How might congestion pricing actually work in New York?

New York City is poised to launch a first-in-the-nation congestion charge program designed to collect billions of dollars to fund public transportation while discouraging drivers from blocking Midtown Manhattan.

It is an ambitious undertaking that will serve as a model or cautionary tale for cities across the country with similar climate change and traffic reduction goals.

Gov. Kathy Hochul celebrated final approval of the plan by the federal government on Tuesday, paving the way for a local panel to begin deciding on tolls, rebates, waivers and other allowances.

The group was appointed by the Metropolitan Transportation Authority, which manages the region’s subway and bus network, and will meet for the first time on July 12. The authority says the program could start as early as spring 2024.

“We are setting the standard here in real time on how to achieve cleaner air, safer streets and better transport,” Ms Hochul said at a press conference. “Other cities are paying attention. How will it work here? Well, we’re going to show them that.”

While many key details have yet to be determined, here’s how the program could work, according to people involved in introducing congestion charges in New York and the MTA’s reports on the program.

What will tolls cost?

The MTA still hasn’t decided how much the congestion toll will cost, but in a report last year it said it was reviewing a proposal that would tax drivers entering Manhattan south of 60th Street $23 for a ride during rush hours and $17 during off-peak hours.

The proposals set maximum fares for certain vehicles – non-commercial passenger cars, taxis and rental cars such as Ubers entering the district, for example, would not be tolerated more than once a day. For vehicles that have already paid tolls on bridges and tunnels on the same day, other fees may be taken into account.

How do the MTA track cars entering the toll zone?

Electronic detection points are placed at the entrances and exits of the toll zone. On avenues, the equipment is generally placed between 60th and 61st Streets.

The authority estimates it will install a total of 120 detection points; 85 would be placed on bollards and arms, while 35 would be placed on structures such as bridges and overhead boards.

How do drivers pay tolls?

Mostly tolls will be charged through the E-ZPass Systemwith which many motorists already pay tolls on bridges and highways.

Drivers who do not have E-ZPass transponders fitted to their cars are identified with cameras that take pictures of their license plates and bills are sent to them in the mail. The costs are higher for drivers who do not have an E-ZPass.

“Congestion pricing will be as seamless as driving over a toll bridge or going through a toll tunnel today,” said Danny Pearlstein, a spokesperson for Riders Alliance, a public transportation advocacy group. “Instead of the old toll booths and coin baskets of the past, you drive under a detector and are billed via E-ZPass or by mail.”

Can drivers pay in cash?

Drivers cannot pay directly with cash, but the authority sells prepaid cards, also known as Reload cards, which drivers can add to with cash. They work like credit or debit cards and can be used to fund E-ZPass accounts so drivers without a bank account can get discounts. They can be purchased online, over the phone, or in person through a store.

Will there be late fees?

The MTA charges late fees that range from $5 to $100 for existing tollsso it is very likely that it will pay too late for congestion charges.

Other cities with congestion charging programs charging drivers costs if they do not immediately pay tolls. In London, for example, tolls typically cost £15, or about $19, but drivers can face fines of up to £270 if they fail to meet the payment deadline, and officials may charge additional enforcement fees.

Do drivers get fines if they don’t pay?

Probably. The MTA already has a law enforcement department that ensures drivers pay tolls.

The authority has the power to suspend vehicle registrations for people who don’t pay, and officials can ban them from using the region’s bridge and tunnel toll facilities. MTA officers routinely stop and impound vehicles of repeat offenders.

Will people with disabilities and other people dependent on vehicles be exempt?

Yes. By law, certain vehicles transporting people with disabilities and authorized emergency vehicles do not pay tolls.

People whose primary residence is in the district and whose income is less than $60,000 are also eligible for a state tax credit equal to the amount of their tolls, according to the MTA.