Value Pricing Pilot Program

Program Announcements

VPP Quarterly Report (April - June 2008) - Each quarter, projects authorized under the Value Pricing Pilot Program are updated to provide the most current VPP program information on active projects being studied as well as projects that have been implemented.

Federal Register Notice, September 16, 2008 - Value Pricing Pilot Program Participation, Fiscal Year 2009 - The Value Pricing Pilot Program was reauthorized under SAFETEA-LU as an experimental program aimed at learning more about the potential of different pricing approaches for reducing congestion. Funds are available to support efforts by State and local governments or other public authorities to establish local value pricing pilot programs, to provide for implementation, monitoring and evaluation of value pricing projects, and to report on their effects. Approximately $12 million is expected to be available for allocation to projects in FY 2009. Of this amount, $3 million is set aside for pricing projects not involving tolls, and $5 million is set aside for metropolitan region-wide pricing studies. Grant applications are due no later than November 7, 2008.

Federal Register Notice: (HTML, PDF 67KB)
Questions & Answers (Updated October 23, 2008)

FHWA's Tool for Rush-Hour User Charge Evaluation (TRUCE) has been revised. TRUCE provides estimates of revenues that may be generated from freeway congestion pricing in metropolitan areas. Version 3.0 is now available.

The Value Pricing Pilot (VPP) program, initially authorized in the Intermodal Surface Transportation Efficiency Act (ISTEA) as the Congestion Pricing Pilot Program, and most recently renewed with the passage of the Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users (SAFETEA-LU), encourages implementation and evaluation of value pricing pilot projects to manage congestion on highways through tolling and other pricing mechanisms. This is the only program that provides funding to support studies and implementation aspects of a tolling or pricing project. The program is limited to 15 slots (which FHWA has reserved for "states") of which only one vacancy remains. Each state can have multiple projects.

SAFETEA-LU provides a total of $59 million for fiscal years (FY) 2005-2009 for the VPP program. $11 million was authorized for FY 2005 and $12 million was authorized for each of FYs 2006 through 2009. Of the amounts made available to carry out the program, $3 million will be set-aside in each of the fiscal years 2006 through 2009 for value pricing projects that do not involve highway tolls. Funds available for the VPP program can be used to support pre-implementation study activities and to pay for implementation costs of value pricing projects.

Program Highlights

The site includes a link to the Quarterly Projects Report. The report features a description of the various types of pricing projects. In addition, it includes information about any projects funded under the VPP program, as well as any project that has received authority to toll under the VPP program.
2007 - 2008 Value Pricing Funds were awarded to Urban Partnership projects.
Value pricing concepts that have become mainstream and have been adopted, as common practice, such as High Occupancy Vehicle (HOV)-to-High Occupancy Toll (HOT) lane conversions, will not be funded.
Non Highway Tolls
- Innovative parking pricing strategies, including (a) surcharges for entering or exiting a parking facility during or near peak periods, and (b) a range of parking cash-out policies, where cash is offered to employees in lieu of subsidized parking, parking operators reimburse monthly patrons for unused parking days, or renters or purchasers in multi-family housing developments are provided direct financial saving for not availing of car parking spaces.
- Pay-as-you-drive pricing, including car insurance premiums set on a per-mile basis and innovative car ownership, leasing, and usage arrangements that reduce fixed costs and increase variable usage costs.

Program Projects

Quarterly Projects Report - A listing of completed or underway projects updated quarterly.
Reports - A listing of completed study project reports.

Resources

Program Contacts

Angela Jacobs
Angela.Jacobs@dot.gov
202-366-0076

Allen Greenberg
Allen.Greenberg@dot.gov
202-366-2425

Search Tolling and Pricing: Home About Tolling and Pricing Programs Value Pricing Pilot Program Express Lanes Demonstration Program HOV Facilities Interstate System Reconstruction & Rehabilitation Pilot Program Interstate System Construction Toll Pilot Program Title 23 United States Code Section 129 Toll Agreements Team Resources Expression of Interest Regulations/Policy FAQs	Home Value Pricing Pilot Program Program Announcements VPP Quarterly Report (April - June 2008) - Each quarter, projects authorized under the Value Pricing Pilot Program are updated to provide the most current VPP program information on active projects being studied as well as projects that have been implemented. Federal Register Notice, September 16, 2008 - Value Pricing Pilot Program Participation, Fiscal Year 2009 - The Value Pricing Pilot Program was reauthorized under SAFETEA-LU as an experimental program aimed at learning more about the potential of different pricing approaches for reducing congestion. Funds are available to support efforts by State and local governments or other public authorities to establish local value pricing pilot programs, to provide for implementation, monitoring and evaluation of value pricing projects, and to report on their effects. Approximately $12 million is expected to be available for allocation to projects in FY 2009. Of this amount, $3 million is set aside for pricing projects not involving tolls, and $5 million is set aside for metropolitan region-wide pricing studies. Grant applications are due no later than November 7, 2008. Federal Register Notice: (HTML, PDF 67KB) Questions & Answers (Updated October 23, 2008) FHWA's Tool for Rush-Hour User Charge Evaluation (TRUCE) has been revised. TRUCE provides estimates of revenues that may be generated from freeway congestion pricing in metropolitan areas. Version 3.0 is now available. The Value Pricing Pilot (VPP) program, initially authorized in the Intermodal Surface Transportation Efficiency Act (ISTEA) as the Congestion Pricing Pilot Program, and most recently renewed with the passage of the Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users (SAFETEA-LU), encourages implementation and evaluation of value pricing pilot projects to manage congestion on highways through tolling and other pricing mechanisms. This is the only program that provides funding to support studies and implementation aspects of a tolling or pricing project. The program is limited to 15 slots (which FHWA has reserved for "states") of which only one vacancy remains. Each state can have multiple projects. SAFETEA-LU provides a total of $59 million for fiscal years (FY) 2005-2009 for the VPP program. $11 million was authorized for FY 2005 and $12 million was authorized for each of FYs 2006 through 2009. Of the amounts made available to carry out the program, $3 million will be set-aside in each of the fiscal years 2006 through 2009 for value pricing projects that do not involve highway tolls. Funds available for the VPP program can be used to support pre-implementation study activities and to pay for implementation costs of value pricing projects. Program Highlights The site includes a link to the Quarterly Projects Report. The report features a description of the various types of pricing projects. In addition, it includes information about any projects funded under the VPP program, as well as any project that has received authority to toll under the VPP program. 2007 - 2008 Value Pricing Funds were awarded to Urban Partnership projects. Value pricing concepts that have become mainstream and have been adopted, as common practice, such as High Occupancy Vehicle (HOV)-to-High Occupancy Toll (HOT) lane conversions, will not be funded. Non Highway Tolls Innovative parking pricing strategies, including (a) surcharges for entering or exiting a parking facility during or near peak periods, and (b) a range of parking cash-out policies, where cash is offered to employees in lieu of subsidized parking, parking operators reimburse monthly patrons for unused parking days, or renters or purchasers in multi-family housing developments are provided direct financial saving for not availing of car parking spaces. Pay-as-you-drive pricing, including car insurance premiums set on a per-mile basis and innovative car ownership, leasing, and usage arrangements that reduce fixed costs and increase variable usage costs. Program Projects Quarterly Projects Report - A listing of completed or underway projects updated quarterly. Reports - A listing of completed study project reports. Resources Planning and Decision Making Tools Policy & Legislation Publications and Other Resources Program Contacts Angela Jacobs Angela.Jacobs@dot.gov 202-366-0076 Allen Greenberg Allen.Greenberg@dot.gov 202-366-2425
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