Value Pricing Pilot Program

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. With the extensions of SAFETEA-LU after September 30, 2009, the VPPP continues to be available to States as a way to gain tolling authority, and FHWA continues to promote Its application and use.

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.
  • Archived Quarterly Reports - Report period April 2006 through March 2008.
• Reports - A listing of completed study project reports.

Resources

• FHWA Office of Innovative Program Delivery - Sources & Tools: User-based Revenue Sources
• 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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