Got the HOTs?

HOT lanes have been a big hit with drivers

Nearly a decade of experience in San Diego and Orange County, Calif., has shown that you can keep traffic flowing smoothly, at the speed limit, even during the busiest rush hours. How? Charge a toll, varying by the density of traffic in the lane, for drivers to use the high-occupancy vehicle lanes (HOV). These high-occupancy toll (HOT) lanes – on I-15 in San Diego and SR 91 in Orange County – have been a big hit with drivers in all income groups.

The next step is to apply this to mass transit. The idea is to reserve a portion of an HOV lane for buses and vanpools, while selling the remainder of the lane’s capacity to motorists at market prices. The result is a virtual exclusive busway – a VEB.

A single lane can handle 1,700 vehicles an hour without congestion. In every metro area but New York, however, it would be very difficult to fill enough buses to operate more often than one per minute (60 per hour). There’s room for about 1,600 additional – paying – cars per hour without interfering with the high-speed flow of buses and vanpools. That’s a lot of toll revenue – in some cases enough to pay the cost of building an additional lane.

A VEB would be a better use of costly new highway lanes than two-person carpools. Most carpoolers turn out to be family members who would travel together anyway, so they don’t reduce the number of cars by very much. We can make lemonade out of these lemons by converting HOV lanes to super-HOT lanes, dedicating a portion of their capacity to express bus service.

This is not pie-in-the-sky. Houston is already adding four HOT lanes in the median of the Katy Freeway (I-10), with part of their capacity reserved permanently for buses, vanpools and three-person carpools. Toll rates will be charged and kept high enough to limit other car traffic to what is compatible with uncongested conditions.

The moral of the story: VEBs are a good deal for hard-pressed transit agencies – and an even better deal for taxpayers.

Robert W. Poole Jr. is director of transportation studies and founder of the Reason Foundation.

Robert Poole is director of transportation policy and Searle Freedom Trust Transportation Fellow at Reason Foundation. Poole, an MIT-trained engineer, has advised the Ronald Reagan, the George H.W. Bush, the Clinton, and the George W. Bush administrations.

Surface Transportation

In the field of surface transportation, Poole has advised the Federal Highway Administration, the Federal Transit Administration, the White House Office of Policy Development, National Economic Council, Government Accountability Office, and state DOTs in numerous states.

Poole's 1988 policy paper proposing privately financed toll lanes to relieve congestion directly inspired California's landmark private tollway law (AB 680), which authorized four pilot toll projects including the successful 91 Express Lanes in Orange County. More than 20 other states and the federal government have since enacted similar public-private partnership legislation. In 1993, Poole oversaw a study that coined the term HOT (high-occupancy toll) Lanes, a term which has become widely accepted since.

California Gov. Pete Wilson appointed Poole to the California's Commission on Transportation Investment and he also served on the Caltrans Privatization Advisory Steering Committee, where he helped oversee the implementation of AB 680.

From 2003 to 2005, he was a member of the Transportation Research Board's special committee on the long-term viability of the fuel tax for highway finance. In 2008 he served as a member of the Texas Study Committee on Private Participation in Toll Roads, appointed by Gov. Rick Perry. In 2009, he was a member of an Expert Review Panel for Washington State DOT, advising on a $1.5 billion toll mega-project. In 2010, he was a member of the transportation transition team for Florida's Governor-elect Rick Scott. He is a member of two TRB standing committees: Congestion Pricing and Managed Lanes.


Poole is a member of the Government Accountability Office's National Aviation Studies Advisory Panel and he has testified before the House and Senate's aviation subcommittees on numerous occasions. Following the terrorist attacks of Sept. 11, 2001, Poole consulted the White House Domestic Policy Council and the leadership of the House Transportation & Infrastructure Committee.

He has also advised the Federal Aviation Administration, Office of the Secretary of Transportation, White House Office of Policy Development, National Performance Review, National Economic Council, and the National Civil Aviation Review Commission on aviation issues. Poole is a member of the Critical Infrastructure Council of the Los Angeles Economic Development Corporation and of the Air Traffic Control Association.

Poole was among the first to propose the commercialization of the U.S. air traffic control system, and his work in this field has helped shape proposals for a U.S. air traffic control corporation. A version of his corporation concept was implemented in Canada in 1996 and was more recently endorsed by several former top FAA administrators.

Poole's studies also launched a national debate on airport privatization in the United States. He advised both the FAA and local officials during the 1989-90 controversy over the proposed privatization of Albany (NY) Airport. His policy research on this issue helped inspire Congress' 1996 enactment of the Airport Privatization Pilot Program and the privatization of Indianapolis' airport management under Mayor Steve Goldsmith.

General Background

Robert Poole co-founded the Reason Foundation with Manny Klausner and Tibor Machan in 1978, and served as its president and CEO from then until the end of 2000. He was a member of the Bush-Cheney transition team in 2000. Over the years, he has advised the Reagan, George H.W. Bush, Clinton, and George W. Bush administrations on privatization and transportation policy.

Poole is credited as the first person to use the term "privatization" to refer to the contracting-out of public services and is the author of the first-ever book on privatization, Cutting Back City Hall, published by Universe Books in 1980. He is also editor of the books Instead of Regulation: Alternatives to Federal Regulatory Agencies (Lexington Books, 1981), Defending a Free Society (Lexington Books, 1984), and Unnatural Monopolies (Lexington Books, 1985). He also co-edited the book Free Minds & Free Markets: 25 Years of Reason (Pacific Research Institute, 1993).

Poole has written hundreds of articles, papers, and policy studies on privatization and transportation issues. His popular writings have appeared in national newspapers, including The New York Times, The Wall Street Journal, USA Today, Forbes, and numerous other publications. He has also been a guest on network television programs such as Good Morning America, NBC's Nightly News, ABC's World News Tonight, and the CBS Evening News. Poole writes a monthly column on transportation issues for Public Works Financing.

Poole earned his B.S. and M.S. in mechanical engineering at Massachusetts Institute of Technology (MIT) and did graduate work in operations research at New York University.