impacts and Travel Inefficiencies There are negative internalities for the motorists stuck in traffic along I-70. Those that travel the region regularly may be at a higher risk for health issues. Motorists that endure prolonged times sitting in traffic, have negative health implications that can create an induced risk of urinary tract infections, blood clots, and stiff necks.11 A long duration of sitting is even linked to heart disease and diabetes.12 Along with sitting; motorists are more likely to have traffic accidents because of traffic congestion. Motorist can be distracted easily, as speeds of traffic accelerate and decline rapidly. Further, this congestion can also interfere with emergency vehicles being able to gain access to the scene of an accident.13 While negative internalities are present for motorists because of traffic congestion along the I-70 Mountain Corridor, negative externalities are created for the region due to increased air pollutants. B. Negative Externalities Air and Noise Pollution Figure 2: Negative Effects of Air Pollutants on the Human Body While air pollution may be reduced with the continued integration of vehicle emission technologies, such as hybrid and electric vehicles, air pollution caused from vehicle emissions is increasing in the region because of traffic congestion. This pollution leads to negative externalities for the residents and the ecosystems along the I-70 Mountain Corridor. Living near congested or Source: Page 13, Every breath we take EEA 2013 11 Alejandro Reuss, “‘Car Trouble’-Dollars & Sense, Issue 246, 2003,” accessed October 20, 2015, http://dollarsandsense.org/archives/year/2003/. 12 Ibid. 13 Roy L. Wilshire and Charles J. Keese, Effects of Traffic Accidents on Freeway Operation (Citeseer, 1963), accessed March 27,2016, http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.248.3992&rep=rep1&type=pdf.accessed. Barnthouse 6 high traffic volumes increases the risk for adverse health effects. Figure 2 illustrates the effects of pollution on the human body. Additionally, noise pollution caused from traffic congestion is not only a nuisance, but it has also been linked to additional negative health implications.14 Transportation is the second largest source air pollution is a mobile source, accounting for twenty-nine percent of all the United States greenhouse gases emissions. Transportation carbon emissions account for between 95 to 99 percent of the total air pollution created from passenger vehicles, with the remaining portion of the other pollutants difficult to estimate.15 As more cars emit hazardous gases sitting in traffic congestion, the amount of air pollution in Colorado will continue to grow. Overall, Colorado has relatively good air quality for most of the year compared to many other states. However, when accounting for air pollutants in Colorado, mobile sources provide the highest levels of carbon monoxide, lead and oxides of nitrous pollution in the state.16 Chart 1 below exemplifies the various sources of emissions and the rate by source. These vehicle emissions add to the traffic congestion economic impacts suffered by the state. Chart 1: Air Pollutants from Source Sector in Colorado Source: United States Environmental Protection Agency 14 Alejandro Reuss, “‘Car Trouble’-Dollars & Sense, Issue 246, 2003,” accessed October 20, 2015, http://dollarsandsense.org/archives/year/2003/. 15 Greenhouse Gas Emissions from a Typical Passenger Vehicle, United States Environmental Protection Agency, accessed March 22, 2016, https://www3.epa.gov/otaq/climate/documents/420f14040a.pdf. 16 “State and County Emission Summaries | Air Emission Sources | Air & Radiation | US EPA,” accessed March 7, 2016, https://www3.epa.gov/cgi-bin/broker?_service=data&_debug=0&_program=dataprog.dw_do_all_multi.sas&stfips=08. Barnthouse 7 C. Business Capital Losses Traffic congestion on I-70 continues to threaten the Mountain Region businesses. In the Mountain Resort Region, businesses earn approximately $800,000 a day from tourism related contributions, providing a vital source of revenue for the state.17 Yet, tourists having trouble accessing Colorado’s Rocky Mountains may choose other vacation options than those along the I-70 Corridor. Traffic congestion losses equate to an average annual loss of $25 million in business revenue for the state and may continue to decrease due to the increased traffic congestion.18 Further, traffic congestion adds to a decline in worker productivity and business operations, causing businesses in the region a loss of $728 million annually. D. The Need for Government Intervention The costs borne by internal and external parties from I-70’s traffic congestion, along with the costs of the travels inefficiencies for motorists and businesses, justifies the role of government intervention to mitigate traffic congestion along the I-70 Mountain Corridor. Due to the growing number of affected individuals, traffic congestion has transformed into a basic mobility problem, which is that too many people want to move at the same time. Peak traffic congestion has become an inherent means that modern society to operate within. Addressing this growing recreational traffic congestion on the corridor requires a robust mixture of travel demand management, technology, and other highway improvements. Clearly this is a broader societal issue with far-reaching economic and social costs for many people and entities. In order to successfully create a more reliable transportation system it requires the government to maximize social welfare by speeding up the growth of the transportation network to serve an increasing number of users. Yet, it also requires the government to be consider the environment of the corridor, by preserving historic sites, having a clear grasp on local community values, and the safety needs along the corridor. Methods Various methods were used to gather relevant information to analyze this topic, to inform and evaluate policy recommendations. “The Impact of I70 Congestion on Colorado-Denver to Grand Junction,” accessed February 6, 2016, http://www.developmentresearch.net/Sample%20Projects/Economic%20and%20Fiscal%20Impact%20Analysis/I70%20Impact_ 042507.pdf. 18 Ibid. 17 Barnthouse 8 Federal and State Policy Resources Primary sources for research included the United States Department of Transportation’s database maintained by the Bureau of Transportation Statistics. The database provides transportation information by mode, region, and subject.19 Additionally, the Colorado Office of Economic Development and International Trade (OEDIT) provides information on the state economy and maintains records on state tourism in the Colorado Tourism Office.20 Additional primary sources include reports and analyses from the Colorado Department of Transportation (CDOT).21 Further, the federal and state legislative histories related to road infrastructure and Interstate-70 improvements as well as regulations since the Mountain Corridor portion was constructed were reviewed to understand the broader policy context of the I-70 Mountain Corridor. The State of Colorado Legislative information was found in the Colorado Revised Statute (CRS), which is available online.22 Literature Review There was an extensive review of relevant peer-reviewed journal articles examining the costs of traffic congestion on major interstate highway corridors in the United States. A list of reviewed Journal articles can be found in Appendix P. Scientific insights on travel time analysis and the health effects of air pollution were offered by Schumer et al. (2009). Consumer preferences and economic analysis of air pollution can be found in the Review of Economics and Statistics. The Logistics and Transportation Review provides information on the impacts of changing transportation systems, indicating the economic assessments of transportation modes. The Journal of Transport Economics and Policy offers information on the costs of, as well as, the supply and demand of alternative modes of transportation, while assessing the environmental impact of vehicles. The Journal of Safety Research and the American Economic Review provide important information on transportation safety. The Journal of Urban Economics looks at the cost and output of alternative modes of transportation and safety regulation. The Transportation Research Part A reviews 19 “Data and Statistics | Bureau of Transportation Statistics,” accessed October 20, 2015, http://www.rita.dot.gov/bts/data_and_statistics/index.html. 20 “Office of Economic Development and International Trade | Colorado Business,” accessed October 20, 2015, http://www.advancecolorado.com/. 21 “CDOT and Transportation Facts — Colorado Department of Transportation - CDOT,” accessed October 20, 2015, https://www.codot.gov/about/. 22 “Colorado General Assembly Home Page,” accessed October 20, 2015, http://www.leg.state.co.us/clics/cslFrontPages.nsf/HomeSplash?OpenForm. Barnthouse 9 high-occupancy toll lanes. Where the Journal of Political Economy looks into the peak-load pricing of expressways. For articles regarding tourism, the Journal of Travel Research is an applicable source. Interviews Additionally, this policy analysis is based on insights from interviews with key stakeholders that include industry leaders, professionals, and constituents. Interviewees included a CDOT Project Engineer; a FHWA & TIFIA board member, an operative of Colorado’s OEDIT, transportation attorneys and lobbyists, transportation consultants, and commuters along I-70 Mountain Corridor. A list of questions used in interviews are located in Appendix O. Issue Analysis Highways defined and created America in the past, but present transportation infrastructure problems have created severe issues. Current government roles, regulations, planning and funding mechanisms are part of the continued persistent problems associated with traffic congestion. While innovative solutions have been developed to increase infrastructure financing options, federal and state governments lack appropriate funding to successfully eradicate traffic congestion. Adding to the issue are non-infrastructure related components, such as population growth, recreational traffic demands and unique traffic patterns in the Mountain Corridor compared to urban settings. Even with successful transportation mechanisms and the potential for technology advancement, predicting the future of transportation infrastructure needs is difficult to assess. An analysis of transportation infrastructure is necessary as excess traffic congestion leads to negative implications for the economy and public health in Colorado. These negative health and economic impacts can be seen for motorists, residents, businesses, the environment, and impact the government. Role of Federal Government & Transportation Infrastructure Prior to the federal government’s role in funding transportation infrastructure, the state government and private sector financed roads by building toll roads and connecting many areas throughout the country. The first major federal intervention into road financing was in the early 1900s, establishing the Federal Bureau of Public Roads, allotting federal grants to the states. Such federal grants initiated a top-down regulatory effect on roads. Further, the origin of the Interstate is most closely being Barnthouse 10 associated with President Dwight D. Eisenhower with the Federal-Aid Highway Act of 1956.23 While Interstates are owned and maintained by the state they were built, the states are subject to additional applicable federal regulations. Federal Environmental Regulation The 1970 National Environmental Policy Act (NEPA) established federal standards that require federal agencies to assess potential environmental impacts of proposed transportation infrastructure developments prior to implementation.24 The process requires an Environmental Assessment (EA) of the proposed project area. If the EA results in a Finding of No Significant Impact (FONSI), then the project can move forward as planned. However; like with many transportation improvements; when the EA results in a potential environmental impact, a Draft Environmental Impact Statement (DEIS) is required. The DEIS provides alternatives to the status quo, including a no action and a preferred alternative. The federal regulation further requires public participation throughout the process. The process continues with a Final Programmatic Environmental Impact Statement (PEIS), that provides recommendations, through a multi-tiered system, for implementation of a selected alternative. The recommended alternative from the Final PEIS then concludes with publication in the Record of Decision (ROD).25 Once the ROD has had the appropriate public commenting period, then the project can be implemented. Chart 2 below displays the NEPA process once an EA has been assessed. These regulatory policies are necessary to ensure the selected alternative has minimal implications for the environment, while adding value for the proposed transportation infrastructure. However, traffic in the proposed area during this process continues to remain congested as this multi-tiered system for implementation of the selected project can take years. Chart 2: Overview of NEPA Process EA DEIS PEIS ROD PROJECT Public Comment Period 26 23 “The Interstate Highway System - Facts & Summary - HISTORY.com,” accessed February 7, 2016, http://www.history.com/topics/interstate-highway-system. 24 “What Is the National Environmental Policy Act? | National Environmental Policy Act | US EPA,” accessed February 6, 2016, http://www.epa.gov/nepa/what-national-environmental-policy-act. 25 Ibid. 26 Terminology may vary based on industry, the diagram depicts a generalization of the NEPA process. Barnthouse 11 While the NEPA requires an extensive process by which states must comply to receive funding from the federal government, states must also be in compliance with the Clean Air Act (CAA). 27 The CAA set the National Ambient Air Quality Standards (NAAQS) for six pollutants that are considered harmful to public health and the Environment.28 As vehicle emissions contain pollutants under the NAAQS, limitations on vehicular emissions are in place, with the Environmental Protection Agency (EPA) regulating these standards.29 If a state is in non-attainment of such regulations federal funding for transportation projects can be withheld. Colorado’s Compliance with NEPA and I-70 Mountain Corridor Colorado submitted its Final PEIS in March 2011, using the Tier 1 evaluation that is required in NEPA regulations. Tier 1 alternatives evaluated included mode, capacity, and general locations, twentyone action and one no action alternative were evaluated. The Final PEIS identified the preferred alternative as a multimodal long-term vision toward 2050, as well as a combination of bundled solutions for the Corridor that involve highway improvements, non-infrastructure improvements, and an Advanced Guideway System (AGS).30 The approved Tier 1 evaluation AGS includes transit connections and requires additional infrastructure development locally.31 CDOT has committed to increasing studies of alternatives to implement an AGS along the Corridor.32Moreover, the specific highway improvements include auxiliary lanes and interchange improvements. With other highway projects including truck operation improvements, safety improvements, and some additional interchange improvements.33 While the selected alternative was approved, there is difficulty meeting the travel demands of both now, because traffic demands remain consistent; and in the future; as technologies may advance 27 “What Is the National Environmental Policy Act? | National Environmental Policy Act | US EPA,” accessed February 6, 2016, http://www.epa.gov/nepa/what-national-environmental-policy-act 28 Ibid. 29 These are major regulations surrounding transportation infrastructure, there are additional regulations that impact transportation projects that are not discussed, such as the Historic Preservation Act, the Endangered Species Act, the Clean Water Act, Section 4(f) of the DOT Act and various Executive Orders. 30 “I-70 Mountain Corridor Final Programmatic Environmental Impact Statement,” accessed February 6, 2016, https://www.codot.gov/projects/i-70-old-mountaincorridor/final-peis/final-peisdocuments/MainText_combined_withTabs.pdf. 31 Ibid. 32 Ibid. 33 “I-70 Mountain Corridor Record of Decision and Final Programmatic Environmental Impact Statement,” accessed February 6, 2016, https://www.codot.gov/projects/i-70-old-mountaincorridor/documents/Final_I70_ROD_Combined_061611maintext.pdf. Barnthouse 12 prior to any implementation actions, with the selected alternative becoming inept at meeting future needs. Even more so, the selected alternative seeks to minimize environmental impacts, with a need for longterm solutions. Tier 1 NEPA evaluations do not address funding for the proposed long-term alternative. Tier 2 processes have not yet been addressed, as Tier 2 processes deal with specific site location alternatives, impacts, costs, and mitigation processes. 34 Non-infrastructure Related Components Even with the states compliance to Federal environmental regulations, there are additional noninfrastructure components that are related to transportation. These require the involvement of agencies, municipalities, and other stakeholders. These non-infrastructure components include strategies to decrease traffic congestion through various means: increase enforcement, shuttle services in general purpose lane traffic, driver education, technology advancements and services, methods for converting day trips to overnight stays, methods for converting single occupancy vehicles to high-occupancy vehicles, increasing use of public transportation, and implementation of transit incentives.35 All of these strategies rely on transportation infrastructure planning mechanisms. Statewide Transportation Planning In addition to environmental regulations the federal government also mandates each state’s transportation planning methods. CDOT is therefore, required to compile both long-term and short-term transportation plans. Long-term plans are known as the Statewide Transportation Plans (SWP). Further, short-term priorities are produced through the Statewide Transportation Improvement Program (STIP).36 Transportation planning therefore further requires the coordination of local planning regions and the state transportation commission. CDOT Transportation Regions The Colorado Department of Transportation has four transportation regions. Each region has its own CDOT Director. The Directors are responsible for assisting the in planning and execution of 34 Ibid. Ibid. 36 “STIP Report, Statewide Transportation Improvement Plan,” accessed February 6, 2016, https://www.codot.gov/business/budget/documents/dailySTIP.pdf. 35 Barnthouse 13 transportation infrastructure projects in the state.37 Figure 3 is a map of CDOT’s Transportation Regions. The I-70 Mountain Corridor is part of two CDOT transportation regions: Region 1 and Region 3. Figure 3: Map of CDOT Regions Source: CDOT Transportation Regions & Directors Statewide Transportation Planning The Statewide Transportation Plan (SWP) assists in determining the future needs of Colorado’s transportation, creating an outline for a unified strategy to achieve goals. The SWP incorporates fifteen state transportation planning regions to create a 20 year plan. This plan is required to be updated every five years based on estimated future revenues. The SWP is required by both the state and federal government and provides a framework for CDOT.38 The SWP specifies five overall goals: safety, mobility, economic vitality, and maintenance. Further, the SWP requires a planning process for such goals, with input from the public and agencies within the process. The SWP identifies investment needs, revenue sources, and funding gaps for future transportation projects. The SWP has identified the Intermountain Region as one of the top ten priority investment corridors in the state.39 Colorado’s SWP utilizes the Transportation Commission and two regional transportation areas: the Intermountain 37 “Transportation Regions & Directors — Colorado Department of Transportation - CDOT,” accessed April 18, 2016, https://www.codot.gov/about/regions.html 38 “Statewide Transportation Plan — Colorado Department of Transportation - CDOT,” accessed February 6, 2016, https://www.codot.gov/programs/planning/transportation-plans-and-studies/statewide-transportation-plan. 39 “Colorado Department of Transportation-Transportation Matters, Statewide Transportation Plan 2040,” accessed February 6, 2016, http://coloradotransportationmatters.com/wp-content/uploads/2015/07/CDOT-SWP-Executive-Summary-2015-0701.pdf. Barnthouse 14 Transportation Planning Region and the Metropolitan Planning Organization (MPO) for planning purposes. The Denver Regional Council of Governments acts as the MPO in the I-70 Mountain Corridor Region. Additionally, CDOT also has its own planning program that assists with the SWP. Statewide Transportation Improvement Program The Statewide Transportation Improvement Program (STIP) is an additional short term planning document that assists in identifying the transportation projects that CDOT intends to fund over a six year period, involving the Transportation Planning Regions (TPRs) and the Denver Regional Council of Governments (DRCOG) acting as the Metropolitan Planning Organization (MPO).40 Intermountain Transportation Planning Region The Intermountain Transportation Planning Region (TPR) represents the counties of Eagle, Garfield, Lake, Pitkin, and Summit. Currently, the region has 1,542 lane miles allowing for the movement of 5.4 million vehicle miles per day. Additionally, the region has 19 local transit services and 4 regional bus lines, with 1 Amtrak passenger rail line. 41 Figure 4 shows the transit options and the regions area. The Intermountain TPR has indicated that traffic volumes in the region continue to increase. Accordingly the Intermountain TPR assists in creating regional priority corridors and provides recommendations through 2040. These recommendations include reducing traffic congestion to improve traffic flow, enhance transit services, and mitigate rock fall, avalanches, and increasing incident management.42 Figure 4. Map of Intermountain TPR Source: CDOT Intermountain Regional Transportation Plan 40 “STIP Report, Statewide Transportation Improvement Plan,” accessed February 6, 2016, https://www.codot.gov/business/budget/documents/dailySTIP.pdf. 41 “CDOT-2040 Regional Transportation Plan, February 2015,” accessed February 6, 2016, http://coloradotransportationmatters.com/wp-content/uploads/2015/05/IM_RTP_FINAL_eView-bookmarked.pdf. 42 Ibid. Barnthouse 15 Denver Regional Council of Governments Another planning region incorporates additional counties along the I-70 Mountain Corridor, which are not included in the Intermountain TPR. The Denver Regional Council of Governments (DRCOG) serves as the MPO for the I-70 Mountain Corridor. Figure 5 depicts the counties included in the DRCOG. Further, the DRCOG serves as the planning, organization and the technical assistance provider for local government members. The government members include a mix of diverse counties and municipalities.43 Figure 5. Map of DRCOG Transportation Planning Region Source: CDOT DRCOG Regional Transportation Plan 44 Transportation Commission Along with local planning regions, the state has a Transportation Commission that is involved in transportation infrastructure planning. While the responsibility for construction and maintenance of the highway system lies with CDOT, the Colorado Transportation Commission is responsible for a majority of the decision processes, giving CDOT direction. There are eleven commissioners, each representing one of the eleven transportation districts in the state. Figure 6 presents a map of the eleven Districts. Though the commissioners are non-partisan, they are appointed by the Governor and confirmed by the Senate. These Commissioners’ further assist in setting transportation policies for the State.45 43 “Transportation Planning | DRCOG,” accessed April 18, 2016, https://drcog.org/programs/transportation-planning. While all of the counties in DRCOG are included on the map, Jefferson County is the only county included in the I-70 Mountain Corridor Region. 45 “Transportation Commission — Colorado Department of Transportation - CDOT,” accessed February 6, 2016, https://www.codot.gov/about/transportation-commission. 44 Barnthouse 16 Commissioners from 3 regions are included in the planning process for the I-70 Mountain Corridor: Districts 2, District 6, and District 7. Effective transportation planning and coordination from all of these aforementioned entities are essential in ensuring decreases in traffic congestion issues, now and the future. Figure 6. Map of Transportation Commission Districts Source: CDOT Transportation Commission Districts Government Funding for Transportation In addition to a robust planning process for transportation infrastructure, there is also a complex funding system. It requires funding partnerships between the federal, state and local governments. Funding for highways and transit flows through intergovernmental transfers, direct spending and direct sources. Figure 7 depicts the funding flows for transportation. Even with the ability to move funds around for transportation infrastructure, there are limitations and stipulations for funding which are indicative of structural and budgetary constraints of the government. Figure 7: Transportation Funding Flows to Government Agencies Source: PEW Charitable Trusts-Funding Challenges in Highway and Transit Barnthouse 17 Federal Funding The United States Department of Transportation (DOT) authorizes the Federal Highway Administration (FHWA) to provide assistance with construction, maintenance, and preservation of the country’s highway system.46 The FHWA authorizes federal funds to the states and local public agencies (LPAs) for maintaining the Interstate Highways; these funds are located in the Highway Trust Fund (HTF). The HTF was created by Congress in 1965, authorizing states to receive funds from Federal highway user fees, much of the funding provided comes from federal gas tax revenues. Chart 3 depicts the federal highway expenditures and revenue sources. The FHWA does not generally distribute funds upfront for transportation infrastructure; instead the FHWA provides a promise of future reimbursement. In addition, the FHWA offers a percentage of matching funds, requiring the state or LPA to provide the same percentage of funding. Further, such funding received by the states from the HTF has a specific use. The funds may not be used for routine maintenance; rather to be eligible the highway has to be a particular classification, the funds must be used for capital construction, and the project must be included in the Statewide Transportation Improvement Program (STIP).47 While the STIP can be categorized into two subsections; Regional Significant projects and Program Pool projects; the FHWA will only deal with Regional Significant projects.48 Chart 3: Federal Highway Expenditures & Revenue Sources highway patrol and safety 8% interest on debt 5% Bond retirement 4% Bonds 10% admin 8% Maintenance & Traffic Services 25% Capital Outlay* 50% General Funds 21% Other 20% Expenditures *Capital Outlay include direct highway expenditures & amounts transferred to State and local governments for use on highways. MotorFuel Taxes 30% MotorVehicle Taxes 14% Tolls 5% Revenues Source: FHWA 2010 Status of the Nation’s Highways, Bridges, and Transit 46 “Home | Federal Highway Administration,” accessed February 6, 2016, http://www.fhwa.dot.gov/. “Companion Resource for Funding Basics and Eligibility - 44funding.pdf,” accessed February 6, 2016, http://www.fhwa.dot.gov/federal-aidessentials/companionresources/44funding.pdf. 48 “STIP Report, Statewide Transportation Improvement Plan,” accessed February 6, 2016, https://www.codot.gov/business/budget/documents/dailySTIP.pdf. 47 Barnthouse 18 Furthermore, the Transportation Infrastructure Finance and Innovation Act (TIFIA) provides federal credit assistance for transportation projects.49 TIFIA offers transportation infrastructure financing through innovative techniques by allowing flexible financing for complex transportation projects through the DOT. In order to qualify for the TIFIA credit program the highway project or transit capital project must be include in the STIP, with at least $50 million in costs, but those costs only can equate to thirtythree percent of the total cost of the project.50 Shortfalls of Federal Funding Even with innovative financing methods through the federal government there are still budgetary shortfalls. Today, the interstate highway system has expanded, with financing from the federal government being an inadequate source to complete transportation projects. The federal government relies heavily on the gas tax to fund transportation infrastructure maintenance; however, it has been a steady declining source of revenue. 51 As an excise tax, the federal gas tax, is based on fuel consumption and has remained at 18.4 cents a gallon since 1993.52 This imbalance has required Congress to transfer over $53 billion from the general fund to transportation in the last five years to support the lack of funds received from gas tax revenues.53 Although highways are funded through various sources, even with fees, taxes, and cash transfers from Congress, transportation infrastructure projects are still expensive and time consuming. This is further compounded by the prices for transportation construction supplies continually increasing. In addition, tax incentives from the federal government for fuel efficient vehicles have increased. A consumer can receive up to $7,500 for purchasing an electric or plug-in hybrid vehicle.54 While revenues generated from the gas tax continue to decrease and tax credits for fuel efficient vehicles increase there are no new revenue sources to offset this revenue gap. 49 “FHWA Office of Innovative Program Delivery: TIFIA,” accessed February 6, 2016, http://www.fhwa.dot.gov/ipd/tifia/. “Eligibility | Department of Transportation,” accessed February 6, 2016, https://www.transportation.gov/tifia/eligibility. 51 “Highway Trust Fund, April 2014 Baseline - 43884-2014-04-Highway_Trust_Fund.pdf,” accessed February 6, 2016, http://www.cbo.gov/sites/default/files/cbofiles/attachments/43884-2014-04-Highway_Trust_Fund.pdf. 52 “FASTER — Colorado Department of Transportation - CDOT,” accessed February 6, 2016, https://www.codot.gov/projects/faster. 53 “A Federal Gas Tax for the Future,” accessed November 20, 2014, http://www.itep.org/pdf/fedgastax0913.pdf. 54 “Tax Incentives,” accessed March 7, 2016, http://www.fueleconomy.gov/feg/taxcenter.shtml. 50 Barnthouse 19 Funding for transportation development continues to lack at a federal level. With these failures in revenue, the federal government cannot afford to maintain highway infrastructure effectively, states are now being required to direct a majority of the federal funding to asset management in order to preserve the existing infrastructure, therefore, limiting the funds available for highway capacity projects. State Funding In addition to federal funding, states also have their own complex funding mechanisms for state transportation infrastructure. Colorado’s transportation finance system is comprised of both state and local resources, through a variety of sources. The Highway Users Tax Fund (HUTF) is one major source of highway funds in Colorado. CDOT receives about sixty percent of the HUTF. Whereas, counties receive about twenty-two percent of the HUTF, which equates to an estimated $120 million that is distributed based on the number of registered vehicles and center lane miles within the municipalities.55 While the main source of funding for the State Highway Fund (SHF) come from transfers from the HUTF, there are other revenues sources such as overweight and oversize permits that are appropriated for transportation infrastructure maintenance by CDOT.56 The Funding Advancement for Surface Transportation and Economic Recovery (FASTER) adds another source of revenue that is generated from vehicle registration fees and fines. While FASTER revenues vary, an average of $200 million is collected annually. These funds are to be used for methods to increase road safety, special bridge funds, and fund state transit grants.57 Other revenue sources for transportation infrastructure are received from registration fees, driver license fees and court fines. Additionally, CDOT created a government owned business in 2009, the High Performance Transportation Enterprise (HPTE). As an enterprise, the HPTE receives less than ten percent of its funding from the General Fund, but has the ability to take on debt through the creation of bonds. The 55 “Colorado Department of Transportation Future of State Government Strategic Issues Panel,” accessed February 6, 2016, http://www.du.edu/issues/media/documents/georgecdotpresentation.pdf. 56 “CDOT FY2015-2016 Budget Allocation Plan — Colorado Department of Transportation - CDOT,” accessed March 7, 2016, https://www.codot.gov/business/budget/cdot-budget/current-budget-documents/cdot-fy2015-2016-budget-allocationplan/view. 57 “FASTER — Colorado Department of Transportation - CDOT,” accessed February 6, 2016, https://www.codot.gov/projects/faster. Barnthouse 20 responsibility of the HPTE is to create innovative ways to fund transportation infrastructure.58 Chart 4 depicts state transportation revenues and expenditures. CDOT’s Region 3 is expected to receive $7.15 million of the Regional Priority Programs from HPTE in FY 2016, allocating these funds between several regional transportation planning areas.59 Chart 4: State of Colorado Transportation Revenues & Expenditures HPTE 0% State Aviation Fuel Tax 2% Other Bridge 6% Enterprise 9% Federal Gas Tax 33% Revenues General Funds (SB228) 14% FASTER 8% State Gas Tax 20% TC Contingen cy 1% Local, City & County Funds 1% HPTE 0% Debt Services 14% Bridge Enterprise 11% Expand 15% Vehicle Registration 7% Maximize 8% Program Delivery Administra tion 6% Maintain 45% Expenditures Source: CDOT Revenues & Expenditures Shortfalls of State Funding The state has an excise fuel tax of 22 cents a gallon, but has not had an increase since 1991.60 Most impactful to transportation infrastructure funding, however, is the state has a structural budgetary limitation known as the Taxpayer’s Bill of Rights (TABOR). The revenue the state may spend each year is limited by inflation and population growth, when revenues exceed such limits, the state is then required to refund the taxpayers, unless voters approve a revenue change.61 Senate Bill 09-228, is a partial work around from TABOR limitations, triggering a five year block of transfers from the General Fund to 58 “Colorado Legislative Council Staff Issue Brief: Colorado's Constitutional Spending Limit,” accessed February 6, 2016, https://www.colorado.gov/pacific/sites/default/files/Update%20Constitutional%20Spending%20Limit%20Issue%20Brief624151 11222_1.pdf. 59 “CDOT-2040 Regional Transportation Plan, February 2015,” accessed February 6, 2016, http://coloradotransportationmatters.com/wp-content/uploads/2015/05/IM_RTP_FINAL_eView-bookmarked.pdf. 60 “Colorado Department of Transportation Future of State Government Strategic Issues Panel,” accessed February 6, 2016, http://www.du.edu/issues/media/documents/georgecdotpresentation.pdf. 61 “TABOR | Colorado Legislative Council,” accessed February 6, 2016, https://www.colorado.gov/pacific/cgalegislativecouncil/tabor. Barnthouse 21 transportation and capital construction based on the percentage of Colorado personal income growth.62 As an enterprise, the HPTE, is completely exempt from TABOR limitations. High-Performance Transportation Enterprise With all of these budgetary shortfalls in the state the HPTE has been exploring alternative methods to fund transportation infrastructure. The HPTE’s strategy for overcoming limited funds is through public-private partnerships, operating concession agreements, and design-build contracting.63 The HPTE continues to look for additional new ways to make up for the funding gap. While transportation infrastructure needs to be maintained, the potential innovation and future transportation needs have to be modernized to receive the best benefits with minimal costs. Public-Private Partnerships One innovative funding option that the HPTE has used is a Public-Private Partnership (P3), which is a contractual agreement between the public sector agency and a private entity allowing for greater participation from the private sector to finance and complete a government project at a faster rate.64As an additional way to fund infrastructure investments, these partnerships assist in expertise and oversight that can create more efficiency on projects and provide a cost savings to the government by reducing construction time. 65 By using partnerships that incorporate private sectors, additional benefits can be realized.66 Private businesses thrive in competition and seek to make a profit. It is through this competition in the private sector which can assist in improving the quality of transportation infrastructure and reduce of costs to the public sector, by introducing an opportunity to government inflexibility.67 However, P3 transportation projects have been met with some resistance in Colorado, as upfront costs tend to be more because the process of a P3 is different than that of the rigid government procurement practices. Colorado’s US-36, was the first P3 completed by the HPTE in the state. However, 62 “Colorado Legislative Council Staff Memorandum: Overview of Senate Bill 09-228,” accessed February 6, 2016, https://www.colorado.gov/pacific/sites/default/files/Overview%20of%20Senate%20Bill%2009-228.pdf. 63 “Colorado HPTE Annual Report,” accessed March 29,2016, https://www.codot.gov/library/AnnualReports/2015hpteannualreport/2015-hpte-annual-report/view 64 “ US-36 Public-Private Partnership (P3) Project Performance Audit, March 2015,” accessed February 6, 2016, http://www.leg.state.co.us/OSA/coauditor1.nsf/All/03D76FF34736878087257E14007F395D/$FILE/1415P%20-%20US36%20Public-Private%20Partnership%20%28P3%29%20Project%20Performance%20Audit,%20March%202015.pdf. 65 Ibid. 66 A primary advantage of a P3 is the private entity providing substantial funding to assist in advancing construction. 67 “PPPIRC News & Multimedia | Public Private Partnerships | World Bank,” accessed February 6, 2016, http://ppp.worldbank.org/public-private-partnership/multimedia. Barnthouse 22 according to public opinion, the HPTE did not adequately involve state legislators and the general public in the processes of procurement and development of US-36. Thus, P3’s have had difficulty gaining taxpayer’s support in the State.68 Due to the lack of public support, CDOT has shifted its practices from public involvement to public engagement for future transportation processes.69 CDOT has used experience gained from the US-36 P3 Project and has created comprehensive schedules to involve the general public in future P3 endeavors. P3s may be used in future infrastructure projects in the state, but are not a solution for every corridor. There are additional methods that the HPTE currently utilizes that may assist in funding and development of transportation infrastructure. Operating Concession Agreements Concession agreements are another form of innovative means for funding transportation. In 2010, the Regional Transportation District (RTD) developed a plan for expansion of public transportation in Denver metropolitan area in Colorado, known as the FasTracks Plan. FasTracks included the construction and operations of particular commuter rail lines. RTD entered into a concession agreement with the Denver Transit Partners (DTP), for which DTP is responsible for the design, build, finance, operations, and maintenance of the project components for 34 years.70 RTD will retain ownership, set fare prices, and retain all project revenues.71 Similar adaptations of concession agreements may be necessary for the development and financing of transportation infrastructure needs in Colorado. Design-build contracting Design-build contracting is another innovative way to fund transportation projects. CDOT used the design-build contracting on the I-70 Mountain Express Lanes.72 This allowed CDOT to create new partnerships with Lawrence Construction Company and URS, as contractors for the construction phase of the project. This project resulted in the use of existing highway right of ways, but not expanding the 68 “US-36 Public-Private Partnership (P3) Project Performance Audit, March 2015,” accessed February 6, 2016, http://www.leg.state.co.us/OSA/coauditor1.nsf/All/03D76FF34736878087257E14007F395D/$FILE/1415P%20-%20US36%20Public-Private%20Partnership%20%28P3%29%20Project%20Performance%20Audit,%20March%202015.pdf. 69 “NO MORE WAITING: FIXING COLORADO’S MAJOR MOBILITY ISSUES NOW ,” accessed April 18, 2016, https://www.codot.gov/programs/high-performance-transportation-enterprise-hpte/media-and-news/presentations/2014cdot-hpte-presentation.pdf. 70 The Eagle P3 project was conducted by the Denver Transit Partners. The private entity advanced money for construction receiving 50 years of funds from transit fares. 71 “Eagle Project | Department of Transportation,” accessed February 7, 2016, https://cms.dot.gov/tifia/financedprojects/eagle-project. 72 Design-build terminology varies, it may also be referred to as a construction management or general contract process. Barnthouse 23 footprint of the highway.73 Further, this new lane is tolled, with the revenues received applied to the operating and capital construction cost of the project.74 All of the aforementioned avenues provide innovative means to create additional funding mechanisms that circumvent existing issues for state funding. Table 1 below summarizes all of the various government funding and planning mechanisms involved in transportation infrastructure. Table 1: Summary of Mechanism for Colorado Transportation Federal Summary of Mechanisms for Transportation Authority/Regulation Transportation Funding Mechanisms Planning EPA-NEPA/CAA/NAAQS Requires states to HTF DOT-FHWA have SWP & STIP TIFIA State CDOT-HPTE Transportation HUTF CommissionFASTER SWP/STIP SB-228 Local LPA Intermountain TPR Counties MPO/DRCOG While funding and planning mechanisms attempt to mitigate traffic congestion, other factors contribute to the unique rural I-70 Mountain Corridor traffic congestion problem. Population growth, recreation demands and economic impacts are additional factors surrounding traffic congestion issues on the I-70 Mountain Corridor. Population Growth The state of Colorado has had sustainable population growth over the last sixty years.75 Colorado’s population continues to increase, and based on these current trends, there is the potential to have even more serve traffic volumes along the I-70 Mountain Corridor over time. The state of Colorado’s population is projected to increase to 7.8 million by 2040.76 Chart 5 illustrates the estimated population growth. Further, the Mountain Resort Region population is expected to grow extensively over 73 “Project Overview — Colorado Department of Transportation - CDOT,” accessed February 7, 2016, https://www.codot.gov/projects/I70mtnppsl/project-overview. 74 “EB I-70 Peak Period Shoulder Lane-Frequently Asked Questions,” accessed February 7, 2016, https://www.codot.gov/projects/I70mtnppsl/assets-and-documents/ppsl-faqs-final.pdf. 75 “Colorado Water Conservation Board,” accessed November 13, 2015, http://cwcb.state.co.us/water-management/watersupply-planning/Pages/SWSI2010.aspx. 76 “Colorado Department of Transportation-Transportation Matters, Statewide Transportation Plan 2040,” accessed February 6, 2016, http://coloradotransportationmatters.com/wp-content/uploads/2015/07/CDOT-SWP-Executive-Summary-2015-0701.pdf. Barnthouse 24 the next 20 years. The Intermountain TPR estimates the population in the region will grow from 161,000 to 313,000 by 2040.77 Population growth in Colorado and throughout the country continues to add to an increase in traffic congestion. Chart 5: Colorado's Projected Population Growth 1990-2040 Source: CO State Demographer Increasing Recreational Travel Demand Consecutively recreational traffic has increased over the last four years. In 2014, a new record for tourism in the state was set, with 71.3 million visitors spending $18.6 billion in Colorado.78 Colorado remains the country’s top ski destination for overnight ski trips, taking twenty-on percent of the share in the United States. While current residents of Colorado are the top vacationers, making up thirty-four percent of all overnight leisure travelers, visitors from California, Texas, Illinois, Florida, and New York continue to increase overnight leisure travel in Colorado.79 These recreational demands bring about a unique dichotomy between urban and mountain traffic congestion issues. Rural Mountain vs. Urban Traffic Congestion The I-70 Mountain Corridor traffic congestion provides a different set of transportation challenges than the traffic congestion in an urban setting. Although many urban areas allow for an increase in economic development surrounding the highways, the mountainous topography may limit the ability to grow in the same capacity. Much of the mountain corridor region is rural, with traffic patterns 77 “CDOT-2040 Regional Transportation Plan, February 2015,” accessed February 6, 2016, http://coloradotransportationmatters.com/wp-content/uploads/2015/05/IM_RTP_FINAL_eView-bookmarked.pdf. 78 “Colorado Tourism Numbers Set Record in 2014 - The Denver Post,” accessed October 20, 2015, http://www.denverpost.com/business/ci_28368011/2014-record-colorado-tourism. 79 Ibid. Barnthouse 25 impacted by additional factors not related to commuting patterns. Transportation demand on the I-70 Mountain Corridor is based on the season, outdoor recreational activities and leisure travel. Peak period, directional travel times for both weekday and weekends vary substantially along the I-70 Mountain Corridor. Chart 6 displays the comparison of traffic patterns throughout the year. Generally speaking, unlike urban traffic congestion, peak travel periods with extreme excess congestion from Denver to the Mountain Resort Region occur during Friday evenings, Saturday mornings and evenings heading westbound, and Sunday afternoons eastbound, during the winter season. On the other hand, similar flows of traffic from the Western region of the I-70 to Mountain Resorts flow in the opposite directional peak times. Chart 6: I-70 Directional Traffic Vehicle Counts (2015) 1,400,000 1,200,000 1,000,000 800,000 600,000 400,000 200,000 0 Eastbound Westbound Monthly Total Source: CDOT 2015 Eisenhower Tunnel Traffic Counts When faced with traffic congestion on the I-70 Mountain Corridor, many drivers find roads to bypass traffic on the interstate. In doing so, these often include the use of frontage roads and maneuvering through residential neighborhoods. Such streets were not designed to handle dense traffic, therefore, contributing to a deterioration of local roads at a faster rate, while also having an increased impact on local traffic.80 Further, this impact on local traffic can impede on peoples quality of life. Often, residents 80 "The Impact of I-70 Congestion on Colorado-Denver to Grand Junction," Development Research Partners, http://www.developmentresearch.net/Sample%20Projects/Economic%20and%20Fiscal%20Impact%20Analysis/I70%20Impact_ 042507.pdf. Barnthouse 26 move to the mountain region to escape urban problems, like traffic jams. Now, traffic congestion is once again becoming a part of the daily routine. Previous Interventions The state has attempted to mitigate the traffic congestion issues of the Mountain Corridor through expansions of various general purpose lanes along specific segments of the interstate. Prior to the recent NEPA Tier 1 evaluation, there was expansion near Floyd Hill and an expansion on the West side of the Eisenhower Tunnels that added to a decrease in traffic congestion. After the Tier 1 evaluation, CDOT recently completed the widening of the Twin Tunnels (Veterans Memorial Tunnels) in Idaho Springs. The completion of the Twin Tunnels widening brought about traffic flow improvements for motorists, setting the stage for future improvements on I-70.81 In 2014, it was estimated that the expansion would save eastbound I-70 Sunday travelers approximately $11.4 million in travel time and fuel costs annually.82 Most recently CDOT added a 13-mile Mountain Express Eastbound Lane, from the Empire Junction to Idaho Springs, using fluctuating tolls based on traffic congestion. This lane is not considered a capacity expansion of I-70 as it utilizes the shoulder lane for high peak travel times. As CDOT continues to assess transportation needs throughout the corridor, future technology innovation may assist in increasing transportation efficiency. Future Technology From complex crash avoidance technologies to in-vehicle guidance services, vehicle based technologies continue to advance. Such technologies can assist in improving safety and allow travelers to have information readily accessible, providing up to the moment information on travel conditions and other potential disruptive situations.83 This year CDOT created a pilot program to test out connected vehicles; these vehicles are equipped with technology that allows vehicle to vehicle communication, 81 “I-70 Westbound Twin Tunnels (Veterans Memorial Tunnels) — Colorado Department of Transportation - CDOT,” accessed February 6, 2016, https://www.codot.gov/projects/i70twintunnels. 82 “I-70 Eastbound Twin Tunnels (Completed) — Colorado Department of Transportation - CDOT,” accessed February 6, 2016, https://www.codot.gov/projects/i70twintunnels/i-70-eastbound-twin-tunnels. 83 “A Toolbox for Alleviating Traffic Congestion - Institute of Transportation Engineers,” accessed February 6, 2016, http://ntl.bts.gov/lib/jpodocs/repts_te/10803.pdf. Barnthouse 27 known as the Advanced Driver Information Systems (ADIS).84 The pilot program allows 700 CDOT first responders, ski shuttles, and commercial vehicles access to these devices. Further, similar technology for autonomous and semi-autonomous vehicles is being developed, these types of vehicles will not only able be communicate with one another, but would automatically respond to upcoming hazards.85 This technology could assist in alleviating traffic congestion throughout the state. Although CDOT has made efforts to alleviate traffic congestion through previous interventions and is investing in potential future technologies, traffic congestion still has an increased cost and burden to Colorado. Costs & Economic Impacts Time and Resource Inefficiency A major negative impact from traffic congestion along the I-70 Mountain Corridor is the loss of productivity. Traffic congestion increases the commute time for motorists which therein cause a decrease in the amount of personal time that can be used to do other things, such as working. The extra time spent in traffic congestion creates lost opportunity costs for the state, as drivers could utilize this time to participate in other economic activities or leisure activities. American’s spends 6.9 billion hours in traffic each year, costing more than an extra $160 billion in fuel costs and lost time.86 The average travel-time delay of congestion is extreme on highways in Colorado amounting to 18.6 minutes per traveler per day, equating to 113 hours a year.87 Even Washington, D.C., known for having some of the most severe traffic congestion annually, has an average annual delay that only amounts to 82 hours a year for commuters.88 In addition to the lost opportunity costs, traffic congestion waste valuable tax dollars that could be allocated to other resources. As locations of extreme traffic congestion decrease the road surface lifetime, these areas require more road maintenance. The state continues to increase the money allocated to upkeep the roads where these resources could be utilized for other gains in the state. CDOT maintains over 9,000 84 “When Cars Talk: The Future of Colorado’s I-70 Mountain Corridor | SummitDaily.com,” accessed February 7, 2016, http://www.summitdaily.com/news/19457476-113/when-cars-talk-the-future-of-colorados-i-70. 85 “A Toolbox for Alleviating Traffic Congestion - Institute of Transportation Engineers,” accessed February 6, 2016, http://ntl.bts.gov/lib/jpodocs/repts_te/10803.pdf. 86 “Economics of Transportation Systems: A Reference for Practitioners,” accessed February 6, 2016, http://www.utexas.edu/research/ctr/pdf_reports/0_6628_P1.pdf. 87 “Your CDOT Dollar : Mobility,” accessed February 6, 2016, http://dtdapps.coloradodot.info/otis/YCD/Mobility. 88 David Schrank, Bill Eisele, and Tim Lomax, “TTI’s 2012 Urban Mobility Report,” Texas A&M Transportation Institute. The Texas A&M University System, 2012, http://www.pagregion.com/Portals/0/documents/HumanServices/2012MobilityReport.pdf. Barnthouse 28 miles of highway and is now spending 91% of funds received on maintenance. 89 Maintenance of transportation infrastructure has become a large priority, as capacity issues are left with continued funding shortfalls. Vehicle Operating Costs Commuters not only have a lost opportunity cost, but an increase in vehicle operating costs. The fixed costs associated with vehicles include: purchasing and financing, insurance, registration fees, and scheduled maintenance. Whereas, variable costs include: fuel and oil costs, tire wear, and repairs.90 The national average cost of operating a vehicle is 58 cents a mile.91 Traffic congestion increases these maintenance costs as it decreases tire tread, fuel efficiency, and can create negative impacts on a vehicles transmission. Fatalities and injuries due to automobile accidents Beyond vehicle operating costs, driving an automobile is an inherently dangerous activity. There are serious to fatal injuries probable as a cost of commuting; with traffic congestion only increasing the rate and causes of an accident.92 In general, traffic congestion reduces the safe distance between vehicles and drivers are more likely to be less alert when sitting in traffic. Reducing traffic congestion can result in a decrease of car accidents, therefore, decreasing the associated government costs.93 With eighty-five percent of the population in Colorado choosing cars as a primary source for transportation, personal automobiles are the predominant mode of transportation in the I-70 Mountain Corridor.94 Colorado had been on a continual decline of fatal accidents, in part due to advancing technologies and safety requirements, averaging just 464 fatalities between 2009 and 2013.95 However, Colorado has seen an increase in overall traffic related fatalities in 2014 and 2015, with 2015 having a 89 “Your CDOT Dollar,” accessed February 6, 2016, http://dtdapps.coloradodot.info/otis/YCD/. “Methodology - Transportation Benefit-Cost Analysis,” accessed February 7, 2016, http://bca.transportationeconomics.org/benefits/vehicle-operating-cost/vehicle-operating-costs-methodology. 91 “Table 3-17: Average Cost of Owning and Operating an Automobile(a) (Assuming 15,000 Vehicle-Miles per Year) | Bureau of Transportation Statistics,” accessed February 7, 2016, http://www.rita.dot.gov/bts/sites/rita.dot.gov.bts/files/publications/national_transportation_statistics/html/table_03_17.html 92 “Traffic Congestion and Reliability: Trends and Advanced Strategies for Congestion Mitigation,” accessed May 10, 2016, http://www.ops.fhwa.dot.gov/congestion_report/chapter2.htm 93 Typically, traffic congestion can reduce the rates of fatalities and serious injury accidents, but may increase minor accidents. Although there is a correlation between traffic congestion and accidents, there may be no direct causation of the severity of the accident. 94 "The Impact of I-70 Congestion on Colorado-Denver to Grand Junction," Development Research Partners, http://www.developmentresearch.net/Sample%20Projects/Economic%20and%20Fiscal%20Impact%20Analysis/I70%20Impact_ 042507.pdf. 95 “Your CDOT Dollar : Safety,” accessed February 6, 2016, http://dtdapps.coloradodot.info/otis/YCD/Safety. 90 Barnthouse 29 total of 506 fatal crashes in the state.96 The costs of a fatal crash is estimated on upwards of $6 million; when accounting for property damage, loss of productivity, including earnings and lost time at work, medical costs, emergency services, travel delays, legal costs, and the loss of quality of life.97 While the costs associated for commuters can be increased due to of traffic congestion along the I-70 Mountain Corridor, the state experiences further negative externalities through the economic costs associated with traffic congestion. Tourism & Recreation Bordered by seven other states, Colorado is a gateway to the West, drawing many tourists for recreational activities. The I-70 Mountain Corridor encompasses the Mountain Resort Region, including seven counties, with access to 17 of the 26 major ski resorts in Colorado.98 Figure 8 is a map that includes all of the ski resorts located in Colorado. Figure 8: Map of Colorado Ski Areas Source: Ski Central Map of Colorado Ski Resorts 96 99 “Historical Fatal Crashes — Colorado Department of Transportation - CDOT,” accessed February 6, 2016, https://www.codot.gov/library/traffic/safety-crash-data/fatal-crash-data-city-county/historical_fatals.pdf/view. 97 “AAA: Fatal Motor Vehicle Crash Costs $6M – USATODAY.com,” accessed February 7, 2016, http://usatoday30.usatoday.com/news/nation/story/2011-11-02/fatal-vehicle-crashes-cost-millions/51051030/1. 98 The Mountain Resort Region and Western Slope ski resorts are: Aspen Highlands, Aspen Mountain, Arapahoe Basin, Beaver Creek, Breckenridge, Buttermilk, Copper Mountain, Echo Mountain, Keystone, Loveland, Powderhorn, Ski Cooper, Snowmass, SolVista, Sunlight,Vail, and Winter Park/Mary Jane. 99 Typical traffic congestion occurs during the weekends and holidays, rarely a daily occurrence. Barnthouse 30 As mentioned previously, the I-70 Mountain Corridor is subject to different traffic congestion patterns than that of urban settings. With Colorado’s outdoor assets, peak travel periods and peak direction traffic congestion occur daily, weekly, and seasonally. Traffic volumes in the Mountain Corridor are higher in the summer months then in the winter months, but the duration of time in traffic is higher in the winter. This recreational traffic brings about year round traffic congestion. Colorado’s mountains appeal to recreational activities in the winter months provides opportunities to ski at Mountain Resorts. During the summer months, Colorado offers outdoor recreation along the Mountain Corridor with 12 fourteeners, rivers for fishing, kayaking, as well as, other outdoor recreation activities, such as biking and camping. Adding to this tourist recreation traffic congestion, approximately ninety percent of Colorado residents participate in outdoor activities throughout the year.100 While some of the recreational trips along the corridor are predictable, the region is susceptible to adverse weather, avalanches, rockslides, and traffic accidents; all of which can have additional impacts on excessive traffic congestion.101 As previously mentioned, tourism in the state of Colorado generated $18.6 billion in revenues last year, of that, over $4 billion was spent in the Mountain Resort Region.102 As Colorado is the leading destination for skiing in the nation, those traveling to the state, compounded by the number of locals traveling to the Mountain Resort Region, results in a significant increase in vehicular traffic congestion on I-70. Traffic congestion further threatens the ski industry in Colorado because tourist may seek to visit other areas, seeking less traffic congestion and avoiding the area altogether. Over the last few years, despite Colorado having the highest number of ski visitors in the United States, Colorado’s share of skier visits has declined, with Utah increasing its overall share of the market.103 Although, this may not be “Statewide Comprehensive Outdoor Recreation Plan-2014,” accessed October 20, 2015, http://cpw.state.co.us/Documents/Trails/SCORP/SCORPOnlineReport.pdf. 101 “Adverse Weather on I-70 Mountain Corridor — Colorado Department of Transportation - CDOT,” accessed October 20, 2015, https://www.codot.gov/news/2014-news-releases/03-2014/adverse-weather-on-i-70-mountain-corridor-1. 102 “Colorado Tourism Numbers Set Record in 2014 - The Denver Post,” accessed October 20, 2015, http://www.denverpost.com/business/ci_28368011/2014-record-colorado-tourism. 103 “The Impact of I70 Congestion on Colorado-Denver to Grand Junction,” accessed February 6, 2016, http://www.developmentresearch.net/Sample%20Projects/Economic%20and%20Fiscal%20Impact%20Analysis/I70%20Impact_ 042507.pdf. 100 Barnthouse 31 directly correlated with traffic congestion issues, as Vail Resorts pass has now been expanded into accommodations in Utah.104 Further, while traffic congestion can benefit local communities that rely on tourism for economic stability, the high level of congestion may mean motorists are less likely to stop in small towns along the way in fear of losing the spot in traffic. Still others may choose to substitute the effects of traffic congestions by taking alternate routes or flights to local airports instead. Commercial Freight Another economic impact to the state is commercial freight. Transportation is, in itself, a major component of the economy. Not only does it provide the transportation of goods and services, which account for more than ten percent of the United States GDP, it also provides millions of jobs. Transportation-related industries account for over sixteen percent of all jobs in the country. Traffic congestion increases fuel costs for commercial freight which is then passed on to the consumers. Colorado has approximately, 4,156 highway miles that are critical to regional, state, and national freight.105 Businesses are spending an additional $27 billion in freight transportation because of traffic congestion. 106 Freight demands will only continue to grow in the United States. As congestion spreads during peak travel periods for trucks, more direct cost will be incurred. Further, reliability of trucks will continue to decrease as the ability to meet a delivery windows will decrease, which adds to the increase of cost to freight firms.107 The I-70 Mountain Region provides a major US freight corridor and traffic congestion in the area and continues to hinder the mobility of goods and services. Fuel Economy The problems of the economic impacts from traffic congestion are exacerbated by the extra costs of fuel being wasted. According to the Texas Transportation Institute, the excess traffic congestion results in commuters purchasing an extra 2.9 billion gallons of fuel, adding an additional cost of $120 billion 104 “Vail Resorts Acquires Park City Mountain Resort in Park City, Utah | Vail Resorts Corporate,” accessed April 26, 2016, http://news.vailresorts.com/corporate/vail-resorts-acquires-pcmr.htm. 105 “Colorado Department of Transportation-Transportation Matters, Statewide Transportation Plan 2040,” accessed February 6, 2016, http://coloradotransportationmatters.com/wp-content/uploads/2015/07/CDOT-SWP-Executive-Summary-2015-0701.pdf. 106 “Congestion Cost Trucking $23 Billion in 2010 | Fleet Management Content from Fleet Owner,” accessed October 20, 2015, http://fleetowner.com/management/news/congestion-trucking-billions-1005. 107 “| Bureau of Transportation Statistics,” accessed February 6, 2016, http://www.rita.dot.gov/bts/sites/rita.dot.gov.bts/files/publications/freight_shipments_in_america/html/entire.html. Barnthouse 32 annually.108 Delays caused by traffic congestion in Colorado costs a commuter an average of an additional $865 annually for excess fuel consumption.109 Traffic congestion not only has a negative economic impact, but additionally leads to negative environmental and health implications for the state. Environmental & Health Impacts Air and Noise Pollution Vehicular emissions deter air quality, resulting in negative environmental and health implications to those living along the I-70 Mountain Corridor. Peak time traffic congestion has lower speeds which increase excessive vehicular emissions and produce more road dust. Air pollutants from vehicular traffic congestion are mostly comprised of carbon monoxide (CO), Particulate Matter 10 and 2.5 (PM-10, PM2.5), and oxides of nitrogen (NOx). The Environmental Protection Agency (EPA) indicates that transportation accounts for one-third of all emissions that are harmful to humans and the environment.110 Moreover, exposure to air pollutants from transportation emissions can cause irreversible damage to lungs, asthma, influenza, cancer, and even early death.111 Carbon emissions, due to traffic congestion, can reduce the ability for oxygen to be delivered to the body’s organs and in extreme situations can even cause death. 112 These emissions, along with tire and brake wear and tear from traffic congestion provide relative impacts on visibility to the area as well.113 Although, Colorado has certain counties that require emission inspections, many counties along the I-70 Mountain Corridor are not required to complete emission inspections and out of state vehicles are not required to abide by Colorado’s motor vehicle emission standards.114 108 “2015 Urban Mobility Scorecard,” accessed February 6, 2016, http://d2dtl5nnlpfr0r.cloudfront.net/tti.tamu.edu/documents/mobility-scorecard-2015.pdf. 109 “THE COST OF TRAFFIC CONGESTION IN COLORADO: THE STATE’S 25 WORST TRAFFIC JAMS AND THE STEPS NEEDED TO RELIEVE TRAFFIC CONGESTION - Transport Research International Documentation - TRID,” accessed February 7, 2016, http://trid.trb.org/view/718639. 110 “Economics of Transportation Systems: A Reference for Practitioners,” accessed February 6, 2016, http://www.utexas.edu/research/ctr/pdf_reports/0_6628_P1.pdf. 111 “Environmental Protection Agency -- Particulate Matter (PM-10),” accessed October 20, 2015, http://www3.epa.gov/airtrends/aqtrnd95/pm10.html. 112 “Health Effects | Carbon Monoxide | US EPA,” accessed October 20, 2015, http://www3.epa.gov/airquality/carbonmonoxide/health.html. 113 Some air pollutants from vehicle emissions increase with speed. 114 “Metro Denver and North Front Range Emissions Inspections | Department of Public Health and Environment,” accessed February 7, 2016, https://www.colorado.gov/pacific/cdphe/metro-north-emissions. Barnthouse 33 Noise pollution is another concern related to traffic congestion. The quantity of vehicles on the road adds to the noise pollution.115 The decibels of noise are not only a nuisance but can cause additional severe health effects. While some of these effects might depict symptoms related to stress, high blood pressure and sleep deprivation, more severe health considerations from noise pollution is it can induce hearing loss.116 Stakeholder Interests Stakeholder Groups There is a wide array of vested stakeholders involved at various levels as it relates to traffic congestion on the I-70 Mountain Corridor. Nationally, the United States Department of Transportation (DOT), Federal Highway Administration (FHWA), Transportation Infrastructure Financing Act (TIFIA) board, all have a vested interest in transportation issues. State stakeholders include the High Performance Transportation Enterprise (HPTE), the Colorado Department of Transportation (CDOT), the Colorado Office of Economic Development (OEDIT), the Transportation Commission, and the Transportation Planning Regions, including the Intermountain Transportation Planning Region (TPR) and the Denver Regional Council of Government Transportation Commission (DRCOG). On the other hand, local stakeholders include businesses, residents, counties, tourists, recreational travelers and commuters using the I-70 Mountain Corridor.117 Stakeholder Positions Partisan Politics There is no doubt transportation infrastructure issues are vital to the state of Colorado. However, traffic congestion issues can be contentious among stakeholders. Various constituencies have competing agendas and positions on how to best resolve the issues related to traffic congestion. This makes it difficult to determine which priorities will align among the many stakeholders. Although transportation issues are not a Democrat or Republican issue, generally speaking, liberals tend to favor larger government through expansive and expensive alternatives; where conservatives tend to disapprove them. Both sides of the aisle are likely to form coalitions for and against any alternative recommended. 115 Traffic congestion may lead less noise pollutions than traffic traveling at the speed limit. “Title IV - Noise Pollution | Overview of the Clean Air Act and Air Pollution | US EPA,” accessed February 7, 2016, http://www.epa.gov/clean-air-act-overview/title-iv-noise-pollution. 117 The section does not exhaust all stakeholders, others include the US Forest Service, I-70 Coalition, and more. 116 Barnthouse 34 Proposed Solutions There are many potential alternatives to the existing transportation infrastructure methods used along the I-70 Mountain Corridor. Policy approaches in this analysis attempt to provide strategic recommendations to encourage the use of new alternatives. Proposed alternatives in this analysis include the following: the current status quo, an expansion of capacity with HOV3 reversible lanes, Toll Lanes, and a bus-rapid transit system. While each alternative has strengths, there are also weaknesses associated. Further, discussions of different funding mechanisms for each alternative are reviewed within the analysis. Status Quo Currently, on average there are 2.6 passengers per vehicle that travel along the I-70 Mountain Corridor, moving about 11.5 million vehicles a year. Eighty-five percent of commuters in the state of Colorado use their vehicles as the sole transportation means.118As the Final PEIS for Tier 1 application processes were submitted in March 2011, CDOT and the state have continued to mitigate traffic congestion through various means, to no avail.119 Many minimal action alternatives for the Corridor have been completed to assist in mitigating the traffic congestion associated with the movement of those vehicles. Using current mechanisms, CDOT has increased maintenance and operations on the road. One attempt to mitigate traffic congestion uses additional courtesy patrols with quicker response times to clear accidents. Additionally, the Eisenhower Tunnel and on-ramps are metered during peak times of directional traffic congestion.120 Even with the metering, the stopped traffic quickly catches up to the slower moving motorists ahead. Further, CDOT has invested significantly in non-infrastructure related components, using unconventional methods to hinder traffic congestion through the Change Your Peak Time campaign. This campaign uses existing partnerships with Mountain Resorts, casinos, and restaurants to offer deals for “Colorado Department of Transportation-Transportation Matters, Statewide Transportation Plan 2040,” accessed February 6, 2016, http://coloradotransportationmatters.com/wp-content/uploads/2015/07/CDOT-SWP-Executive-Summary-2015-0701.pdf. 119 The Twin Tunnels and Peak Period Shoulder Lane projects have reduced travel times in certain sections of the corridor, but have not completely alleviated traffic congestion. 120 “Eisenhower Tunnel Metering FAQ’s — Colorado Department of Transportation - CDOT,” accessed October 20, 2015, https://www.codot.gov/travel/eisenhower-tunnel/eisenhower-metering.html. 118 Barnthouse 35 commuters to encourage a decrease in travel during peak times.121 In addition, these programs offer incentives for commuters to join, or create a carpool; or use transit. The campaign relies on distinct and predictable travel patterns and has resulted in some peak-shifting travel times. These incentives entice commuters to stay to avoid peak time travel and provide revenue increases to the Mountain Resort Region. However, these incentives can detract from economic revenues in the commuters’ city of residence. Costs for all of the campaign programs are minimal; rather, relying on public education. However, public education campaigns rarely see a significant return.122 The state also uses technology to update motorists on road conditions. Cotrip is a website and mobile application that provides traveler information for Colorado Interstates and Highways. This application offers updates on current road conditions, weather information, travel times, and live streaming of traffic.123 Further, CDOT has added a 13-mile Mountain Express Eastbound Lane, which has been deemed a success, but is only a short term solution. Even still, a plan to complete a similar lane going Westbound is underway. However, FHWA limits the lane usage by requiring a maximum of 72 days, with 600 plus hours, of lane usage a year, as it is a shoulder lane.124 Additionally, knowing that traffic congestion patterns on I-70’s Mountain Corridor ebbs and flows with season and time of day, the state of Colorado recently passed a law with new requirements for tire wear and tear for winter travel.125 Time has yet to determine if this policy has had any significant benefit in decreasing traffic congestion. While most of these approaches may be cost effective, current commuter and transit options are still limited for the Corridor. Accordingly, CDOT introduced the Bustang, a new interregional express bus for commuters in July of 2015. Bustang is a state-owned and operated bus system that connects commuters from local Denver transit centers to the I-25 Front Range Corridor and the I-70 Mountain 121 “GOI70 :: Home,” accessed October 20, 2015, http://goi70.com/. Dana Mitra, “The Social and Economic Benefits of Public Education,” accessed April 18, 2016, http://www.elc-pa.org/wpcontent/uploads/2013/11/BestInvestment_Full_Report_6.27.11.pdf. 123 “Road Conditions, Speeds, Travel Times, Traffic Cameras, Live Streaming Traffic Cameras, Road Closures and Road Work Information Provided by Intelligent Transportation Systems (ITS) a Branch of Colorado Department of Transportation,” accessed February 6, 2016, http://www.cotrip.org/home.htm. 124 “Project Overview — Colorado Department of Transportation - CDOT,” accessed October 20, 2015, https://www.codot.gov/projects/I70mtnppsl/project-overview. 125 Many vehicles are still inadequately prepared for travel conditions. 122 Barnthouse 36 Corridor, with each bus allowing for a capacity of up to 50 passengers each way.126 Figure 9 shows the Bustang I-70 Mountain Corridor Route. A one-way ticket for the West Line, to/from Denver and Glenwood Springs, costs a passenger $28. However, Bustang only has one bus commuting in each direction daily. In addition to the Bustang, private companies offer shuttle services to the mountain areas, with prices varying depending on distance, time of year, and drop-off locations. Figure 9: Bustang West Line Map Source: CDOT Ride Bustang Routes Maintaining the status quo will likely continue to result in longer travel times and further suppress the economic growth of many counties along the Corridor. Further, minor improvements that have been attempted by CDOT may actually attract more traffic, as these approaches can provide the perception that the traffic congestion is mitigated through such improvements.127 Even with all of these efforts, traffic congestion and environmental impacts along the I-70 Corridor continue to not be adequately addressed through the status quo. Wasteful energy consumption also continues to increase. However, aforementioned, technology advances in fuel efficient vehicles and the continued tax incentives for such vehicles have continued to assist in decreasing the overall carbon emissions from vehicles, with the average passenger vehicle emits 4.7 metric tons of carbon emissions annually. Future projections indicate with the increase in fuel 126 “About Bustang,” accessed March 29, 2016, http://www.ridebustang.com/ “The Impact of I70 Congestion on Colorado-Denver to Grand Junction,” accessed February 6, 2016, http://www.developmentresearch.net/Sample%20Projects/Economic%20and%20Fiscal%20Impact%20Analysis/I70%20Impact_ 042507.pdf. 127 Barnthouse 37 efficient vehicles, this could reduce the amount carbon emissions from each vehicle by 462 metric tons (MT) annually.128 Given the future traffic demands, a long-term strategy is essential to decrease traffic congestion on the I-70 Mountain Corridor. Various strategies for long-term efforts to decrease negative impacts from traffic congestion already exist. In order to assist in the reduction of recurring congestion it is recommended that the development and implementation of new approaches are used. This proposal offers three alternatives in line with the recommendations of the Tier 1 NEPA process to further assists in the evaluations of Tier 2 processes. The purpose of this policy memorandum is not to select an alternative; rather it is to examine three alternatives to the current status quo. Alternative #1: High-Occupancy Vehicle (HOV3) An alternative to the current status quo is to expand highway capacity. This alternative would add two reversible High Occupancy Vehicle (HOV3) lanes, increasing its capacity from two general purpose lanes in each direction, to a total of six lanes for the entire Mountain Corridor. These lanes provide congestion relief during peak east-bound or west-bound traffic by changing with the flow of traffic. Further, to use these lanes, a driver would need to have at least three passengers in a vehicle. The primary purpose of such lanes would be to increase the amount of people moving instead of the number of vehicles moving along the interstate. In general, HOV lanes can reduce travel times for users by an average of twenty-two percent.129 These lanes offer the potential to move more passengers in a smaller amount of vehicles. Therefore, this could lead to reducing traffic congestion in general purpose lanes, while also reducing the total number of vehicles on the road. Currently, Virginia uses the HOV3 passenger rule on its reversible lanes on Interstate 95, also known as the Shirley Highway. These lanes have been successful, by comparison, moving 13,000 more passengers within fewer vehicles during peak congestion periods than the general purpose lanes at the 128 "I-70 Mountain Corridor PEIS Climate and Air Quality Technical Report," March 2011, https://www.codot.gov/projects/i70mountaincorridor/final-peis/final-peis-documents/technical-reports/Vol3_I70_Mntn_Corridor_Final_PEIS_Climate_AQ_TR.pdf. 129 “A Toolbox for Alleviating Traffic Congestion - Institute of Transportation Engineers,” accessed February 6, 2016, http://ntl.bts.gov/lib/jpodocs/repts_te/10803.pdf. Barnthouse 38 same time.130 Virginia’s lanes came about through a public-private partnership (P3) to design, build, finance, operate, and maintain the lanes.131 The long-term contract partnership between Virginia Department of Transportation and Transurban was able to complete the project for $82 million by leveraging private investments, creating a cost savings $18 million.132 Requirements and Challenges for Implementation Adding capacity to the corridor would require a significant upfront capital investment, but increasing the capacity may initially reduce overall congestion. However, an increase in capacity; even with more emission efficient vehicles; may result in an increase in air pollution over time. While traffic congestion and negative health impacts on motorists may be decreased, a capacity expansion may mean more vehicles releasing air pollutants from exhaust. Further, the additional travel lanes along the Corridor may allow for more additional trips by commuters and increase the amount of vehicles traveling.133 Yet, by providing capacity through the construction of new lanes to the interstate, vehicle accident rates may be reduced as speeds become more consistent.134 Funding Options For the HOV3 capital construction, in addition to the TIFIA financing and loan options that are available for expansion projects, a potential source of funding beyond the normal means previously reviewed in this analysis is private activity bonds and private equity. HOV lanes provide an opportunity for the state to incorporate an innovative finance options, as the best practices are leading toward P3s for funding capacity infrastructure projects. Alternative #2: Toll Lanes Another option is to increase capacity by introducing reversible toll lanes to the corridor. This system would be similar to HOV3 option by adding two lanes to increase capacity, but would offer revenues from user fees to assist in offsetting the costs of construction, maintenance and operations. By 130 Ibid. “FHWA Office of Innovative Program Delivery: Public Private Partnerships,” accessed October 20, 2015, http://www.fhwa.dot.gov/ipd/p3/resources/p3_concessions_map_newbuild.aspx. 132 “495 | 95 Express Lanes - Project Background,” accessed February 6, 2016, https://www.expresslanes.com/projectbackground. 133 “The Impact of I70 Congestion on Colorado-Denver to Grand Junction,” accessed February 6, 2016, http://www.developmentresearch.net/Sample%20Projects/Economic%20and%20Fiscal%20Impact%20Analysis/I70%20Impact_ 042507.pdf. 134 “Chapter 4: The Federal Role in Highway Safety - President Dwight D. Eisenhower and the Federal Role in Highway Safety General Highway History - Highway History - Federal Highway Administration,” accessed February 6, 2016, https://www.fhwa.dot.gov/infrastructure/safety04.cfm. 131 Barnthouse 39 increasing the amount of capacity, this option also provides the ability to reduce traffic congestion on the general purpose lanes and another alternative to manage traffic congestion along the Mountain Corridor. However, these managed lanes do not require a minimum amount of passengers in a vehicle, rather are based on the number of vehicles utilizing the toll lane. Toll lanes, similar to the HOV3 lanes, reduce travel time for users by about twenty-two percent. There are already several existing toll lane systems that work well in Colorado. These express lanes exist on US-36, I-25, and I-70. Tolls are collected through an Express Toll system, either through an account or through license plate collection, with no need to stop at a tollbooth. Express Lanes use a dynamic pricing system, in which tolls can change in price depending on the time of day. As traffic congestion increases, the toll price increase, with prices and the tolls fluctuating based on demand.135 Requirements and Challenges for Implementation Similar to the HOV3 alternative, a reversible toll lane system would require a significant up front capital investment for construction costs, which would necessitate additional funding. Yet, increasing capacity along the corridor may reduce overall congestion. The Toll Lane system allows for fee revenues to offset the costs associated with construction. However, a toll system relies on vehicle utilization; the fluctuating tolls may deter commuters from using the toll lane. Additionally, although toll systems remove vehicles from general lanes, because of the fees the reduction of vehicles in general purpose lanes tend to be less than a free HOV3. Moreover, a Toll Lane system does not necessarily decrease the overall number of vehicles on the road as there is no requirement for a minimum number of passengers. Therefore, carbon emissions will not necessarily decrease either. Funding Options Funding options for this alternative are similar to the financing options available for HOV3. The TIFIA financing and loan options are available for expansion projects and are a potential source of funding beyond the normal means previously reviewed in this analysis. As best practices are leading “ Express Lanes: FAQ”, accessed April 20, 2016, https://www.codot.gov/programs/expresslanes/frequently-askedquestions-faqs 135 Barnthouse 40 toward P3s for funding capacity infrastructure projects, toll lanes provide another opportunity to advance the states innovative financing options.136 Alternative #3: Increasing Bus Transit Ridership The final alternative to reduce traffic congestion along the I-70 Mountain Corridor is by increasing bus transit ridership. A bus can offer an express service on the highway, with a fixed route. This would require an expansion of existing public transportation. Rural bus transit in the United States provides a low-cost mobility option, with exponential benefits for a fixed bus route.137 The United States Government Accountability Office reviewed the bus systems throughout the country finding such projects significantly improved transit options and created a time savings.138 Relatively speaking, the costs of bus options are lower than rail transit projects. Unlike building a rail line or expanding the highway the bus offers a flexible option for transportation infrastructure. There is no expansion footprint and in the event the bus ridership is not successful, the reintegration of other options is feasible. The Lake Tahoe region provides a similar context to the predicament of the I-70 Mountain Corridor. Lake Tahoe is popular for its skiing, casinos, and outdoor recreation. Various strategies have been developed in the region to deal with traffic involving buses. Ski Resort Buses provides a free shuttle bus for skiers; the Tahoe Casino Express operates a bus transit service from the Reno Airport to Lake Tahoe Casinos. The South Lake Shuttle with increased ridership seasonally. The North Shore Trolley, is similar to the South Lake Trolley, but is a summer-only form of transportation.139 Many of these bus systems were originally utilized by residents disproportionately to tourists, but over time have increased tourist ridership. Although Lake Tahoe is a comparable region because of the recreational travel, the region is not identical to the I-70 Mountain Corridor, as Tahoe has multiple access points from various corridors including the Nevada State Route 28, California’s I-80 and Highway 50. Further, the bus activity in Lake Tahoe offer more local access alternatives that are provided by ski resorts, casinos, South 136 Toll revenue may also present an opportunity for a P3 approach to provide additional funding for construction. “National Center for Transit Research: Cost-Benefit Analysis of Rural and Small Urban Transit, July 2014,” accessed February 6, 2016, http://www.nctr.usf.edu/wp-content/uploads/2014/07/77060-NCTR-NDSU03.pdf. 138 “GAO-12-811, BUS RAPID TRANSIT: Projects Improve Transit Service and Can Contribute to Economic Development,” accessed February 6, 2016, http://www.gao.gov/assets/600/592973.pdf. 139 “Transportation Management Alternatives I-70 Mountain Corridor,” accessed February 7, 2016, http://webcache.googleusercontent.com/search?q=cache:gson7TKYjfQJ:hermes.cde.state.co.us/drupal/islandora/object/co%2 53A12136/datastream/OBJ/download/Transportation_management_alternatives___I70_mountain_corridor_draft_environmental_impact_statement.pdf+&cd=1&hl=en&ct=clnk&gl=us. 137 Barnthouse 41 Lake Shuttle Service, and a North Shore Trolley. Areas along I-70 Mountain Corridor don’t offer as many access points and transportation alternatives like that of Lake Tahoe. Requirements and Challenges for Implementation The Bus transit alternative offers an expansion of a transportation mode along the I-70 Mountain Corridor. This option would not require its own lane, thus, capital construction costs would be significantly lower than other alternatives. Instead the bus would be susceptible to traffic congestion on the highway, therefore, riders would not necessarily benefit from a time savings.140 Additionally, the Regional Transit Authorities and CDOT would need to develop additional capital investments for localized transportation infrastructure in regions along the Corridor to meet the needs of this transit alternative. This alternative may result in difficulty deciding the frequency and location of stops along the route. The success of this option would rely on commuters changing preferences from vehicles to mass transit.141 Nearly eighty-five percent of the population in Colorado use automobiles as the main mode of transportation.142 If more benefits are available to motorists such as convenience and preference, then motorists will tend to favor automobile travel at the expense of other modes of transportation. While the transit services would increase the ability for capacity of commuters along the Corridor, it may not reduce traffic congestion significantly. A tradeoff, however, is the reliability and safety of the transit system in comparison to motorists in traffic. This increased perception of safety may result in an increase in riders’ willingness to pay for a transit alternative. Further, this transit mode needs to interface with existing and future transit systems to ensure connectivity. Therefore, the region along the corridor would need to make additional capital investments in local transit. Funding Options Specific sources of funding for buses are provided through the U.S. Department of Transportation’s Federal Transit Administration (FTA). The FTA provides grants to help to assist with transit systems 140 Bus travel may not be more reliable compared to the status quo, unless it has its own lane. Motorists may not change transportation preferences to bus travel unless there is a time savings, cost savings, or both. 142 “Colorado Department of Transportation-Transportation Matters, Statewide Transportation Plan 2040,” accessed February 6, 2016, http://coloradotransportationmatters.com/wp-content/uploads/2015/07/CDOT-SWP-Executive-Summary-2015-0701.pdf. 141 Barnthouse 42 through a series of grants.143 These transit capital investment grants (5309) can assist in the funding this new system. States and local entities, including agencies are eligible recipients for the Bus program;144 private companies are eligible for funding as a sub-recipient if they are involved in public transportation.145 Cost-Benefit Analysis Methodology Approach & Timeframe The cost-benefit analysis (CBA) constructs the expenditures and benefits of developing alternate methods of transportation infrastructure, while comparing these results to the current status quo. The ex ante CBA assists in the consideration of each alternative. A CBA is a common form of analysis conducted prior to policy implementation.146 Benefits are measured through the avoided costs of travel, an increase in safety, the increase of air quality, and increase economic revenues. Each intervention is considered an add-on to the status quo. However, implementation time frames vary depending on the selected alternative. Estimations for the HOV3 lanes and Toll Lanes developments are three years, whereas, the buses would be able to run almost immediately. Therefore, the CBA considers twenty years of analysis to offset the different timeframes for implementation for each alternative, allowing for a seventeen year comparison of operations. The main considerations in determining the costs of the recommended alternatives include the short-term capital costs for construction and the long-term operating costs. Such modes of transportation can impose an increase of external costs to society through environmental pollution. Vehicle emissions change due to travel speeds, times of day, fuels, and types of vehicles having varied costs on health impacts. Further, evaluated is the value of travel time saved and vehicle operating costs. Traffic congestion has both qualitative and quantitative dimensions. However, qualitative attributes may be more difficult to monetize because they include less tangible costs such as the quality of life and the negative perception of motorists commuting to the mountains. For example, a person stuck in traffic may have paid for a full day ticket at a ski resort but might only utilizes it for part of the day. Thus, 143 “FTA,” accessed February 7, 2016, https://www2.fta.dot.gov/. FASTER also provides transit funds. 145 “Grants Information by Number — Colorado Department of Transportation - CDOT,” accessed February 6, 2016, https://www.codot.gov/programs/transitandrail/transit/transit-grant-programs. 146 Boardman, Anthony, et al., Cost Benefit Analysis: Concepts and Practice, Pearson Education, Inc. (2011), 3. 144 Barnthouse 43 this individual is essentially paying more per hour for the opportunity to ski than those who are not stuck in traffic. The overall level of enjoyment during the outdoor activity may also be reduced for those stuck in traffic. Quantitative costs and benefits can be measured through revenues, expenditures, safety, vehicle operating costs, and the efficiency of commute times. These lost opportunity costs can be monetized through the value of time lost due to traffic congestion. Further, traffic congestion can contribute to sunk costs, which is the time and money already invested into unsuccessful projects along the I-70 Mountain Corridor. Method for Evaluation The recommended policy alternatives discussed in this analysis are evaluated first by the economic efficiencies, or the ability to effectively decrease traffic congestion along the corridor. Each alternative is assessed based on the number of passengers increasing the value of travel time savings, rate of vehicular accidents and the amount of carbon emissions. Each recommendation is then compared to the status quo, where limited benefits for stakeholders are expected. Utilization of this method of comparison allows for the creation of an analysis of benefits, including the estimates of short and long-term costs avoided from travel, accidents, and pollutants. The policy options are subsequently evaluated for political feasibility. Social Discount Rate, Inflation and Future Projections The analysis includes a multi-year timeframe, costs and benefits are discounted to reflect the present value of money. The real social discount rate of 7% is used. All numbers are adjusted to present values using the OMB-Circular A-94.147 A conservative future projection of population is used in this analysis, at a 2.2% increase annually year over year.148 Pollution costs for any transportation mode along the Corridor are expected to decrease annually with the continued use of fuel efficient vehicle technologies.149 147 “Circular A-94 Appendix C | The White House,” accessed April 18, 2016, https://www.whitehouse.gov/omb/circulars_a094/a94_appx-c. 148 "The Impact of I-70 Congestion on Colorado-Denver to Grand Junction," Development Research Partners, http://www.developmentresearch.net/Sample%20Projects/Economic%20and%20Fiscal%20Impact%20Analysis/I70%20I mpact_042507.pdf. 149 "I-70 Mountain Corridor PEIS Climate and Air Quality Technical Report," March 2011, https://www.codot.gov/projects/i70mountaincorridor/final-peis/final-peis-documents/technical-reports/Vol3_I70_Mntn_Corridor_Final_PEIS_Climate_AQ_TR.pdf. Barnthouse 44 Cost and Benefit Inputs To produce cost and benefit estimates, this analysis includes the costs and benefits for stakeholders that can be quantified and are backed by existing research. Although, qualitative benefits from one or more of the policy options may be present, they are more difficult to measure and are not included. The cost and benefit inputs used to evaluate policy options in this analysis are summarized in Table 2 below. Table 2: Cost-Benefit Inputs Costs Benefits 1. Costs of traffic congestion. 1. Vehicle Travel Time Savings 2. Costs of motor vehicle injuries from crashes. 2. Reduction in motor vehicle injuries 3. Costs of vehicle operations. 3. Reduction in vehicle operations 4. Costs of carbon emissions 4. Reduction in carbon emissions 5. Cost of Construction/Maintenance & Operations 5. Revenues Cost Benefit Matrix Discussion Table 3 below provides the Cost-Benefit Matrix. In the matrix the cost and benefits are combined to present a simplified sum total for each category. (The monetary costs and benefits breakdown of the CBA Matrix can be found in Appendix A). Further, the Present Costs for each alternative is subtracted from the Present Benefits to determine the Net Present Value (NPV). The policy option with the highest NPV represents the option that has the most benefits.150 The monetary calculations, formulas and statistical inputs used in the matrix below are found in Appendices A, B and C. 150 Boardman, Anthony E. Cost-benefit Analysis: Concepts and Practice. Upper Saddle River, NJ: Prentice Hall, 2001. Barnthouse 45 Table 3: CBA Matrix151 System Travel Time in Minutes152 Years for implementation Annual Marginal Decrease in Vehicles Costs Traffic Congestion Carbon Emissions153 Vehicle Operations154 Injury/fatality155 Vehicle Construction156 Costs of 23 Buses157 Operations/Maintenance158 Total Marginal Social Costs Benefits159 Vehicle travel time savings (VTTS)160 Reduction in Vehicles Vehicle Operating Cost savings Reduction in travel time of 4 General Purpose Lanes161 Reduction in Accidents162 Reduction in Carbon Emissions Revenue from Toll163 Revenue from Bus164 Total Marginal Social Benefits165 Present Value Benefits Present Value Costs NPV IRR B/C Ratio Discounted Payback 151 20 Year Total Costs in Constant 2015 Dollars Status Quo HOV3 4 Lanes 6 Lanes 202 158 0 3 0 813,721 Costs Toll 6 Lanes 158 3 Bus 4 Lanes 190 0 0 348,738 $2,689,832,857 Marginal Costs $0 $0 $0 Marginal Costs $0 $0 $0 Marginal Costs $0 $0 $0 $10,690,409,769 $0 $0 $0 $3,185,603,010 $0 $0 $3,185,603,010 $0 $0 $2,361,024,000 $50,423,031 $172,529,200 $86,264,600 $97,864,600 $29,447,856 $41,449,361,211 Benefits $3,271,867,610 Marginal Benefits $3,283,467,610 Marginal Benefits $2,440,894,887 Marginal Benefits $0 $997,925,150 $712,803,679 $14,568,835 $0 $0 $142,560,736 $36,991,506 $0 $0 $14,568,835 $22,170,222 $0 $615,624,489 $615,624,489 $307,812,244 $0 $294,036,376 $0 $598,001,615 $0 $0 $0 $0 $0 $2,685,139,872 Return on Investment Measures $0 $2,685,139,872 $41,449,361,211 $3,271,867,610 ($41,449,361,211) ($586,727,738) n/a 4.53% n/a .48 n/a 39.35 $126,015,590 $0 $1,759,606,795 $0 $3,214,050,553 $160,356,147 $326,105,167 $340,561,370 $1,186,142,821 $3,214,050,553 $3,283,467,610 ($69,417,058) 6.72% .94 20.24 $1,186,142,821 $2,440,894,887 ($1,254,752,066) -1.96% .42 44.79 $6,156,244,889 $21,740,344,497 CBA Templates for each alternative can be found in Appendices Q, R, S, and T. The CBA matrix takes into account a 7% real discount rate. Travel time estimates for 144 miles, time savings for HOV3 is 44 minutes, Toll Lane is 44 minutes, bus is 12 minutes. 153 Annual estimation of 4.7 metric tons of carbon emissions per passenger vehicle 154 Vehicle operations are estimated at $.12/mile traveled. 155 Estimated cost per fatality is $4.6 million, estimated cost per vehicle injury is $19,600. 156 Estimates for construction of HOV3 and Toll Lanes are 3 years. Bus construction costs are estimated for bus stops with implementation within the first year. 157 Estimate of bus replacement every 5 years. 158 Annual estimates for operations/maintenance of I-70 are based on the CDOTs annual budget per mile allocation of $60,000 for the status quo. Operations/maintenance base costs for HOV3 and Toll Lanes is ½ the amount of status quo for the addition of 2 lanes, with Toll Lanes having an additional $200,000 for toll signage. Operations/maintenance costs for buses include salaries of bus operators and maintenance on buses. 159 All marginal benefits reflects that ½ of all users will utilize each alternative for the entire duration of the corridor round trip. 160 VTTS is estimated by on ½ the average annual wage, $12.40 x the amount of travel time x percentage of users for each alternative. HOV3 increases the average of passengers to 2.8/vehicle, with 2.6 hours of travel time, 49% of users. Toll Lanes estimates an average 3.5 passengers/vehicle, with 2.6 hours of travel time, 37% of users. Bus estimates an average of 2.6 passengers/vehicle, with 3 hours of travel time, 3% of users. 161 Estimates in travel time in 4 general purpose lanes increases by 10% for HOV3 and Toll, and 5% increase for Bus 162 HOV3 estimates a 7% reduction in vehicle accidents/fatalities, Toll 3% reduction, Bus 3% reduction 163 Revenues for tolls are estimated at $.27/mile or $38.88 one way, with 37% of users moving to Toll 164 Estimates for revenue are $.19/mile or $28 one-way, with 3% of ridership moving from general purpose lanes 165 All Marginal Benefits account for 50% of users traveling the entire 144 miles and roundtrip 152 Barnthouse 46 While no option can completely eliminate all of the traffic congestion along the Corridor, as all of the options yield a negative NPV. However, the Toll Lanes offer the highest NPV. The HOV3 offers the second highest with a negative NPV; the Bus has the second lowest, with the Status Quo yields the lowest value. Although, implementation of the Toll Lanes is significantly more costly to construct than other alternatives, the associated reward is great. The Toll Lanes can reduce vehicular accidents, increase the vehicular travel times, while gaining fee revenues for the state. Sensitivity Analysis Matrices and Discussion In order to consider the uncertainties in the cost-benefit analysis, a sensitivity analysis was conducted. Table 5 below provides a simplified CBA over twenty years, comparing carbon emissions, time travel savings, the amount of accidents, as well as the NPV. Table 4: Simplified CBA (20 year comparison) Policy Option Status Quo HOV3 Toll Bus CO Emissions (Metric Tons) VTTS Accident Rates NPV 1,354,261,689 $0 3344 ($41,449,361,211) 1,312,726,396 1,354,261,689 $5,803,544,537 $1,471,409,851 2726 2842 ($586,727,738) ($69,417,058) 1,333,947,764 $334,427,721 3244 ($1,254,752,066) The results of the original cost-benefit analysis were based on the assumption that improvements to modes of transportation can be combined with the existing status quo. Important to this, however, is the possibility of combined approaches will not lead to the reductions projected. Important to this analysis then, is the formation of the sensitivity analysis, in which the best case scenarios and worst case scenarios are averaged to produce more modest projections. Costs of transportation projects tend overrun expectations. Therefore, the analysis accounts for a five percent increase in costs associated for the recommended alternative. Table 6 below presents this approach with a sensitivity analysis. Barnthouse 47 Table 5: Sensitivity Analysis of Toll Lanes Marginal Costs $3,185,603,010 $ 97,864,600 $3,283,467,610 Marginal Benefits Increase 5% in Construction Costs Marginal Costs $3,344,883,161 $97,864,600 $3,442,747,761 Marginal Benefits $712,803,679 $712,803,679 $615,624,489 $615,624,489 $126,015,590 $1,759,606,795 $126,015,590 $1,759,606,795 $3,214,050,553 $3,214,050,553 ($69,417,058) ($228,697,208) Toll Costs Construction Operations/Maintenance Total Marginal Social Costs Benefits Vehicle travel time savings (VTTS) Reduction in travel time of 4 Lanes Reduction in Accidents Revenue from Toll Total Marginal Social Benefits NPV Even when subjected to modest estimates, the Toll Lane alternative is the favored alternative when considering the economic efficiency or the ability to effectively decrease traffic congestion. Political Feasibility Matrix and Discussion Table 7 below presents the Political Feasibility Matrix. Each policy option is ranked according to the following measures: affordability, commuter and community impacts. Affordability is an important consideration because budget and funding limitations can significantly impact the ability to move forward with development. Commuter and community impacts are equally important. Interventions that affect a greater number of individuals are more susceptible to resistance than those that affect relatively few. Policy Option Status Quo HOV3 Toll Bus Table 6: Political Feasibility Matrix (annual average) Affordability Commuter Impact Costs Rank VTTS Rank Accident Rank $2,072,468,060 $163,593,380 $164,173,380 $122,044,744 4 2 3 1 $0 $290,177,227 $73,570,493 $16,721,386 4 1 2 3 168 160 167 162 4 1 3 2 Community Impact CO Emission MT Rank 67,713,084 65,636,320 67,713,084 66,697,388 CBA Results After conducting the cost benefit analysis and reviewing the political feasibility matrix it is clear not one alternative completely satisfies all conditions set forth in the measurement standards of the 4 2 4 3 Barnthouse 48 matrix. Therefore, the alternative determined to be the best option based on costs savings is the Toll Lane system. The Toll Lanes have the highest net present value, decrease vehicular accidents, while still offering a saving travel time for passengers. CBA Assumptions & Limitations Below, the list describes some of the assumptions and limitations that were used in the CBA. Consideration of these constraints is important to ensure proper evaluation of the findings and recommendations within this analysis. Using the longitudinal approach, projections were made for twenty years out, but the future uncertainties of the estimates are greater than twenty years. Use of an ex ante CBA: There is an uncertainty in the ex ante CBA, as assumptions are made based on future projections. Economic events, technological advances, and costs in transportation alternatives cannot be easily accounted for in the future. Calculations: The results of the CBA are dependent upon the generalization of data from national studies as applied to the transportation infrastructure issues. National average lost wage data, average passenger vehicle metric tons of carbon emissions, and average passenger per vehicle is used to present an average experience of a commuter in Colorado. When possible relevant state and local data was used in the analysis. Further, national average of benefits was applied to data, making the assumption that those along the I-70 Mountain Corridor will have the same results as other traffic congestion areas. Social Discount Rate: Selection of other discount rates, other than the 7% real discount rate, would have lent to different results in the cost benefits analysis. This could have been addressed in the sensitivity analysis, but wasn’t because it was determined that the sensitivity analysis was needed to examine the different effects on the costs of the chosen alternative as it was more appropriate. Political Feasibility: It is plausible that the political situation surrounding the I-70 Mountain Corridor is more complex than estimated, and it is plausible that opposition to the proposed alternative would be greater than anticipated. Strategic Recommendations This policy analysis recommends the Toll Lanes for the I-70 Mountain Corridor, to decrease traffic congestion during peak times while still relying on existing methods of increasing enforcement and Barnthouse 49 implementing additional incentives. This approach also involves cooperation from various stakeholders. All proposed alternatives to decrease traffic congestion have limitations. Even if an alternative is adopted, CDOT and its partners may struggle with financing and may have to design new ways to fund the selected alternative. Because of funding limitations, any alternative selected may face challenges; however Toll Lanes, as a source of additional revenue, may provide CDOT with opportunities to attract private investors. Granted, government spending on transportation infrastructure will not completely solve all of the problems of traffic congestion. Since there is an induced demand that tends to fill up additional transportation infrastructure capacity, a multi-faceted approach that includes behavioral modifications, incentives for off-peak travel times, and other travel demand related management strategies are necessary. Further, the government needs to develop strategic infrastructure investment policies with partnerships that will provide policy guidance and assist in determining the appropriate tradeoffs that could occur while helping to maximize economic vitality. The government has to consider the complexities of transportation infrastructure to find a viable solution. In addition to the Toll Lanes, as an add-on intervention to the status quo, a focus on more localized highway improvements may assist in reducing congestion and improving mobility on the highway. This focused approach would involve making spot improvements to specific sections of the highway rather than improving the Corridor all at once. Using this process also encourages greater cooperation from communities along the I-70 Mountain Corridor. This prioritizes sections of the highway corridor that lead to the greatest traffic congestion, including bottlenecks, steep grades and slow-moving vehicle locations. The approach can ease the financial and political pressure on the state to implement the entire project all at once. Instead it will allow CDOT to create an adaptive management strategy. CDOT can publicize its successes while making any necessary adjustments to the project as each phase is implemented. Altering structural deficiencies and improving the localized highways by identifying areas that are in the most needs should be addressed first. Further, ADI technology that is currently being piloted by CDOT could dramatically change the outlook of the future need of transportation infrastructure. Technology advances can alter the way Barnthouse 50 transportation issues will be dealt with in the future.166 Such technologies can create a more efficient route and improve traffic congestion by informing drivers or vehicles about upcoming hazards.167 Many factors will affect the implementation of this strategic recommendation. The political landscape and the ability to negotiate with stakeholders will play important roles in the process. Although a long-term sustainable alternative is necessary, the Toll Lanes present trade-offs between the need for improvements to decrease traffic congestion and the negative environmental impacts on the I-70 Mountain Corridor. Innovative Funding Recommendations As previously indicated, the State is facing shortfalls for transportation funding. This policy memorandum has offered some funding options for the proposed alternative. Further, it is recommended the HPTE find additional innovative ways to fund projects for the I-70 Mountain Corridor. The HPTE may use the P3 to assist in funding the transportation needs of the corridor, as P3s have been successfully implemented. However, because of the most recent experience with US-36, P3s may still be met with resistance from the general public and legislators. Therefore, another creative option is to learn from transportation successes within the state. The State authorized E-470 to operate without any state or federal funds, creating the E-470 Public Highway Authority. Revenues for E-470 come from registration fees, investment income, and other non-toll revenue. Any excess revenues are directed back into the infrastructure of E-470. 168 The State could create a similar authority for the I-70 Mountain Corridor. Another innovative way for the state to use E470 by allowing CDOT to purchase E-470, which could create a higher credit rating for the state, while allowing for the redirection of a portion of the excess capital from E-470 to assist in funding the project on I-70 Mountain Corridor. Weaknesses and Limitations Prior to moving forward with any policy recommendation careful consideration of weaknesses and limitations should be addressed. This policy memorandum is not without such limitations. The 166 Autonomous vehicles may reduce the need for lanes to be as wide as they currently are, therefore allowing for more capacity in the same amount of space. 167 “When Cars Talk: The Future of Colorado’s I-70 Mountain Corridor | SummitDaily.com,” accessed February 6, 2016, http://www.summitdaily.com/news/19457476-113/when-cars-talk-the-future-of-colorados-i-70. 168 “E-470,” accessed February 6, 2016, https://www.e-470.com/pages/AboutUs/History.aspx. Barnthouse 51 selection of the three alternatives above was based on existing infrastructure solutions that have been utilized in the United States and Colorado that have resulted in successfully decreasing traffic congestion. Omission of Alternatives Other alternatives such as new technologies or combining alternatives were considered, but not included in this analysis. Further, although the Tier 1 evaluation recommended an AGS, this option was initially reviewed in the analysis, but it was determined to not be a feasible option as the costs associated would be extreme and fees for riders would be expensive without additional subsidies. Another possible way to reduce traffic congestion that was not assessed in this analysis is carpooling. Despite the omission of these alternatives from the analysis, they are worth mentioning as another means to reduce traffic congestion. Budget Constraints and Policy Issues There will always budget constraints on legislation. Specifically, Colorado’s Tax Payer Bill of Rights (TABOR) has amplified issues of transportation funding. Compounded by the increase of fuelefficient vehicles, the revenue generated from the gas tax continue to decrease, with no funds to replace the loss in revenue.169 Further, the upfront cost associated with projects may be exponential without knowing all of the benefits that will be received. Challenges for Transportation Improvement in the Mountain Corridor The I-70 Mountain Corridor brings about a unique set of challenges that impact transportation across multiple jurisdictions. Particularly difficult is the challenge presented by creating effective coordination between stakeholders. Additionally, there are areas along the route that may not want to increase economic growth from the alternative. Further, urbanized areas have been studied significantly in regards to traffic congestion alternatives, yet there is less experience with strategies for recreational traffic congestion in rural regions. Surrounding Regional Impacts Another weakness is the I-70 Mountain Corridor is only part of the entire I-70 Corridor and may be subjected to other traffic congestion patterns created by the urban sprawl of the Denver region. While forecasting traffic congestion along the Corridor considers travel from the metro area, there is no 169 “A Federal Gas Tax for the Future,” accessed October 20, 2015, http://www.itep.org/pdf/fedgastax0913.pdf. Barnthouse 52 proposed alternative dealing with this specific type of added congestion factor. CDOT may need to investigate further development in the surrounding regions as a possible solution. Traffic Congestion Reduction Methods The current methods for measuring traffic congestion are somewhat misleading with the data provided. Data points and calculations for traffic are not entirely accurate. A closer examination of DOT’s traffic statistics indicates traffic related statistics are limited in both accuracy and verifiability.170 Further, the ideal target for traffic reduction should be the combination of the national average of pollution emitted, time-spent, and traffic related options. However, these national averages may be higher or lower than anticipated. Therefore, this policy analysis has vagueness as to the amount of traffic that constitutes too much or too little traffic. By comparing I-70 traffic statistics to other similar situations it may provide a numerical framework for the analysis, but does not objectively identify an appropriate level of traffic congestion for the I-70 Mountain Corridor. Implementation, Feasibility & Effectiveness There is a distinction between building transportation systems and successful integration. Any alternative selected needs to have buy-in from key stakeholders to be successfully implemented. Often times the government is ill-suited to handle all aspects of traffic congestion issues and relies largely on the cohesion of relevant stakeholders to accomplish the goal of decreasing the negative impacts of traffic congestion. This heavily relies on both the public and private sectors. Although there are predictions for the future population and needs of traffic congestion along the Mountain Corridor, there is always an element of complexity with the uncertainty of the type of infrastructure needed to support the future demands. Furthermore, even if a recommendation is effectively implemented it is unlikely that any alternative will completely deter all of the traffic congestion on the I-70 Mountain Corridor, as adverse weather and other server conditions are common along the Mountain Corridor. 170 Better Road Congestion Measures Are Needed." United States Department of Transportation. 2014. Accessed March 20, 2016.http://www.rita.dot.gov/bts/sites/rita.dot.gov.bts/files/publications/special_reports_and_issue_briefs/issue_briefs/num ber_04/html/entire.html. Barnthouse 53 Technology Advancements Advances in technology, such as autonomous vehicles, create a potential limitation of this policy analysis. Policy makers are tasked with creating policy, often times in a fast paced ever changing technological world. The nature of these fast changing events can make policy planning and analysis difficult. The foundation of policy analysis is derived from previous experiences, yet all planning assumes a certain risk that the future is an ever changing landscape. Therefore, public policy makers must constantly alter methods to address these potential future changes. This is seen when analyzing the I-70 Mountain Corridor traffic congestion. While the analysis conducted leads to the conclusion of capacity expansion, as technology for autonomous vehicles could be introduced, this policy analysis could be rendered obsolete. Although, this technology is in its infancy there is no determinant timeframe on when it will advance. Such technologies may have an immediate impact on reducing the number of vehicles on the road. Therefore, it is within reason to assume at some point in the future, people will utilize autonomous vehicles in the same fashion as Ubers are utilized at this time, by purchasing personal mobility instead of vehicles. Further, autonomous vehicles can have many advantages over human operated vehicles, as a majority of accidents are caused by human failures. Although CDOT and other organizations are in the beginning stages of testing out such technology there is the potential to drastically alter the means of Americans transportation needs, which would significantly impact the analysis presented in this policy memorandum. Appendix A: Monetary Costs and Benefits with Calculations & Sources The tables below provide an overview of calculations for each alternative, along with sources for each portion of the calculation. Status Quo: Costs Cost of Traffic Congestion Operation/Maint enance Costs Monetary Value $6,156,244,889 $172,529,200 Calculations & Sources CDOT estimates 10,894,970 vehicles traveled I-70 Mountain Corridor in 2013 with 2.2% population growth rate per year for 2 years = 11,374,349 vehicles. Bureau of Labor Statistics estimates the average national wage in 2015 is $24.80. Boardman commuting leisure time travel average wage is .5. $24.80*.5 =$12.40 *11,374,349 x 3.3 hours of travel time + population increase of 2.2% year over year 20 year total costs = $6,156,244,889 Sources: "The Impact of I-70 Congestion on Colorado-Denver to Grand Junction," Development Research Partners, http://www.developmentresearch.net/Sample%20Projects/Economic%2 0and%20Fiscal%20Impact%20Analysis/I70%20Impact_042507.pdf. Boardman, Anthony E. Cost-benefit Analysis: Concepts and Practice. Upper Saddle River, NJ: Prentice Hall, 2001. "Average Hourly and weekly earnings of all employees on private nonfarm payrolls by industry sector, seasonally adjusted," Bureau of Labor Statistics, http://www.bls.gov/news.release/empsit.t19.htm. Highway Data Explorer by Highway Segment, CDOT, http://dtdapps.coloradodot.info/otis/HighwayData. CDOT’s budget for maintenance is $547.9 million, servicing 9146 miles, =$60,000 per mile annually. Annual maintenance for the I70 Mountain Corridor = $8,626,460 a year for a 20 year total costs = $172,529,200 Source: “CDOT Annual Report Fiscal Year 2015,” accessed April 18, 2016, https://www.codot.gov/library/AnnualReports/annualreport2015.pdf/at _download/file. CDOT estimates 2012 total vehicle injury accidents on I-70 Region was 132, Broadman estimates in 2008 total vehicle injury costs is $17,777 in 2008 dollars. 2015 dollars = $19,572.48 *132 =$2,583,567 + population increase of 2.2% year over year 20 year total costs =$35,354,294 Costs of Motor Vehicle Injury $35,354,294 Sources: Boardman, Anthony E. Cost-benefit Analysis: Concepts and Practice. Upper Saddle River, NJ: Prentice Hall, 2001. "2012 Crash Rate Book", https://www.codot.gov/library/traffic/safety-crash-data/accidentrates-books-coding/crash-rate-books-accident-rates-books. "The Impact of I-70 Congestion on Colorado-Denver to Grand Junction," Development Research Partners, http://www.developmentresearch.net/Sample%20Projects/Economic%2 0and%20Fiscal%20Impact%20Analysis/I70%20Impact_042507.pdf. Costs of vehicle operations CDOT estimates 10,894,970 vehicles traveled I-70 Mountain Corridor in 2013, with 2.2% population growth rate per year for 2 years = 11,374,349. Boardman estimates total cost of vehicle operations is $.109 in 2008 dollars. 2015 dollars = $.12 *144 miles traveled *11,374,349 vehicles + population increase of 2.2% year over year total 20 year costs = $2,689,832,857 $2,689,832,857 Sources: Boardman, Anthony E. Cost-benefit Analysis: Concepts and Practice. Upper Saddle River, NJ: Prentice Hall, 2001. "The Impact of I-70 Congestion on Colorado-Denver to Grand Junction," Development Research Partners, http://www.developmentresearch.net/Sample%20Projects/Economic%2 0and%20Fiscal%20Impact%20Analysis/I70%20Impact_042507.pdf. Highway Data Explorer by Highway Segment, CDOT, http://dtdapps.coloradodot.info/otis/HighwayData. CDOT estimates 169 fatalities along I-70 Mountain Corridor Region in 2015. Boardman estimates the average fatality resulting from a vehicle crash is $4,184,651 in 2008 dollars. 2015 dollars = $4,607,300 *169=$778,633,827 + population increase of 2.2% year over year total 20 year costs =$10,655,055,475 Sources: "Total of Statewide fatal crashes & Costs of fatal crashes $10,655,055,475 fatalities, broken out by CDOT Region and month," https://www.codot.gov/library/traffic/safety-crash-data/fatal-crash-datacity-county/2015-monthly-fatals/view. Boardman, Anthony E. Cost-benefit Analysis: Concepts and Practice. Upper Saddle River, NJ: Prentice Hall, 2001. "The Impact of I-70 Congestion on Colorado-Denver to Grand Junction," Development Research Partners, http://www.developmentresearch.net/Sample%20Projects/Economic%2 0and%20Fiscal%20Impact%20Analysis/I70%20Impact_042507.pdf. EPA GHG Emissions from a typical passenger vehicle is 4.7 metric tons (MT) a year. Colorado emitted 51,206,359 MT of carbon emissions in 2013 with 2.2% population increase for 2 years= 53,459,439 MT. EPA estimates the social costs is $26.00 in 2007 dollars per MT. 2015 dollars = $29.72 *(4.7x11,374,349)=$1,588,707,602 + population increase 2.2% year over year total 20 year costs =$21,740,344,497 Costs of Carbon Emissions $21,740,344,497 Total Costs $41,449,361,211 Total Benefits $0 Sources: "The Social Cost ofCarbon," https://www3.epa.gov/climatechange/EPAactivities/economics/scc.htm l. "I-70 Mountain Corridor PEIS Climate and Air Quality Technical Report," March 2011, https://www.codot.gov/projects/i70mountaincorridor/final-peis/final-peis-documents/technicalreports/Vol3_I-70_Mntn_Corridor_Final_PEIS_Climate_AQ_TR.pdf. "The Impact of I-70 Congestion on Colorado-Denver to Grand Junction," Development Research Partners, http://www.developmentresearch.net/Sample%20Projects/Economic%2 0and%20Fiscal%20Impact%20Analysis/I70%20Impact_042507.pdf. "Greenhouse Gas Emissions from a Typical Passenger Vehicle," EPA, 2014, https://www3.epa.gov/otaq/climate/documents/420f14040a.pdf. Alternative #1 HOV3: Costs Monetary Value Costs of Construction Costs of Operations/Maint enance Total Costs Benefits VTTS $3,185,603,010 $86,264,600 Calculations & Sources CDOT estimates it would cost $20 B to expand highway and rail, with $16.6 B towards the rail in 2014 dollars = $3,185,603,010 one-time costs over three years in 2015 dollars. Sources: "CDOT tackling I-70 mountain corridor," Denverpost, April 6,2014, http://www.denverpost.com/news/ci_25504609/cdot-tacklingi-70-mountain-corridor 2 lanes would require ½ the costs of the status quo costs of operations/maintenance. CDOT’s budget for maintenance is $547.9 million, servicing 9146 miles, =$60,000 per mile annually. Status quo maintenance for the I-70 Mountain Corridor = $172,529,200*.5=$86,264,600 Source: “CDOT Annual Report Fiscal Year 2015,” accessed April 18, 2016, https://www.codot.gov/library/AnnualReports/annualreport2015.pdf/at _download/file. $3,271,867,610 Monetary Value $997,925,150 Calculations & Sources Bureau of Labor Statistics estimates the average national wage in 2015 is $24.80. Boardman commuting leisure time travel average wage is .5. $24.80*.5 =$12.40 *2014 national average of cost 2014 of VTTS (increased to 2.8 passengers per car) 2015 dollars is $12.40+ population increase of 2.2% year over year*2.6 hours of travel time*49% of HOV3 users from general purpose lanes x .5(not all users will utilize the lanes the entire duration) total 20 year benefit =$997,925,150 Source: "I-70 Mountain Corridor Final PEIS," March 2011, https://www.codot.gov/projects/i-70mountaincorridor/final-peis. "The Impact of I-70 Congestion on Colorado-Denver to Grand Junction," Development Research Partners, http://www.developmentresearch.net/Sample%20Projects/Economic%2 0and%20Fiscal%20Impact%20Analysis/I70%20Impact_042507.pdf. Boardman, Anthony E. Cost-benefit Analysis: Concepts and Practice. Upper Saddle River, NJ: Prentice Hall, 2001. 2014 national average of cost 2014 of VTTS, 2.8 passengers per car)* 813,721 vehicles. Bureau of Labor Statistics estimates the average national wage in 2015 is $24.80. Boardman commuting leisure time travel average wage is .5. $24.80*.5 =$12.40 X 813,721 vehicles removed +population increase of 2.2% year over year * 2.6 hours travel time x .5(not all users will utilize the lanes the entire duration) = total 20 year benefits =$142,560,736 Reduction in Vehicles Vehicle Operating Costs Savings Reduction in travel time of 4 Lanes Reduction in accidents $142,560,736 $36,991,506 $615,624,489 $ 972,409 Sources: "The Impact of I-70 Congestion on Colorado-Denver to Grand Junction," Development Research Partners, http://www.developmentresearch.net/Sample%20Projects/Economic%2 0and%20Fiscal%20Impact%20Analysis/I70%20Impact_042507.pdf. "Freedom to Travel," Bureau of Transportation Statistics, United States Department of Transportation, http://www.rita.dot.gov/bts/sites/rita.dot.gov.bts/files/publications/free dom_to_travel/html/data_analysis.html. "Colorado Tourism numbers set record in 2014, Denverpost, June 23, 2015, http://www.denverpost.com/business/ci_28368011/2014record-colorado-tourism. Boardman, Anthony E. Cost-benefit Analysis: Concepts and Practice. Upper Saddle River, NJ: Prentice Hall, 2001. "Average Hourly and weekly earnings of all employees on private nonfarm payrolls by industry sector, seasonally adjusted," Bureau of Labor Statistics, http://www.bls.gov/news.release/empsit.t19.htm. CDOT estimates 10,894,970 vehicles traveled I-70 Mountain Corridor in 2013, with 2.2% population growth rate per year for 2 years = 11,374,349. Boardman estimates total cost of vehicle operations is $.109 in 2008 dollars. 2015 dollars = $.12 *72 miles traveled * .5(not all users will utilize the lanes the entire duration) *11,374,349 vehicles- 813,721 vehicles removed + population increase of 2.2% year over year total 20 year costs = $36,991,506 Sources: Boardman, Anthony E. Cost-benefit Analysis: Concepts and Practice. Upper Saddle River, NJ: Prentice Hall, 2001. "The Impact of I-70 Congestion on Colorado-Denver to Grand Junction," Development Research Partners, http://www.developmentresearch.net/Sample%20Projects/Economic%2 0and%20Fiscal%20Impact%20Analysis/I70%20Impact_042507.pdf. Highway Data Explorer by Highway Segment, CDOT, http://dtdapps.coloradodot.info/otis/HighwayData. Vehicles using HOV3 lane reduces vehicles in general purpose lanes (4 Lanes), estimation of 10% reduction of general purpose lanes x .5(not all users will utilize the lanes the entire duration) CDOT estimates 2012 total vehicle injury accidents on I-70 Region was 132, Broadman estimates total vehicle injury costs is $17,777 in 2008 dollars. 2015 dollars = $19,572.48 *132decrease of 7% year over year +2.2% increase in population x .5(not all users will utilize the lanes the entire duration) total 20 year benefits=$972,409 Sources: Boardman, Anthony E. Cost-benefit Analysis: Concepts and Practice. Upper Saddle River, NJ: Prentice Hall, 2001. "2012 Crash Rate Book", https://www.codot.gov/library/traffic/safetycrash-data/accident-rates-books-coding/crash-rate-books-accident-ratesbooks. CDOT estimates 2014 total fatalities related to traffic accidents on I-70 Region was 169. Broadman estimates total vehicle fatality costs is $4,184,651 in 2008 dollars. 2015 dollars =$4,607,301*169-decrease of 7% year over year+2.2% population increase x .5(not all users will utilize the lanes the entire duration) total 20 year benefit = $293,063,967 Reduction in fatalities $293,063,967 Sources: "Total of Statewide fatal crashes & fatalities, broken out by CDOT Region and month," https://www.codot.gov/library/traffic/safetycrash-data/fatal-crash-data-city-county/2015-monthly-fatals/view. Boardman, Anthony E. Cost-benefit Analysis: Concepts and Practice. Upper Saddle River, NJ: Prentice Hall, 2001. "The Impact of I-70 Congestion on Colorado-Denver to Grand Junction," Development Research Partners, http://www.developmentresearch.net/Sample%20Projects/Economic%2 0and%20Fiscal%20Impact%20Analysis/I70%20Impact_042507.pdf. Estimate reduction of 4.7 MT per vehicle removed. EPA estimates GHG Emissions from a typical passenger vehicle is 4.7 metric tons. The social cost of carbon emissions is $26.00 in 2007 dollars. 2015 dollars $29.72 *11,374,349 vehicles- 813,721 vehicles x 4.7 MT =2.2% population increase year over year x .5(not all users will utilize the lanes the entire duration) total benefits over 20 years=$598,001,615 Reduction in Carbon emissions Total Benefits $598,001,615 Sources: "The Impact of I-70 Congestion on Colorado-Denver to Grand Junction," Development Research Partners, http://www.developmentresearch.net/Sample%20Projects/Economic%2 0and%20Fiscal%20Impact%20Analysis/I70%20Impact_042507.pdf. "Greenhouse Gas Emissions from a Typical Passenger Vehicle," EPA, 2014, https://www3.epa.gov/otaq/climate/documents/420f14040a.pdf. "The Social Cost of Carbon," https://www3.epa.gov/climatechange/EPAactivities/economics/scc.htm l. $2,685,139,872 Alternative #2 Toll Toll Costs Costs of construction Costs of Operations/Maint enance Monetary Value $3,185,603,010 $97,864,600 Calculations & Sources CDOT estimates it would cost $20 B to expand highway and rail, with $16.6 B towards the rail in 2014 dollars = $3,185,603,010 one-time costs over three years in 2015 dollars. Sources: "CDOT tackling I-70 mountain corridor," Denverpost, April 6,2014, http://www.denverpost.com/news/ci_25504609/cdot-tacklingi-70-mountain-corridor 2 lanes would require ½ the costs of the status quo costs of operations/maintenance. CDOT’s budget for maintenance is $547.9 million, servicing 9146 miles, =$60,000 per mile annually. Status quo maintenance for the I-70 Mountain Corridor = $172,529,200*.5+ 58 toll signs *$200,000=$97,864,600 Source: “CDOT Annual Report Fiscal Year 2015,” accessed April 18, 2016, https://www.codot.gov/library/AnnualReports/annualreport2015.pdf/at _download/file. Total Costs Toll Benefits VTTS Reduction in travel time of 4 Lanes Benefit of reduction of auto accidents $3,283,467,610 Monetary Value Calculations & Sources Bureau of Labor Statistics estimates the average national wage in 2015 is $24.80. Boardman commuting leisure time travel average wage is .5. $24.80*.5 =$12.40 *2014 national average of cost 2014 of VTTS (passenger per car 3.5 average of 1-6 passengers) 2015 dollars is $12.40+ population increase of 2.2% year over year*2.6 hours of travel time*37% of users x .5(not all users will utilize the lane the entire duration) total 20 year benefit =$712,803,679 $712,803,679 $615,624,489 $416,747 Source: "I-70 Mountain Corridor Final PEIS," March 2011, https://www.codot.gov/projects/i-70mountaincorridor/final-peis. "The Impact of I-70 Congestion on Colorado-Denver to Grand Junction," Development Research Partners, http://www.developmentresearch.net/Sample%20Projects/Economic%2 0and%20Fiscal%20Impact%20Analysis/I70%20Impact_042507.pdf. Boardman, Anthony E. Cost-benefit Analysis: Concepts and Practice. Upper Saddle River, NJ: Prentice Hall, 2001 Vehicles using HOV3 lane reduces vehicles in general purpose lanes (4 Lanes), estimation of 10% reduction of general purpose lanes x .5(not all users will utilize the lanes the entire duration). CDOT estimates 2012 total vehicle injury accidents on I-70 Region was 132, Broadman estimates in 2008 total vehicle injury costs is $17,777 in 2008 dollars. 2015 dollars = $19,572.48 *132 =$2,583,567 x decrease of 3 % accidents per year x .5(not all users will utilize the lanes the entire duration) x 2.2% population increase per year for 20 years total =$416,747 Sources: Boardman, Anthony E. Cost-benefit Analysis: Concepts and Practice. Upper Saddle River, NJ: Prentice Hall, 2001. "2012 Crash Rate Book", https://www.codot.gov/library/traffic/safetycrash-data/accident-rates-books-coding/crash-rate-books-accident-ratesbooks. CDOT estimates 2014 fatalities related to I-70 Mountain Corridor were169. Removing 375,000 vehicles from the road results in a reduction of 3% fatalities a year X 2.2% population increase a year x .5(not all users will utilize the lanes the entire duration) = $125,598,843 Benefit of reduction in fatalities Toll Revenue $125,598,843 $1,759,606,795 Sources: "Total of Statewide fatal crashes & fatalities, broken out by CDOT Region and month," https://www.codot.gov/library/traffic/safetycrash-data/fatal-crash-data-city-county/2015-monthly-fatals/view. Boardman, Anthony E. Cost-benefit Analysis: Concepts and Practice. Upper Saddle River, NJ: Prentice Hall, 2001. "The Impact of I-70 Congestion on Colorado-Denver to Grand Junction," Development Research Partners, http://www.developmentresearch.net/Sample%20Projects/Economic%2 0and%20Fiscal%20Impact%20Analysis/I70%20Impact_042507.pdf. US-36, has fluctuating toll rates based on traffic congestion ranging from $1.75-$8.75, over 15.2 miles= $.27/mile.37% of toll users x $.27 per mile x 144 miles x2.2% population increase a year x .5(not all users will utilize the lanes the entire duration) Sources: “Express Lanes US 36 Fact Sheet,” https://www.codot.gov/programs/expresslanes/corridors/us-36. Total Benefits $3,214,050,553 Alternative #3 Bus: Bus Costs Monetary Value Costs of Construction $2,361,024,000 Costs of buses $50,423,031 Calculations & Sources Cost of Fort Collins bus system per mile, 5 miles with a budget of $81,980,000 =$16,396,000 * 144=$2,361,024,000 Source: National BRT Institute, http://db.nbrti.org/index.php?type=detail&page=route&id=201 375,000/365=1,028 passengers a day/45 passengers per bus =23 buses Cost of 2015 bus is $438,461 * 23 =one time cost of $10,084,606 *5( buses last for 12 years or 500,000 miles) total costs over 20 years =$50,423,031 Source: "U.S. Average New Vehicle Costs for 2007 vehicles by type," American Public Transportation Association, http://www.apta.com/resources/aboutpt/Documents/table22_vehvosttr ansitlength.pdf. Operations costs of Bustang is $3,000,000 annually in 2015 dollars. 293.4 miles of service/$3,000,000 =$10,225 per mile x 144 miles x 2(roundtrip) over 20 years total costs = $29,447,856 Costs of bus operations $29,447,856 Total Costs $2,440,894,887 Bus Benefits Monetary Value Sources: "Are you ready for Bustang?," Denver Business Journal, July 2015, http://www.bizjournals.com/denver/blog/earth_to_power/2015/04/areyou-ready-for-bustang-cdot-sets-launch-date.html. "Bustang Routes,” http://www.ridebustang.com/routes Calculations & Sources Bureau of Labor Statistics estimates the average national wage in 2015 is $24.80. Boardman commuting leisure time travel average wage is .5. $24.80*.5 =$12.40 *2014 national average of cost 2014 of VTTS (increased to 2.6 passengers per car) 2015 dollars is $12.40+ population increase of 2.2% year over year*3 hours of travel time x .5(not all users will utilize the lanes the entire duration) total benefits =$14,568,835 VTTS $14,568,835 Benefit of reduction in vehicles $14,568,835 Source: "I-70 Mountain Corridor Final PEIS," March 2011, https://www.codot.gov/projects/i-70mountaincorridor/final-peis. "The Impact of I-70 Congestion on Colorado-Denver to Grand Junction," Development Research Partners, http://www.developmentresearch.net/Sample%20Projects/Economic%20 and%20Fiscal%20Impact%20Analysis/I70%20Impact_042507.pdf. Boardman, Anthony E. Cost-benefit Analysis: Concepts and Practice. Upper Saddle River, NJ: Prentice Hall, 2001. "Colorado Tourism numbers set record in 2014, Denverpost, June 23, 2015, http://www.denverpost.com/business/ci_28368011/2014-recordcolorado-tourism. 2014 national average of cost 2014 of VTTS (2.6 passengers per car)*375,000 vehicles (15% of users of 23% of travelers) Bureau of Labor Statistics estimates the average national wage in 2015 is $24.80. Boardman commuting leisure time travel average wage is .5. $24.80*.5 =$12.40 X 3% vehicles removed from traffic = $4,650,000 +population increase of 2.2% year over year x .5(not all users will utilize the lanes the entire duration) total 20 year benefits =$14,568,835 Sources: "The Impact of I-70 Congestion on Colorado-Denver to Grand Junction," Development Research Partners, http://www.developmentresearch.net/Sample%20Projects/Economic%20 and%20Fiscal%20Impact%20Analysis/I70%20Impact_042507.pdf. "Freedom to Travel," Bureau of Transportation Statistics, United States Department of Transportation, http://www.rita.dot.gov/bts/sites/rita.dot.gov.bts/files/publications/freed om_to_travel/html/data_analysis.html. "Colorado Tourism numbers set record in 2014, Denverpost, June 23, 2015, http://www.denverpost.com/business/ci_28368011/2014-recordcolorado-tourism. Boardman, Anthony E. Cost-benefit Analysis: Concepts and Practice. Upper Saddle River, NJ: Prentice Hall, 2001. "Average Hourly and weekly earnings of all employees on private nonfarm payrolls by industry sector, seasonally adjusted," Bureau of Labor Statistics, http://www.bls.gov/news.release/empsit.t19.htm. CDOT estimates 15% of drivers use transit options. Vehicle operating costs is $.109 in 2008 dollars. 2015 dollars = $.12 * 3%= $45,003.38 x 72 miles + population increase of 2.2% year over year x .5 (not all users will utilize the lanes the entire duration) total benefits = $22,170,222 Benefits of reduction in vehicle operation cost Reduction in travel time of 4 Lanes Benefit of reduction of vehicle accidents Benefit of decrease in fatalities $22,170,222 $307,812,244 $530,314 $159,825,832 Sources: "The Impact of I-70 Congestion on Colorado-Denver to Grand Junction," Development Research Partners, http://www.developmentresearch.net/Sample%20Projects/Economic%20 and%20Fiscal%20Impact%20Analysis/I70%20Impact_042507.pdf. "Freedom to Travel," Bureau of Transportation Statistics, United States Department of Transportation, http://www.rita.dot.gov/bts/sites/rita.dot.gov.bts/files/publications/freed om_to_travel/html/data_analysis.html. Boardman, Anthony E. Cost-benefit Analysis: Concepts and Practice. Upper Saddle River, NJ: Prentice Hall, 2001. Vehicles using HOV3 lane reduces vehicles in general purpose lanes (4 Lanes), estimation of 5% reduction of general purpose lanes x .5(not all users will utilize the lanes the entire duration). CDOT estimates 2012 total vehicle injury accidents on I-70 Region was 132, Broadman estimates in 2008 total vehicle injury costs is $17,777 in 2008 dollars. 2015 dollars = $19,572.48 *132 =$2,583,567 + decrease of 3 % year over year + 2.2% population increase a year x .5(not all users will utilize the lanes the entire duration) 20 year benefit total = $530,314 Sources: Boardman, Anthony E. Cost-benefit Analysis: Concepts and Practice. Upper Saddle River, NJ: Prentice Hall, 2001. "2012 Crash Rate Book", https://www.codot.gov/library/traffic/safetycrash-data/accident-rates-books-coding/crash-rate-books-accident-ratesbooks. CDOT estimates 2014 fatalities related to I-70 Mountain Corridor were169. Removing 375,000 vehicles from the road results in a reduction of 3% fatalities a year X 2.2% population increase x .5(not all users will utilize the lanes the entire duration) 20 year benefit total = $159,825,832 Sources: "Total of Statewide fatal crashes & fatalities, broken out by CDOT Region and month," https://www.codot.gov/library/traffic/safety-crash- data/fatal-crash-data-city-county/2015-monthly-fatals/view. Boardman, Anthony E. Cost-benefit Analysis: Concepts and Practice. Upper Saddle River, NJ: Prentice Hall, 2001. "The Impact of I-70 Congestion on Colorado-Denver to Grand Junction," Development Research Partners, http://www.developmentresearch.net/Sample%20Projects/Economic%20 and%20Fiscal%20Impact%20Analysis/I70%20Impact_042507.pdf. EPA estimates GHG Emissions from a typical passenger vehicle is 4.7 metric tons. 2013 CO emitted 51,206,359 tons of carbon emissions*2.2% population increase= 53,459,439 with the social cost of carbon emissions is $26.00 in 2007 dollars. 2015 dollars $29.72 * 53,459,439 =$1,588,707,602 – reduction of 3% of vehicles x 4.7 MT x .5(not all users will utilize the lanes the entire duration) 20 year benefit total = $326,105,167 Benefit of reduction in carbon emissions $326,105,167 Sources: "The Impact of I-70 Congestion on Colorado-Denver to Grand Junction," Development Research Partners, http://www.developmentresearch.net/Sample%20Projects/Economic%20 and%20Fiscal%20Impact%20Analysis/I70%20Impact_042507.pdf. "The Social Cost of Carbon," https://www3.epa.gov/climatechange/EPAactivities/economics/scc.html. "Greenhouse Gas Emissions from a Typical Passenger Vehicle," EPA, 2014, https://www3.epa.gov/otaq/climate/documents/420f14040a.pdf. "Updated Comparison of Energy Use & CO2 Emissions From Different Transportation Modes," April 2014, American Bus Association, http://www.buses.org/assets/images/uploads/general/Report%20%20Energy%20Use%20and%20Emissions.pdf. Bustang $28 one way cost, 375,000 passengers + population increase of 2.2% a year over year x .5(not all users will utilize the lanes the entire duration) 20 year benefit total benefits =$340,561,167 Benefit of Bus Revenue $340,561,370 Total Benefits $1,186,142,821 Sources: "The Impact of I-70 Congestion on Colorado-Denver to Grand Junction," Development Research Partners, http://www.developmentresearch.net/Sample%20Projects/Economic%20 and%20Fiscal%20Impact%20Analysis/I70%20Impact_042507.pdf. "Colorado Tourism numbers set record in 2014, Denverpost, June 23, 2015, http://www.denverpost.com/business/ci_28368011/2014-recordcolorado-tourism. "Bustang Routes," http://www.ridebustang.com/routes Appendix B: Formulas used The table below presents the general calculations used in the cost-benefit analysis of the report. Cost Description Traffic Congestion Motor Vehicle Injury costs Fatal Crashes costs Vehicle Operation costs Carbon Emissions costs Carbon Emissions Metric Ton VTTS HOV/Toll Construction Costs HOV3 Maintenance/Operations Toll Maintenance/Operations Toll Revenues Bus Construction Costs Bus Costs Bus Operation Costs Bus Revenues Formulas used Formula number of vehicles x ½ average national wage x time x population increase number of vehicle injury accidents on I-70 region x injury costs x population increase number of fatalities resulting from vehicular crashes on I-70 region x injury costs x population increase number of vehicles x vehicle operation costs x population increase x miles traveled amount of metric tons of carbon emission x social costs x population increase amount of carbon emission average per vehicle number of vehicles x ½ average national wage x time savings x population increase expansion costs for two lanes ½ of the costs of maintenance for four lanes ½ the costs of maintenance for four lanes + toll sign technology vehicles using Toll Lanes x $.27 per mile x ½ users traveling 144 miles on way costs of construction per mile x years of completion of construction Costs of purchasing 23 buses every 5 years Costs of operations per mile riders x $.39 per mile x ½ users traveling 144 miles one way Appendix C: Statistical Inputs The table below presents statistical inputs that were used for the cost-benefit calculations. All costs were adjusted to 2015 dollars in the statistical input section and were adjusted for inflation thereafter. Baseline Statistical Inputs (2015 Constant Dollars) Description* Input Number of vehicles on I-70 Mountain Corridor 11,374,349 Average National Wage $24.80 Population increase 2.2% Vehicle injury total 135 Vehicle injury Costs $19,572.48 Fatal Crashes total 173 Fatal Crashes Costs $4,607,300 Vehicle Operations Costs per mile $.12 Costs of Carbon Emission per Metric Ton (MT) $29.72 Carbon Emission Per Vehicle (MT) 4.7 Travel time status quo 3.3 hours/202 min. Operations/Maintenance per mile $59,906 *Citations for calculations referenced in Appendix A Appendix D: Estimations of Future Projections The table below provides calculation basis of future projection estimations of population growth, vehicle injury, and carbon emissions from vehicles. Description Vehicles on I-70 Mountain Corridor Vehicle Injury/fatality Carbon Emissions (Metric Tons) Estimations of Future Projections Status Quo HOV 3 Toll decrease of 7% of increase by increase of vehicles + increase 2.2% 2.2% 2.2% annually=net decrease annually annually 5.5% increase by decrease by 2.2% decrease by 7% annually 3% annually annually increase by increase by 2.2% decrease by 7% annually 2.2% annually annually Bus decrease of 3% of vehicle + 2.2% annually=net decrease of .8% decrease by 3% annually decrease by 3% annually Appendix E: Number of Vehicles Traveling on I-70 Mountain Corridor Below the table depicts a comparison of each alternative and the estimated amount of motor vehicles on the road based on estimate projections of future usage. Year Status Quo HOV3 Toll Bus 2016 11,624,584 - - 11,241,334 2017 11,880,325 - - 11,488,644 2018 12,141,692 - - 11,741,394 2019 12,408,810 12,125,056 12,408,810 11,999,705 2020 12,681,803 12,391,807 12,681,803 12,263,698 2021 12,960,803 12,664,427 12,960,803 12,533,499 2022 13,245,941 12,943,044 13,245,941 12,809,236 2023 13,537,351 13,227,791 13,537,351 13,091,040 2024 13,835,173 13,518,802 13,835,173 13,379,042 2025 14,139,547 13,816,216 14,139,547 13,673,381 2026 14,450,617 14,120,173 14,450,617 13,974,196 2027 14,768,531 14,430,817 14,768,531 14,281,628 2028 15,093,438 14,748,295 15,093,438 14,595,824 2029 15,425,494 15,072,757 15,425,494 14,916,932 2030 15,764,855 15,404,358 15,764,855 15,245,105 2031 16,111,682 15,743,254 16,111,682 15,580,497 2032 16,466,139 16,089,605 16,466,139 15,923,268 2033 16,828,394 16,443,577 16,828,394 16,273,580 2034 17,198,618 16,805,335 17,198,618 16,631,598 2035 17,576,988 17,175,053 17,576,988 16,997,494 Total 288,140,785 246,720,367 252,494,184 278,641,095 Buses would reduce the amount of vehicles starting in 2016. HOV3 would reduce the amount of vehicles starting in 2018. Toll Lanes do not account for a reduction in vehicles on the road. Appendix F: Number of Vehicle Accidents Below is a matrix that provides a comparison of estimated vehicle accident rates for each alternative. Year Status Quo HOV Toll Bus 2016 135 - - 131 2017 138 - - 134 2018 141 - - 137 2019 144 134 140 140 2020 147 137 143 143 2021 150 140 146 146 2022 154 143 149 149 2023 157 146 152 152 2024 161 149 156 156 2025 164 153 159 159 2026 168 156 163 163 2027 171 159 166 166 2028 175 163 170 170 2029 179 166 174 174 2030 183 170 177 177 2031 187 174 181 181 2032 191 178 185 185 2033 195 182 189 189 2034 200 186 194 194 2035 204 190 198 198 Total 3344 2726 3244 2842 Estimates for the status quo accidents rates are estimated to increase by 2.2% annually. Estimates for HOV3 accident rates are estimated to decrease by 7% annually. Estimates for the Toll Lane and Bus accident rates are estimated to decrease by 3% annually. Appendix G: Number of Fatalities Below is a matrix that provides a comparison of estimated rates for fatalities caused from vehicle accidents for each alternative. Year Status Quo HOV3 Toll Bus 2016 173 - - 168 2017 177 - - 171 2018 180 - - 175 2019 184 171 179 179 2020 188 175 183 183 2021 193 179 187 187 2022 197 183 191 191 2023 201 187 195 195 2024 206 191 199 199 2025 210 195 204 204 2026 215 200 208 208 2027 219 204 213 213 2028 224 209 218 218 2029 229 213 222 222 2030 234 218 227 227 2031 239 223 232 232 2032 245 228 237 237 2033 250 233 243 243 2034 256 238 248 248 2035 261 243 253 253 Total 4281 3490 4153 3639 Estimates for the status quo fatality rates are estimated to increase by 2.2% annually. Estimates for HOV3 fatality rates are estimated to decrease by 7% annually. Estimates for the Toll Lane and Bus fatality rates are estimated to decrease by 3% annually. Appendix H: Amount of Carbon Emissions Below is a comparison of estimates of carbon emissions form each transportation alternative. Year Status Quo Carbon Emissions HOV Carbon Emissions Toll Carbon Emissions Bus Carbon Emissions 2016 53,458,977 53,459,052 53,458,977 53,435,455 2017 53,458,515 53,458,665 53,458,515 53,434,936 2018 53,458,053 53,458,278 53,458,053 53,434,417 2019 53,457,591 53,457,891 53,457,591 53,433,898 2020 53,457,129 53,457,504 53,457,129 53,433,379 2021 53,456,667 53,457,117 53,456,667 53,432,860 2022 53,456,205 53,456,730 53,456,205 53,432,341 2023 53,455,743 53,456,343 53,455,743 53,431,822 2024 53,455,281 53,455,956 53,455,281 53,431,303 2025 53,454,819 53,455,569 53,454,819 53,430,784 2026 53,454,357 53,455,182 53,454,357 53,430,265 2027 53,453,895 53,454,795 53,453,895 53,429,746 2028 53,453,433 53,454,408 53,453,433 53,429,227 2029 53,452,971 53,454,021 53,452,971 53,428,708 2030 53,452,509 53,453,634 53,452,509 53,428,189 2031 53,452,047 53,453,247 53,452,047 53,427,670 2032 53,451,585 53,452,860 53,451,585 53,427,151 2033 53,451,123 53,452,473 53,451,123 53,426,632 2034 53,450,661 53,452,086 53,450,661 53,426,113 2035 53,450,199 53,451,699 53,450,199 53,425,594 Total Estimates based on 4.7 metric tons (MT) annual average of carbon emissions per vehicle. Appendix I : Travel Time for General Purpose Lanes (4) The chart below compares the estimated time savings for each alternative. Hours Status Quo 3.3 HOV3 Toll Bus 3.01 3.01 3.2 Minutes 202 181 181 191 Time Savings in Minutes 0 13 13 11 Appendix J: Travel Time Savings The chart below compares the estimated time savings for all alternatives. Lanes Status Quo 4 Hours 3.3 2.6 2.6 3.2 Minutes 202 158 158 190 Time Savings in Minutes 0 44 44 12 HOV3 Toll Bus 6 6 4 Appendix K: Revenues The table below compares the estimate revenues of ridership & toll fees. Year Toll Revenue Bus Revenue 2016 - $ 50,776,184 2017 - $ 48,498,374 2018 - $ 46,322,746 2019 $ 291,431,682 $ 44,244,717 2020 $ 278,358,112 $ 42,259,907 2021 $ 265,871,019 $ 40,364,135 2022 $ 253,944,095 $ 38,553,408 2023 $ 242,552,210 $ 36,823,909 2024 $ 231,671,363 $ 35,171,995 2025 $ 221,278,629 $ 33,594,186 2026 $ 211,352,111 $ 32,087,157 2027 $ 201,870,895 $ 30,647,733 2028 $ 192,815,004 $ 29,272,882 2029 $ 184,165,359 $ 29,203,465 2030 $ 175,903,736 $ 26,705,439 2031 $ 168,012,727 $ 25,507,438 2032 $ 160,475,707 $ 24,363,179 2033 $ 153,276,797 $ 23,270,251 2034 $ 146,400,829 $ 22,226,352 2035 $ 139,833,315 $ 21,229,282 Total $ 1,759,606,795 $ 340,561,370 Toll Lane estimates are based on $.27 per mile or $38.88 for 144 miles. Bus estimates are based on $.19 per mile or $28 for 144 miles. These estimates further assume that only half of users will use the alternative for the entire 144 miles. Appendix L: Present Value Construction Costs Below is a comparison of total estimated construction cost of all three alternatives. HOV3 $3,185,603,010 Toll Bus $3,185,603,010 $2,361,024,000 HOV3 & Toll Lanes estimates are based on three years of construction; Bus is based on the same year of implementation. Appendix M: Operations/Maintenance The table below compares the estimated costs of operations and maintenance for each alternative. Year Status Quo 4 Lanes HOV3 6 Lanes Toll 6 Lanes 2016 $8,626,460 - - $ 1,472,393 2017 $8,626,460 - - $ 1,472,393 2018 $8,626,460 - - $ 1,472,393 2019 $8,626,460 $ 4,313,230 $4,995,606 $ 1,472,393 2020 $8,626,460 $ 4,313,230 $4,995,606 $ 1,472,393 2021 $8,626,460 $ 4,313,230 $4,995,606 $ 1,472,393 2022 $8,626,460 $ 4,313,230 $4,995,606 $ 1,472,393 2023 $8,626,460 $ 4,313,230 $4,995,606 $ 1,472,393 2024 $8,626,460 $ 4,313,230 $4,995,606 $ 1,472,393 2025 $8,626,460 $ 4,313,230 $4,995,606 $ 1,472,393 2026 $8,626,460 $ 4,313,230 $4,995,606 $ 1,472,393 2027 $8,626,460 $ 4,313,230 $4,995,606 $ 1,472,393 2028 $8,626,460 $ 4,313,230 $4,995,606 $ 1,472,393 2029 $8,626,460 $ 4,313,230 $4,995,606 $ 1,472,393 2030 $8,626,460 $ 4,313,230 $4,995,606 $ 1,472,393 2031 $8,626,460 $ 4,313,230 $4,995,606 $ 1,472,393 2032 $8,626,460 $ 4,313,230 $4,995,606 $ 1,472,393 2033 $8,626,460 $ 4,313,230 $4,995,606 $ 1,472,393 2034 $8,626,460 $ 4,313,230 $4,995,606 $ 1,472,393 2035 $8,626,460 $ 4,313,230 $4,995,606 $ 1,472,393 Total $172,529,200 $73,324,910 $ 84,925,302 Bus 4 Lanes $ 29,447,860 Operation and maintenance costs estimates are based on mileage. Estimates are calculated for the HOV3 and Toll Lanes based on ½ of the costs of the existing status quo. Toll Lanes have an additional cost for tolling signage. Appendix N: Buses The table below estimates the costs and timeframe in which 23 buses would need to be purchased. Year Buses 2016 $10,084,606 2017 - 2018 - 2019 - 2020 $10,084,606 2021 - 2022 - 2023 - 2024 - 2025 $10,084,606 2026 - 2027 - 2028 - 2029 - 2030 $10,084,606 2031 - 2032 - 2033 - 2034 - 2035 $10,084,606 Total The standard lifecycle of a bus is estimated at 500,000 miles. $50,423,031 Appendix O: Interview Questions As part of the research process, interviews were conducted with various stakeholders. The questions below were prepared in advance of each interview. Although, they provided a framework for interviews, many questions were used, but some were not. 1. Can you tell me a little about your background? How did you end up working in the transportation field? 2. Can you tell me about the work you do with transportation in the state and I-70 Mountain Corridor? 3. Is it fair to suggest that the state of Colorado has left much of the decision-making power in the hands of local districts? If you agree, in your mind is this a good or bad thing when it comes to transportation issues? Ultimately, where do you think the most change will come from (national, state or district regulations or incentives)? 4. What would you suggest is the biggest motivator for implement of transportation changes? 5. What would you say is the greatest barrier to a statewide implementation of transportation solutions polices? (i.e. budget restrictions, etc.) 6. I am focusing my research on the I-70 Mountain Corridor. Can you provide for me a general sense of the transportation infrastructure issues in Colorado? 7. I need to get a better feel for what is occurring on the ground in the transportation districts. Ideally, I would like to find out: how many districts are in favor of alternative transportation or other solutions, what the status of the current transportation areas surrounding I-70? Are there any databases I should explore, or people I should interview to retrieve this information? 11. How realistic do you think the interventions I have proposed are? (i.e. high-speed rail, HOV/HOT reversible lane, Bus system) Do you have a favored intervention (if indeed you could only pick one)? 12. Are there any modifications to my policy recommendations that you would make? Anything you think I should consider that is not already on the table? 13. What is the most exciting part of your job? What changes are being made/programs being implemented that make your work the most fulfilling? 14. Do you have any research-related recommendations that you think might be useful for my analysis? 15. Do you have any interview recommendations? Appendix P: Journals As part of the research process, an extensive review of Journals was conducted. Below is an exhaustive list those journals. Accident Analysis and Prevention American Economic Review Econometrics Economic Analysis & Policy Journal of Political Economy Journal of Regional Science Journal of Safety Research Journal of Transport Economics and Policy Journal of Transport Economics and Policy Journal of Travel Research Journal of Urban Economics Logistics and Transportation Review Logistics and Transportation Review Regional Science and Urban Economics Review of Economics and Statistics. The Economic Journal The International Journal of Transport Economics Transport Policy Transportation Planning and Technology Transportation Quarterly Transportation Research Part A Transportation Review Appendix Q: CBA Template for Status Quo Below is the template used for calculations of the status quo, a real discount rate of 7% is applied and reflects 2015 Constant Dollars. Costs and benefits account for a 2.2% population increase year over year. Year Cost PV Cost Benefit PV Benefit Discount Rate 0 $3,656,566,799 $3,656,566,799 $0 $0 1.000 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 $3,656,566,799 $3,417,352,149 $0 $0 0.935 $3,656,566,799 $3,193,787,055 $0 $0 0.873 $3,656,566,799 $2,984,847,715 $0 $0 0.816 $3,656,566,799 $2,789,577,303 $0 $0 0.763 $3,656,566,799 $2,607,081,592 $0 $0 0.713 $3,656,566,799 $2,436,524,852 $0 $0 0.666 $3,656,566,799 $2,277,126,030 $0 $0 0.623 $3,656,566,799 $2,128,155,168 $0 $0 0.582 $3,656,566,799 $1,988,930,064 $0 $0 0.544 $3,656,566,799 $1,858,813,144 $0 $0 0.508 $3,656,566,799 $1,737,208,546 $0 $0 0.475 $3,656,566,799 $1,623,559,389 $0 $0 0.444 $3,656,566,799 $1,517,345,223 $0 $0 0.415 $3,656,566,799 $1,418,079,648 $0 $0 0.388 $3,656,566,799 $1,325,308,082 $0 $0 0.362 $3,656,566,799 $1,238,605,684 $0 $0 0.339 $3,656,566,799 $1,157,575,406 $0 $0 0.317 $3,656,566,799 $1,081,846,173 $0 $0 0.296 $3,656,566,799 $1,011,071,190 $0 $0 0.277 $41,449,361,211 $0 $0 Total $ $73,131,335,980 Net Present Value $ -$41,449,361,211 Profitability Index (PI)/BenefitCost Ratio Internal Rate of Return (IRR) n/a Discounted Payback Period in Years Undiscounted Payback in Years n/a n/a n/a Appendix R: CBA Template for HOV3 Below is the template used for calculations of the HOV3 alternative, a real discount rate of 7% is applied and reflects 2015 Constant Dollars. Costs and benefits account for a 2.2% population increase year over year. Year Cost PV Cost 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 $1,134,466,670 $1,134,466,670 $0 $0 1.000 $1,134,466,670 $1,060,249,224 $0 $0 0.935 $1,134,466,670 $990,887,126 $0 $0 0.873 $10,115,956 $8,257,633 $314,877,233 $257,033,617 0.816 $10,115,956 $7,717,414 $314,877,233 $240,218,333 0.763 $10,115,956 $7,212,536 $314,877,233 $224,503,115 0.713 $10,115,956 $6,740,688 $314,877,233 $209,815,996 0.666 $10,115,956 $6,299,709 $314,877,233 $196,089,715 0.623 $10,115,956 $5,887,578 $314,877,233 $183,261,416 0.582 $10,115,956 $5,502,410 $314,877,233 $171,272,352 0.544 $10,115,956 $5,142,439 $314,877,233 $160,067,618 0.508 $10,115,956 $4,806,018 $314,877,233 $149,595,905 0.475 $10,115,956 $4,491,605 $314,877,233 $139,809,257 0.444 $10,115,956 $4,197,762 $314,877,233 $130,662,857 0.415 $10,115,956 $3,923,142 $314,877,233 $122,114,820 0.388 $10,115,956 $3,666,488 $314,877,233 $114,126,000 0.362 $10,115,956 $3,426,624 $314,877,233 $106,659,813 0.339 $10,115,956 $3,202,452 $314,877,233 $99,682,068 0.317 $10,115,956 $2,992,946 $314,877,233 $93,160,811 0.296 $10,115,956 $2,797,146 $314,877,233 $87,066,179 0.277 $3,575,371,254 $3,271,867,610 $5,352,912,958 $2,685,139,872 Total $ Net Present Value $ Profitability Index (PI)/Benefit-Cost Ratio Internal Rate of Return (IRR) Discounted Payback Period in Years Undiscounted Payback in Years -$586,727,738 0.48 4.53% 39.35 7.40 Benefit PV Benefit Discount Rate Appendix S: CBA Template for Toll Lanes Below is the template used for calculations of the Toll Lanes alternative, a real discount rate of 7% is applied and reflects 2015 Constant Dollars. Costs and benefits account for a 2.2% population increase year over year. Year 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 Total $ Cost $ PV Cost $ Benefit $ PV Benefit $ Discount Rate $1,134,466,670 $1,134,466,670 $0 $0 1.000 $1,134,466,670 $1,060,249,224 $0 $0 0.935 $1,134,466,670 $990,887,126 $0 $0 0.873 $11,476,248 $9,368,037 $376,900,792 $307,663,316 0.816 $11,476,248 $8,755,175 $376,900,792 $287,535,810 0.763 $11,476,248 $8,182,406 $376,900,792 $268,725,056 0.713 $11,476,248 $7,647,109 $376,900,792 $251,144,912 0.666 $11,476,248 $7,146,831 $376,900,792 $234,714,871 0.623 $11,476,248 $6,679,281 $376,900,792 $219,359,692 0.582 $11,476,248 $6,242,319 $376,900,792 $205,009,058 0.544 $11,476,248 $5,833,943 $376,900,792 $191,597,251 0.508 $11,476,248 $5,452,283 $376,900,792 $179,062,851 0.475 $11,476,248 $5,095,591 $376,900,792 $167,348,459 0.444 $11,476,248 $4,762,235 $376,900,792 $156,400,429 0.415 $11,476,248 $4,450,687 $376,900,792 $146,168,625 0.388 $11,476,248 $4,159,520 $376,900,792 $136,606,192 0.362 $11,476,248 $3,887,402 $376,900,792 $127,669,338 0.339 $11,476,248 $3,633,086 $376,900,792 $119,317,138 0.317 $11,476,248 $3,395,408 $376,900,792 $111,511,344 0.296 $11,476,248 $3,173,278 $376,900,792 $104,216,210 0.277 $3,598,496,229 $3,283,467,610 $6,407,313,464 $3,214,050,553 Net Present Value $ Profitability Index (PI)/Benefit-Cost Ratio Internal Rate of Return (IRR) Discounted Payback Period in Years Undiscounted Payback in Years -$69,417,057 0.94 6.72% 20.24 5.47 Appendix T: CBA Template for Buses Below is the template used for calculations of the Toll Lanes alternative, a real discount rate of 7% is applied and reflects 2015 Constant Dollars. Costs and benefits account for a 2.2% population increase year over year. Year Cost PV Cost 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 $2,361,024,001 $2,361,024,001 $104,638,777 $104,638,777 1.000 $7,727,749 $7,222,195 $104,638,777 $97,793,249 0.935 $7,727,749 $7,727,749 $7,727,749 $7,727,749 $7,727,749 $7,727,749 $7,727,749 $7,727,749 $7,727,749 $7,727,749 $7,727,749 $7,727,749 $7,727,749 $7,727,749 $7,727,749 $7,727,749 $7,727,749 $7,727,749 $6,749,715 $6,308,145 $5,895,463 $5,509,778 $5,149,325 $4,812,454 $4,497,620 $4,203,383 $3,928,396 $3,671,398 $3,431,213 $3,206,741 $2,996,954 $2,800,892 $2,617,656 $2,446,407 $2,286,362 $2,136,787 $104,638,777 $104,638,777 $104,638,777 $104,638,777 $104,638,777 $104,638,777 $104,638,777 $104,638,777 $104,638,777 $104,638,777 $104,638,777 $104,638,777 $104,638,777 $104,638,777 $104,638,777 $104,638,777 $104,638,777 $104,638,777 $91,395,560 $85,416,411 $79,828,422 $74,606,002 $69,725,235 $65,163,771 $60,900,721 $56,916,562 $53,193,048 $49,713,129 $46,460,868 $43,421,372 $40,580,722 $37,925,908 $35,444,774 $33,125,957 $30,958,838 $28,933,494 0.873 0.816 0.763 0.713 0.666 0.623 0.582 0.544 0.508 0.475 0.444 0.415 0.388 0.362 0.339 0.317 0.296 0.277 Total $ Net Present Value $ $2,507,851,232 $2,440,894,887 $1,254,752,066 0.42 -1.96% 44.79 24.36 $2,092,775,537 $1,186,142,821 Profitability Index (PI)/Benefit-Cost Ratio Internal Rate of Return (IRR) Discounted Payback Period in Years Undiscounted Payback in Years Benefit PV Benefit Discount Rate References "2012 Crash Rate Book", https://www.codot.gov/library/traffic/safety-crash-data/accident-ratesbooks-coding/crash-rate-books-accident-rates-books. “2015 Urban Mobility Scorecard,” accessed February 6, 2016, http://d2dtl5nnlpfr0r.cloudfront.net/tti.tamu.edu/documents/mobility-scorecard-2015.pdf. “495 | 95 Express Lanes - Project Background,” accessed February 6, 2016, https://www.expresslanes.com/project-background. “AAA: Fatal Motor Vehicle Crash Costs $6M – USATODAY.com,” accessed February 7, 2016, http://usatoday30.usatoday.com/news/nation/story/2011-11-02/fatal-vehicle-crashes-costmillions/51051030/1. “A Federal Gas Tax for the Future,” accessed November 20, 2015, http://www.itep.org/pdf/fedgastax0913.pdf. “A Toolbox for Alleviating Traffic Congestion - Institute of Transportation Engineers,” accessed February 6, 2016, http://ntl.bts.gov/lib/jpodocs/repts_te/10803.pdf. “About Bustang,” accessed March 29, 2016, http://www.ridebustang.com/ “Adverse Weather on I-70 Mountain Corridor — Colorado Department of Transportation - CDOT,” accessed October 20, 2015, https://www.codot.gov/news/2014-news-releases/03-2014/adverseweather-on-i-70-mountain-corridor-1. 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