Regional mayors have concerns over charges to cut congestion
Drivers could end up paying an average of between $3 and $8 per day to get around Metro Vancouver if decongestion charging is introduced in the region.
The cost estimates were in a report presented by the Mobility Pricing Independent Commission to a joint meeting of TransLink’s Mayors’ Council and board of directors on Thursday.
The report caused concern for a number of the region’s mayors, who called it a good start and agreed the conversation needs to take place, but worried that mobility pricing would not be fair or affordable for residents.
“Going through the report, definitely some of the charges that are talked about here are definitely up there and certainly are going to catch people’s attention,” said New Westminster Mayor Jonathan Cote, who described mobility pricing as a difficult, complex and controversial issue.
It’s been proposed that mobility pricing could pay for transit and transportation improvements in the region, replace the declining gas tax and deal with traffic gridlock.
The commission looked at two options for decongestion charging, both of which could reduce congestion by 20 to 25 per cent.
One option is congestion point charges, where drivers are charged when they pass a certain location — including bridges — and complemented by further charges at locations on the Burrard Peninsula.
Based on early analysis, a regional congestion point charge would cost the average driving household $5 to $8 per day, or $1,800 to $2,700 per year. This option would see the regional gas tax, which is 17 cents per litre, remain in place so that people who don’t cross tolled points would still contribute to paying for transportation.
The capital cost to establish congestion point charges would be in the $150-million-to-$300-million range, with annual operating costs of $110 million to $200 million. It’s estimated it could bring in annual net revenues in the range of $1.1 billion to $1.5 billion.
The other decongestion pricing option is distance-based charges that vary by time and location, meaning drivers would be charged for each kilometre they drive, but the amount would vary depending on where they go and at what time.
The analysis shows that a multizone distance-based charge could cost the average driving household $3 to $5 per day, or $1,000 to $1,700 per year. Fuel tax could be eliminated under this option.
The exact number and boundaries of zones are still to be determined, but for the purpose of analysis eight zones were identified.
Capital costs — which include on-board units for all Metro Vancouver vehicles — could be in the range of $400 million to $700 million, with annual operating costs between $300 million and $500 million. If capital costs are annualized over 7.5 years, it’s expected that annual net revenue would be in the range of $1 billion to $1.6 billion.
The report priced out some typical trips within the region.
For instance, travelling between South Surrey and Coquitlam would cost between $3.54 and $5.30 under cost-point charges at peak time, and 75 cents to $1.11 off peak. The same trip under distance-based charging would cost $5.20 to $7.48 at peak or 64 to 96 cents off peak.
In comparison, when the Port Mann and Golden Ears bridges were tolled, a person commuting from Surrey to Coquitlam paid $6.30 per day if they crossed the Port Mann Bridge twice.
Maple Ridge Mayor Nicole Read pointed out that there is a problem with equitable access to transit in some parts of Metro Vancouver, and that should be dealt with before mobility pricing.
“I think there’s a long way to go and, for me, I really need to use this opportunity to exercise a lot of caution because for people in the eastern part of the region this is a really, really concerning next conversation that we have to have,” she said.
Delta Mayor Lois Jackson said she was also concerned about commuters “on the outer fringes of this region.”
“I know the commission has looked at this aspect of fairness and equity and I think we have to continue to look at that,” Jackson said.
Kris Sims, B.C. director for the Canadian Federation of Taxpayers, called decongestion pricing “a nonstarter” for the region’s residents.
“They just actually don’t have the money for this,” Sims said. “I was encouraged to see some of the mayors throwing cold water on this idea.”
Sims said she was skeptical that other taxes, such as the gas tax, would be eliminated or reduced with the introduction of mobility pricing.
Cote said there does need to be more work done in the area of tax shifting.
“The commission’s report highlights a real need to talk about the elimination of the gas tax if this is something that we are going to be considering, and a whole host of other taxes that may not be as directly related to transportation that could ultimately be replaced,” he said.
The report also put forward 13 principles for guiding mobility pricing policy around congestion, fairness, how transportation investment is supported, and other considerations.
The Mayors’ Council and board voted to share the report with the federal and provincial governments and referred it to staff for more research and followup on the commission’s work.
They also asked TransLink to continue consulting the public and stakeholders on the proposal.
However, it’s not anticipated that mobility pricing is imminent. The report itself states that it will take four to seven years to implement, if it makes it that far. The political will to pursue mobility pricing may be difficult to find.
“It is not for the faint of heart politically, and we recognize that,” said Surrey Mayor Linda Hepner. “I think that the better educated we can be both at local government and with our provincial government partners — and even at the federal level — the easier whatever transition to mobility pricing becomes.”
On Twitter, B.C. Liberal Leader Andrew Wilkinson said that while he appreciated the work the commission did, “This proposal is unaffordable and the wrong direction for British Columbians. I can’t support this and I hope (Premier John Horgan) won’t either.”
In a statement, B.C. Green party spokesperson for transportation Adam Olsen said that because it is a political minefield, there needs to be provincial leadership on the issue.
“Our team is closely analyzing this report and will continue to engage with local governments and British Columbians to determine the best path forward,” he said.
“We will keep pressure on government and continue to work collaboratively with them to fulfil our shared commitments on transit, climate and affordability.