M E M O R A N D U M. Texas Department of Transportation Construction Division

M E M O R A N D U M TO: FROM: Texas Department of Transportation Construction Division David R. Ellis, Ph.D. Senior Research Scientist Texas A&M Transportation Institute DATE: March 5, 2018 RE: Updated Estimate of Roadway User Cost for Personal Vehicles and Commercial Trucks Summary The value of delay time is an estimate of the average differential cost of the extra travel time resulting from delay. For passenger car motorists, this value of delay time is based upon the median hourly wage rate for all occupations plus excess fuel costs associated with slower speed. For truck drivers, the value of delay time is expressed as the wage rate of the driver plus employee benefits provided by the trucking company plus excess fuel costs due to delay associated with slower speed. In addition, total operating cost per mile was calculated based on vehicle operating costs plus accident cost (as represented by insurance cost) for inclusion in those instances where additional miles of driven as a result of construction (a detour or alternate route). Researchers estimate the 2017 value of delay time for personal travel to be $28.69 per vehicle per hour ($27.39 for the value of time plus $1.30 due to excess fuel burn due to congested traffic) based on an average occupancy of 1.5 persons per vehicle. Where additional miles of travel are involved (for example, a detour around the construction site) the cost for personal vehicles is $0.582 cents per mile for each additional mile of travel. The commercial truck value of delay time for 2017 is estimated to be $36.28 per vehicle per hour ($31.36 for the value of travel time plus $4.92 due to excess fuel burn in congested traffic) based on an average vehicle occupancy of 1.14 persons per vehicle. Where additional miles of travel are involved, the cost for commercial trucks is estimated to be $1.035 cents per mile for each additional mile of travel. (Note: The excess fuel burn calculations are based on an average congested speed during construction of 15 miles per hour.) An Excel-based Road User Cost Calculator has been developed to perform all of the necessary calculations. Only six basic variables are required and the additional road user cost associated with the construction is shown on both a cost-per-day basis and over the life of the project. 1

What Changed and Why? There are several significant changes in this report with respect to value of delay time for both passenger and commercial trucks, among them: 1) The estimated average vehicle occupancy for personal vehicles has been changed from 1.25 persons per vehicle to 1.50 persons per vehicle based on new data. 2) The estimated average vehicle occupancy for commercial trucks has been changed from 1.0 persons per vehicle to 1.14 persons per vehicle based on new data. 3) The operating cost for personal vehicles are now consistent with those published by the American Automobile Association in their annual report entitled Your Driving Costs. 4) The operating cost for commercial trucks are now consistent with those published by the American Transportation Research Institute (ATRI) in their annual survey of members. 5) The value of travel time for personal travel is now tied to the median wage for all occupations as published by the Bureau of Labor Statistics, U.S. Department of Labor, in their Occupational Employment Statistics series. 6) The value of travel time for commercial travel is now tied to the median wage for tractor-trailer truck drivers and light truck/delivery truck drivers as published by the Bureau of Labor Statistics, U.S. Department of Labor, in their Occupational Employment Statistics series. (Median wages for tractor-trailer truck drivers and light truck/delivery truck drivers were weighted by the proportionate share each has of the total commercial truck vehicle fleet.) 7) A new calculation procedure was developed to take into account the use of an alternate route due to construction. 8) Procedures and values used in this report are now consistent with those used in the Urban Mobility Report published by TTI and the Accelerated Construction Benefit/Cost Model developed by TTI for TxDOT. 9) An Excel-based Road User Cost Calculator was developed replacing all of the lookup tables. To comment further on some of the changes for personal vehicles, in previous reports a value of delay time was simply inflated by the Consumer Price Index (CPI). From this point forward, the median hourly wage rate for all occupations as published by the Bureau of Labor Statistics will be used. It is believed this wage rate will prove more representative of the value of personal delay time. This report provides the value of time for an individual 2

traveling in delay conditions multiplied by an updated occupancy rate to determine the value of delay time for a passenger vehicle. In previous years, the commercial truck value of delay time has gone through several revisions, but relied fundamentally on a value produced by a now dated study and subsequently adjusted by the Consumer Price Index. This and subsequent reports will use the American Trucking Association Institute s (ATRI) annual study of operational costs in trucking as a basis for estimating the operational cost component of the value of delay time. This change was made because it is believed the ATRI survey of its membership relative to operating costs is timelier and more representative of the actual operating cost borne by commercial truckers. Driver time is based on a weighted average of the median wage rate for tractor-trailer and light truck/delivery truck drivers as produced by the Bureau of Labor Statistics. Furthermore, there is one additional change in the calculation that affects both personal and commercial time calculations related to vehicle operations, fuel and accident costs. These costs apply where a detour around a construction project is involved causing the vehicle operator to drive an added distance that, as a result, incurs costs associated with both additional time and operating expense. The rationale for these changes is as follows: in a case where traffic is slowed due to construction activity but no detour is involved (for example, a reduction in the number of mainlanes), the only significant difference caused by construction is an increase in travel time as a result of reduced speed and a higher rate of fuel burn. There is no significant impact on operating cost because those costs accrue on a per mile basis and the number of miles traveled remains unchanged. However, in some instances, a detour around the construction site may be used. In that instance, an additional distance is traveled resulting in an increase in vehicle operating costs. Consequently, two values were developed for personal vehicles and commercial trucks a value of time and a value for operating cost. Previous Methodology for Passenger Vehicle Motorist s Value of Delay Time In earlier iterations of value of delay time calculations a speed choice model developed by Chui and McFarland (1986) of the Texas Transportation Institute (TTI) is used by the Texas Department of Transportation. The model derives its utility from the notion that speed is regarded as one of the most important factors in any traveler s choice. Travel time is directly related to the choice of speed that one chooses to travel. The first attempts to discern any relationship between speed and the value of travel time were made by Mohring (1965, 1976). The speed choice model assumes that a rational driver chooses to drive at a speed which minimizes his or her total trip cost (i.e., a speed at which his or her marginal cost is equal to or less than the marginal benefit). The travel characteristics in Texas during the development of the speed choice model included a relatively small number of toll roads and small percentage of people using mass transit systems in Texas. The model was developed to analyze the nature of traffic in Texas at 3

that time. More or less the same conditions exist today with the exception of a significant increase in truck traffic in some border areas and the I-35 corridor. The research indicated the value of delay time was $11.98 in 1997 in Texas and was consistent at the time with estimates produced by other states. Using this methodology, Column 2 of Table 1 takes the $11.98 value of delay time found in 1997 and adjusts it for inflation by the Consumer Price Index (CPI) back to 1982 as well as forward to 2017. CPI is shown in Column 3 of Table 1. So, using the previous calculation method, the value of delay time per person for passenger vehicle travel is estimated to be $18.26 for 2017. Table 1: Value of Passenger Vehicle Motorist s Time Column 2 Column 3 Column 4 Personal Bureau of Value Consumer Price Index Labor Statistics Year of Time (1982-1984 base year) Median Hourly Wage 1980 $6.15 82.4 1981 $6.78 90.9 1982 $7.20 96.5 1983 $7.43 99.6 1984 $7.75 103.9 1985 $8.03 107.6 1986 $8.18 109.6 1987 $8.48 113.6 1988 $8.83 118.3 1989 $9.25 124.0 1990 $9.75 130.7 1991 $10.17 136.2 1992 $10.47 140.3 1993 $10.78 144.5 1994 $11.06 148.2 1995 $11.37 152.4 1996 $11.71 156.9 1997 $11.98 160.5 1998 $12.17 163.0 1999 $12.43 166.6 2000 $12.85 172.2 2001 $13.22 177.1 2002 $13.43 179.9 2003 $13.73 184.0 $13.53 2004 $14.10 188.9 $13.83 2005 $14.58 195.3 $14.15 2006 $15.06 201.8 $14.61 2007 $15.47 207.3 $15.10 2008 $16.07 215.3 $15.57 2009 $16.01 214.5 $15.95 2010 $16.28 218.1 $16.27 2011 $16.79 224.9 $16.57 2012 $17.14 229.6 $16.71 2013 $17.39 233.0 $16.87 2014 $17.67 236.7 $17.09 2015 $17.69 237.0 $17.40 2016 $17.91 240.0 $17.81 2017 $18.29 245.1 $18.26 Source: Texas A&M Transportation Institute 4

Value of Time New Methodology for Passenger Vehicle Motorist s Value of Delay Time There has long been a concern that simply taking the perceived value of delay time from an earlier study and adjusting it forward and backward by the CPI might prove to be problematic over time in that the CPI (a rate of change based on a market basket of goods for all urban consumers) may not be reflective of the actual value of passenger vehicle travel. As an alternative, the decision has been made to use data published in the Occupational Employment Statistics series by the Bureau of Labor Statistics that provide both a mean and median hourly wage for all job classifications taken together. The median hourly wage was chosen for use in this study because the median value eliminates the effect of extremes at either end of the wage range. As shown in Column 4 of Table 1 and graphically in Chart 1, the two values (the previous measure in Column 2 and the method using wage data shown in Column 4) have been very similar historically. Therefore, from this point forward the median hourly wage for all occupations should be used as a surrogate for perceived value of delay time for passenger vehicle motorists because it is measured independently and annually as opposed to an adjustment by the CPI inflation measure. Chart 1. Value of Personal Travel: 1980-2017 $24.00 $22.00 $20.00 $18.00 $16.00 Value of Personal Time Inflated by Consumer Price Index $14.00 $12.00 $10.00 Value of Personal Time Calculated by BLS Median Hourly Wage Rate $8.00 $6.00 $4.00 $2.00 $0.00 1980198219841986198819901992199419961998200020022004200620082010201220142016 Old Method Value of Time New Method Value of Time Source: Texas A&M Transportation Institute 5

Using the new methodology for personal vehicles, the value of delay time for 2017 is $18.26 per person or, based on a new average vehicle occupancy of 1.5 persons per vehicle, $27.39 per hour per vehicle as shown in Table 2 below. (Note: Columns 2, 3 and 6 show the values to time using the old method. Column 7 shows the value of time using the new method.) Table 2: Value of Passenger Vehicle Time Column 2 Column 3 Column 4 Column 5 Column 6 Column 7 Personal Bureau of Old Method New Method Value Consumer Price Index Labor Statistics Average Value of Time Value of Time Year of Time (1982-1984 base year) Median Hourly Wage Vehicle Occupancy (per vehicle) (per vehicle) 1980 $6.15 82.4 1.25 $7.69 1981 $6.78 90.9 1.25 $8.48 1982 $7.20 96.5 1.25 $9.00 1983 $7.43 99.6 1.25 $9.29 1984 $7.75 103.9 1.25 $9.69 1985 $8.03 107.6 1.25 $10.04 1986 $8.18 109.6 1.25 $10.23 1987 $8.48 113.6 1.25 $10.60 1988 $8.83 118.3 1.25 $11.04 1989 $9.25 124.0 1.25 $11.57 1990 $9.75 130.7 1.25 $12.19 1991 $10.17 136.2 1.25 $12.71 1992 $10.47 140.3 1.25 $13.09 1993 $10.78 144.5 1.25 $13.48 1994 $11.06 148.2 1.25 $13.83 1995 $11.37 152.4 1.25 $14.22 1996 $11.71 156.9 1.25 $14.64 1997 $11.98 160.5 1.25 $14.97 1998 $12.17 163.0 1.25 $15.21 1999 $12.43 166.6 1.25 $15.54 2000 $12.85 172.2 1.25 $16.07 2001 $13.22 177.1 1.25 $16.52 2002 $13.43 179.9 1.25 $16.78 2003 $13.73 184.0 $13.53 1.25 $17.17 $16.91 2004 $14.10 188.9 $13.83 1.25 $17.62 $17.29 2005 $14.58 195.3 $14.15 1.25 $18.22 $17.69 2006 $15.06 201.8 $14.61 1.25 $18.83 $18.26 2007 $15.47 207.3 $15.10 1.25 $19.34 $18.88 2008 $16.07 215.3 $15.57 1.25 $20.09 $19.46 2009 $16.01 214.5 $15.95 1.25 $20.01 $19.94 2010 $16.28 218.1 $16.27 1.25 $20.34 $20.34 2011 $16.79 224.9 $16.57 1.25 $20.99 $20.71 2012 $17.14 229.6 $16.71 1.25 $21.42 $20.89 2013 $17.39 233.0 $16.87 1.25 $21.73 $21.09 2014 $17.67 236.7 $17.09 1.25 $22.09 $21.36 2015 $17.69 237.0 $17.40 1.25 $22.11 $21.75 2016 $17.91 240.0 $17.81 1.25 $22.39 $22.26 2017 $18.29 245.1 $18.26 1.50 $27.44 $27.39 Source: Texas A&M Transportation Institute Also of note is that the estimate of the median hourly wage for 2017 has not yet been released. However, the BLS estimates that wages increased 2.5 percent during the first half of 2017. Assuming that percentage held for the remainder of 2017, the estimate for 2017 would be $18.26 on a per person basis as seen in column 4 of Table 2 above and, as noted previously, yield the $29.39 value using the new vehicle occupancy rate. 6

Operating Cost for Passenger Vehicles The annual Your Driving Costs report produced by the American Automobile Association was used as a basis to calculate the marginal cost per mile of travel for passenger vehicles. The individual costs associated with the different classes of vehicles were weighted to produce a fleetwide average that represents the vehicle fleet currently in use in Texas. Those data yielded an operating cost estimate of $0.582 cents per mile as shown in Table 3 below. Table 3: Passenger Vehicle Operating Costs per Mile COST PER MILE (in CENTS) Cost Element Small Sedan Med Sedan Lg Sedan Small SUV Medium SUV Minivan Pickups Weighted Average Fuel $0.072 $0.090 $0.111 $0.087 $0.118 $0.110 $0.139 $0.108 Maintenance, Repair, Tires $0.068 $0.079 $0.084 $0.081 $0.083 $0.078 $0.083 $0.080 Insurance $0.086 $0.080 $0.080 $0.072 $0.073 $0.072 $0.082 $0.081 License, Registration, Taxes $0.030 $0.043 $0.050 $0.040 $0.055 $0.048 $0.066 $0.050 Depreciation $0.141 $0.212 $0.253 $0.189 $0.248 $0.256 $0.239 $0.218 Finance Charges $0.026 $0.040 $0.047 $0.038 $0.054 $0.046 $0.061 $0.046 TOTAL $0.424 $0.545 $0.627 $0.507 $0.630 $0.610 $0.670 $0.582 Source: American Automobile Association Previous Methodology for Commercial Truck Value of Delay Time Historically, commercial truck costs were calculated on a cost-per-mile basis. The original base-year cost-per-mile value of $1.65 per mile used by TTI was obtained from the American Trucking Association in 1986. The per mile value includes costs for depreciation, interest, general maintenance, tires, repairs, and other similar costs, but did not include the cost of fuel. The amount of fuel used per mile was then multiplied by the cost of fuel to determine the fuel cost-per-mile. In subsequent years, and like in the case of personal travel, the value was adjusted by an approximation of the general rate of inflation as measured by the CPI. Later, researchers made adjustments to the value of delay time calculation for truck drivers. Two primary sources of data were identified for determining true road user costs for trucks and for use as a check against values used in TTI s Urban Mobility Report (UMR). The first was Operating Costs for Trucks 2000 published by Transport Canada. The second was An Evaluation of Expenses per Ton-Mile, Expenses per Mile and Expenses per Ton for Major Commercial Carriers in Numerous Segments of For-Hire Trucking produced by Transportation Technical Services, Inc. for the Federal Highway Administration Office of Freight Management and Operations. Based on these reports and other data, researchers performed several updates and produced new cost-per-mile estimates beginning with the 2004 UMR data. The updates included: developing a new cost-per-mile figure using the Consumer Price Index for the years 1982 through 2003, using the Producer Price Index for general freight trucking to adjust operating costs, 7

updating diesel fuel prices using data from the Energy Information Administration, and revising fuel cost-per-mile values using the new fuel price values. By taking the cost-per-mile calculations and multiplying them by the average peak-period speed (i.e., congested speed) weighted by vehicle-miles of truck travel, a truck operating value of delay time was computed on a per-hour basis. New weighted average speeds were calculated as a part of the Urban Mobility Report process as well. New Methodology for Truck Driver s Value of Delay Time Since the last major revision to the UMR commercial travel time methodology, the American Transportation Research Institute (ATRI) began an annual survey of their membership to determine estimates of operational trucking costs. TTI has closely followed ATRI s survey and has determined it currently provides the most accurate data available for commercial truck operating costs and should serve as the basis for the truck value of delay time estimate used in the UMR. The ATRI survey disaggregates variable costs into nine categories: fuel, lease/purchase payments, repairs and maintenance, insurance, permits and licenses, tires, tolls, and driver wages and benefits. (For purposes of this report, the Gulf Coast PADD price, as published by the Energy Information Administration, U.S. Department of Energy, were substituted for the fuel costs included in the ATRI survey. Values are calculated on a per-mile and per-hour basis. Table 4 provides a summary of the survey results for the period 2008 through 2015 published by ATRI, which indicates an average operating cost for commercial trucks of $1.035 per mile for 2017. (Note: Values for 2008 through 2015 were published by ATRI. 2015 is the last year for which ATRI has data.) Values for 2016 and 2017 were estimated by TTI based on a methodology described on pages 8 through 10 of this memorandum. Table 4: Estimates of Truck Costs per Mile: 2008 through 2015 Calculated by ATRI, 2016 and 2017 Data Estimated by TTI Estimated Costs Per Mile 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Fuel $0.633 $0.405 $0.486 $0.590 $0.641 $0.645 $0.583 $0.403 $0.357 $0.410 Truck/Trailer Lease or Purchase Payments $0.213 $0.257 $0.184 $0.189 $0.174 $0.163 $0.215 $0.230 $0.243 $0.257 Repairs and Maintenance $0.103 $0.123 $0.124 $0.152 $0.138 $0.148 $0.158 $0.156 $0.165 $0.174 Truck Insurance Premiums $0.055 $0.054 $0.059 $0.067 $0.063 $0.064 $0.071 $0.092 $0.097 $0.103 Permits and Licenses $0.016 $0.029 $0.040 $0.037 $0.022 $0.026 $0.019 $0.019 $0.020 $0.021 Tires $0.030 $0.029 $0.035 $0.042 $0.044 $0.041 $0.044 $0.043 $0.045 $0.048 Tolls $0.024 $0.024 $0.012 $0.017 $0.019 $0.019 $0.023 $0.020 $0.021 $0.022 TOTAL $1.074 $0.921 $0.940 $1.094 $1.101 $1.106 $1.113 $0.963 $0.949 $1.035 Sources: American Transportation Research Institute (years 2008-2015), Texas Transportation Institute (2016, 2017) Researchers used the ATRI estimates as a basis for calculating the 2016 commercial truck value of delay time for use in the UMR and other studies. To do so, it was necessary to make several adjustments to the ATRI estimates to update them to 2016. Those methodological adjustments are as follows: 8

1. Segregated non-fuel and non-labor marginal costs from other costs. 2. Subtracted fuel costs. 3. Calculated the mean and median average percent increase in non-fuel, non-labor marginal costs. 4. Selected the median average percent increase in non-fuel, non-labor marginal cost and apply the increase to the ATRI 2015 non-fuel, non-labor costs to determine cost-permile operating costs for 2016. 5. Determined an estimate of fuel efficiency (miles/gallon) for tractor-trailer and straight trucks. 6. Determined an estimate of percent of commercial trucks that are tractor-trailer trucks and straight trucks. 7. Determined a labor cost estimate. 8. Estimated the cost of driver benefits. 9. Estimated an average speed for tractor-trailer trucks and straight trucks. In the ATRI survey, the mean annual increase from 2008 through 2015 in non-fuel, non-labor costs per mile was calculated at 4.0 percent and the median annual increase calculated to be 5.7 percent. The annual percent change ranged from -11.7 percent to +16.7 percent. Given the wide range in annual percent change, the median value was used to calculate an estimate for non-fuel, non-labor cost-per-mile estimate for 2016 because the median is less impacted by outliers in the data. The mean annual percentage of the cost of driver benefits as a percent of driver wages was calculated at 30.7 percent per and the median was calculated to be 30.5 percent for the period 2008 through 2015. The annual percent change ranged from 26.2 percent to 36.3 percent. Again, the median value of 30.5 percent was chosen as an estimate of the cost of driver benefits as a percentage of driver wages because it is less impacted by the outliers in the data. As noted above, several additional estimates were made based on conversations with industry members and the past experience of research professionals to produce a 2017 estimate of truck value of delay time. They are as follows: Estimate of percent of trucks by type Tractor-trailer trucks: 60 percent Straight trucks: 40 percent Estimate of average truck occupancy Tractor-trailer trucks: 1.1 persons per truck Straight trucks: 1.2 persons per truck Weighted average: 1.14 persons per truck Average vehicle speed Tractor-trailer trucks: 45 miles per hour Straight trucks: 30 miles per hour 9

Weighted average: 39 miles per hour Using the calculation procedures outlined above, these data yielded an estimated operational truck value of $1.035 cents per mile shown in Table 4. Finally, researchers obtained 2016 driver wages from the National Occupational Employment and Wage Estimates for the United States published by the U.S. Department of Labor, Bureau of Labor Statistics. The median hourly driver wage reported by the BLS for a heavy truck or tractor-trailer truck driver was reported to be $19.87 with the median driver wage for a light or delivery truck drive reported as $14.70 per hour. Weighting the wages by the distribution of truck by type produces a blended wage rate of $17.80 per hour. However, using previously reported driver wage rates produced by the ATRI surveys, calculating the median annual change in wage rate and then applying that increase to the 2015 rate produced an estimate for 2016 of $20.57 per hour. Given the disparity between the BLS and ATRI estimates, the ATRI wage rate was selected for use in 2016. The basis for this decision is two-fold. First, it is believed the ATRI survey more accurately reflects market conditions given the shortage of truck drivers and, second, provides the most recent data available. To update the value of driver time for 2017, the same 2.5 percent wage increase for 2017 used in the value of passenger vehicle time was applied here producing an estimate of $21.08 per hour. Including driver benefits at a rate of 30.5 percent of driver wages (the median value shown in the ATRI data for the period 2008 through 2015) multiplied by an average weighted occupancy of 1.14 persons per vehicle yields an estimate of $31.36 per hour of delay time for commercial trucks. How to Use These Values: Doing the Calculation by Hand There are several ways to calculate road user cost associated with a construction project. The key element to remember is that the value of interest is the cost associated additional travel time and extra fuel consumption in a given period that is incurred as a result of a construction project. To calculate value of construction delay, assume the following values: Project Duration: 180 days Average Operating Speed Prior to Construction: 40 miles per hour Average Operating Speed During Construction: 15 miles per hour Segment Length: 1 mile Average Daily Traffic: 20,000 vehicles Percent Trucks: 15 percent Value of travel time for personal vehicles: $27.39 Value of travel time for commercial trucks: $31.36 Wasted fuel per mile for personal vehicles (assuming 20mpg congested speed): $1.30 Wasted fuel per mile for commercial trucks (assuming 20mph congested speed): $4.92 10

With those values alone, it is possible to calculate the value of construction delay. To do so, use the following steps: Step 1: Calculate the number of personal vehicles and commercial trucks per day. 20,000 total vehicles x 15 percent commercial trucks = 3,000 commercial trucks 20,000 total vehicles x 85 percent personal vehicles = 17,000 personal vehicles Step 2: Calculate the travel time for the area prior to construction. (60 minutes/40 mph average operating speed prior to construction) x 1.0 segment length = 1.5 minutes of travel time prior to construction Step 3: Calculate the travel time for the area during construction. (60 minutes /15 mph average operating speed during construction) x 1.0 segment length = 4.0 minutes of travel time during construction Step 4: Calculate the amount of additional travel time (delay) due to construction. 4.0 minutes of travel time during construction 1.5 minutes of travel time prior to construction = 2.5 minutes of delay due to construction Step 5: Calculate the delay in hours (2.5 minutes of delay x 17,000 personal vehicles per day)/60 minutes per hour = 708 hours of passenger vehicle delay (2.5 minutes of delay x 3,000 commercial trucks per day)/60 minutes per hour = 125 hours of commercial truck delay Step 6: Calculate the value of delay per day. (708 hours of delay for personal vehicles x $27.39 per hour) + (125 hours of delay for commercial trucks x $31.36) = $23,312 in delay time per day Step 7: Calculate the value of excess fuel used per day due to delay. (17,000 personal vehicles per day x $0.086 per mile in excess fuel burn x 1 mile segment) + (3,000 commercial trucks per day x $0.328 per mile in excess fuel burn x 1 mile segment) = $2,453 in excess fuel per day Step 8: Calculate total delay per day. $23,312 per day in delay time + $2,453 in excess fuel per day = $25,774 in total delay and excess fuel cost per day due to construction Step 7: Calculate the value of delay associated with the project (in needed). $24,857 in delay per day x 180 day project duration = $4.47 million in total delay New to this calculation is a process where delay value can be determined in the event a detour around construction is used by some of the traffic. 11

This calculation is based on a per mile operating cost developed from data provided by ATRI (for commercial trucks) and AAA (for personal vehicles). As mentioned elsewhere in this report (See Tables 3 and 4) the per mile operating cost is $0.582 for personal vehicles and $1.035 for commercial trucks. For the purpose of this example, assume the same speeds, construction segment length, commercial truck/passenger, and volumes used in the prior example. In addition, assume that 10 percent of the traffic used the alternate route shown in Figure 1 and that the average speed on the alternate route was 40 miles per hour. Figure 1: Alternate Route/Detour Calculation Detour around construction zone 1.5 miles 1.0 mile construction zone ½ mile In this example, 2,000 vehicles (1,700 personal vehicles and 300 trucks) would use the alternate route. To calculate the impact of the alternate route do the following steps: Step 1: Calculate the additional operating cost of the vehicles. (1,700 personal vehicles x $0.582 per mile + 300 commercial trucks x $1.035 per mile) x 2.5 mile alternate route length = $1,300 per day in additional vehicle operating cost. Step 2: Calculate the travel time cost for personal vehicles associated with the alternate route. (((60 minutes in an hour/40 miles per hour travel speed) x 1,700 personal vehicles)/60 minutes in an hour) x $27.39 per hour in travel time cost = $1,164 in additional travel time cost for personal vehicles per day Step 3: Calculate the travel time cost for commercial trucks associated with using the alternate route. (((60 minutes in an hour/40 miles per hour travel speed) x 300 personal vehicles)/60 minutes in an hour) x $31.36 per hour in travel time cost = $205 in additional travel time cost for commercial trucks per day Step 4: Add the travel time and operating costs for both personal vehicles and commercial trucks to get obtain the total cost of using the alternate route. $1,300 per day in additional vehicle operating cost + $1,164 in additional travel time cost for personal vehicles per day + $205 in additional travel time cost for commercial trucks per day = $2,229 per day in total coast associated with using the alternate route. 12

(Note: Remember to subtract the number of vehicles using the alternate route from the vehicles total number of vehicles on the original route.) Doing the Calculation with the Road User Cost Calculator An Excel-based spreadsheet has been created to perform all of the calculations shown above and replaces all of the look-up tables used in earlier iterations of this memorandum. To use the calculator, enter the following values in the appropriate place: Project Duration Average Operating Speed Prior to Construction Average Operating Speed During Construction Segment Length Average Daily Traffic Percent Trucks If an alternate route/detour is available and used, enter: o percent of vehicles using the alternate route (if there is no alternate route/detour, enter 0) o length in miles of the alternate route o average speed on the alternate route The calculation is done automatically and the additional road user cost associated with the construction shown on a cost-per-day basis and over the life of the project. 13

Sources: American Automobile Association. Your Driving Costs. How Much are You Really Paying to Drive? http://exchange.aaa.com/wp-content/uploads/2017/08/17-0013_your-driving-costs- Brochure-2017-FNL-CX-1.pdf. 2017. American Transportation Research Institute. An Analysis of the Operational Costs of Trucking: 2016 Update. (Arlington, VA: American Transportation Research Institute) http://atri-online.org/atri-research/operational-costs-of-trucking/ U. S. Department of Labor, Bureau of Labor Statistics. Occupational Employment Statistics. https://www.bls.gov/oes/tables.htm Bureau of Labor Statistics. TED: The Economics Daily. https://www.bls.gov/opub/ted/2017/real-average-hourly-earnings-increased-0-point-3- percent-over-the-year-ended-may-2017.htm Chui, Margaret K. and William F. McFarland. The Value of Travel Time: New Estimates Developed Using a Speed-Choice Model. (College Station, Texas: Texas Transportation Institute) 1986. Daniels, Virginia, David Ellis, and William R. Stockton. Techniques for Manually Estimating Road User Costs Associated with Construction Projects. (College Station, Texas: Texas Transportation Institute). 1999. Energy Information Administration. Petroleum and Other Liquids Prices. https://www.eia.gov/dnav/pet/hist/leafhandler.ashx?n=pet&s=emd_epd2dxl0_pte_n US_DPG&f=A Federal Highway Administration. Expenses for the For-Hire Motor Carrier Industry: 1976 through 1999. (Washington, D.C.: FHWA, Office of Freight Management and Operations). 2001. Federal Highway Administration. Expenses per Mile for the Motor Carrier Industry: 1990 through 2000 and Forecasts through 2005. http://ops.fhwa.dot.gov/freight/documents/bts.pdf Mohring, Herbert. Transportation Economics. (Cambridge, Mass.: Ballinger Publishing) 1976. Schrank, David, Bill Eisele, Tim Lomax, and Jim Bak. 2015 Urban Mobility Scorecard. (College Station, Texas: Texas A&M Transportation System and INRIX) 2015. Transport Canada. Operating Costs for Trucks 2000. (Ottawa, Ontario: Transport Canada.) 2001. 14

Treiber, Martin, A. Kesting and C. Thiemann. How Much Does Traffic Congestion Increase Fuel Consumption and Emissions: Applying a Fuel Consumption Model to the NGSIM Trajectory Data. Annual Meeting of the Transportation Research Board. (Washington, D.C.: Transportation Research Board) 2008. U. S. Department of Energy, Office of Energy Efficiency and Renewable Energy, Alternative Fuels Data Center. https://www.afdc.energy.gov/data/ 15