New regional fare integration study shows major benefits

The new results of the study on regional fare integration led by MTC and transit agencies show that there are big opportunities to increase transit ridership, improve equitable access to jobs, education and other needs, and reduce emissions.

The study recommendations are very good but they could be even better. The recommendations include:

A pilot for “go-anywhere” transit passes for employers, colleges/universities, housing developments, and other organizations, starting in 2022
Free local and regional transfers starting in 2023
Further study about standardizing regional fares (BART, Caltrain, regional bus, ferry)
No further action on full fare integration, even though this may have the greatest ridership increases and driving reduction

Seamless Bay Area supports stronger action on the deeper levels of fare integration. We want to see the region:

Commit to standardizing regional fares, and pursue funding needed for it
Pursue full fare integration options that provide the greatest benefits.
Pursue governance reforms that will provide stability for riders, to prevent improvements from unravelling

Benefits of integrated fares

“Go-anywhere transit passes.” Today, almost all transit passes cover a single agency. For example, a First Community Housing affordable housing development in San Jose provides residents with transit passes with access to VTA but not to BART or Caltrain. The study recommends a pilot of “go-anywhere” transit passes that would replace current single agency passes with access to all agencies, rolling out starting in 2022.

Transit passes can generate substantial transit ridership. In Seattle, comprehensive transit passes generate 40% of the region’s transit ridership and 50% of its revenue.

Free transfers. The study finds that eliminating transfer penalties among local and regional agencies could increase transit ridership by over daily 25,000 riders - similar to some of the Bay Area’s flagship bus lines such as the AC Transit 51. Free transfers could reduce driving miles by about as much as Caltrain electrification (235,000 VMT/day). The study recommends rolling out free transfers in 2023, with the rollout of Clipper 2.0, the next generation of the Bay Area’s fare payment system.

Reducing driving
The study finds that standardizing regional fares, and fully integrated fares, would have the greatest benefits in increasing transit ridership and reducing driving.

Integrating regional fares would reduce driving by 850,000 daily vehicle miles travelled, four times more than Caltrain electrification - one of the region’s flagship projects that removes the equivalent of 5 freeway lanes of traffic.

Fully integrated fares needed for simplest, easiest wayfinding signage and branding.

The study omits an important benefit of fully integrated fares, which is shown in a different new MTC study of wayfinding and branding (link to the study and blog post). That study shows that substantial additional benefits will be unlocked by fully integrating fares. MTC’s polling shows streamlined wayfinding and signage is tremendously popular.

Leaders at transit agencies and MTC frequently mention wayfinding as an eagerly-desired improvement for Bay Area transit. But, the greatest benefits of streamlined signage require fully integrated fares.

Greatest wayfinding benefits require integrated fares

Powerful and cost-effective strategy to increase transit ridership

The study indicates that fare integration could be a powerful way to increase transit ridership. The integrated regional fares and fully integrated fares would increase ridership by 60,000 to 80,000 riders - similar to or more than the ridership of pre-Covid Caltrain.

The study shows that fare integration is an extraordinarily cost-effective way to increase transit riders. The cost to attract a new transit trip is in the $2 to $3 range. By contrast, most bus and rail improvements cost much more.

Also, the study shows that greater ridership outcomes would have higher costs. New funding will be needed to implement deeper levels of fare integration.

More robust study needed about fare affordability

The study shows that free transfers and standardizing regional fares are beneficial for low-income people.

In modeling fully integrated fares, however, the modeling chose fare levels that would help reduce needed subsidy, resulting in some riders having to pay a bit more than present, and some a bit less. Options that improve affordability for low income people should be robustly studied. Rather than shying away from choices that improve equity but cost money, these decisions should be brought into the region’s consideration of a potential regional transportation funding measure, as part of a broad conversation about the goals and values for transit funding.

Reforms to provide stability for riders

The study assesses the organizational steps needed to bring about integrated fares. The study concludes that options up to integrated regional fares could potentially be done through voluntary agreements between agencies. However, over time, Bay Area transit riders have experienced transfer discounts being set up and unwound, reestablished and removed, multiple times. When changes are made that impact riders, it is unclear where affected transit riders should go to express needs and concerns.

In order to have a fare system that is consistent for riders, a stable decision-making structure is needed. In most other regions with integrated fares, a network manager entity oversees fare policy for all transit operators, and identifies a formula to allocate revenue to agencies in a way that protects transit agency budgets.

As part of the Transformation Action Plan recommended by Blue Ribbon Transit Recovery Task Force, the region is conducting a business case study of network management options. Fare policy is one of the network management responsibilities that will be studied. Seamless Bay Area recommends that fare policy be one of the powers of a network management authority, providing a stable and accountable system for riders.

Conclusions and next steps

Decisions about the recommendations and next steps are slated to occur over the next six weeks. The Fare Integration Task Force will review the study and recommendations on September 20. There will be a series of transit agency board meetings in late September and early October. On October 18, the Fare Integration Task Force is scheduled to vote on the recommendations. And on October 28, the Metropolitan Transportation Commission will decide whether to allocate funding to implement the initial recommendations of the study - a pilot “go-anywhere” transit pass and free transfers.

More steps will be needed in the coming several years to ensure funding the deeper levels of fare integration, and to establish governance that can manage integrated fares in a manner that is stable for riders and financially viable for transit agencies.

If you are interested in getting engaged to ensure the region moves toward a fully integrated, rider-first fare system that supports broader seamless integration of service and wayfinding, please sign up here.