STA, in partnership developed a partnership with the Solano Economic Development Corporation (EDC) to study the economic impacts as a result of major transportation projects on the I-80 Corridor. The I-80 Corridor Project Analyses was initiated in August 2017 in anticipation of several new grant programs at the regional, state and federal level, including funding provided by Senate Bill 1 (SB1). Transportation infrastructure projects have economic impacts based on both construction and use once completed. Three Solano Transportation Authority (STA) projects include:
• I-80 Westbound Cordelia Truck Scales Improvements;
• I-80/I-680/SR12 Interchange Improvements; and
• I-80 Express Lanes Addition
This study shows that over $740 million in construction spending creates over $1.003 billion in local economic impacts, including support for over 5,700 jobs and $35 million in state and local tax revenues during construction. Reducing congestion for trucking generates another $93.8 million on average for five years after project completion. Over 600 more jobs are supported due to these annual savings, and almost $5 million in state and local tax revenues.
This study uses the IMPLAN® model to show the economic impacts. Academic and practitioner literature suggests there are economic, social and environmental impacts of new infrastructure. Valuing workers and trucking siting in congestion help determine how one minute saved. Two effects include: (1) saving time both getting to work and achieving tasks during the day; and (2) time savings helps local businesses to generate more revenue from more productive workers. The following is a list of basic assumptions used to determine the broader economic impacts from these improvements.
• Approximately 128,000 AADT counts in 2015 (the latest data):
o We assume 90 percent of AADT are commuting workers facing travel times of 24.5 minutes to get to jobs in Solano County and 30.6 minutes to jobs outside;
o These travel times are valued at $18.32 per hour at the median.
• Business generate revenue from saved time by adding 49 percent mark-up to wages;
• Truck traffic counts are approximately 7,900 daily, worth $223 million annually:
o Trucking takes 35 minutes in 2015 (the latest data) on average; and
o We expect trucking to rise by 1.25 percent per year based on 2010 to 2015 growth.
The full text version of the report can be found here: I-80 Projects Economic Analysis Report
The PowerPoint version of the findings can be found here: I-80 Projects Economic Analysis PowerPoint
More information on other STA studies can be found here.