Questions & Answers for Value Pricing Pilot Program Participation, Fiscal Year 2009 Solicitation

Federal Register Notice, September 16, 2008

• Federal Register Notice: (HTML, PDF 67KB)

Questions & Answers

Updated October 23, 2008

The Value Pricing Pilot Program Participation (VPPP) is now listed in Grants.gov.

Question: How does an agency submit an application through Grants.gov?

Go to http://www.grants.gov and on the right tool bar under "For Applicants", and select the Grant Search link. Search by "Funding Opportunity Number" DOT-FHWA-VPPP-09-001.

The Value Pricing Pilot Program will be the only option that appears. Select the "Application" box at the top to then download the (1) Instructions and (2) the Application.

Question: What does the application need to include?

An agency is required to complete and submit the following forms which make up the application package: SF 424, SF 424A, SF 424B, Grants.gov Lobbying Form and SF-LLL Lobbying Form. In addition, agencies shall upload their Background Information (i.e., Project Description) to the form entitled "Attachments" in the Grants.Gov system. Agencies may upload supporting documents in any standard format (PDF, Word or Excel) to the "Attachments" form. See the "Instructions" for details on what to include in your Background Information.

For questions or assistance in completing your application, please contact Angela Jacobs at (202) 366-0076 or angela.jacobs@dot.gov

Question: Can you provide examples of regionwide pricing studies that seek to implement congestion pricing on a broad scale in the relatively short term?

The planning process currently underway in Manchester, UK provides a good example of the type of planning activity that qualifies. For more information on the Manchester plan and process, please go to the web site: http://www.gmfuturetransport.co.uk/default.aspx.

The Manchester congestion charging study is being done in response to a solicitation by the UK's Department for Transport for the Transportation Innovation Fund (TIF). Guidance from the Department is available at: http://www.dft.gov.uk/pgr/regional/tif/btifbuscaseguidance.pdf.

Question: Given that cordon pricing may have limited potential in the U.S., can you provide examples of broad congestion pricing approaches that may have potential for relatively short-term implementation in the U.S.?

A paper describing various broad congestion pricing concepts that may have potential for relatively short-term implementation is available at: http://www.fightgridlocknow.gov/docs/Combining%20Pricing_and_ATM.htm.

One concept that may be particularly applicable is a network of "flexible" highways, actively-managed for safety and optimal throughput by combining Active Traffic Management and peak-period user fees. Shoulders on the right side of limited access highways could be used as "dynamic" rush hour travel lanes to create a high-performing "flexible" highway network in major metropolitan areas. The shoulder lane would be open for travel only during peak periods, in conjunction with active management of all lanes on the highway, e.g., using overhead lane controls to harmonize speeds and keep traffic flowing freely and safely. Variable user fees and ramp metering would be deployed to keep demand for use within the capacity of the system. Revenues from rush hour user fees would likely be sufficient to pay for the capital costs for new emergency pull-off areas, tolling infrastructure, active traffic management systems and new transit services, as well as annual costs for operation and maintenance expenses.

Such a flexible, actively managed highway network would involve a relatively small capital investment, would require little or no new rights-of-way, could be financed from the rush hour user fee revenue stream, and could be implemented in a relatively short period of time. In the Netherlands, such flexible, actively managed highways have proven to be safe. Should an incident occur in any lane, overhead lane controls are used to shut down the appropriate lane(s) in advance of the incident location.

User fee rates could be pre-scheduled according to time of day and location to manage demand based on observed traffic patterns, and ramp metering could be used as a back-up to control access in case user fees by themselves do not ensure free flow of traffic on any segment. All vehicles, except authorized buses and vanpools assigned special transponder IDs, would pay the fees. Vehicle occupancy enforcement would be thus be greatly simplified. Carpools would still have monetary incentives, because carpoolers could share the toll. Vehicles without valid transponders could be charged using license plate recognition, also known as "video tolling."

Flexible, actively managed highways could increase both person throughput as well as freeway vehicle throughput during rush hours. Vehicle throughput would increase because an extra lane (i.e., the dynamic shoulder travel lane) would be available during peak periods and active management of traffic would reduce the loss of vehicle throughput that occurs on unmanaged highways due to breakdown of traffic flow at bottlenecks. Person throughput could increase due to increased use of transit and ridesharing.

Freeways could be re-striped and the lanes reduced from 12 ft. width to 11 ft. to accommodate a 13-ft.-wide dynamic shoulder travel lane on the far right. If extra pavement width is needed, some pavement could be added, or taken from the left shoulder. It is estimated that a 300-mile existing network of 6-lane freeways in a major metropolitan area would require about $3.4 billion in capital costs for conversion to a flexible, actively managed system. The system could generate almost $1.0 billion in toll revenue annually, allowing such a system to be fully financed through rush hour user fees after accounting for costs for operation and maintenance. Several public opinion surveys conducted in recent years have found that the public prefers tolls to taxes to pay for highway improvements.

Question: Does the Value Pricing Pilot Program provide authority to toll all lanes on existing toll-free roads?

Yes. All lanes on all roads, whether or not on the Interstate system, may be tolled using authority from the Value Pricing Pilot Program.

Question: Are Metropolitan Planning Organizations (MPOs) the only agencies eligible to apply for the $5 million set aside for regional planning studies?

No. Any agency with broad jurisdiction over a number of major highway facilities in a metropolitan area may apply for the $5 million set aside. Examples are County government agencies, Toll Authorities, and City government agencies.

Question: Our agency has several different potential projects under consideration. Are we restricted to applying for a single project?

No. Any agency may apply for more than one project. For example, an agency may want to do a regional study, pilot a parking pricing project (i.e., a project not involving tolls) as well as conduct a pre-implementation study for introducing pricing on a specific highway facility. The agency could submit all three projects. The regional study would compete for the $5 million set aside, the parking pricing project would compete for the $3 million set aside for projects not involving tolls, and the pre-implementation study would compete for the balance of $4 million out of the total of $12 million in VPPP funds.

Question: We have several ideas with regard to potential projects. My we contact USDOT to discuss the merits of these ideas and interest of USDOT?

Yes. For technical questions with regard to your proposal, please contact Patrick DeCorla-Souza at 202-366-4076 or Patrick.decorla-souza@dot.gov.

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