In November, a “Did You Know” column described the concept of congestion pricing and the potential for applying it in New York City, where traffic congestion in Manhattan is a major problem. Congestion pricing (or charges) is a system of surcharging users of public goods, including highways and streets, that are subject to congestion through excess demand.

Congestion pricing could be coming to New York City sooner than you think. To the ire of some and the delight of others, the Metropolitan Transportation Authority (MTA) signed off on a congestion pricing plan that brings a base fare of $15 on cars traveling into Manhattan south of 60th Street one step closer to reality. According to an article in the Albany Times-Union, the plan would be the first of its kind in the United States. Its approval was applauded by Gov. Kathy Hochul, who said the plan will make New York City a global leader in transportation policy.

“Congestion pricing means cleaner air, better transit, and less gridlock on New York City’s streets,” Hochul said in a statement. She also noted the $15 toll is nearly 35 percent lower than the maximum rate that was originally considered. Toll revenue, which is projected to be about $1 billion a year, would be used to improve the city’s mass transit systems. The area congestion pricing would apply to the Central Business District, which has some of the city’s busiest streets. The fares are meant to reduce traffic in the area.

Rates for New York’s plan fall between toll prices for congestion plans in London and Stockholm. The programs in London, Stockholm, and Singapore are considered models that have successfully reined in traffic, according to the New York Times.

The plan — which was developed by the Traffic Mobility Review Board, a New York State body charged with advising the MTA on the tolls — is not in effect just yet. The vote by the MTA moves the proposal into a public review process, with hearings scheduled for this February.

Beyond the charge for passenger cars, the congestion program would charge small trucks $24 and large trucks $36. Government vehicles such as municipal garbage trucks are exempt. Taxi drivers would pass a $1.25 surcharge onto their passengers for entering the congestion zone, while app-based ride-hailing passengers would see a $2.50 surcharge, according to the article in the Albany Times-Union.