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white paper

California and USA Pricing Strategy Experiences

Publication Date

August 26, 2026

Author(s)

Emma Huang, Erin Barry, Joshua Schank, Egon Terplan

Abstract

This white paper examines the successes and failures of road pricing strategies in California and the United States, with implications for congestion pricing across California. It evaluates nine case studies spanning feasibility studies, operational HOT lane programs, and the country’s first large-scale cordon pricing zone. The research team addresses the conditions that favor pricing, barriers, outcomes, and how costs and benefits are distributed using case studies in Los Angeles, San Diego, San Francisco, San Mateo County, Alameda County, New York City, and Northern Virginia. The research finds that successful pricing programs have sustained political champions, state enabling legislation, and benefits visible to identifiable users. Revenue allocation, not toll structure, is the primary determinant of whether pricing is regressive or progressive. No pricing program reviewed was repealed after implementation. The research team concludes that advancing road pricing in California will require clear state leadership and supportive coalitions.

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white paper

Equity and Road Pricing: Fairness and Affordability

Abstract

This white paper reconsiders the equity of road pricing by distinguishing between fairness and affordability—two concepts that are otherwise often conflated. A fair price assigns costs in proportion to the burdens a user imposes on others; an affordable price is one that users can pay without hardship. While both are important, these are distinct objectives, and treating them as interchangeable can obscure judgments about whether pricing is morally or ethically correct. Applying this framework suggests congestion pricing is more equitable than flat VMT charges because it better aligns payments with the social costs of driving. While congestion pricing may raise affordability concerns for some users, these concerns can be addressed through targeted redistribution of toll revenues. By contrast, unpriced roads and poorly targeted charges allow drivers to impose substantial external costs on others, undermining fairness even as they appear more affordable.

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policy brief

Grid-Aware Charging and Routing for Electric Truck Fleets in California

Abstract

California is transitioning heavy-duty freight trucks from diesel to battery-electric vehicles to help meet its climate and air quality goals. Unlike passenger vehicles, electric trucks require much larger batteries and high-powered chargers, creating concentrated demands on the electric grid. At the same time, freight carriers operate under strict schedules that leave little flexibility in when and how long trucks can charge. As freight electrification expands, coordinating truck operations, charging infrastructure, and grid planning will become increasingly important.
Without that coordination, simultaneous truck charging, particularly during periods of high electricity demand, can increase electricity costs, strain local grid infrastructure, and create congestion at charging stations. These challenges are compounded by state and regional incentives that may unintentionally encourage trucks with the largest batteries and fastest chargers rather than the most efficient charging strategies. The result is a more expensive freight electrification system for fleets, utilities, infrastructure providers, and ultimately taxpayers.
To identify strategies that support both efficient freight operations and a reliable electric grid, a grid-aware optimization model using 3.9 million real-world California truck loads was developed. This brief covers how battery size, charger speed, charging schedules, and charger locations affect both fleet operating costs and grid performance.

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published journal article

Assessing the Complementarity of Microtransit and Public Transit for Sustainable Mobility: Evidence from Three California Cities

Abstract

Microtransit services fill gaps within public transportation systems across the United States (U.S.), but there are questions about whether they complement and compete with fixed-route services. The successful integration of microtransit is important for sustainability because it has the potential to improve the ridership and viability of public transit, which has implications for reducing emissions and increasing vehicle occupancy. Moreover, microtransit may serve as a more cost-effective way to provide transit service in low-density regions, relative to fixed-route services. The research team analyzed survey and trip activity data from three microtransit operations in California, including the Silicon Valley Hopper (N = 457), Richmond Moves (N = 131), and the Via West Sac (N = 224). For the Bay Area systems, surveys were deployed in November 2024, while activity data spanned June 2022 to November 2024. Via West Sac is one of the oldest microtransit systems in the U.S., and data from a May 2019 survey was integrated into the analysis. The survey showed that 35% of Richmond Moves, 31% of Silicon Valley Hopper, and 17% of Via West Sac respondents connected to and/or from public transit during their most recent microtransit trip. It is estimated travel and wait times were lower on microtransit than public transit for 53% of Richmond Moves, 83% of Silicon Valley Hopper, and 85% of Via West Sac trips. The research team also found that 27% of Richmond Moves, 37% of Silicon Valley Hopper, and 52% of Via West Sac trips had no viable fixed-route transit alternative. Insights from these findings and expert interviews were used to define planning and design recommendations to improve complementarity. Key recommendations include providing comparative travel time information between microtransit and public transit options, highlighting faster fixed-route alternatives to requested trips, and offering transfer credits for microtransit trips that connect to transit.

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research report

Data Collection Plan for Evaluating the Greenhouse Gas Impacts of High-Occupancy Toll Lane Projects

Abstract

This report presents a data collection plan for evaluating the greenhouse gas (GHG) impacts of high-occupancy toll (HOT) lane projects implemented under Caltrans’ Carbon Reduction Strategy. Because HOT lanes can affect route choice, departure time, vehicle occupancy, and destination choice beyond the managed lane corridor, the report recommends evaluating impacts across the regional travel shed. The research team recommend two approaches for reliable before-and-after estimates of vehicle miles traveled (VMT) by speed bin. The household-based survey approach uses OBD-II, GPS, or smartphone-based tools to observe a representative sample of households within the travel shed, yielding the most detailed evidence on regional VMT and how impacts vary across the population. The infrastructure-based approach combines continuous freeway sensor data with sampled counts and speeds on arterials, local roads, and ramps; it is less costly and easier to implement but offers less insight into the travelers behind observed changes. For each approach, the report describes what data to collect, where and when to collect it, and how to validate and integrate it with EMFAC. The report also includes order-of-magnitude cost estimates for the two alternatives.

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published journal article

Response of BART’s Berkeley Hills Tunnel to Fault Displacement and Impact on System Functionality

Abstract

Critical nodes in transportation networks, such as major transit tunnels and interchange stations, are vital for maintaining system functionality following a disruptive event such as a large earthquake. This study evaluates the seismic resilience of BART’s Berkeley Hills Tunnel that passes through the Hayward Fault, which is a high-activity strike-slip fault. The Hayward Fault poses a significant risk, with the potential for a magnitude 7 + earthquake that could severely impact the tunnel, potentially disrupting BART service and affecting the broader transit network. Considering a probabilistic distribution of fault rupture displacements, this study assesses the resulting tunnel damage. It also evaluates the likelihood of service interruptions caused by potential Hayward Fault events. The results indicate that the tunnels may experience minor to significant damage depending on the amplitude of the fault displacement, which can lead to repair times ranging from a few weeks to over a year.

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published journal article

Pathways to Equity in Travel Demand Modeling: An Evaluation of Auto Ownership Outcomes Using Choice Set Modeling

Abstract

The rapidly-evolving landscape of transportation technologies requires that we re-examine our transportation modeling tools and their ability to reflect the likely impacts of these technologies across society. Traditional auto ownership models, among other components of travel demand models, are designed based on the assumptions that one’s transportation alternatives are known and deterministic. However, this assumption is in tension with decades of empirical evidence that documents the influence of various constraints on decision making. Further, the effects of these constraints on choice outcomes, may vary systematically; access to a given transportation alternative within the choice set may be tied to a set of decision-maker characteristics.
In this study, the researchers implement a choice set formation model framework to measure potential variations in auto ownership outcomes, with emphasis on constrained travelers. The model specifications test various factors that have been found in past empirical studies to influence households’ ownership choice alternatives, including financial constraints. Results show that the choice set formation model specification with constraint variables offers improvements in model performance, particularly for constrained subgroups, relative to the conventional model specifications. The choice set formation model offers reductions in prediction error rates, with 37% and 29% lower error rates for Black households and households with lower educational attainment, respectively.
These results demonstrate the reality of considerable differences in model performance across subgroups. While further study is warranted to understand implications for transportation demand modeling practices, this article argues that the use of conventional model specification may result in harmful consequences for constrained travelers when their travel behaviors and outcomes are poorly captured or distorted.

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white paper

A Review of Pricing Strategies for Decarbonizing Transportation

Abstract

California’s ability to achieve its climate and mobility goals depends on addressing the growing gap between transportation infrastructure needs and the declining effectiveness of traditional fuel tax revenues. As electric vehicle adoption rises, fuel efficiency improves, and demands for resilient, multimodal systems expand, new approaches to transportation funding and demand management are required. This paper examines a range of mobility pricing strategies—including tolling, managed lanes, congestion charges, vehicle-based fees and feebates, distance-based user charges, and parking pricing—to evaluate their potential for enhancing financial sustainability, reducing congestion, and internalizing the environmental and social costs of driving. Particular attention is given to dynamic pricing, which can flexibly manage demand for both road and parking space, and to distance-based charges that offer a more equitable and efficient alternative to fuel taxes. The analysis highlights the importance of revenue allocation to ensure that pricing strategies not only generate funds but also support equitable investments in sustainable mobility options. While some approaches are well established, others require pilot testing and policy innovation. Given its policy leadership and commitment to climate action, California is well positioned to advance and integrate these strategies, shaping a comprehensive pricing framework that strengthens the state’s fiscal resilience while promoting a cleaner, more efficient, and more equitable transportation system.

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published journal article

Between the Forest and the Trees: Navigating Silos and Setbacks to Vegetative Roadway Barriers

Abstract

Expanding participation of marginalized groups within decision-making could help address environmental injustice and increase equity. This article assesses the potential and challenges of expanded engagement by examining community steering committee (CSC) processes of three communities in the San Joaquin Valley participating in California’s Assembly Bill 617 program to engage local stakeholders to mitigate pollution hotspots. Researchers use case study and interview analysis to assess CSC resident experiences prioritizing, approving, and monitoring implementation of one community-identified strategy: the installation of vegetative barriers (VB) between hazardous facilities (e.g., freeways) and sensitive uses to mitigate pollution exposure. Although residents successfully directed substantial funding toward community-identified VB priorities, the researchers find that the scale of adopted VB projects was modest relative to resident aspirations for a more robust, community-wide protective VB network. Findings point to the opportunities and challenges of using a steering committee model to integrate impacted residents into emissions reduction planning processes.

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published journal article

Rural Microtransit Service to Replace Fixed Route Service: A California Case Study

Abstract

The low density and low demand conditions of rural areas make fixed route transit unsuitable to serve the transit needs of rural residents. Microtransit, which is much more flexible and responsive to demand, is a possible alternative to fixed route service in these rural settings. However, the factors impacting rural microtransit use, the impacts of rural microtransit on rider travel behaviour, and the financial performance of rural microtransit in differing contexts are still not fully understood. This study aims to improve our understanding through a case study evaluation of the Yolobus BeeLine service based in Yolo County, California. By conducting ride-along interviews and surveys with riders of the BeeLine, we find that frequency of use for taxis/ride-hail and buses before the microtransit implementation, the presence of physical or similar limitations—such as requiring a wheelchair or other mobility aids when traveling—and overall satisfaction with the service have a positive impact on rural microtransit usage. Factors that were found to have a potential negative impact on rural microtransit use frequency included frequency of driving alone, race, and age. Respondents who identified as White and respondents who were older were less likely to use the BeeLine often. Respondents’ frequency of use for automobile adjacent modes, such as driving alone, carpooling/vanpooling, getting dropped off by a friend or family, and taxi/ride-hailing services, were generally reduced due to the introduction of rural microtransit. This decrease was especially apparent for taxi/ride-hailing services due to the lower fares for rural microtransit and indicates a potential for rural microtransit to displace greenhouse gas (GHG) emissions from these modes. The comparison of financial metrics between the different BeeLine zones demonstrates how low population and origin–destination density significantly increases the cost of the service. Planners of rural microtransit systems can use these results to more readily anticipate demand for their service. Despite the higher costs of microtransit compared to fixed route services, the non-monetary benefits, such as access to opportunities, of the vastly improved service level should be considered when planning rural microtransit systems.