NEW YORK The New York General Assembly is considering new legislation that would allow New York City to charge an $8 toll for all vehicles, with the possible exception of buses, entering Manhattan below 60th Street between 6 a.m. and 6 p.m. Monday through Friday.

The goal of the plan is to reduce the number of vehicles on city streets, thereby improving traffic movement and air quality.

The estimated $491 million that would be generated annually from the plan would be earmarked for transit projects around the city.

Passing the plan, which requires city and state approval, is essential to receiving a $354 million federal grant for bus and subway improvements. The deadline for the grant is this month.

In announcing his support for the congestion pricing plan for New York City, new Gov. David Paterson said "congestion pricing addresses two urgent concerns of residents of the city and its suburbs: the need to reduce congestion on our streets and roads, and thereby reduce pollution and global warming; and the need to raise significant revenue for mass transit improvements."

Paterson coupled his announcement with introduction of a bill that would essentially set up the congestion pricing plan and fulfill the requirements for the $354 million federal grant.

New York Mayor Michael Bloomberg praised Patersons bill, saying it will "reduce traffic, cut pollution and raise revenue for transit projects."

Bloomberg's original plan to charge motorists a fee to drive into Manhattan's central business district has been modified by both New York DOT and the Congestion Mitigation Commission since it was announced last year. (See May 15 Bus & Motorcoach News.)

Revisions to the plan have included shrinking the pricing zone, charging taxis and black cars a surcharge for driving in the zone, and exempting all buses from the proposed $8 fee.

The plan must be approved by both state lawmakers and the city council.