TDM Toolbox

Mitigation Calculator

Subsector: Parking or Road Pricing/Management
Alternative Roadway Pricing Strategies
VMT Reduction Potential: 3
Cost: 2
ROI: 3
StanCOG Relevancy: 1
Land Use Content: Urban, Suburban, Rural
Trip Type: School, Residential, Commute, Recreation
Scale: Regional
Timing: Long Term (10+ years)
Implementors-Public: Municipalities, Regional Agencies
References: California Air Pollution Control Officers Association (2024), StanCOG 2026 Regional Transportation Plan/Sustainable Communities Strategy, San Joaquin Council of Governments I-205 Managed Lanes Project

Description

Implementing dynamic or usage-based pricing strategies for roadways, such as congestion pricing or VMT based pricing, discourages unnecessary Single Occupancy Vehicles trips and generates revenue for sustainable transportation investments. Implementation strategies include conducting audits using roadway pricing frameworks to evaluate equity impacts and fee structures, studying VMT -based road pricing on high-traffic regional arterials, and promoting graduated per-mile charges during peak hours.

Implementation Details

  • Conduct feasibility studies before considering roadway pricing on high-congestion corridors in Stanislaus County.
  • Evaluate mileage-based and congestion-based pricing as potential long-term alternatives to traditional roadway funding mechanisms.
  • Analyze impacts on rural residents, lower-income households, freight, and travelers with limited alternatives to driving
  • Explore reinvesting revenues into transit, carpool/vanpool programs, bicycle and pedestrian infrastructure, and first/last-mile connections.
  • Coordinate with neighboring COGs and Caltrans to evaluate pricing strategies on corridors that cross regional boundaries.

Mitigation Potential

Roadway pricing discourages the use on Single Occupancy Vehicle trips or non-essential trips. 2006 Minnesota pilot program found a weekday VMT decrease of 6.6% (8.1% on weekends). An Oregon pilot study found a 12% decrease for drivers paying a per-mile fee. Reduction is likely to vary based on the fee structure and implementation technology

For more details, see Victoria Transport Policy Institute – Road Pricing for VMT reduction quantification.

Linked Strategies

Equity Considerations

Ensure pricing structures are income-adjusted or paired with subsidies for low-income households. Avoid disproportionately burdening rural or transit-inaccessible areas by offering travel alternatives or exemptions. Use revenue from pricing programs to reinvest in affordable transportation services in disadvantaged communities.

Funding Sources

Roadway pricing studies and pilot programs would require planning, technology, public engagement, and potentially significant implementation funding. Potential sources include federal discretionary programs, Congestion Mitigation and Air Quality funding, Caltrans planning and implementation programs, and regional transportation funds. Any future pricing program would also need to evaluate revenue requirements, administrative costs, equity impacts, and legal requirements.

Examples/Case Studies

San Joaquin Council of Governments – I-205 Managed Lanes

SJCOG is evaluating managed lanes on I-205 through the Tracy area, including potential HOV and toll lanes as well as transit hubs and park-and-ride facilities. The project is particularly relevant to StanCOG because it represents a San Joaquin Valley approach to managed lanes and pricing on a major Central Valley commuter corridor.