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Report On The Value Pricing Pilot Program Through April 2012

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Contact Information: Angela Jacobs at Angela.Jacobs@dot.gov


DOT Logo, The Secretary of Transportation, Washington, D.C., 20590


September 10, 2012


The Honorable John L. Mica
Chairman
Committee on Transportation and Infrastructure
U.S. House of Representatives
Washington, DC 20515

Dear Mr. Chairman:

This letter transmits the 2012 Report to Congress on the Value Pricing Pilot Program (VPPP). The 2012 report updates VPPP activities, highlights some key projects and findings, discusses lessons learned on projects implemented over the last 2 fiscal years, and presents some key programmatic activities that the Federal Highway Administration (FHWA) will support to help advance congestion pricing projects at the State and local levels.

Section 1604a of the Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users (SAFETEA-LU, P. L. 109-59) continues the requirement that the Secretary of Transportation monitor VPPP projects for at least 10 years and report to the Committee on Environment and Public Works of the Senate and the Committee on Transportation and Infrastructure of the House of Representatives every 2 years on the effects of the pilot programs. Specifically, the Secretary is required to report on the effects of value pricing programs on driver behavior, traffic volume, transit ridership, air quality, and the availability of funds for transportation programs.

According to the statutory requirements of VPPP, FHWA may enter into cooperative agreements with up to 15 State or local governments or other public authorities to establish, maintain, and monitor VPPP. Currently, there are 12 State-led programs and 2 city-led programs participating in the VPPP: California, Connecticut, Florida, Illinois, Maryland, Minnesota, New Jersey, New York City, North Carolina, Oregon, Texas, Virginia, Washington State, and the District of Columbia.

With the extension of SAFETEA-LU after September 30, 2009, VPPP continues to be available to States as a way to gain tolling authority, and FHWA continues to promote its application and use. Since May 2009, a total of $30.7 million dollars in VPPP funds have been awarded to 12 States. The U.S. Department of Transportation continues to focus extensive efforts to address traffic congestion problems. With its outreach and technical assistance efforts, FHWA has provided many States with the information and resources needed to reduce traffic congestion through contemporary approaches to congestion pricing. The FHWA will continue to provide information and guidance to an increasing number of stakeholders while providing coordinated and comprehensive congestion pricing programs and working toward delivering a successful VPPP.

A similar letter has been sent to the Ranking Member of the House Committee on Transportation and Infrastructure and to the Chairman and Ranking Member of the Senate Committee on Environment and Public Works.

Sincerely yours,

[Signature on file]

Ray LaHood

Enclosure


DOT Logo, The Secretary of Transportation, Washington, D.C., 20590


September 10, 2012


The Honorable Nick J. Rahall II
Ranking Member
Committee on Transportation and Infrastructure
U.S. House of Representatives
Washington, DC 20515

Dear Congressman Rahall:

This letter transmits the 2012 Report to Congress on the Value Pricing Pilot Program (VPPP). The 2012 report updates VPPP activities, highlights some key projects and findings, discusses lessons learned on projects implemented over the last 2 fiscal years, and presents some key programmatic activities that the Federal Highway Administration (FHWA) will support to help advance congestion pricing projects at the State and local levels.

Section 1604(a) of the Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users (SAFETEA-LU, P. L. 109-59) continues the requirement that the Secretary of Transportation monitor VPPP projects for at least 10 years and report to the Committee on Environment and Public Works of the Senate and the Committee on Transportation and Infrastructure of the House of Representatives every 2 years on the effects of the pilot programs. Specifically, the Secretary is required to report on the effects of value pricing programs on driver behavior, traffic volume, transit ridership, air quality, and the availability of funds for transportation programs.

According to the statutory requirements of VPPP, FHWA may enter into cooperative agreements with up to 15 State or local governments or other public authorities to establish, maintain, and monitor VPPP. Currently, there are 12 State-led programs and 2 city-led programs participating in the VPPP: California, Connecticut, Florida, Illinois, Maryland, Minnesota, New Jersey, New York City, North Carolina, Oregon, Texas, Virginia, Washington State, and the District of Columbia.

With the extension of SAFETEA-LU after September 30, 2009, VPPP continues to be available to States as a way to gain tolling authority, and FHWA continues to promote its application and use. Since May 2009, a total of $30.7 million dollars in VPPP funds have been awarded to 12 States. The U.S. Department of Transportation continues to focus extensive efforts to address traffic congestion problems. With its outreach and technical assistance efforts, FHWA has provided many States with the information and resources needed to reduce traffic congestion through contemporary approaches to congestion pricing. The FHWA will continue to provide information and guidance to an increasing number of stakeholders while providing coordinated and comprehensive congestion pricing programs and working toward delivering a successful VPPP.

A similar letter has been sent to the Chairman of the House Committee on Transportation and Infrastructure and to the Chairman and Ranking Member of the Senate Committee on Environment and Public Works.

Sincerely yours,

[Signature on file]

Ray LaHood

Enclosure


DOT Logo, The Secretary of Transportation, Washington, D.C., 20590


September 10, 2012


The Honorable Barbara Boxer
Chairman
Committee on Environment and Public Works
United States Senate
Washington, DC 20510

Dear Madam Chairman:

This letter transmits the 2012 Report to Congress on the Value Pricing Pilot Program (VPPP). The 2012 report updates VPPP activities, highlights some key projects and findings, discusses lessons learned on projects implemented over the last 2 fiscal years, and presents some key programmatic activities that the Federal Highway Administration (FHWA) will support to help advance congestion pricing projects at the State and local levels.

Section 1604(a) of the Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users (SAFETEA-LU, P. L. 109-59) continues the requirement that the Secretary of Transportation monitor VPPP projects for at least 10 years and report to the Committee on Environment and Public Works of the Senate and the Committee on Transportation and Infrastructure of the House of Representatives every 2 years on the effects of the pilot programs. Specifically, the Secretary is required to report on the effects of value pricing programs on driver behavior, traffic volume, transit ridership, air quality, and the availability of funds for transportation programs.

According to the statutory requirements of VPPP, FHWA may enter into cooperative agreements with up to 15 State or local governments or other public authorities to establish, maintain, and monitor VPPP. Currently, there are 12 State-led programs and 2 city-led programs participating in the VPPP: California, Connecticut, Florida, Illinois, Maryland, Minnesota, New Jersey, New York City, North Carolina, Oregon, Texas, Virginia, Washington State, and the District of Columbia.

With the extension of SAFETEA-LU after September 30, 2009, VPPP continues to be available to States as a way to gain tolling authority, and FHWA continues to promote its application and use. Since May 2009, a total of $30.7 million dollars in VPPP funds have been awarded to 12 States. The U.S. Department of Transportation continues to focus extensive efforts to address traffic congestion problems. With its outreach and technical assistance efforts, FHWA has provided many States with the information and resources needed to reduce traffic congestion through contemporary approaches to congestion pricing. The FHWA will continue to provide information and guidance to an increasing number of stakeholders while providing coordinated and comprehensive congestion pricing programs and working toward delivering a successful VPPP.

A similar letter has been sent to the Ranking Member of the Senate Committee on Environment and Public Works and to the Chairman and Ranking Member of the House Committee on Transportation and Infrastructure.

Sincerely yours,

[Signature on file]

Ray LaHood

Enclosure


DOT Logo, The Secretary of Transportation, Washington, D.C., 20590


September 10, 2012


The Honorable James M. Inhofe
Ranking Member
Committee on Environment and Public Works
United States Senate
Washington, DC 20510

Dear Senator Inhofe:

This letter transmits the 2012 Report to Congress on the Value Pricing Pilot Program (VPPP). The 2012 report updates VPPP activities, highlights some key projects and findings, discusses lessons learned on projects implemented over the last two fiscal years, and presents some key programmatic activities that the Federal Highway Administration (FHWA) will support to help advance congestion pricing projects at the State and local levels.

Section 1604(a) of the Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users (SAFETEA-LU, P. L. 109-59) continues the requirement that the Secretary of Transportation monitor VPPP projects for at least 10 years and report to the Committee on Environment and Public Works of the Senate and the Committee on Transportation and Infrastructure of the House of Representatives every 2 years on the effects of the pilot programs. Specifically, the Secretary is required to report on the effects of value pricing programs on driver behavior, traffic volume, transit ridership, air quality, and the availability of funds for transportation programs.

According to the statutory requirements of VPPP, FHWA may enter into cooperative agreements with up to 15 State or local governments or other public authorities to establish, maintain, and monitor VPPP. Currently, there are 12 State-led programs and 2 city-led programs participating in the VPPP: California, Connecticut, Florida, Illinois, Maryland, Minnesota, New Jersey, New York City, North Carolina, Oregon, Texas, Virginia, Washington State, and the District of Columbia.

With the extension of SAFETEA-LU after September 30, 2009, VPPP continues to be available to States as a way to gain tolling authority, and FHWA continues to promote its application and use. Since May 2009, a total of $30.7 million dollars in VPPP funds have been awarded to 12 States. The U.S. Department of Transportation continues to focus extensive efforts to address traffic congestion problems. With its outreach and technical assistance efforts, FHWA has provided many States with the information and resources needed to reduce traffic congestion through contemporary approaches to congestion pricing. The FHWA will continue to provide information and guidance to an increasing number of stakeholders while providing coordinated and comprehensive congestion pricing programs and working toward delivering a successful VPPP.

A similar letter has been sent to the Chairman of the Senate Committee on Environment and Public Works and to the Chairman and Ranking Member of the House Committee on Transportation and Infrastructure.

Sincerely yours,

[Signature on file]

Ray LaHood

Enclosure


Report On The Value Pricing Pilot Program Through April 2012

May 2012

U.S. Department of Transportation
Federal Highway Administration

Table of Contents

List of Acronyms and Abbreviations

Executive Summary

Successfully Supports Department's Strategic Goals

Key Findings

Equity Concerns Are Being Addressed

Congestion Reduction is Being Achieved

The Use of Congestion Pricing is Spreading

Moving Forward

Federal Highway Administration (FHWA) Program Plan for the Next 3 to 5 Years

Conclusion

Introduction

Background

The Value Pricing Pilot Program and Other FHWA Congestion Pricing Initiatives

Value Pricing Pilot Program

Urban Partnership Agreements and Congestion Reduction Demonstrations

The Current State of Pricing in the United States

The Value Pricing Pilot Program: Results and Emerging Trends

Projects Involving Highway Tolls

Projects Deployed Since 2009

Studies Completed Since 2009

Studies Underway that Have Been Awarded Funds Since 2009

Projects Not Involving Tolls

Parking Pricing

Priced Vehicle Sharing and Dynamic Ridesharing

Pay-Per-Mile/Pay-As-You-Drive Insurance

Emerging Trends

Accelerating Congestion Pricing Implementation: The Urban Partnership Agreements and the Congestion Reduction Demonstration Program

Summary of UPA/CRD Strategies by Site

Variable Parking Pricing in San Francisco

Full Facility Tolling on SR 520 in Seattle

Express Lanes on I-85 in Atlanta

Express Lanes on I-35W in Minneapolis/ St. Paul, MN

Express Lanes on I-95 in Miami

Express Lanes on I-10 and I-110 in Los Angeles

UPA/CRD Lessons Learned

Communications and Outreach

Back Office and Technology Integration

Equity

Progression Beyond VPPP and UPA/CRD: How the VPPP Has Helped Advance Congestion Pricing in the United States

Managed Lane System Plans

System-wide Pricing – Seattle Region

Second Generation Variable Tolling Projects

LBJ Express Project on I-35E and I-635 in Dallas, Texas

Moving Forward: Advancing Congestion Pricing Over the Next 3 to 5 Years

Addressing Emerging Trends: The FHWA Program Plan

Current and Planned Outreach Activities

Congestion Pricing Workshops

Webinar Series on Overcoming the Challenges of Congestion Pricing

Parking Pricing Workshops

Institutional Issues Peer Exchange

Publications and Information Products

Benefits of Outreach Activities

Conclusion

Appendix A. Summary of Ongoing Congestion Pricing Activities and Related Research

List of Figures

Figure 1. Opinion of Various Income Groups on Allowing Single Drivers to Use Carpool Lanes

Figure 2. SR 520 Bridge

Figure 3. SR 237/I-880 Express Connectors

Figure 4. I-680 Express Lanes

Figure 5. Public Awareness and Acceptance of Pricing Activities in Context of Washington State Tolling History

Figure 6. SFpark Mobile Application

Figure 7. Express Lanes on I-35 W

Figure 8. 95 Express Bus

List of Tables

List of Acronyms and Abbreviations

VPPP Projects Funded Since 2008

Office of Operations