Chicago Congestion Reduction Demonstration ("CRD") Description

CRD Agreement

Congestion Reduction Demonstration Agreement by and between the U.S. Department of Transportation and its Chicago-area Congestion Reduction Partners

Overview of the agreement

On April 29, 2008, the U.S. Department of Transportation ("the Department") announced its designation of Chicago, IL, as a Congestion Reduction Demonstration ("CRD") Partner, based on the terms of an agreement signed by the Department, the City of Chicago, and the Chicago Transit Authority ("CTA"). Under the terms of the CRD Agreement, the City of Chicago and CTA (collectively, the "Partner Agencies") have committed to implementing an integrated and aggressive program to reduce traffic congestion. In exchange for these commitments, the Department has agreed to provide the Partner Agencies with substantial Federal funding.

Projects Chicago will enact

Under the terms of the CRD Agreement, the Partner Agencies will implement the following projects:

1. Bus Rapid Transit (BRT) projects. CTA will establish dedicated BRT service along four downtown corridors:

79th St. (State St.->Ashland Ave.);
Chicago Ave. (California Ave.->Fairbanks Ct.);
Halsted St. (Lake St.-> North Ave.); and
Jeffrey Blvd. (87th St.->67th St.).

These four corridors will serve as the first phase of a proposed city-wide arterial BRT network.

2. Loading zone fees. The City of Chicago will implement pay-for-use charges on its on-street loading zones, with prices varying by time of day or level of demand in a manner that both reduces traffic congestion and ensures reasonable availability of commercial loading zone space.

3. Variable parking pricing. The City of Chicago will institute a peak period surcharge on off-street non-residential parking, and will establish a system for variably pricing downtown on-street metered parking. Parking prices will vary by time of day or level of demand in order to ensure the availability of parking and reduce associated traffic (by eliminating the need for drivers to circle in search of open parking spaces).

4. Parking concession agreement. The City of Chicago will enter into a long-term concession agreement for the operation, improvement and maintenance of its metered parking system.

Implementation timeframe

Under the terms of the CRD agreement, the Partner Agencies must enter into the parking concession by December 31, 2008, and must implement all of the agreed-upon projects (BRT projects, loading zone fees, and variable parking pricing) by April 30, 2010.

Other key terms of the agreement

Assurance of legal authority. By no later than December 31, 2008, the Partner Agencies must demonstrate to the Department's satisfaction that they possess all of the legal authorities necessary for the implementation of the agreed-upon projects.
Recourse if terms are not satisfied. The Department has reserved the right to de-obligate Federal funds obligated in connection with the CRD Agreement (or to require the return of such funds) in the event that the Partner Agencies fail to meet the agreement's terms.

Sources and amounts of Federal funding

The Partner Agencies have committed to providing any funding necessary to implement the loading zone fees and the variable parking pricing. The Department will support the BRT projects with a total of $153.1 million in Federal funding. The Federal funding will be provided from the following discretionary grant programs, each administered by either the Federal Transit Administration ("FTA") or the Research and Innovative Technology Administration ("RITA"):

$36.9 million from FTA's capital program for Bus and Bus-Related Facilities;
$112.7 million from FTA's capital program for New Fixed Guideway Facilities, including "Small Starts" projects; and
$3.5 million from RITA's Intelligent Transportation System - Operational Testing to Mitigate Congestion Program.

In order to access this funding, the Partner Agencies must first (a) demonstrate to the Department that they possess all necessary legal authorities (as described above) and (b) implement the long-term parking concession agreement. Projects that draw on Federal funding must comply with the statutes, regulations, and Departmental guidance that govern each of the respective programs.

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