State Nixes NYC Congestion Pricing Plan

Legislature fails to pass New York City's traffic-cutting plan despite City Council approval

Posted: 11-Jan-2008; Updated: 10-Nov-2008

Update (4/8/2008) - State legislature fails to vote on plan, forfeiting $354 million in federal funds.

• Read a message from Andy Darrell, vice president of our Living Cities program. 
• Listen to a podcast: Hope for congestion pricing.

 

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New York City suffers from some of the worst traffic congestion in the country, which contributes to the city's poor air quality.

In January, a state commission unveiled a promising congestion pricing plan that will cut car and truck emissions. The traffic commission issued its final recommendation after months of discussion and public hearings. (See news release.)

What are the specifics of the pricing plan?

The commission's proposal will charge drivers an $8 fee to enter Manhattan south of 60th Street on weekdays. This improved plan cuts more traffic and raises more revenue for transit than the original plan outlined in April 2007.

The commission's plan includes the following elements:

• A congestion pricing system for New York’s Central Business District (CBD) from 60th street to the southern tip of Manhattan, with a charge in effect only during the peak traffic times (6 a.m. to 6 p.m., Monday-Friday).
• Traffic reductions not only in the CBD, but also outside of it, because fewer cars will drive through Brooklyn, Queens, the Bronx, and northern Manhattan to get to the CBD. These areas have the city’s highest asthma rates.
• A guarantee that about $500 million in annual revenue will be invested in transit expansion. This will reduce the $30 billion backlog in capital investment needed for major projects — for example, a Second Avenue subway line, and bus service in neighborhoods that lack transit options.
• A simple and relatively inexpensive system, with far fewer cameras and complexities than in the London system. It reduces the number of cameras by 93 percent and saves about $100 million annually compared to earlier plans.
• Recommended solutions to key concerns such as:
  o A transit "lockbox" that guarantees revenue to new transit expansion.
  o Short-term transit improvements prior to the program’s start.
  o Residential parking permits and ongoing monitoring and mitigation efforts to reduce traffic and parking in surrounding neighborhoods.
  o A sound legal framework for environmental review.
  o Strict limits on storing personal information to ensure privacy.
  o Increased enforcement of existing traffic laws and a crackdown on placards.
  o Tax relief for low income drivers with no transit alternative (who are fewer than 1 percent of all commuters to the CBD).

Pricing plays a leading role in New York’s greenprint

In 2007, Mayor Michael Bloomberg unveiled a groundbreaking sustainability plan, called PlaNYC, to give New York the cleanest air of any big city in the nation (more on PlanNYC).

Among the plan's 127 initiatives, the centerpiece is a congestion pricing system to unclog New York City's traffic-choked streets, reduce tailpipe pollution and establish a new and ongoing source of transit funding.

New York is one of five cities that have been awarded an Urban Partnerships grant from the U.S. Department of Transportation to implement a road pricing plan. Over $354 million has been made available to the city for congestion pricing, most of which will go towards new bus routes. The funding hinges on finalizing a traffic-cutting plan by April 7, 2008.

Why does New York need congestion pricing?

Why is congestion pricing becoming a necessity in New York City?  The main reasons are (for details, see NYC's Transit Crisis):

• The city is expected to add one million more people by 2030 – the size of two Boston's! Imagine another million people commuting to work in the city, by car, by bus and by trains.
• Already, Manhattan streets are choked with traffic, putting city residents' health at risk. (More on Disease and Traffic in New York City.)
• Fifty billion dollars will be required to expand transit and achieve a full state of good repair. Only $19.8 billion is committed, leaving over $31 billion to be raised. (More on Transit Funding [PDF].)

The benefits of congestion pricing

Keeping traffic moving will (for details, see Benefits of Pricing):

• save $13 billion a year in lost time, revenue and fuel,
• make the air healthier — vehicles stuck idling in traffic can emit three times the pollution of moving cars,
• help fund the city’s next generation of bus and subway service, and
• increase ridership on public transportation and decrease commute times (as occurred in London and Stockholm).

Weak alternative plans failed to gain traction

Several local leaders and groups have offered alternative proposals to the mayor's congestion pricing plan. Our experts did in-depth investigation of alternatives and concluded that many of the proposals advanced by opponents would not decrease traffic and failed to meet key criteria (see full report Does the Rubber Meet the Road? [PDF]).

What's next: State leaders to decide

The City Concil's vote is an important step toward a decision. The next steps are:

• The state legislature must vote on the plan by April 7.
• State and city leaders must agree on a final proposal.

What we're doing

Environmental Defense has played a key role in guiding the city to this point. We are helping lead a broad coalition, Campaign for New York's Future, made up of civic, religious, health, business and environmental groups to implement congestion pricing.

In August 2007, New York State charged a commission of elected officials, and environmental and planning experts with solving New York City’s traffic crisis, called the New York State Traffic Congestion Mitigation Commission. Andy Darrell, our Regional Director for Living Cities, was one of the commissioners.

For more information on congestion pricing and traffic and health, visit AllChokedUp.org.

Key milestones in NYC congestion pricing plan 

April 7, 2008 – Extended deadline for $354 million federal grant to implement congestion pricing.

March 31, 2008 - City Council approves the congestion pricing plan.

March 24, 2008 – City Council holds hearing on congestion pricing. Bill is introduced into the state senate (see full text).

March 21, 2008 – Governor David Paterson supports congestion pricing and releases program bill. 

January 31, 2008 – New York State Traffic Congestion Mitigation Commission makes a final recommendation [PDF] to the City and State.

January 24, 2008 – Commission holds 6 public hearings on congestion pricing. (See schedule.)

January 16, 2008 –  Commission holds a public hearing in Manhattan where elected officials and the public commented on the commission's interim report. A coalition of MTA Unions, including the Transit Workers Union Local 100 and SEIU 32BJ, endorses congestion pricing.

January 10, 2008 – Commission releases its first report and recommendations for traffic relief (download the report [PDF]).

December 10 & 17, 2007 – Commission met to evaluate research prepared by the New York City Department of Transportation that used state-of-the-art regional travel modeling.

October 24, 2007 – Commission holds seven public hearings throughout New York metro region. An Environmental Defense study [PDF] finds 57 percent of witnesses who testified at the hearings support the concept of congestion pricing. (Read news release.)

August 21, 2007  – Living Cities director Andy Darrell is appointed to serve on New York's Traffic Mitigation Congestion Commission to review traffic relief plans for the city. (Read news release.)

August 14, 2007 – The U.S. Department of Transportation awards New York City $354 million to bring congestion pricing to the Big Apple. (See details on funding.)

July 26, 2007 – The New York State Legislature votes, and the measure passed in both the Assembly and the Senate. 

April 22, 2007 – NYC Mayor Michael Bloomberg unveils a groundbreaking plan, called PlaNYC, to make New York City a world model of green.