Value Pricing Pilot Program Participation, Fiscal Years 2010 and 2011 |
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Topics: Federal Highway Administration
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Victor M. Mendez
October 19, 2010
[Federal Register: October 19, 2010 (Volume 75, Number 201)]
[Notices]
[Page 64397-64403]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr19oc10-108]
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DEPARTMENT OF TRANSPORTATION
Federal Highway Administration
Value Pricing Pilot Program Participation, Fiscal Years 2010 and
2011
AGENCY: Federal Highway Administration (FHWA), DOT.
ACTION: Notice; solicitation for participation.
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SUMMARY: This notice invites States, along with their local government
partners and other public authorities, to apply to participate in the
Value Pricing Pilot (VPP) program and presents guidelines for program
applications for fiscal years (FY) 2010 and 2011. The notice seeks
applications for a variety of types of transportation pricing studies
and implementation projects.
DATES:
1. Applications for tolling authority only may be submitted at any
time, however, it is recommended that applicants first submit an
Expression of Interest, as detailed in the ``Who is Eligible to Apply''
section of this notice, to allow FHWA to guide applicants in
determining whether the VPP program, or another program, is the
preferable program under which to apply for such authority.
2. Formal grant applications, however, must be submitted no later
than January 18, 2011, to be assured consideration.
3. For grant applications, applicants may also submit an optional
``sketch'' or draft proposal by December 3, 2010, which FHWA will
review and provide feedback on for the applicant to use in its formal
grant application. Sketch or draft proposals received after this date
may still be reviewed by and commented upon by FHWA at its discretion.
4. For grant applications that had been submitted under the August
5, 2009, (74 FR 39138) solicitation that were not funded (for a list of
projects funded from that solicitation, see:
http:[sol][sol]www.fhwa.dot.gov/pressroom/fhwa1029.htm), and where such
applications would still be eligible for funding under the criteria
provided by this notice, applicants may submit a letter to the
Department by November 18, 2010, requesting comments on their previous
applications.
Application Submission: Grant applications may be submitted through
http:[sol][sol]www.grants.gov. Applications for tolling authority only
should be submitted through an expression of interest at the following
Web site: http:[sol][sol]ops.fhwa.dot.gov/tolling--pricing/
participation.htm.
FOR FURTHER INFORMATION CONTACT: For questions about or to provide
information to FHWA that responds to this notice, such as to submit a
letter or sketch plan, or for general questions related to the VPP
program, please contact Ms. Angela Jacobs, FHWA Office of Operations,
at (202) 366-0076, angela.jacobs@dot.gov. For technical questions
related to the development of pricing projects involving tolls, please
also contact Ms. Angela Jacobs, or contact Mr. Patrick DeCorla-Souza,
FHWA Office of Innovative Program Delivery, at (202) 366-4076,
patrick.decorla-souza@dot.gov. For technical questions related to the
development of pricing projects not involving tolls, please contact Mr.
Allen Greenberg, FHWA Office of Operations, at (202) 366-2425,
allen.greenberg@dot.gov. For legal questions, please contact Mr.
Michael Harkins, FHWA Office of the Chief Counsel, at (202) 366-4928,
michael.harkins@dot.gov.
SUPPLEMENTARY INFORMATION:
Electronic Access
An electronic copy of this document may be downloaded from the
Federal Register's home page at: http:[sol][sol]www.archives.gov and
the Government Printing Office's database at:
http:[sol][sol]www.access.gpo.gov/nara.
[[Page 64398]]
Background
Section 1012(b) of the Intermodal Surface Transportation Efficiency
Act (ISTEA) (Pub. L. 102-240; 105 Stat. 1914), as amended by section
1216(a) of the Transportation Equity Act (TEA-21) (Pub. L. 105-178; 112
Stat. 107), and section 1604(a) of the Safe, Accountable, Flexible,
Efficient Transportation Equity Act: A Legacy for Users (SAFETEA-LU)
(Pub. L. 109-59; 119 Stat. 1144), authorizes the Secretary of
Transportation (the Secretary) to create a VPP program. Value pricing
encompasses a variety of strategies to manage congestion on highways,
including tolling of highway facilities through congestion pricing, as
well as other strategies that do not involve tolls, such as mileage-
based car insurance and parking pricing. The congestion pricing concept
of charging variable fees based upon usage and assessing relatively
higher prices for travel during peak periods is the same as that used
in many other sectors of the economy to respond to peak-use demands.
For example, airlines, hotels, and theaters often charge more at peak
periods than at non-peak periods.
According to the statutory requirements of the VPP program, FHWA
may enter into cooperative agreements with up to 15 State or local
governments or other public authorities (henceforth referred to only as
``States'') to establish, maintain, and monitor VPP programs, each
including an unlimited number of projects. The FHWA invites interested
States to apply to participate in the VPP program for funds remaining
from FY 2010 and provided in FY 2011. While direct submissions by local
governments and public authorities are allowable under SAFETEA-LU, FHWA
strongly prefers applications to be submitted through State departments
of transportation, since that would allow the potential for multiple
VPP program projects within a State counting as only 1 of the 15
allowable partnerships.
To comply with the statutory cap on the number of partnering States
and other public authorities in a manner that maximizes program
participation, FHWA will only consider an ``active'' cooperative
agreement sufficient to hold 1 of the 15 available VPP program slots,
as also noted in both the September 16, 2008, and August 5, 2009,
notices for VPP program participation (73 FR 53478 and 74 FR 39138,
respectively). An agreement will be considered ``active'' by FHWA under
either of the following two conditions: (1) During the period of time
between when a cooperative funding agreement for a project or projects
has been signed and when the project or projects has or have been
completed, and (2) if VPP program tolling authority has been granted
and is still needed to toll a new or existing highway. Absent one or
both of these conditions being met, an agreement will not be considered
active for the purposes of the VPP program. If progress in moving
forward to use its VPP program funding or tolling authority is
unsatisfactory, FHWA may withdraw its approval for inactive agreements
in favor of other applicants seeking to obtain VPP program funding or
tolling authority.
Congress authorized $12 million for FY 2010 to be made available to
carry out the VPP program, and, as of the date of this notice, Congress
has also authorized $3 million for FY 2011 for this same purpose.
Congress may subsequently choose to authorize additional funds beyond
the $3 million for FY 2011. Of the funds that Congress makes available
for the VPP program in any fiscal year, at least 25 percent must,
according to statute, be spent for projects that do not involve highway
tolls. The FHWA most recently solicited for applications for what
remained of FY 2009 funds and for FY 2010 funds in an August 5, 2009,
Federal Register notice (74 FR 39138). On August 2, 2010, the FHWA
announced the awarding of 10 grants totaling $9,768,000, some of which
came from FY 2009 funds and, after such funds were exhausted, the rest
from FY 2010 funds. After these grants were awarded, and considering
the new funds Congress has made available for FY 2011, at least $10.5
million is being made available under this solicitation. If Congress
does provide additional VPP program funds for FY 2011 beyond what it
has already provided, it is FHWA's intention to subsequently award
these funds based upon responses to this solicitation, if merited by
the applications that are received.
The Federal share payable under the VPP program is up to 80 percent
of the cost of the project. Funds allocated by the Secretary to a State
under this section shall remain available for obligation by the State
for a period of 3 years after the last day of the fiscal year for which
funds are authorized. If, on September 30 of any year, the amount of
funds made available for the VPP program, but not allocated, exceeds $8
million, the excess amount will, to comply with the statutory
requirements of the VPP program, be apportioned to all States as
Surface Transportation Program funds.
Funds available for the VPP program can be used to support pre-
implementation study activities as well as to pay for pricing-specific
implementation costs of value pricing projects. Pursuant to section
1012(b)(2) of ISTEA, FHWA may not fund pre-implementation or
implementation costs for more than 3 years. Also, section 1012(b)(6) of
ISTEA provides that a State may permit vehicles with fewer than two
occupants to operate in high occupancy vehicle (HOV) lanes if the
vehicles are part of a local VPP program under this section. In
addition to this authority under the VPP program, 23 U.S.C. 166
authorizes States to convert HOV lanes into high occupancy toll (HOT)
lanes in which vehicles without the number of occupants required for
HOV status are permitted to use an HOV lane if such vehicles are
charged a toll. Since the authority to establish and operate a HOT lane
(including HOT lanes on the Interstate System) is no longer
experimental and has been mainstreamed in 23 U.S.C. 166, the provisions
of 23 U.S.C. 166 will generally be used for HOT projects in order to
more effectively allocate VPP funds and program slots.
Pursuant to section 1012(b)(7) of ISTEA, the potential financial
effects of value pricing projects on low-income drivers shall be
considered. Where such effects are expected to be both negative and
significant, possible mitigation measures should be identified, such as
providing new or expanded transit service as an integral part of the
value pricing project, toll discounts or credits for low-income
motorists who do not have viable transit options, or fare or toll
credits earned by motorists by use of regular lanes which can be used
to pay for tolls on priced lanes. Additional measures include methods
to facilitate convenient cash payment by those who do not have bank
accounts or credit cards, or who choose not to tie their toll accounts
to their bank accounts or credit cards. Mitigation measures can be
included as part of the value pricing project implementation costs.
Also, section 1012(b)(6) of ISTEA requires the Secretary to monitor
the effect of value pricing programs for a period of at least 10 years
and report to Congress every 2 years on the effects such programs are
having on driver behavior, traffic volume, transit ridership, air
quality, and availability of funds for transportation programs. Project
partners will be expected to assist FHWA by providing data on their
programs for use in these reports throughout the length of the
monitoring and reporting period.
In addition to the VPP program, other authorities are available
that permit States to use tolling to finance highway
[[Page 64399]]
construction and reconstruction, promote efficiency in the use of
highways, and support congestion reduction. Expanded flexibility to
toll is provided under the following programs: HOV-to-HOT Conversion
Program (23 U.S.C. 166); Interstate System Reconstruction and
Rehabilitation Pilot Program; Interstate System Construction Toll Pilot
Program; Express Lanes Demonstration Program; and Section 129 toll
agreements. For more information on these programs, please refer to the
notice in the January 6, 2006, Federal Register entitled, ``SAFETEA-LU;
Opportunities for State and Other Qualifying Agencies to Gain Authority
to Toll Facilities Constructed Using Federal Funds'' (71 FR 965).
Applicable Terms
``Value pricing'' and ``congestion pricing'' refer to direct and
transparent charges for vehicle use and parking, as well as variable
charges for road use, possibly fluctuating based upon location, time of
day, severity of congestion, vehicle occupancy, or type of facility. By
shifting some trips to off-peak periods, to mass transit or other
higher-occupancy vehicles, to non-motorized modes, or to alternative
routes away from priced facilities, or by encouraging consolidation of
trips, congestion pricing promotes economic efficiency. It also helps
achieve congestion reduction, reductions in greenhouse gas emissions,
improved air quality, energy conservation, transit ridership, and
revenue generation goals.
A ``value pricing project'' means any pre-implementation activities
or implementation of congestion pricing concepts or techniques included
under a State or local ``value pricing pilot program.'' A State is
considered to have a VPP program if it has one or more approved value
pricing projects. While the distinction between ``project'' and
``program'' may appear to be merely a technical one, it is significant
in that, as described in the ``Background'' section of this notice, the
number of total VPP programs is statutorily limited to 15, while there
is no limit to the number of VPP projects allowed under each VPP
program.
A ``value pricing program'' means the combination of all value
pricing projects within a State or local government or public
authority. Any State or local government or public authority with a
cooperative agreement for a value pricing program is deemed to have a
value pricing program.
``Cooperative agreement'' means the agreement signed between the
FHWA and a public agency to establish and implement value pricing pilot
projects.
``Toll agreement'' means the agreement signed between the FHWA and
a State and/or local government or public authority to provide for the
statutorily authorized uses of toll revenues. At FHWA's discretion, the
toll agreement may be subsumed within the cooperative agreement.
Program Objective
The overall objective of the VPP program is to support efforts by
State and local governments or other public authorities to establish
local VPP programs, to provide for the execution, monitoring, and
evaluation of value pricing projects included in such programs, and to
report on these effects. The effects of interest include impacts on
congestion, travel behavior, traffic volumes, transit ridership, air
quality, and funding for transportation improvements. The FHWA is
seeking applications for funding and/or tolling authority to use
congestion pricing to reduce congestion, improve system performance,
and advance the Department's priorities of growing the economy,
enhancing livability, and promoting environmental sustainability. All
proposals should incorporate significant pricing mechanisms that are
designed to substantially advance these objectives.
This notice seeks applications focused on less tested, innovative
strategies that advance pricing in furtherance of FHWA's livability,
sustainability, and other goals. An objective of this solicitation is
to provide incentive grants to expand the number of metropolitan areas
that are developing innovative approaches that advance congestion
pricing.
Some non-toll pricing applications, such as carsharing, have
already proven their success and are in wide use, and thus do not
require VPP program funding for their success to be sustained.
Deployment of other non-toll pricing strategies, such as pricing of
parking meters to achieve a certain parking space utilization level,
are much newer in the U.S., but the advancement of such strategies has
already secured substantial funding under the VPP and other programs
(e.g., in San Francisco), and thus other non-tolling strategies,
discussed below, will instead receive priority consideration under this
solicitation.
For both tolling and non-tolling projects, FHWA is interested in
tests that advance the state of the practice in behavioral economics.
Specifically, applications are sought that strive to improve the
understanding of the ways that the structure, timing and salience of
pricing, and how payments themselves are handled, affect responses to
pricing.
Types of Projects Being Sought That Do Not Involve Tolls
The FHWA is especially interested in grant applications for
projects that do not involve highway tolls. As discussed earlier,
SAFETEA-LU sets aside a minimum of 25 percent of VPP program funds for
such projects and FHWA may choose to make available more of the VPP
program funds for this purpose. The FHWA in particular seeks tests of
non-toll pricing strategies that will substantially improve livability
in an area and advance environmental sustainability in a major way,
either directly through the benefits the project itself brings, or by
demonstrating especially promising strategies such that their
implementation will likely be replicated broadly.
Examples of strategies that FHWA believes would meet this test
include: (1) Pay-per-mile or pay-per-minute car insurance, where
insurance premiums are converted from an annual or bi-annual charging
scheme to one that is instead based primarily on miles or minutes of
driving (with rates that still reflect actuarial risks and the
coverages that are selected); and (2) highly innovative parking pricing
strategies, provided that the level and coverage of parking charges is
sufficient to bring about substantial and measurable reductions in
congestion. For pay-per-mile or pay-per-minute insurance, FHWA is
especially interested in applications that cover areas not included in
previous VPP program-funded projects, such as actuarial studies of the
potential benefits of pay-as-you-drive pricing models, tests of
previously untested pricing protocols, and explorations of pricing
approaches that utilize both mileage or time in operation and other
usage-based factors that would affect per-mile or per-minute claims'
risks. For parking pricing, FHWA seeks applications for: (1) Citywide
surcharges for entering or exiting parking facilities during or near
peak travel periods; and (2) parking cash-out, where a city or State
passes, and then requests financial support to implement, a local
ordinance or State law requiring employers to offer cash to their
employees in lieu of subsidized parking, or provides substantial
incentives for employers to offer such cash-out options. As mentioned
above, pricing of parking meters to influence parking space utilization
levels has already received substantial funding and will receive lower
priority in considering grant applications.
[[Page 64400]]
Applications are also encouraged that utilize appropriate
technologies and provide sufficient participation incentives to deploy
dynamic ridesharing (flexible, single-trip carpooling) with the
necessary critical mass of users to succeed. To be considered eligible,
dynamic ridesharing applications must be coupled with some
transportation pricing, such as parking pricing or direct financial
incentives for ridesharing, thereby expanding affordable transportation
options while mitigating equity issues associated with pricing.
Pre-Implementation Studies
The intent of the pre-implementation study phase is to support
efforts to identify and evaluate value pricing project alternatives,
and to prepare the necessary groundwork for relatively near-term
implementation. The FHWA will not fund purely academic studies of
congestion pricing, or studies that involve major expansions of
existing facilities, or areawide or regionwide planning studies
covering many topics besides pricing and incorporating congestion
pricing only as one of a number of options. Such studies may be funded
with regular Federal-aid highway or transit planning funds.
Applications for pre-implementation studies will be evaluated based on
the likelihood that they will lead to relatively near-term
implementation of congestion pricing conforming to the objectives
described in the section on Program Objectives.
Project Costs Eligible for Grant Funding
The FHWA will provide up to the statutorily allowable 80 percent
share of the estimated costs of an approved project. Funds available
for the VPP program can be used to support pre-implementation study
activities and also to pay for implementation costs of value pricing
projects. Costs of planning for, setting up, managing, operating,
monitoring, evaluating, and reporting on local congestion pricing pilot
projects are eligible for reimbursement, but neither pre-implementation
study costs nor implementation costs may be reimbursed for longer than
3 years. The 3-year funding limitation will begin on the date of the
first disbursement of Federal funds for project activities. Examples of
specific pre-implementation and implementation costs eligible for
reimbursement include the following:
1. Pre-Implementation Study Costs--Covered activities include those
for foundation building, such as public participation, consensus
building and marketing, modeling, and technology assessments.
2. Implementation Costs--Allowable costs for reimbursement under
this area include those for setting up, managing, operating,
evaluating, and reporting on a value pricing project, including:
a. Necessary salaries and expenses, or other administrative and
operational costs, such as installation of equipment for operation of a
pilot project, costs of monitoring and evaluating project operations,
and costs of continuing public relations activities during the period
of implementation;
b. Mitigation measures to deal with any potential adverse financial
effects on low-income drivers, per section 1012(b)(7) of ISTEA as
amended, including costs of providing transportation alternatives, such
as new or expanded transit or ridesharing services provided as an
integral part of the value pricing project. Funds are not available to
replace existing sources of support for these services.
Project implementation costs can be supported until such time that
sufficient revenues are being generated by the project to fund such
activities without Federal support, but in no case for longer than 3
years. Each implementation project included in a VPP program will be
considered separately for this purpose.
Funds may not be used to pay for activities conducted prior to
approval for VPP program participation. Complementary actions, such as
lane construction, the implementation of traffic control systems, or
transit projects can be funded through other highway and transit
programs under SAFETEA-LU and from new revenues raised as a result of a
pilot. The VPP program applicants are encouraged to explore
opportunities for combining VPP program funds with other funds. Federal
funds may not, however, be used to match VPP program funds unless there
is specific statutory authority to do so.
Eligible Uses of Toll Revenues
Section 1012(b)(2) of ISTEA as amended provides that toll revenues
generated by any congestion pricing pilot project must be applied first
to pay for pilot project operating costs. Any project revenues in
excess of pilot project operating costs may, according to section
1012(b)(3) of ISTEA as amended, be used for any projects eligible under
Title 23, U.S.C. A project's operating costs include, but are not
limited to, any costs necessary for a project's execution; mitigation
measures to deal with adverse financial effects on low-income drivers;
the proper maintenance of the facility; any construction (including
reconstruction, rehabilitation, restoration, or resurfacing) of the
facility; any debt service incurred in implementing the project; and a
reasonable return on investment by any private entity financing the
project. States are encouraged to consider using excess toll revenue
for projects designed to provide benefits to those traveling in the
corridor where the project is being implemented.
For VPP toll implementation projects, FHWA and the public authority
(including the State transportation department) having jurisdiction
over a facility must enter into a cooperative agreement concerning the
use of toll revenue to be generated under a value pricing project. The
cooperative agreement will provide that the public authority use the
revenues in accordance with the applicable statutory requirements. The
execution of a cooperative agreement is necessary to the establishment
of an implementation project under the VPP program, and will facilitate
oversight of a State's compliance with revenue use requirements of the
VPP program. Additionally, the toll collection system must meet FHWA
requirements for interoperability at 23 CFR part 950.
Who is eligible to apply?
Qualified applicants for either tolling authority or grants (or
both) include State or local governments or public authorities, such as
toll agencies. Although project agreements must be with the
aforementioned public entities, and preferably with State departments
of transportation in order to preserve participation slots, a VPP
program partnership may also include private tolling authorities, for-
profit companies, and non-profit organizations.
In many cases where only tolling authority is being sought, it may
be preferable to secure such authority through a Federal program other
than the VPP program even if such authority could also be granted
through the VPP program. This issue was covered in detail in a January
6, 2006, Federal Register notice covering non-grant tolling programs,
which remains in effect. That notice was entitled ``Safe, Accountable,
Flexible, Efficient Transportation Equity Act: A Legacy for Users
(SAFETEA-LU); Opportunities for States and Other Qualifying Agencies to
Gain Authority to Toll Facilities Constructed Using Federal Funds'' (71
FR 965). The notice established a process whereby applicants seeking
only tolling authority from FHWA (not grant funding) were requested to
first
[[Page 64401]]
submit an Expression of Interest document to allow FHWA to guide
applicants in determining whether the VPP program, or another program,
is the preferable program under which to apply for such authority. The
Expression of Interest is a document--in letter, memo, or report
format--that provides the rationale for funding or tolling authority
and information about the intended project. A complete Expression of
Interest will enable the DOT Tolling and Pricing Team to provide the
best assistance and identify the range of options possible to meet
intended goals and timeframes. For details, please see: http://
www.fhwa.dot.gov/ipd/revenue/road_pricing/tolling_pricing/index.htm.
The Value Pricing Pilot Program Applications
Formal grant applications shall be submitted through Grants.gov at
http://www.grants.gov by close of business January 18, 2011. Projects
requesting tolling authority only should submit an Expression of
Interest to FHWA. For details, see: http://www.fhwa.dot.gov/ipd/
revenue/road_pricing/tolling_pricing/index.htm.
No particular format is required for tolling authority applications
or grant applications, although specific information is requested in
Grants.gov. Applications should include the following background
information: (a) The name, title, e-mail address, and phone number of
the person who will act as the point of contact on behalf of the
requesting agency, authority, or authorities; (b) A description of the
agency, authority, or authorities requesting funding and/or tolling
authority; (c) A statement as to whether only funding, both funding and
tolling authority, or only tolling authority via the VPP program is
being sought to support either pre-implementation or implementation
activities as permitted; and (d) A description of the public agency or
agencies that will be responsible for operating, maintaining, and
enforcing the tolling program, if applicable.
The core of the application should include the following:
1. A description of the congestion problem being addressed (current
and projected);
2. A description of the proposed pricing program and its goals;
3. An identification and description of the facilities, systems, or
area that will be covered;
4. Anticipated effects of the pricing program on reducing
congestion, altering travel behavior, and encouraging the use of other
transportation modes;
5. An identification of how the proposal addresses goals related to
livability, sustainability, equity, congestion reduction, safety, and
state of good repair as outlined in the Evaluation Criteria section
below;
6. Preliminary estimates of the social and economic effects of the
pricing program, including potential equity impacts, and a plan or
methodology for further refining such estimates;
7. The role of alternative transportation modes in the project;
8. A description of the tasks to be carried out as part of each
phase of the project;
9. A detailed project timeline broken down by tasks and phases;
10. An itemized budget broken down by task and funding year (i.e.,
Year 1, Year 2, etc.), which is only required for grant applications;
11. Plans for monitoring and evaluating implementation projects,
including plans for data collection and analysis, before and after
assessment, and long-term monitoring and documenting of project
effects;
12. A detailed finance and revenue plan, including (for
implementation projects) a budget for capital and operating costs; a
description of all funding sources, planned expenditures, and proposed
uses of revenues; and a plan for projects to become financially self-
sustaining (without Federal support) within 3 years of implementation,
all of which is only required for grant applications;
13. A discussion of previous public involvement, including public
meetings, in the development of the proposed pricing program; any
expressions or declarations of support from State or local government
officials or the public; future plans for involving key affected
parties, coalition building, and media relations, and more broadly for
ensuring adequate public involvement prior to implementation;
14. Plans for meeting all Federal, State, and local legal and
administrative requirements for project implementation, including
relevant Federal-aid planning and environmental requirements;
15. A description of how, if at all, any private entities are
involved in the project, either in spending grant funds or in cost
sharing or debt retirement associated with revenues; and
16. If tolling authority is sought, an explanation about how
electronic toll collection project components will, if applicable, be
compatible with other electronic toll collection systems in the region
and allow motorists to pay toll charges incurred on any regional
facility through a single account.
If some of these items are not available or fully developed at the
time a formal application for grant funding is submitted, applications
will still be considered for funding support if they meet the interests
of FHWA and if there is a strong indication that these items will be
completed within a short time.
VPP Program Process
A. Requests for Funding
To ensure that all projects receive fair and equal consideration
for the limited available funds, FHWA requires formal grant
applications to be submitted to http://www.grants.gov by close of
business January 18, 2011 to be assured consideration for available FY
2010 and FY 2011 funds. Applicants may also submit an optional
``sketch'' or draft proposal, in a format selected by the applicant, to
angela.jacobs@dot.gov by December 3, 2010, which FHWA will review and
provide feedback on for the applicant to use in its formal grant
application. Sketch or draft proposals received after this date may
still be reviewed by and formally commented upon by FHWA at its
discretion. For applications that had been submitted under the August
5, 2009, (74 FR 39138) solicitation that were not funded (for a list of
projects funded from that solicitation, see: http://www.fhwa.dot.gov/
pressroom/fhwa1029.htm), and where such applications would still be
eligible for funding under the criteria provided by this notice,
applicants may submit a letter to angela.jacobs@dot.gov at FHWA by
November 18, 2010, requesting comments on their previous applications.
B. Projects for Which No Funds Are Requested
Although most projects under the VPP program involve program funds,
some projects do not, and instead only seek tolling authority under the
program. In such cases, and especially where a State is not already
part of the VPP program, FHWA recommends that the public authority
investigate the other opportunities to gain authority to toll that are
listed in the notice in the January 6, 2006, Federal Register, entitled
``SAFETEA-LU; Opportunities for State and Other Qualifying Agencies to
Gain Authority to Toll Facilities Constructed Using Federal Funds'' (71
FR 965).
C. Proposal Evaluation Criteria
All proposals will be evaluated based on these core outcome
measures, with
[[Page 64402]]
pre-implementation proposals evaluated based upon their projected
effects on these measures if they are later to lead to implementation:
Livability
To what extent will the project directly enhance livability by:
Improving neighborhood design and facilitating compact
form (e.g., if parking pricing curtails demand, thus allowing
alternative uses for land dedicated to surface parking).
To what extent will forecasted reductions in traffic make
available:
An opportunity for traffic calming and human-scale design
enhancements.
More road space to accommodate pedestrians and bicyclists
by reducing the amount of road space needed to accommodate motor
vehicles in motor vehicle travel lanes.
Faster bus travel and better bus stop designs.
To what extent will revenue from pricing contribute to:
Infrastructure costs for pedestrian and bicycle
improvements.
Transit infrastructure and operations.
Ridesharing programs.
Sustainability
To what extent will forecasted reductions in traffic:
Reduce greenhouse gas emissions, improve energy
efficiency, and reduce dependence on fossil fuels.
Reduce air, water, and noise pollution and damage to
ecosystems.
Support transit-oriented land development.
To what extent will revenue from pricing contribute to:
Funding of a multimodal transportation system that meets
the sustainability objectives listed immediately above.
Equity
To what extent will costs and benefits be distributed so that:
Low-income travelers or other transportation disadvantaged
groups pay less on average for their travel or have a better travel
experience at the same cost.
To what extent will revenues be used to:
Provide accommodations that are especially important to
low-income travelers or other transportation disadvantaged groups.
To what extent are equity impacts mitigated so that:
Concerns of low-income or other transportation
disadvantaged groups are addressed.
Congestion Reduction
To what extent will forecasted reductions in traffic:
Reduce traffic congestion and delay experienced by the
freight sector.
Reduce traffic congestion and delay experienced by
personal travelers.
Maximize economic return on existing investment by
optimizing use of the existing transportation infrastructure.
To what extent will revenue from road pricing:
Provide signals for where new multimodal transportation
capacity (including transit, bike, pedestrian, ridesharing, etc.) is
really needed and provide revenues to pay for it, while at the same
time reducing the need for highway expansion.
Safety
To what extent will direct safety benefits be provided by:
Shifts from driving alone to safer modes of travel.
Reduced driving overall, and unsafe driving in particular,
for example by rewarding drivers with reduced insurance premiums for
cutting exposure to crashes and insurance claims.
To what extent will forecasted reductions in traffic:
Reduce collisions, including secondary crashes caused by
stalled traffic.
Make more road space available to provide safer pedestrian
and bicycle accommodations.
To what extent will revenue from pricing contribute to:
Costs for roadway safety improvements.
Costs for pedestrian and bicycle improvements.
State of Good Repair
To what extent will forecasted reductions in traffic:
Reduce highway expansion needs thereby making more
existing revenues available to repair, reconstruct and rehabilitate the
existing system.
To what extent will revenue from pricing be used to:
Repair, reconstruct, and rehabilitate the existing
highway, transit, bikeway, and pedestrian systems.
In addition to these outcome-oriented goals, FHWA will also
evaluate proposals based on the following criteria:
(1) The degree to which new, innovative value pricing approaches
are included;
(2) The degree to which stakeholder groups, including (among
others) business groups, environmental groups, and advocates for social
equity, are involved in and supportive of the project, and the project
is likely to win broad public support;
(3) The degree to which the project is likely to lead to relatively
near-term implementation; and
(4) The degree to which it is demonstrated that the project is
testing especially promising strategies such that their implementation
will likely then be replicated broadly.
Post-Selection Process
If a proposal is approved, a formal cooperative agreement will be
prepared between the FHWA and the State. The cooperative agreement will
include a refined scope of work developed from the original funding
application and subsequent discussions with FHWA. Federal statutes will
govern the cooperative agreement. Regulations cited in the agreement,
and 49 CFR Part 18, Uniform Administrative Requirements for Grants and
Cooperative Agreements to State and Local Governments, will also apply.
Each value pricing project must have a separate cooperative agreement.
Although in the past the FHWA has allowed some States to have a master
cooperative agreement that is subsequently amended for each approved
project, in the future the FHWA will execute a separate agreement for
each project. For value pricing projects that involve only toll
authority and that do not involve requests for Federal funds, a
cooperative agreement must still be executed.
Where the implementation of tolling is part of the VPP project,
Federal tolling authority is required. To secure such authority for a
VPP project, a cooperative agreement will be executed, regardless of
whether VPP program funding is being provided. The cooperative
agreement must include all of the information normally required as part
of a tolling agreement (stipulating the terms of the tolling, providing
details on the dispensation of revenues, etc.). A separate tolling
agreement will generally not be required unless the FHWA determines
that a separate agreement is the most efficient mechanism in light of
the particular circumstances of the project. As discussed previously,
revenues must generally first be used to cover the project's operating
costs, including debt service, provide reasonable return on private
party investments, and be used for the costs necessary to properly
operate and maintain the facility. Any remaining revenues may then be
used
[[Page 64403]]
for other Title 23, U.S.C. eligible purposes.
Where tolling authority is secured through a VPP program
cooperative agreement, such an agreement will be signed by the
Executive Director of FHWA. If tolling authority is not required, the
cooperative agreement will be signed by the FHWA Division Administrator
of the State Division Office. All cooperative agreements will be
administered jointly by FHWA's Office of Operations and FHWA's State
Division Office.
Other Requirements
Prior to FHWA approval of pricing project implementation,
congestion pricing programs must be shown to be consistent with Federal
metropolitan and statewide planning requirements (23 U.S.C. 134 and
135; and, if applicable, 49 U.S.C. 5303 and 5304).
Implementation projects involving tolls outside metropolitan areas
must be included in the approved statewide transportation improvement
program and be selected in accordance with the requirements set forth
in section 1204(f)(3) of TEA-21.
Implementation projects involving tolls in metropolitan areas must
be: (a) Included in, or consistent with, the approved metropolitan
transportation plan (if the area is in nonattainment for a
transportation-related pollutant, the metropolitan plan must be in
conformance with the State air quality implementation plan); (b)
included in the approved metropolitan and statewide transportation
improvement programs (if the metropolitan area is in a nonattainment
area for a transportation related pollutant, the metropolitan
transportation improvement program must be in conformance with the
State air quality implementation plan); (c) selected in accordance with
the requirements in section 1203(h)(5) or (i)(2) of TEA-21; and (d)
consistent with any existing congestion management system in
Transportation Management Areas, developed pursuant to 23 U.S.C.
134(i)(3).
Authority: 23 U.S.C. 315; sec. 1216(a), Pub. L. 105-178, 112
Stat. 107; Pub. L. 109-59; 117 Stat. 1144.
Issued on: October 12, 2010.
V[iacute]ctor M. Mendez,
Federal Highway Administrator.
[FR Doc. 2010-26298 Filed 10-18-10; 8:45 am]
BILLING CODE 4910-22-P