New York City finally gets green light on crucial next step for congestion pricing

After years of delay, the New York Metropolitan Transportation Authority is one step closer to implementing a first-in-the-nation congestion pricing system.

The Biden administration has notified the transit agency that it should launch an environmental assessment of congestion pricing, a key step toward implementing a system that would charge drivers to enter Manhattan south of 60th Street. Transit officials have been waiting for the federal government to provide information on what type of environmental review it must conduct for years, but the Trump administration never weighed in — a delay MTA transit leaders chalked up to a “cynical” political maneuver.

An environmental assessment is a far less rigorous process than the full scale environmental impact statement the federal government could have also directed state leaders to conduct, which typically take years to complete. The decision indicates the Biden administration is interested in moving the process forward as quickly as possible.

“The FHWA looks forward to assisting New York so we can arrive at a prompt and informed NEPA determination on this important and precedent-setting project,” said acting Federal Highway Administrator Stephanie Pollack in a statement released Tuesday morning. “This approach will ensure that the public participates as local and state leaders explore new possibilities for reducing congestion, improving air quality and investing in transit to increase ridership.”

MTA Chair Pat Foye said the authority is “ready to hit the ground running” now that the authority has received federal guidance.

“We are already working on preliminary design for the roadway toll system and infrastructure, and we look forward to working with our colleagues at the Federal Highway Administration to conduct the review and broad public outreach so that we can move forward with the remainder of the program as soon as possible,” Foye said in a Tuesday statement.

Transit leaders have emphasized the important role congestion pricing can play in alleviating the economic fallout of the Covid-19 pandemic. Under New York’s congestion pricing law, the system is expected to generate $1 billion annually — which will be allocated for MTA capital projects.

“Given the severe financial damage the pandemic-related deficits are for the MTA … the availability and presence of congestion pricing has never been more critical,” MTA Chair Pat Foye recently told POLITICO.

The state Legislature approved congestion pricing in 2019, after similar efforts to do so failed because of political opposition in Albany. The 2017 “Summer of Hell” was a major impetus for its passage, when subways faced frequent delays and breakdowns because of a failure to fund needed maintenance and repairs of the system. State leaders had initially envisioned congestion pricing being implemented in January 2021, but delays from the Trump administration pushed back the timeline.

The MTA hasn't set a price range yet for congestion pricing, but past proposals have recommended charging $12 to $14 for cars and $25 for trucks, though prices would fluctuate based on the time of day. Under the state law, transit leaders must convene a mobility review board to hammer out the specifics of a congestion pricing plan. Public hearings will also be held.

Gov. Andrew Cuomo said the news demonstrates “the commitment of our new partners in Washington to support our efforts to move New York in the right direction.”

“Congestion pricing is an internationally proven method to reduce traffic congestion, enhance the availability and reliability of public transportation, and improve our air quality, and it will play a critical role as New York and the nation begin to recover from the pandemic and build back stronger and better than before,” he said in a statement.

Mass transit dropped precipitously at the start of the Covid-19 pandemic and has yet to fully recover. Subway ridership is still down 60 percent from 2019 levels, while traffic on bridges and tunnels has mostly returned to normal levels — stoking fears among some advocates of a “carmageddon.”

Mayor Bill de Blasio said Tuesday that congestion pricing can help alleviate those concerns.

“We need to make sure we have the resources to bring back the subways and buses strong,” de Blasio said at an unrelated press conference. “We need obviously to continue to address congestion itself.”

Cities from Chicago to San Francisco are also exploring congestion pricing, and many transit leaders have said New York will set an important precedent for how those efforts pan out.

Transportation advocates cheered the news but warned a political fight over how to set up the system seems inevitable.

"Riders welcome the Biden administration's prompt decision to order an environmental assessment of congestion pricing. This accelerated public review will expedite essential new revenue to make New York's subway system reliable and accessible,” Riders Alliance Executive Director Betsy Plum said in a statement. "Governor Cuomo must now complete the assessment as quickly as possible so the MTA can start congestion pricing with no new special interest exemptions in 2022."