State-Level Policies for Reducing Vehicle-Miles Traveled

POLICY BRIEF INSTITUTE OF TRANSPORTATION STUDIES State-Level Policies for Reducing Vehicle-Miles Traveled Susan Handy, Michelle Byars, and Yishu Wei Institute of Transportation Studies, UC Davis Issue California has set ambitious goals for reducing its greenhouse gas emissions to 40% below 1990 levels by 2030 and 80% below 1990 levels by 2050. To meet these goals, the state must achieve a 15 percent reduction in total travel by light-duty vehicles by 2050 compared to expected levels. 1,2 Under current state policies, reductions of this magnitude are unlikely. Strong empirical evidence supports strategies across four categories that can reduce vehicle miles of travel (VMT) (1) pricing, (2) infill development, (3) transportation investments, and (4) travel demand-management programs 3 . The state can directly implement some of these strategies, particularly pricing strategies, through state-level policies. Others depend on actions by regional and local governments, though state- level policies can encourage their implementation through incentives, requirements, or other mechanisms. Research Findings States have a more direct role in implementing pricing strategies and shaping transportation investments than they do in promoting infill development and transportation demand management programs, but examples of state-level policies are found across all four categories of strategies. Pricing Many states are considering pricing strategies as a way to increase funding for transportation and in some cases to manage congestion, but few are planning to use pricing to decrease VMT or GHG emissions. Several states, including New Jersey and Pennsylvania, have substantially increased their fuel taxes, either through one-time increases or by indexing them to inflation or other measures. Others, such as Texas, have expanded the use of tolling. Georgia, Texas, and California have implemented congestion pricing for optional toll lanes. California and New York impose higher tolls on bridges during peak hours and both have considered the cordon-pricing form of congestion pricing, in which drivers pay a toll to travel into a designated area during peak times. A growing number of states is considering mileage-based fees as a replacement for fuel taxes. Following Oregon’s lead, California is launching a pilot study of mileage-based fees and several other states are considering such studies. States have not proposed policies that impose higher prices on vehicles with higher per-mile GHG emissions. KEY TAKEAWAYS • • Under current state policies, it is unlikely California will achieve a 15% reduction in total travel by light-duty vehicles by 2050. • • Strong evidence exists that strategies related to pricing, infill development, transportation investments, and travel demand management programs can reduce VMT. • • The state can directly implement some strategies while others require action by regional and local governments, which the state can encourage through establishing incentives, requirements, or other mechanisms. “Under current state policies, it is unlikely California will meet its ambitious greenhouse Infill development Development decisions are traditionally the responsibility of local governments at the city gas emissions goals.” and county level, but state policy can influence these decisions. Several states, including California, Arizona, Connecticut, Delaware, and Maryland, have adopted requirements for local governments to consider GHG emissions in their plans. California requires Metropolitan Planning Organizations (MPOs) to develop