Minnesota Department of Transportation

511 Travel Info

Planning & Programming

Benefit-Cost Analysis for Transportation Projects

Appendix A

Office of Transportation System Management
Benefit-Cost Analysis Standard Value Tables - July 2018

Table A.1
Recommended standard values for use in B/C analysis in SFY2019
Variables Current Value
Real Discount Rate (1) 1.2%
Auto value of travel time savings per person-hour (2) $18.90
Truck value of travel time savings per person-hour (2) $30.30
Transit passenger value of travel time savings per person-hour (2) $17.60

Transit driver value of travel time savings per person-hour (2)

$25.70
Auto per-mile operating and emissions costs Auto variable vehicle operating costs (3) $0.26
Auto climate and health related emissions costs (4) $0.06
Auto total operating & emissions costs (dollars per mile) $0.32
Truck per-mile operating and emissions costs Truck variable vehicle operating costs (3) $0.77
Truck climate and health related emissions costs (4) $0.22
Truck total operating & emissions costs (dollars per mile) $0.99
MnDOT Crash Values (5) Fatal $11,100,000 / crash
Suspected Serious Injury $600,000
Suspected Minor Injury $180,000
Possible Injury $87,000
No Injury (Property damage only) $7,200

(1) Determined as a five-year average for real interest rates (market rate less inflation) on 30-year Treasurys.

(2) Adapted from US DOT's "Revised Departmental Guidance on Valuation of Travel Time in Economic Analysis" published September 27, 2016, with Minnesota earnings rates.

(3) Updates cost levels in Univ. of Minnesota report "The Per-Mile Costs of Operating Automobiles and Trucks" published in 2003. Variable costs include fuel (real price forecast for benefit-cost analysis period midpoint), maintenance, tires, repair and depreciation.

(4) Applies US DOT (National Highway Traffic Safety Administration) dollars-per-ton monetization factors to average on-road vehicle emission rates for Minnesota derived from EPA's 2014 National Emissions Inventory to account for the social cost of carbon (at benefit-cost analysis period midpoint) and health damage from the criteria pollutants of volatile organic compounds (ozone precursor), nitrogen oxides, particulate matter (PM2.5), and sulfur dioxide.

(5) Reflects Minnesota's recent (two-year) crash history and procedures contained in "Guidance on Treatment of the Economic Value of a Statistical Life (VSL) in U.S. Department of Transportation Analyses— 2016 Adjustment" published August 8, 2016, and specifying a VSL of $9.6 million in 2015$.

Table A.2
Recommended remaining capital value factors for use in benefit-cost analysis in SFY 2019
Expected life (years)>> 25 30 35 40 50 60 100
Analysis:  20 years 0.22 0.37 0.48 0.56 0.67 0.74 0.88
Analysis:  25 0.00 0.19 0.33 0.43 0.58 0.67 0.85
Analysis:  30 0.00 0.00 0.17 0.30 0.47 0.59 0.81

Example: $10 million spent on structures (60 years expected life) for an analysis period of 25 years has a remaining capital value of 0.67 x $10 million ($6.7 million) in the last year of the analysis period. (Factors reflect a real discount rate of 1.2%).