Fact Sheets

Download .pdf versions of these Project Fact Sheets. Fact Sheet #1, Fact Sheet #2

I-15/US-95 Demonstration Project Fact Sheet

The I-15/US-95 Demonstration Project is an initiative by the Nevada Department of Transportation (NDOT) to examine the effectiveness, value and functionality of managed lanes as a solution to Southern Nevada's growing traffic congestion problem. The project also serves as a pilot to determine the suitability of public-private partnerships (PPPs) for the state.

Designed to support the economic vitality and infrastructure needs of the Las Vegas Valley, the Project will consist of new Express Lanes established within the existing High Occupancy Vehicle lanes of the I-15/US-95 corridor. The Express Lanes will run approximately 19 miles from the northwest Las Vegas Valley (US-95 at Ann Road) to the at the southern Las Vegas Beltway (I-15). Convenient access ramps will be added and will extend over the Spaghetti Bowl interchange downtown. As a catalyst for continued economic development and prosperity, the Demonstration Project is designed to provide improved access to reliable travel for everyone using the I-15/US-95 and good family-wage jobs from construction, operations and maintenance of the facility.

The Demonstration Project will be financed through private-sector investors and, pending legislative approval, could open as soon as 2014. Without private-sector investment, this project could not be started for many years. The project will involve a series of transportation strategies designed to increase capacity within the existing right-of-way and provide congestion relief with minimal impact to the surrounding community and environment.

The following strategies will be deployed:

New Reliable Travel Choices - The conversion of existing and planned carpool or High Occupancy Vehicle (HOV) lanes to managed Express Lanes will provide commuters with a new reliable travel option. The managed lanes will offer better access to resorts, the airport and downtown areas. They will provide new public transportation and carpooling opportunities, enhance safety and improve incident management and emergency services response. In addition, the project may provide a new revenue stream to accelerate the delivery of other needed transportation projects in the Las Vegas area.
Congestion Pricing - Solo drivers and vehicles with fewer than three occupants who choose to access the new Express Lanes will be charged a fee to use them. The fee, in the form of a toll, will vary depending on traffic levels in the corridor. Using an electronic toll-collection system, tolls will be collected nonstop at highway speeds, helping to keep traffic in the Express Lanes moving at least 55 mph.
3+ Carpools and Transit Vehicles Travel Free - Preregistered carpools with three or more occupants, public transit and emergency vehicles can use the Express Lanes free of charge.
Enforcement - The Nevada Highway Patrol will enforce the use of the lanes. Electronic and visual means, including video enforcement will be used to reduce the number of violators who attempt to use the lanes.
Increased Safety - Trucks with more than two axles will be prohibited from using the managed lanes, and new and improved access points, interchanges and facilities will be constructed in the corridor to improve traffic safety.

When tested among focus groups from the Las Vegas Valley, the advantages of this project were clear. Similar projects have proven very popular with commuters in Southern California, Seattle, Minneapolis, Denver and Dallas, and others are under construction or planned across the nation.

Goals of the Demonstration Project

Ultimately, the goal of the Demonstration Project is to improve access to safe, reliable travel in the I-15 corridor and support the economic vitality of the Las Vegas area. In addition, the project will:

Give commuters a choice - stay in the free, general-purpose lanes, or pay to use the free-flowing Express Lanes.
Improve access to downtown, the resort corridor and the airport, and enhance the economic vitality of the area.
Reduce overall congestion on the I-15/US-95 freeway lanes
Promote the use of transit and ridesharing in the corridor
Improve air quality by reducing the number of idling vehicles
Demonstrate the benefits of congestion pricing in Nevada
Generate revenues to sustain operations and maintenance of the Express Lanes
Potentially fund other transportation improvements throughout the Las Vegas area
Establish a model for public-private partnerships in Nevada.

The Need

Nevada is one of the fastest-growing states in the nation, and Las Vegas is one of the fastest-growing cities. The transportation needs are enormous. The combination of population growth and the economic downturn has created a transportation-funding deficit of billions of dollars. Federal funding sources have diminished, and state gasoline taxes are not keeping pace with the maintenance needs of existing roadways and the growing need for new transportation solutions.

The Pioneer Program

To address the problems, the State Transportation Board has authorized NDOT to develop the Pioneer Program, a solution-oriented transportation funding initiative designed to ensure prompt delivery of projects, provide a more efficient transportation system and contribute to a better lifestyle for a growing Nevada. The program helps to bridge the gap between available funding and transportation needs by enhancing NDOT's ability to form public-private partnerships.

Public-Private Partnerships

A public-private partnership (PPP) is a long-term contractual agreement between a government agency and a private company or business venture with the goal of delivering goods or services. These partnerships have been successful in the U.S. and worldwide for delivering water projects, schools, hospitals, airports, roads, bridges and power plants, often years before they might otherwise have been built using conventional taxpayer-backed financing.

Benefits of a PPP

By entering into a PPP, the following NDOT activities will be integrated into one long-term contract with a private-sector partner to the advantage of taxpayers.

Project acceleration
With upfront funding, projects can be delivered years ahead of when they might be otherwise. Stipulations that construction be completed within certain time and budget parameters shield taxpayers from cost overruns and delays.
Cost-effective design and construction.
The private partner brings the efficiencies and innovations of the private-sector to the job. They are responsible for operating and maintaining these projects in accordance with standards set by the government and must consider long-term life-cycle costs. Because of this, higher initial design and construction standards are typically employed, which pay off when the facility is handed back to the public partner, in as good or better condition than when it was built.
Risk and responsibility
The private partner takes the responsibility and risk for interest rates and repayments, lifting that burden from taxpayers.
Users pay
Through tolls, those who use the new road or bridge pay for its construction and upkeep. Revenue generated can also provide funding for other much-needed transportation improvements benefiting everyone.

Alternative Funding Source

In the traditional model of building or improving transportation facilities, projects are constructed only as state or federal revenue becomes available. Due to these funding constraints, projects are often phased over time, resulting in additional costs, delayed construction and the extended inconvenience of traffic congestion, detours and more.

Right now, NDOT does not have enough funds to execute large new transportation projects. By mobilizing private-sector capital, funding is readily available, and the timely and efficient delivery of transportation projects is built into the contract. PPPs significantly reduce the length of the project saving as much as 15 to 30 percent.

The Challenge: Meeting Nevada's Growing Transportation Needs

In Nevada, as in most states, the interstate highways, state roads and bridges are in need of repair, reconstruction or widening. Aging infrastructure and growing traffic congestion in the Las Vegas Valley is forcing the state to find new ways to increase the capacity of existing infrastructure while coping with a transportation-funding deficit estimated at billions of dollars.

Funding sources traditionally used to pay for transportation infrastructure come from the federal government and state and local taxes, including the gasoline tax. We can no longer count on the federal government to finance major new projects, and revenue from the gas tax continues to decline due in part to more efficient vehicles.

A modern transportation system is essential to Nevada's ability to attract visitors, move people and goods and provide good family-wage jobs. In these uncertain economic times, Nevada is left to search for innovative funding strategies to keep up with the transportation needs of our state's ever-growing population.

The Pioneer Program

The State Transportation Board authorized the Nevada Department of Transportation (NDOT) to explore the possibility of using innovative financing and construction methods to help solve Nevada's growing transportation and congestion problems. In response, NDOT developed the Pioneer Program, a solution-oriented transportation-financing initiative designed to ensure prompt delivery of needed projects, decrease traffic congestion and provide a more efficient transportation system. The Pioneer Program will help bridge the gap between available taxpayer funding and our state's transportation needs by enhancing NDOT's ability to form public-private partnerships. However, legislation is required to fully implement the program.

Public-Private Partnerships: The Future of Mobility in Nevada

A public-private partnership (PPP) is a long-term contractual agreement between a government agency and a private entity or consortia, with the goal of delivering goods or services. This delivery method has been successfully used in the U.S. and worldwide to deliver a wide variety of infrastructure projects, including roads, bridges, water projects, hospitals and power plants, often years before they might otherwise have been available using conventional public financing. These arrangements usually include the greater assumption of risks by the private partner, rather than taxpayers, along with specified responsibilities and performance and quality assurances to the taxpayer.

While each entity shares in the risks and rewards, the involved government partner maintains control and ownership of the project and sets the standards under which the private partner must build, operate, maintain and return the facility. Currently, NDOT is embarking on the I-15/US 95 Demonstration Project, an initiative to examine the effectiveness, value and functionality of managed lanes and confirm the suitability of public-private partnerships for Nevada.