of the pilot project, the estimate of overall socio-economic return becomes negative in the worst case scenario.
Trip Reduction Performance Program, Washington State
Although not related to a specific TDM program or strategy, this case study was deemed as relevant to this research effort. In particular, because it offers an innovative approach to assess the value of TDM by introducing the market based concept where buyers and sellers compete to determine the price of a removed SOV trip.
The Commute Trip Reduction (CTR) Performance Grant Program is a pioneer effort in testing whether the Washington State Department of Transportation (WSDOT) can free transportation capacity by removing SOV trips from the existing network infrastructure by means of creating a single buyer market for avoided trips.
Established in 2003, the program awards grants on a competitive basis to private employers, public agencies, nonprofit organizations, developers, and property managers who offer financial incentives to their employees and tenants that reduce the number of SOV commute trips taken by their employees and tenants. In 2003, the Washington State Legislature created a framework for the Performance Grant program and engaged the CTR Task Force in obtaining the details in administrative rules.
Through the program, WSDOT is trying to create a market for purchasing SOV trips from willing sellers, such as private sector entrepreneurs, non-profit seeking and public sector entities. The program’s objectives are to:
Purchase avoided SOV trips from willing sellers;
Attract entrepreneurs to trip reduction by offering profit opportunities; and,
Encourage development of innovative trip reduction strategies.
Based on the recommendations of the 1991 CTR Act, which called for the creation of a trip reduction market, the legislature enacted a task force to introduce a performance-
based grant program to fund projects that offer financial incentives to
switch from SOV travel. opportunity for entrepreneurs
The CTR work force assumed that this to invest in trip reduction and create private
commuters to would create sector interest
in removing trips where additional The 2001 CTR Legislative Report reduction program to allow WSDOT attract entrepreneurs to trip reduction
roadway infrastructure is prohibitively expensive. recommended the State Legislature create a trip to purchase removed trips from private parties and by offering profit opportunities.
The performance grant program consists of a dual structure; it combines the characteristics of a typical grant program, which awards grants to organizations that submit proposals; and a market program, which buys performance and pays the participants for the number of trip reduced. The legislature and the administrative rules both emphasize that the program is a “grant program” and the performance requirement