Drivers who pay tolls to enter the area of Manhattan below 60th Street might be exempt from paying any congestion pricing fee under an idea mentioned by the leader of New York City’s transportation agency.
MTA Chairman and CEO Janno Lieber suggested drivers who pay tolls to enter Manhattan through Hudson and East River tunnels may not have to pay an additional congestion pricing fee under an idea he said is “on the table” during a CBS-NY TV interview.
The proposal would answer the double taxation criticism that MTA officials have heard from New Jersey and officials from the city ‘s outer boroughs, Lieber said on “The Point” political talk show.
“It is actually an idea that we have specifically studied,” he said on CBS. “We’re being responsible about it, and we’re taking fairness to New Jersey into consideration.”
Up to this point, the best deal Jersey drivers could hope for was getting credit for their tolls toward the congestion fee. Pending federal approval, congestion pricing could be implemented as soon as next spring.
A six-member Traffic Mobility Review Board will make the final recommendations about congestion pricing rates, exemptions, and credits for tolls.
Now Jersey officials asked Lieber on Wednesday if Jersey drivers might get an exemption, in a letter from U.S. Rep. Josh Gottheimer to the MTA head.
“Janno’s interview with Marcia Kramer speaks for itself and we will neither comment on selected snippets nor get ahead of the work of the Traffic Mobility Review Board that will recommend congestion pricing rates and any exemptions or discounts,” said Aaron Donovan, an MTA spokesperson, to NJ Advance Media.
Under the congestion pricing proposal, a base $9 fee up to a maximum $23 fee could be charged for non-commercial passenger vehicles to enter the “central business district” south of 60th Street in Manhattan, with a goal of reducing traffic, pollution and crashes, and raising revenue for the cash-strapped MTA subways, buses and commuter rail.
A preliminary report recommended providing credit for Lincoln and Holland Tunnel tolls but is silent about doing the same for the George Washington Bridge. The $23 fee would include a GWB toll credit. A lower $19 fee would exclude the GWB toll credit, according to the August 2022 MTA Environmental Assessment.
Gottheimer’s letter asked Lieber to “confirm zero-cost, full exemptions beyond the current Port Authority toll for New Jersey drivers using the Holland and Lincoln Tunnel crossings entering the Central Business District?” He also asked if a zero-cost exemption applies to drivers using the George Washington Bridge to enter the Central Business District.
The plan could generate $15 billion over four years for the MTA for improvements for its subway, bus and commuter lines, NYC officials have said. If implemented, the proposal would become the nation’s first congestion pricing toll zone, federal officials said.
“Thank you for recognizing this burden and for exempting New Jersey drivers from the Congestion Tax in this shared, cooperative zone,” Gottheimer wrote.
Lieber’s statement represents an olive branch to New Jersey and outer borough officials who’ve been critical of the economic impact of the plan.
Gov. Phil Murphy asked federal officials to require a full Environmental Impact Statement study, which would delay implementation of congestion pricing and warned the state is looking at its legal options. His office Wednesday said New York still has more to do to make congestion pricing fair to New Jerseyans.
“Even with full credit for those tolls, New Jersey would still have serious objections to the current plan,” spokeswoman Bailey Lawrence told NJ Advance Media. “We remain prepared to consider all legal options to stop MTA from being funded in ways that unfairly burden New Jersey and its residents, but would welcome MTA sitting down to discuss how they can meaningfully address New Jersey’s concerns.”
Federal lawmakers from New Jersey and the outer boroughs have proposed or discussed retaliatory legislation if congestion pricing takes effect without exemptions.
Those proposals range from requiring a federal investigation into MTA finances and spending to reducing federal aid from states that propose congestion pricing type programs that affect a neighboring state and fail to involve those states in the process.
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Larry Higgs may be reached at [email protected].