The Day

N.J. sues over congestion pricing plan in NYC

- By CHRIS DOLMETSCH and MICHELLE KASKE Bloomberg’s Skylar Woodhouse contribute­d to this report.

New York’s plan to charge drivers entering midtown Manhattan is a “brazen money grab,” New Jersey’s senior U.S. senator said after the Garden State sued to block the congestion pricing proposal.

The litigation threatens to delay a second-quarter start to the plan, under which drivers using E-ZPass who enter the city south of 60th Street could pay as much as $23. The tolling program got final approval last month from the Federal Highway Administra­tion, or FHWA, which determined it would have no significan­t environmen­tal impact.

In a lawsuit filed Friday morning in federal court in Newark, the state sued the FHWA and the U.S. Department of Transporta­tion, claiming the U.S. approval was ill-considered and missed numerous risks to the state’s residents. It alleges that FHWA ignored the fact that the new tolls would change commuting patterns, redirectin­g traffic that would unfairly burden New Jersey crossings not included in the pricing plan.

“We’ll bear the burdens of congestion pricing while New York City gets the benefits, and that’s not fair,” Gov. Phil Murphy said at a news conference, adding that the state’s leaders would fight “tooth and nail” to make sure New Jerseyans are treated fairly.

But his emphatic message was low-key and upbeat compared with that of Sen. Bob Menendez, who followed him at the podium.

The proposal is “highway robbery,” Menendez said. “It’s anti-middle class, anti-small business, anti-common sense for communitie­s that call this side of the Hudson home.”

The National Environmen­tal Policy Act, or NEPA, requires U.S. agencies to consider the environmen­tal impact of any major federal project - which includes a city plan that uses federal funds - and conduct an assessment that includes public comment.

But “nothing in this bedrock federal environmen­tal law allows the FHWA to turn a blind eye to the significan­t environmen­tal impacts that congestion pricing in the Manhattan Central Business District will have on New Jersey, favoring New York at the expense of its neighbors,” the state said in its complaint.

Nancy Singer, a spokespers­on for the U.S. Department of Transporta­tion, said in an email that the agency doesn’t comment on pending litigation. Tim Minton, a spokespers­on for the Metropolit­an Transporta­tion Authority, which is implementi­ng the congestion pricing plan, didn’t have an immediate comment on the suit. New York Gov. Kathy Hochul didn’t respond to a request for comment.

About 1.5 million people work in Manhattan’s central business district, and 143,000 of them drive into the area, according to the MTA. That doesn’t include those driving in for reasons other than work.

The new tolls are expected to help raise $15 billion for public transporta­tion projects. New York officials say the charges could also reduce daily traffic in the district by 20%.

New Jersey is seeking to block the initial environmen­tal assessment, a shorter process, and force DOT and FHWA to require the MTA to conduct a “full and proper” environmen­tal impact statement, which is more thorough.

It claims that the environmen­tal assessment failed to consider the impact on air quality in New Jersey, including the potential increase in PM2.5 levels in Fort Lee, near the George Washington Bridge, that could exceed the latest U.S. Environmen­tal Protection Agency standards. Such PM readings refer to fine particulat­e matter, which can pose health risks.

The final environmen­tal assessment “buried the reality that while Manhattan’s air quality may improve, New Jersey’s air quality will deteriorat­e as traffic and pollutants shift,” the state alleges. New Jersey said the impact on air quality in Bergen County will result in a slew of health issues for residents, including premature mortality, asthma attacks, bronchitis and emergency room visits.

Murphy has said he is open to the idea of congestion pricing but that the goal of the current project is simply to raise revenue for New York’s MTA and its $51.5 billion multiyear capital plan, which will extend the Second Avenue subway to Harlem, modernize signals and finance electric buses.

Those infrastruc­ture projects could be delayed if Murphy’s legal challenge forces the MTA to postpone the plan. The MTA expects the tolls to bring in $1 billion annually, with a plan to raise $15 billion by issuing bonds.

Opponents of such projects often use such impact assessment­s to challenge proposals in federal court. Groups opposing a 1970s-era plan for Westway — a highway with commercial space and parkland that was proposed for 200 acres of landfill on the Hudson River — defeated the project when an appeals court found that a review had failed to take into account its potential effect on the striped bass population.

In April 2008 Jon Corzine, then New Jersey’s governor, threatened a lawsuit to block then New York Mayor Michael Bloomberg’s proposal to charge motorists entering the busiest parts of Manhattan, saying it would unfairly tax commuters in his state. The New York State Assembly scuttled the plan later that month, deciding not to vote on the proposal. The former mayor is the founder and majority owner of Bloomberg News parent Bloomberg LP.

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