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  • New York City’s congestion pricing faces multiple lawsuits

    March 01, 2024 |

    New York City’s congestion pricing plan is facing a fifth federal lawsuit as the city gets closer to implementing the controversial charge on motorists.

    As of press time in early February, the latest lawsuit comes from dozens of New York City residents, business owners and city council members. Spearheaded by a group called New Yorkers Against Congestion Pricing Tax, the lawsuit seeks class-action status.

    Toll collection is anticipated to begin in late spring. Approved by the Metropolitan Transportation Authority last December, public hearings were scheduled for February, after which the transportation authority will vote on whether or not to authorize adoption of the plan.

    Similar to the other lawsuits, the class-action lawsuit claims that the defendants – which include federal, state and local transportation agencies – illegally expedited the environmental review process required per the National Environmental Policy Act.

    Per the National Environmental Policy Act, New York City’s congestion pricing plan required an environmental assessment. That assessment resulted in the Federal Highway Administration issuing a “finding of no significant impact.”

    However, plaintiffs in the class-action lawsuit and preceding lawsuits have argued that the environmental assessment did nothing to address the environmental and socioeconomic impacts of congestion pricing. The lawsuit points out that details of the plan were not known until November of last year, well after FHWA issued its final environmental assessment.

    Consequently, those opposing New York City’s congestion pricing plan want an environmental impact statement.

    An environmental impact statement is required if a proposed major federal action is determined to significantly affect the quality of the human environment. Requirements for the statement are more detailed and rigorous than those for an environmental assessment.

    On Jan. 4, the United Federation of Teachers and the office of the Staten Island Borough President filed a similar lawsuit in a federal New York district court. That lawsuit was preceded by a lawsuit filed by the mayor of Fort Lee, N.J., in November and another filed by a group of residents in Manhattan’s Battery Park City neighborhood. In July, New Jersey Gov. Phil Murphy announced the state was suing the U.S. Department of Transportation and FHWA over New York City’s congestion pricing plan, citing the need for an environmental impact statement.

    Congestion pricing structure

    If the congestion pricing plan moves forward, motorists will be charged for entering New York City’s central business district, which is the area in Manhattan south of 60th Street. Congestion pricing recommendations include:

    • $36 for large trucks
    • $24 for smaller box trucks
    • $15 for passenger vehicles
    • $7.50 for motorcycles
    • $2.50 per ride for app-based for-hire vehicles (e.g., Uber, Lyft)
    • $1.25 per ride for taxis

    For passenger vehicles, drivers would be capped at only one central business district toll per day. Truck drivers, on the other hand, would be charged each time they entered the district.

    The above congestion pricing structure would apply to the peak hours between 5 a.m. and 9 p.m. Fees would be reduced by 75% during off-peak hours. LL