Federal-Aid Highway Program Guidance on High Occupancy Vehicle (HOV) Lanes
August 2008
Appendix C
Section 166 Model Toll Agreement
No. ____of ____
Executed
Original Counterparts
AGREEMENT
By and between the
FEDERAL HIGHWAY ADMINISTRATION,
UNITED STATES DEPARTMENT OF TRANSPORTATION
AND
__________ DEPARTMENT OF TRANSPORTATION
AND
(insert name of third party toll agency or municipality, if applicable)
_____________________________
THIS AGREEMENT, made and entered into this _____ day of _____________ 2006, by and between the _____________ DEPARTMENT OF TRANSPORTATION, an agency of the State of _____________, (hereinafter referred to as "_____________"), _____________, a _____________ of the State of _____________, (hereinafter referred to as "_____________") and the FEDERAL HIGHWAY ADMINISTRATION, UNITED STATES DEPARTMENT OF TRANSPORTATION, (hereinafter referred to as "FHWA") hereby provides as follows:
WITNESSETH:
WHEREAS, the _____________ and the _____________ desire to toll the high occupancy vehicle ("HOV") lane/s on _____________, which is located at _____________ (hereinafter referred to as the "toll facility"); and
WHEREAS, Section 166(c) of Title 23, United States Code, as amended, permits tolls to be charged on HOV facilities, including HOV facilities on the Interstate System, to "High Occupancy Toll Vehicles" and "Low Emission and Energy-Efficient Vehicles" for their use of such facilities, subject to the requirements of Section 129 of Title 23, United States Code; and
WHEREAS, Paragraph 3 of Section 129(a) of Title 23, United States Code, as amended, restricts the use of revenues as follows:
(3) Limitation on Use of Revenues … all toll revenues received from operation of the toll facility will be used first for debt service, for reasonable return on investment of any private person financing the project, and for the costs necessary for the proper operation and maintenance of the toll facility, including reconstruction, resurfacing, restoration, and rehabilitation. If the State certifies annually that the tolled facility is being adequately maintained, the State may use any toll revenues in excess of amounts required under the preceding sentence for any purpose for which Federal funds may be obligated by a State under this title.
WHEREAS, Paragraph 3 of Section 166(c) of Title 23, United States Code, as amended, further restricts the use of revenues as follows:
(3) Excess Toll Revenues.—If a State agency makes a certification under Section 129(a)(3) of Title 23, United States Code, with respect to toll revenues collected under paragraphs (4) and (5) of [Section 166(b) of Title 23, United States Code,] the State, in the use of toll revenues under that sentence, shall give priority consideration to projects for developing alternatives to single occupancy vehicle travel and projects for improving highway safety.
NOW THEREFORE, the _____________, the _____________, and FHWA hereby agree as follows:
- The FHWA agrees that _____________ and _____________ may charge toll on the toll facility in accordance with the provisions of this Agreement and Section 166 of Title 23, United States Code.
- The _____________ and the _____________ agree that the toll revenues from the operation of the toll facility will be used first for debt service, for reasonable return on investment of any private person financing the project, and for the costs necessary for the proper operation and maintenance of the toll facility, including reconstruction, resurfacing, restoration, and rehabilitation, as provided in paragraph 3 of Section 129(a) of Title 23, United States Code, as amended.
- In accordance with Sections 129(a) and 166(c) of Title 23, United States Code, as amended, the _____________ and the _____________ hereby certify that they can and will comply with the following requirements:
The _____________ and the _____________ agree to certify annually that the toll facility is being adequately maintained. Upon such certification, the _____________ is entitled to use any toll revenues in excess of the amounts required under paragraph 3 of Section 129(a), as amended, for any purpose for which Federal funds may be obligated by a State under Title 23, United States Code, with priority given to projects for developing alternatives to single occupancy vehicle travel and projects for improving highway safety. One certification submitted by either party to the FHWA shall be sufficient to satisfy the requirements of this paragraph so long as both parties are bound by such certification.
- The _____________ and the _____________ agree, upon reasonable notice, to make all its records pertaining to the toll facility subject to audit by the FHWA. The _____________ and the _____________ agree to annually audit the records of the toll facility for compliance with the provisions of this agreement and report the results thereof to the FHWA. In lieu of the _____________ and the _____________ performing said audit, a report of an independent auditor furnished to the FHWA, the _____________, and the _____________ may satisfy the requirements of this section. Additionally, in the event that excess revenues are used for other Title 23, United States Code, eligible projects, the _____________ and the _____________ will certify that priority was given to projects for developing alternatives to single occupancy vehicle travel and projects for improving highway safety as part of the annual audit report to be submitted to the FHWA.
- The _____________ and _____________ agree to be bound by and comply with the provisions of Section 166 of Title 23, United States Code, as amended, as well as all other applicable Federal laws, rules, and regulations.
- That this Agreement will be prepared in triplicate originals so that each signatory will have an original Agreement.
IN WITNESS THEREOF, the parties hereto have caused this instrument to be duly executed, the day and year first written above.
STATE OF _____________
_____________ DEPARTMENT OF TRANSPORTATION
BY: _____________________________,
(Insert Name of Toll Authority, if applicable)
_____________________________
BY: _____________________________
FEDERAL HIGHWAY ADMINISTRATION
UNITED STATES DEPARTMENT OF TRANSPORTATION
BY: _____________________________
Jeffrey F. Paniati
Executive Director
