February 6, 2023
DC Parking Cashout Law: Next Steps
by Samantha Huff
With the January 2023 DC Parking Cashout reporting deadline in the rearview mirror, it’s time for employers to start preparing for what’s to come. The next step for employers varies based on which compliance option your organization chose. To help you navigate your next steps, we’ve outlined below what you need to do over the next year for each compliance option and exemption, and for those organizations that missed the deadline.
Clean Air Transportation Fringe Benefit (aka the Parking Cashout option):
If you implemented the Clean Air Transportation Fringe Benefit compliance option, you do not need to report anything else until the next reporting deadline in January 2025. However, you need to make sure you are executing the benefit properly. This includes:
- Offer the Clean Air Transportation Fringe Benefit to new hires and promoted employees when applicable. This compliance option requires employers to offer the Clean Air Transportation Fringe Benefit to all employees offered parking benefits. This includes new hires who are offered a parking benefit and promoted employees who are granted parking benefits as a part of their new role.
- Remind employees of their choice annually. According to the DC Parking Cashout Law, an employee may amend their Clean Air Transportation Fringe Benefit once every 12 months.
This compliance option requires employers to start implementing the strategies outlined in their TDM Plan, provide proof of implementation to DDOT within 90 days, and complete annual reporting on their progress.
- Implement Strategies: Once your TDM plan is approved by DDOT, you’ll need to start working on the strategies outlined in your plan within 90 days. goDCgo can help with this by providing support and resources for sustainable amenities, transit benefits/subsidies, shuttles, carpool ride-matching, Capital Bikeshare corporate memberships, and many other TDM strategies. We can also help you promote your current sustainable programs to your employees by hosting Capital Bikeshare 101 lunch and learns; attending your company’s benefit fairs; and setting up a table in your lobby for Earth Day, Bike to Work Day, Telework Week, and more. Contact us to get started!
- Upload 90 Day Proof: According to the law, employers must upload proof of implementing the strategies outlined in their TDM Plan to the DDOT reporting dashboard within 90 days of their plan being approved. Satisfactory evidence of implementation depends on your TDM strategies and may include enrollment in WMATA’s SmartBenefits program or an employer’s notifications to its employees concerning transit options and benefits.
- Annual Commute Survey & Reporting: After you’ve shown proof of implementation to DDOT, you’ll want to continue implementing your TDM strategies throughout the rest of the year. You’ll need to do another commute survey as you get closer to the TDM plan annual reporting deadline and make sure to report the survey’s results to DDOT in January 2024. Don’t forget, DDOT expects the results to show at least a 10% reduction in drive alone rates from the previous year OR an overall drive alone rate of 25% or less.
Clean Air Compliance Fee:
If you paid the fee for 2023, now you have the time to develop longer term strategies, skip paying the compliance fee next year, and instead implement one of the other compliance options in the law. The first step towards saving money is reviewing your benefits to see if the TDM Plan option or the Clean Air Fringe Benefit option is a better fit for your organization. Don’t forget, goDCgo is always here to answer your DC Parking Cashout Law questions. If you decide to continue paying the Clean Air Compliance Fee, you will need to pay for 2024 in January 2024.
If you filed one of the temporary exemptions (current parking lease, current TDM Plan, or current Campus Plan) you should be aware of when that exemption will end (hint: the date was included in your communications with DDOT in Commutifi). When your exemption ends you will need to choose one of the compliance options or eliminate your parking benefit.
If you filed an exemption stating you own your parking or that you do not provide a parking benefit to your employees and it was approved by DDOT, you can sit back and relax. Just be prepared to report your same exemption again in 2025, provided your parking situation is the same. If anything changes, reach out to goDCgo to reevaluate your compliance options.
Missed the Deadline:
If you missed the January 15, 2023 reporting deadline, please contact DDOT as soon as possible at firstname.lastname@example.org. Employers who do not contact DDOT or submit a report on time will be audited to determine compliance status. Fines will not be levied at this time, but DDOT will work with non-compliant employers to come into compliance.