The Federal Transit Administration has proposed a modification of its current rules related to the conversion of high occupancy vehicle (HOV) lanes into high occupancy toll (HOT) lanes.  The new rule would clarify the conditions under which an HOV lane can be converted without losing its status as “fixed guideway miles” for purposes of federal transit funding formulas.  The proposed policy would expand on and clarify current FTA policies, with the following results:

• Only HOV facilities eligible for inclusion in fixed guideway miles funding formulas would be eligible for conversion and retention of that status;
• In order to maintain their status as fixed guideway miles, HOT lanes would have to be continuously monitored to make certain that performance standards ensuring free flow are maintained;
• Program revenues after payment of costs of operation and capital can be used for any eligible transit purposes; and
• It is not necessary to link minimum HOT lane single occupant vehicle tolls and transit fares. 

Parties wishing to comment on the proposed policy may do so, provided comments are received by the FTA no later than October 10, 2006.  Comments can be submitted electronically either to http://www.regulations.gov or to http://dms.dot.gov.  

BACKGROUND

HOT lanes have been recognized as an alternative demand management strategy for several years, potentially combining HOV and pricing strategies to maximize use of HOV lanes by allowing single occupant vehicles (SOVs) to access HOV lanes by paying a toll.  HOT lanes can provide multiple benefits, particularly to metropolitan areas that are experiencing worsening congestion on mixed flow lanes and declining participation in HOV lanes.  HOT lanes can expand mode options to allow SOVs to increase their reliability of travel times by paying a toll to use HOV facilities that operate at free flow conditions, and can improve the efficiency of HOV lanes by allowing SOVs to use excess lane capacity for a toll.  SOV tolls for use of HOT lanes can also generate new revenues to pay for maintenance of the facilities and for transportation improvements, including enhanced transit services.