COLUMNS Ongoing Problems With MTA Congestion Pricing Implementation

The previous New York Metropolitan Transportation Authority Chairman Pat Foye always blamed President Trump along with his management team at the United States Department of Transportation and Federal Highway Administration, for delays in implementation of Congestion Pricing. Current MTA Chairman Janno Lieber, by comparison, doesn’t offer the same criticism to President Biden, US DOT Secretary Pete Buttigieg or the Federal Highway Administration for the same lack of progress after 28 months under their watch. The same silence in holding the Biden administration accountable by Governor Kathy Hochul and Senator Charles Schumer also applies. Neither Hochul or Schumer have offered any criticism of delays under the current Washington administration.

The MTA Traffic Mobility Review Board (TMRB) will never convene until FHWA issues a NEPA finding. This is necessary for future implementation of Congestion Pricing to proceed. As a result, the MTA Traffic Mobility Review Board has yet to hold its first meeting to discuss final details of tolling options and who will pay. Nobody knows if this process will be conducted in the light of day or behind closed doors shielded from the public, media and transportation advocates. Buttigieg recently admitted that FHWA has no schedule for completion of NEPA.

Congestion Pricing continues to be politically sensitive. In 2024, members of the NYC Council, State Assembly and State Senate will have to run for reelection. Many will not want to alienate constituents who might be impacted by Congestion Pricing. It will take up to one year after FHWA issues the NEPA finding before the MTA Traffic Mobility Review Board can complete their review and the MTA install equipment necessary for implementation. Only then will tolling start and revenues begin to flow to the MTA.

Elected officials will lobby for discounts or exemptions for police officers, fire fighters, teachers, low income, NYC outer borough residency, seniors, physically disabled. small commercial delivery businesses, users of electric vehicles, residents living below 60th Street in Manhattan or other special niches. These discounts or exemptions will be adopted to placate their constituents when running for reelection in 2024. More discounts translates to less revenues.

If approved, New Jersey residents will be paying a portion of revenues generated by Congestion Price Tolling. The MTA estimates it will generate $1 billion annually. These revenues will be used to leverage another $2 billion annually via bonding. This is supposed to raise $15 billion that which will help pay for the MTA $51 billion 2020 - 2025 Five Year Capital Plan. Both NJ Transit and the Port Authority of NY & NJ have similar multi year Capital Plans. Many NJ residents and elected officials oppose Congestion Pricing. Some have threatened law suits or

Penner Station

introduction of federal legislation to block implementation. The MTA may have to placate them by offering NJ a share of revenues generated by new tolls they will be paying.

Some of these dollars could go toward the NJ 25% share for the $18 billion (two new Hudson River plus rehab of two existing tunnels) or 25% share of the $39 billion full scope Gateway project. There is also the $10 billion new Port Authority 42nd Street midtown Manhattan Bus Terminal along with NJ’s share of $2 billion toward Governors Hochul & New Jersey’s Phil Murphy’s $8 billion Penn Station redevelopment project, There are other NJ Transit and Port Authority Trans Hudson (PATH) capital programs or other transportation improvements that would benefit NJ residents.

Thousands of New Yorkers are reverse commuters traveling from Penn Station, Herald Square 34th Street PATH Station and the Port Authority 42nd Street bus terminal to jobs, schools, sports stadiums, entertainment, Newark Airport and other NJ destinations. They benefit by NJ Transit, Port Authority and PATH capital investments.

Nobody can predict if anywhere near $1 billion in annual toll revenues will actually appear. You can’t capture five years of toll revenues estimated to be $1 billion per year when you implement the program four and 1/2 years late or after 90% of the five year capital program has come and gone. The odds continue to grow that Congestion Pricing may not be implemented until 2025. This would result in the MTA having to postpone billions in capital projects until the next 2025 - 2029 Five Year Capital Plan.

How will Hochul assist the MTA in making up for billions in previously anticipated congestion price tolling that may not appear until June 2024 or later?. Who knows if $1 billion in annual toll revenues will actually appear. There is still a long road ahead before Congestion Pricing becomes a reality.

(Larry Penner is a transportation advocate, historian and writer who previously served as a former Director for the Federal Transit Administration Region 2 New York Office of Operations and Program Management.)