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Congestion Pricing

Congestion Pricing: Here’s the Deal

4:14 PM EDT on July 19, 2007

Below is a summary of the congestion pricing deal struck this afternoon by Governor Spitzer, Mayor Bloomberg, Assembly Speaker Silver and Senate Leader Bruno.

The 17 member congestion pricing commission is made up as follows:

3 appointees -- Mayor

3 appointees -- Governor
3 appointees -- City Council

3 appointees -- State Senate majority leader
3 appointees -- State Assembly speaker

1 appointees -- Senate minority leader
1 appointees -- Assembly minority leader

SUMMARYOF CONGESTION PRICING LEGISLATION

· NYC is authorized to present and implement a detailed congestion pricing plan to address traffic congestion within a zone of severe traffic congestion in Manhattan. Such plan shall include (a) the geographic area to be covered; (b) the proposed dollar amount of any congestion pricing fee; (c) the technology to be used to implement such pricing plan; and (d) the number and scope of exemptions granted from such fee requirements. The Mayor shall submit the traffic mitigation plan by August 1, 2007.

· NYC may not impose or collect any fee for traveling into or within designated zone unless the implementation plan has been approved by the State Legislature by March 31, 2008 and signed into law by the Governor, pursuant to a request from the Mayor that the State Legislature consider such plan where such request has been approved by the City Council.

· A NYC Traffic Congestion Mitigation Commission shall undertake a review and study of the issues related to the implementation of the plan submitted by NYC. It may also review and study other plans to reduce traffic congestion and other related health and safety issues. The Commission shall have 17 members comprised of appointees by State and City officials.

· The Commission shall conduct hearings, take testimony and review information and proposals regarding traffic congestion. It shall issue to the Governor, State Legislature, the Mayor and City Council recommendations with respect to the details of implementing the plan submitted by the Mayor and other such proposals. These recommendations shall constitute "the implementation plan". The implementation plan must provide at least the same level of traffic mitigation, as measured by the 6.3% reduction in average vehicle miles traveled, as proposed in the traffic mitigation plan submitted to US DOT on June 22, 2007.

· The Commission shall approve by a majority vote its implementation plan and submit such plan to the Governor, State Legislature, the Mayor and City Council by January 31, 2008. The State Legislature shall consider such implementation plan by March 31, 2008.

· By October 1, 2007, the MTA shall submit comments on the Mayor's plan as well as (a) a description of the additional capital needs required for implementation; (b) proposed utilization of any potential revenue derived from such plan for such capital needs; and (c) the impact of such revenue upon the authority's capital and operating budgets.

· By March 31, 2008 (an 18-month acceleration), the MTA shall submit a capital program for the period covering July 1, 2008 through December 31, 2013.

· This legislation will expire on June 30, 2012. It shall also expire if US DOT does not commit at least $250 million in funding prior to October 1, 2007, except that the expiration and repeal shall not occur if the US DOT commits at least $200 million prior to October 1, 2007 and NYC commits prior to December 31, 2007 an amount equal to the difference between $250 million and the amount committed by US DOT.

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