Building a Regional TDM Program

David Burch, Principal Environmental Planner

Jackie Winkel, Environmental Planner

San Francisco Bay Area

• 9 Counties, 101 cities

• > 7 million people

• Pleasant climate

• Scenic beauty

• Strong environmental ethic

• Robust economy

• Transportation & housing challenges

- expensive housing

- long commutes

- access to transit varies

Nine County Jurisdiction

Surrounding the SF Bay

Bay Area AQMD

• 22-member governing board

• First regional AQ agency in US (1955)

- Pollution moves around

- Consistent rules & requirements

• Our mission:

- Attain air quality standards

- Protect public health

- Reduce GHG emissions to protect the climate

Air District Responsibilities

Air

Monitoring Public

Outreach

Grants &

Incentives

Rules &

Permitting

Air Quality Planning

• Pollution control strategy

- Stationary sources

- Stringent motor vehicle

emissions stds: CA ARB

- Reduce motor vehicle use

• Made major progress in

improving air quality

• But we need to reduce

emissions from transportation

San Francisco Bay Area

1955

• 3 million people

• 1.7 million cars

• 35 million vehicle miles

driven daily

2013

• > 7 million people

• 5.3 million cars

• > 170 million vehicle miles driven

daily

• 2nd highest congestion nationwide

Air Pollution from Transportation Sector

Residential Fuel Usage

7%

Electricity / Co-Generation

17% Off-Road Equipment

3%

Agriculture / Farming

1%

Industrial / Commercial

34%

Transportation 38%

Transportation is the largest source of GHG emissions

in the Bay Area (2012)

The Role of Commuter Trips

Weekday commute trips account for a major share of

personal motor vehicle miles traveled (2010)

Work-Based 4%

Commute 53%

School 6%

Social (recreation, dining

out, etc.) 11%

Shopping 10%

Other 16%

Bay Area Commute Mode Split

Two-thirds of Bay Area commuters drive to work alone

Drive Alone 68%

Carpool/Vanpool 11%

Transit 10%

Walk 3%

Bike 1%

Other 1%

Work at home 6%

Bay Area Commuter Benefit Program

• Modeled on San Francisco commuter benefit ordinance

• Developed pursuant to Senate Bill 1339 (enacted 2012)

– Authorized the Air District and MTC (the regional

transportation planning, coordinating and financing agency)

to jointly adopt a regional commuter benefits ordinance

• Bay Area Commuter Benefits Program

– New Regulation 14, Rule 1 serves as foundation for Program

– Rec’d input from business community via outreach process

• Pilot program: 2014-2016

• Report to Legislature due by July 2016

Goals & Objectives

• Improve air quality

• Decrease greenhouse gas emissions

• Reduce traffic congestion – less time wasted

• Expand the use of commuter tax benefits

– Employers save $$$

– Employees save $$$

– More $$$ stay in the Bay Area, helps economy

• Minimize red-tape, easy for employers to comply

Four Commuter Benefit Options

• Option 1: Pre-tax payroll deduction for transit or vanpool

– Up to maximum allowed by IRS (currently $130 per month)

– Employers save $ on payroll taxes

– Employees save $ on transit/vanpool fares

• Option 2: Direct subsidy for transit or vanpool

- Maximum subsidy required is $75 per month

• Option 3: Employer-provided transportation

- Bus, shuttle, vanpool

• Option 4: Alternative commuter benefit

There are no performance standards or targets

Option 4: Alternative Commuter Benefit

• Good option in areas with limited transit service

• Provides flexibility for employers

• Promote alternative commute modes such as carpooling,

bicycling, walking

Option 4: Examples

Who Needs to Comply?

Employers with 50+ full-time employees

in the Bay Area

Private Businesses

Public agency

Non-profit organization

Count based on all Bay Area

worksites combined

Including branch locations

with less than 50 employees

10

20

25

Program Requirements

Program Implementation

Air District:

• Develop rule & guidelines to complement the rule

• Compliance verification/enforcement

MTC/ Regional Rideshare Program

• Develop registration process and employer database

• Employer assistance info on

– Employer Guide, FAQ’s, Video tutorials

– Presentations to employer groups, TMA’s, vendors

– One-on-one assistance

Coordination with Local Cities

• Local cities: San Francisco, Berkeley, Richmond

• Businesses with 50+ employees in the Bay Area

report to the Air District and MTC

• Businesses with <50 employees that are located in

cities with local ordinances report to the local city

(example: in SF employers with 20-49 employees

report to San Francisco)

Implementation Timetable

• Regulation applies to ~ 10,000 employers with >

25,000 worksites in Bay Area

– ~60% of total Bay Area workforce

• This new regulation is now in effect

– Adopted by Air District Board & ratified by MTC Commission

in March 2014

• Due date to register: September 30th (6 months)

Registration Results to Date

Option 1 84%

Option 2 10%

Option 3 3%

Option 4 3%

Who Will Benefit?

• Employers

– Save $$ on payroll taxes

– Enhanced benefit package

• Employees

– Save $$ on transit/vanpool

– More options, less commute stress

• Bay Area

– Improve air quality

– Reduce GHG emissions

– Increase transit use

– Reduce traffic congestion

– More $$ stay in Bay Area

Go to 511.org, click on

Bay Area Commuter Benefits Program

Contact: commuterbenefits@511.org

www.baaqmd.gov/commuterbenefits

For Additional Information

Option 4: Menu of Measures

Option 4A: Choose one primary & two secondary measures

Option 4B: Choose four secondary measures

PRIMARY MEASURES SECONDARY MEASURES

Carpool Subsidy ($3/day) Employer-specific carpool match service (free)

Bicycle Subsidy ($20/month) Guaranteed Ride Home program (free)

Telework Program Preferred parking for carpools

Compressed Work-Week Secure, on-site bicycle parking

Parking Cash-Out Showers/lockers for bicyclists/walkers

Electric Vehicle Implementation Employer-sponsored Bike Share Program

Employee commuting “awards” program

On-site amenity (cafe, ATM, childcare, etc.)

Provide real-time commuting info

Lunchtime shuttle

Bay Area Ozone Trends

65

70

75

80

85

90

Ozo

ne (

pp

b)

Ozone 8-hr Design Value: SF Bay Area 2000-2002 to 2011-2013

National Standard

Bay Area PM2.5 Trends

0

10

20

30

40

50

60

2000-02 2001-03 2002-04 2003-05 2004-06 2005-07 2006-08 2007-09 2008-10 2009-11 2010-12 2011-13

PM

2.5

(u

g/m

3)

Bay Area PM2.5 Design Value*

*The Bay Area design value is the PM2.5 that is compared with the national PM2.5 standard to determine whether it meets the

standard. The Bay Area has met the standard for the past 4 years.

national standard

Who Qualifies as an Employee?

• Employee: Anyone who receives a W-2 form for

tax purposes

• Full-time employees: Employees who work at least

30 hours per week (excluding seasonal/temporary and

field employees).

• Covered employees: Employees must offer the

commuter benefit to all “covered employees” who

work at least 20 hours per week.

Seasonal/Temporary & Field Employees

Exemptions:

• Seasonal/temporary employees: employees who work

120 days per year or less are exempt from the

employee definition

• Field employees: employees who do not report to a

permanent worksite are also exempt (per 6/12/14

Compliance Advisory)

When these exemptions are applied for the purpose of

counting the number of full-time employees, some

employers may not be subject to the rule.

Potential Savings

Option 1: By allowing use of pre-tax $$ for transit & vanpool

-Employers: can save ~8% (or more) in payroll tax savings

-Employees: can save on average 40% (or more) on their

(after-tax) commute costs

= $625/year in

savings to employee

$125/year in savings

to employer

&

$1,560

ANNUAL

COMMUTE

COSTS

$130/MONTH TRANSIT OR

VANPOOL FARE