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Transportation board approves vehicle limits, variable‑fee methodology and smart‑freight study for Choice Lanes
Summary
The Transportation Modernization Board on Nov. 13 unanimously approved TDOT’s proposals to set vehicle restrictions, adopt a variable‑fee methodology and further study a potential Memphis/West Tennessee smart freight corridor tied to the I‑24 Choice Lanes project.
The Transportation Modernization Board on Nov. 13 unanimously approved three actions from the Tennessee Department of Transportation to advance the I‑24 Choice Lanes project: (1) establish vehicle restrictions that would bar FHWA classes 11–13 (multi‑trailer trucks) from the choice lanes, (2) adopt a methodology for setting variable user fees with heavy‑vehicle multipliers, and (3) authorize further development of a potential Memphis/West Tennessee smart freight corridor on I‑40.
TDOT project lead Brian Ledford told the board the Choice Lanes procurement is in the RFP period and that TDOT expects a NEPA finding of no significant impact (FONSI) before proposals are due in the second quarter following that finding, with a best‑value recommendation and commercial close targeted for the third quarter of next year. "The price that is posted when you pass under that gantry is locked in for your trip," Ledford said, describing how posted tolls will be applied at gantries.
Why it matters: the board’s votes set the operational framework for a tolling concession and clarify how TDOT and a private developer will manage truck access and dynamic pricing. Ledford said the project has federal major‑project status because estimated cost exceeds $500,000,000, and TDOT expects to negotiate a TIFIA term sheet with the Build America Bureau; TIFIA loans can cover up to 49% of eligible project cost.
Board action and key provisions - Vehicle restrictions: Ledford recommended prohibiting FHWA vehicle classes 11, 12 and 13 (the classification used for multi‑trailer trucks). The restriction also contemplates charging heavy commercial vehicles a user‑fee multiplier (example ranges discussed were 3–5×), while exempting public transit buses. General counsel and Ledford said enforcement would involve coordination with state and local law enforcement and could include applying the highest class multiplier plus conventional traffic penalties for violators.
- Variable user‑fee methodology: TDOT asked the board to authorize pricing thresholds to optimize lane utilization and maintain contractual minimums. Ledford described a paired architecture — roadside systems the developer installs and a TDOT commercial back office the department will procure — to monitor compliance, collect fees and reimburse the developer. Ledford said TDOT is in a creditworthiness review with the Build America Bureau and that commercial and financial close will involve the private entity working with that bureau on final rates and terms.
- Smart freight corridor study: The board authorized TDOT to further develop a concept for a smart freight corridor on I‑40 in West Tennessee that would explore connected and platooning vehicle technologies. Ledford said funds had been appropriated for early concept work; the action grants authority to evaluate design, testing and funding models but does not approve construction or a user‑fee facility at this stage.
Board discussion and questions Board members asked practical questions about enforcement, customer billing and proposer financial strength. One board member asked whether a changing toll could produce an unpredictable bill for drivers; Ledford said the posted price at each gantry is the locked price for that trip and drivers can choose to exit rather than accept a downstream price. On contractor financial strength, Ledford said TDOT vetted equity commitments, will require performance and payment bonds, and is layering assurances to ensure teams have sufficient skin in the game.
Votes at a glance - Establishment of vehicle restrictions (prohibit FHWA classes 11–13): Motion by Mister Johnson; second by Mister De Cosmo. Vote: 5 ayes, 0 nos. Outcome: approved. - Methodology for variable user fees on the I‑24 choice lanes: Motion by Mister De Cosmo; second by Mister Bradshaw. Vote: 5 ayes, 0 nos. Outcome: approved. - Further development of a potential Memphis/West Tennessee smart freight corridor (I‑40): Motion by Mister Keeney; second by Mister Johnson. Vote: 5 ayes, 0 nos. Outcome: approved.
What remains: TDOT expects to receive a NEPA FONSI and then release a final RFP; proposals are anticipated in the quarter after the FONSI, with a best‑value selection and commercial close targeted in the third quarter of the following year. TDOT also said it will pursue a TIFIA term sheet with the Build America Bureau and continue stakeholder engagement including public hearings and utility coordination.
Authorities and documents cited in meeting materials included the applicable state statute authorizing TDOT and board action, the NEPA environmental assessment (EA) and FONSI process, Federal Highway Administration (FHWA) major project criteria, and the TIFIA loan program administered by the Build America Bureau (USDOT). The board did not receive public comment at this meeting and did not vote on construction or concession awards.
Next steps: TDOT will finalize the RFP drafts, continue NEPA public hearings and technical reviews, advertise for a commercial back office after commercial close, and return to the board for any formal approvals required before awards or construction. The board’s next meeting will be publicly posted on the board’s website.
