39138 Federal Register / Vol. 74, No. 149 / Wednesday, August 5, 2009 / Notices 

the Coast Guard project manager 

identified in FOR FURTHER INFORMATION

CONTACT. 

Privacy Act 

The electronic form of all comments 

received into the Federal Docket 

Management System can be searched by 

the name of the individual submitting 

the comment (or signing the comment, 

if submitted on behalf of an association, 

business, labor union, etc.). The DOT 

Privacy Act Statement can be viewed in 

the Federal Register published on April 

11, 2000 (Volume 65, Number 70, pages 

19477–78) or you may visit http:// 

www.regulations.gov. 

Authority: 49 CFR 1.66. 

Dated: July 28, 2009. 

By order of the Maritime Administrator. 

Murray Bloom, 

Acting Secretary, Maritime Administration. 

[FR Doc. E9–18682 Filed 8–4–09; 8:45 am] 

BILLING CODE P 

DEPARTMENT OF TRANSPORTATION 

Federal Highway Administration 

Value Pricing Pilot Program 

Participation, Fiscal Years 2009 and 

2010 

AGENCY: Federal Highway 

Administration (FHWA), DOT. 

ACTION: Notice; solicitation for 

participation. 

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 2009 and 2010. Unlike with 

previous notices, the purpose of this 

notice is to seek only applications for 

statewide, regionwide, or areawide 

transportation pricing studies and for 

transportation pricing implementation 

projects that do not entail tolling 

roadways. This notice seeks 

applications for fiscal year 2009 

funding, and if Congress chooses to 

extend Safe, Accountable, Flexible, 

Efficient Transportation Equity Act: A 

Legacy for Users (SAFETEA–LU) VPP 

program funding, for such funds made 

available in fiscal year 2010. 

DATES: 1. Applications for tolling 

authority only may be submitted at any 

time. 

2. Formal grant applications, 

however, must be submitted no later 

than November 3, 2009, to be assured 

consideration. 

3. Applicants may also submit an 

optional ‘‘sketch’’ or draft proposal by 

September 21, 2009, which FHWA will 

review and provide general 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 applications that had been 

submitted under the September 16, 2008 

(73 FR 53478) solicitation that were not 

funded (for a list of projects funded 

from that solicitation, see: http:// 

www.fhwa.dot.gov/pressroom/ 

fhwa0913.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 September 4, 

2009, requesting comments on their 

previous applications. 

Application Submission: Applications 

may be submitted through http:// 

www.grants.gov. 

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, 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 not 

involving tolls, please contact Mr. Allen 

Greenberg, FHWA Office of Operations, 

at (202) 366–2425, 

allen.greenberg@dot.gov. For technical 

questions related to the development of 

regional pricing projects, please contact 

Mr. Patrick DeCorla-Souza, FHWA 

Office of Innovative Program Delivery, 

at (202) 366–4076, patrick.decorlasouza@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:// 

www.archives.gov and the Government 

Printing Office’s database at: http:// 

www.access.gpo.gov/nara. 

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 Value Pricing Pilot (VPP) program. 

Congestion pricing encompasses a 

variety of strategies to manage 

congestion on highways, including 

tolling of highway facilities, 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 the remainder of 

FY 2009 and also for FY 2010, if 

SAFETEA–LU funding is extended. 

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 the September 16, 2008, 

notice for VPP program participation (73 

FR 53478). 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 


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seeking to obtain VPP program funding 

or tolling authority. 

A maximum of $12 million is 

authorized for FY 2009 to be made 

available to carry out the VPP program, 

and Congress may choose to authorize 

additional funds for FY 2010. Of the $12 

million, $3 million per fiscal year must 

be set-aside for VPP projects that do not 

involve highway tolls. FHWA 

previously solicited for FY 2009 

applications in a September 16, 2008, 

Federal Register notice (73 FR 53478) 

and on May 14, 2009, announced the 

awarding of five grants totaling 

$6,137,000, thereby leaving less than $6 

million to fund additional grants in FY 

2009 under this notice. Since none of 

the five most recent grants are 

supporting projects that do not involve 

highway tolls, at least $3 million of the 

remaining FY 2009 funds must be used 

for such projects. If Congress does 

provide additional VPP program funds 

for FY 2010, 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 preimplementation study activities as well 

as to pay for pricing-specific 

implementation costs of congestion 

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 an 

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 

congestion pricing projects on lowincome 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 congestion 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. Mitigation measures can be 

included as part of the congestion 

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 

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 facilities; Interstate System 

Reconstruction and Rehabilitation Pilot; 

Interstate System Construction Toll 

Pilot; 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 offpeak periods, to mass transit or other 

higher-occupancy vehicles, to nonmotorized 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, 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 discussed in the 

‘‘Potential Project Types’’ section of this 

notice and 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 

congestion 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 congestion 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 congestion 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. 

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 monitoring 

and evaluation of congestion 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. For the 

purpose of this solicitation, the VPP 

program focuses both on market-based 

approaches for congestion relief that do 

not involve road tolls, such as mileagebased car insurance and parking pricing, 


srobinson on DSKHWCL6B1PROD with NOTICES
39140 Federal Register / Vol. 74, No. 149 / Wednesday, August 5, 2009 / Notices 

and congestion pricing with road tolls, 

such as pricing all lanes on limited 

access highways or all roads within a 

zone or network. 

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, whether through non-toll 

pricing strategies or toll pricing 

applications, that are designed to 

substantially advance these objectives. 

With successful examples of facilityspecific pricing projects already in 

operation in the U.S., this solicitation, 

in addition to its focus on non-toll 

pricing applications, focuses on 

developing broader areawide 

approaches to toll-based pricing. Some 

metropolitan areas, such as Los Angeles, 

San Francisco, Seattle, and Washington, 

DC, have begun the process of 

developing areawide or regionwide 

congestion pricing scenarios and 

modeling their effects on long-term 

system performance and financing. An 

objective of this solicitation is, as 

described below, to provide incentive 

grants to expand the number of 

metropolitan areas that are developing 

areawide or regionwide approaches to 

congestion pricing. 

Similar to the case with facilityspecific tolling applications, some nontoll pricing applications, such as 

carsharing, have already proven their 

success and do not require VPP program 

funding for their success to be 

sustained. Deployment of other 

strategies, such as pricing of parking 

meters to achieve a certain occupancy 

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 nontolling strategies, discussed below, will 

instead receive priority consideration 

under this solicitation. 

Potential Project Types 

The FHWA will consider applications 

for funds that show that a project will 

achieve at least one of the following: (1) 

Perform a rigorous areawide or 

regionwide congestion pricing scenario 

study around one or more scenarios that 

are comprehensive and potentially 

acceptable to the public; or (2) 

implement new and innovative non-toll 

pricing strategies, as detailed below. For 

pre-implementation projects, applicants 

should demonstrate that there is already 

sufficient political support for their 

implementation, or that the project is 

designed to bring about such support. 

Congestion pricing charges need to be 

targeted at a sizable number of vehicles 

that are causing congestion, and prices 

should be set at levels significant 

enough to encourage drivers to use 

alternative times, routes, modes, or trip 

patterns, or to telework and avoid 

commuting during congested periods. 

The FHWA is particularly interested 

in grant applications for projects that do 

not involve highway tolls. As discussed 

earlier, SAFETEA–LU sets aside a 

minimum of $3 million per fiscal year 

for such projects. 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. 

Strategies that FHWA believes would 

meet this test include: (1) Pay-per-mile 

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 the level and 

coverage of parking charges is sufficient 

to bring about substantial and 

measurable reductions in congestion. 

For parking pricing, FHWA seeks 

applications for: (1) Citywide surcharges 

for entering or exiting parking facilities 

during or near peak travel periods; (2) 

parking cash-out, where a city or State 

passes, and then requests financial 

support to implement, an ordinance 

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; and (3) a city or State 

seeking support to implement a law that 

requires or provides sizable financial 

incentives for housing developers to 

build more livable communities with 

reduced car parking, in part by offering 

renters or purchasers in multifamily 

housing developments direct and 

substantial financial savings for not 

using car parking spaces. 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, thereby 

expanding affordable transportation 

options while mitigating equity issues 

associated with pricing. 

The FHWA is also seeking VPP 

program applications from public 

entities to study one or more scenarios 

for broad-scale areawide or regionwide 

tolling and pricing that have a high 

probability of getting public support. 

Applications for areawide or regionwide 

pricing studies should cover a 

significantly-sized geographical area 

and include multiple roadway facilities 

that are priced, including zone-based 

pricing, where, as implemented in 

London and Stockholm, vehicles are 

charged a substantial fee to drive in a 

congested area on weekdays. 

Consideration of variable pricing of 

multiple facilities or corridors, or of an 

entire area, will generally be required. 

Area-wide pricing applications using 

technologies that provide travelers 

(including drivers and transit riders) 

with pre-trip and real-time congestion 

and pricing information for multiple 

travel modes and a variety of routes, and 

that facilitate dynamic ridesharing, are 

especially encouraged to assist travelers 

in making efficient travel destination, 

mode and route choices. Cashless 

tolling (i.e., no toll booths) is a required 

element of these approaches in order to 

be considered for VPP program funding. 

As part of broad, areawide or 

regionwide pricing scenario studies, the 

inclusion of new, innovative congestion 

pricing approaches is encouraged. 

Examples of new ideas that FHWA 

would like to have further explored are 

included in an article on congestion 

pricing published in the March/April 

issue of Public Roads, available at: 

http://www.tfhrc.gov/pubrds/09mar/ 

04.htm. 

Areawide or regionwide 

transportation pricing studies are 

encouraged to include evaluation of 

benefits, costs, revenues, environmental 

impacts, distributional impacts, and 

financial feasibility of each alternative 

package of transportation 

improvements, in comparison with the 

region’s currently adopted long-range 

transportation plan. Development of 

alternative packages may involve 

stakeholder groups, including (among 

others) business groups, environmental 

groups, and advocates for social equity. 

An example of the sort of regional 

transportation study that has already 

been undertaken for which FHWA seeks 

new applications is the Traffic Choices 

Study conducted by the Puget Sound 

Regional Council for the Seattle 

Metropolitan Area, which led to the 

Transportation 2040 Draft 


srobinson on DSKHWCL6B1PROD with NOTICES
Federal Register / Vol. 74, No. 149 / Wednesday, August 5, 2009 / Notices 39141 

Environmental Impact Statement (May 

2009), available at: http://psrc.org/ 

projects/trans2040/deis/index.htm. 

Projects should be designed to reflect 

the needs of low-income or other 

transportation-disadvantaged groups. 

Mitigation strategies to address equity 

concerns may include bus rapid transit 

or other enhancements of transportation 

alternatives for peak-period travelers, 

special reduced toll rates for lowincome travelers, limited monetary 

credits to all travelers or just to lowincome travelers that can be used to pay 

for tolls or transit fares (thereby 

allowing a limited amount of free travel 

before having to pay full fees), and 

credit-based tolling programs such as 

toll credits earned by motorists in 

regular lanes or by transit users in the 

corridor which can later be used to pay 

tolls on priced lanes or for free transit 

trips. 

Pre-Implementation Studies 

Applicants are encouraged to carry 

out pre-implementation study activities 

designed to lead to implementation of 

an areawide or regionwide congestion 

pricing project in the relatively nearterm. The intent of the preimplementation study phase is to 

support efforts to identify and evaluate 

congestion pricing project alternatives, 

and to prepare the necessary 

groundwork for relatively near-term 

implementation. 

FHWA will not fund purely academic 

studies of congestion pricing or studies 

that involve major expansions of 

existing facilities or area-wide 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 preimplementation studies will be 

evaluated based on the likelihood that 

they will lead to relatively near-term 

implementation of broad congestion 

pricing conforming to the objectives 

described in the previous section. 

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 preimplementation study activities and 

also to pay for implementation costs of 

congestion 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 preimplementation 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 preimplementation and implementation 

costs eligible for reimbursement include 

the following: 

1. Pre-Implementation Study Costs— 

Covered activities include those 

undertaken to advance two key priority 

focus areas: Foundation building and 

regional program development. 

a. Foundation building activities may 

be reimbursed, such as public 

participation, consensus building, 

marketing, modeling, and technology 

assessments; and 

b. Regional program development 

activities are also eligible for 

reimbursement, including project and 

financial planning, project design, 

creating project specifications, and 

activities required to meet Federal or 

State environmental or other planning 

requirements. 

2. Implementation Costs—Allowable 

costs for reimbursement under this 

priority focus area include those for 

setting up, managing, operating, 

evaluating, and reporting on a 

congestion 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. ‘‘[M]itigation 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 congestion 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 

value pricing pilot 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. 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 Revenues 

Section 1012(b)(2) of ISTEA provides 

that 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, be used for any projects eligible 

under Title 23, United States Code. 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 

revenue for projects designed to provide 

benefits to those traveling in the 

corridor where the project is being 

implemented. 

For VPP toll 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 congestion 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 a project under the 

VPP program, and will facilitate 

oversight of a State’s compliance with 

revenue use requirements of the VPP 

program. 

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. 


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39142 Federal Register / Vol. 74, No. 149 / Wednesday, August 5, 2009 / Notices 

The Value Pricing Pilot Program 

Applications 

Formal applications shall be 

submitted through Grants.gov at http:// 

www.grants.gov by close of business 

November 3, 2009. 

No particular format is required for 

tolling authority applications or grant 

applications, although specific 

information is requested. 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 preimplementation 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 of the facilities 

that will be covered, including whether 

any of the subject facilities is an 

Interstate facility, whether any HOV 

lanes currently exist on any of the 

facilities, and whether any constructionrelated activities would be needed to 

implement the project and, if so, 

whether this is new construction, 

expansion, rehabilitation, 

reconstruction, or other; 

4. Where applicable, a plan for 

implementing or modifying tolls, and a 

related timetable. Where known, the 

range of anticipated tolls and the 

strategies to vary toll rates (i.e., the 

formulas for variable pricing), the 

technology to be used, enforcement 

programs, and operating details; 

5. Anticipated effects of the pricing 

program on reducing congestion, 

altering travel behavior, and 

encouraging the use of other 

transportation modes; 

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. 

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, as 

described earlier in the section entitled 

‘‘Potential Project Types,’’ 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 November 3, 2009, to be 

assured consideration for FY 2009 funds 

and, if made available, FY 2010 funds, 

as well. Applicants may also submit an 

optional ‘‘sketch’’ or draft proposal, in 

a format selected by the applicant, to 

angela.jacobs@dot.gov by September 21, 

2009, 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 September 16, 

2008 (73 FR 53478) solicitation that 

were not funded (for a list of projects 

funded from that solicitation, see: 

http://www.fhwa.dot.gov/pressroom/ 

fhwa0913.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 September 4, 2009, 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). 

Proposal Evaluation Criteria 

All proposals will be evaluated based 

on: 

(1) The degree to which they reduce 

congestion, improve system 

performance, and support economic 

growth, enhance livability through 

support of alternatives to driving, and 

promote environmental sustainability 

by reducing fuel consumption and 

greenhouse gas emissions; 

(2) The degree to which they 

encourage drivers to use alternative 

times, routes, modes, or trip patterns, or 

to telework and avoid commuting 

during congested periods; 

(3) The degree to which new, 

innovative congestion pricing 

approaches are included; and 


srobinson on DSKHWCL6B1PROD with NOTICES
Federal Register / Vol. 74, No. 149 / Wednesday, August 5, 2009 / Notices 39143 

(4) The degree to which proposals are 

designed to reflect the needs of lowincome or other transportationdisadvantaged groups. 

In addition, area-wide and regionwide pricing proposals will be 

evaluated based on: 

(5) The degree to which proposals 

include evaluation of benefits, costs, 

revenues, environmental impacts, 

distributional impacts, and financial 

feasibility of each alternative package of 

transportation improvements, in 

comparison with the region’s currently 

adopted long-range transportation plan; 

(6) The degree to which further 

development of alternative packages 

will involve stakeholder groups, 

including (among others) business 

groups, environmental groups, and 

advocates for social equity; 

(7) The degree to which they are 

likely to lead to relatively near-term 

implementation; 

(8) The scale of the congestion pricing 

strategy, i.e., the extent of the 

geographic area, or the number of 

roadway facilities or corridors that are 

to be priced; 

(9) The degree to which the proposed 

pricing scenarios are comprehensive 

involving synergistic combinations of 

multimodal investment strategies, 

Intelligent Transportation System 

technologies and travel demand 

management strategies; and 

(10) The degree to which proposed 

pricing scenarios have a probability of 

getting public support. 

Further, non-toll pricing proposals 

will be evaluated based on the degree to 

which they demonstrate especially 

promising strategies such that their 

implementation will likely then be 

replicated broadly. 

Post-Selection Process 

If 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 congestion 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 

congestion 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 

not be required. 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 for other 

Title 23, United States Code eligible 

purposes. 

Where tolling authority is secured 

through a VPP program cooperative 

agreement, such an agreement, like 

tolling agreements providing the 

authority to toll under other Federal 

provisions and programs, 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), 

Public Law 105–178, 112 Stat. 107; Public 

Law 109–59; 117 Stat. 1144) 

Issued on: July 30, 2009. 

Vı ́ctor M. Mendez, 

Federal Highway Administrator. 

[FR Doc. E9–18699 Filed 8–4–09; 8:45 am] 

BILLING CODE 4910–22–P 

DEPARTMENT OF THE TREASURY 

Internal Revenue Service 

Proposed Collection; Comment 

Request for Form 8928 

AGENCY: Internal Revenue Service (IRS), 

Treasury. 

ACTION: Notice and request for 

comments. 

SUMMARY: The Department of the 

Treasury, as part of its continuing effort 

to reduce paperwork and respondent 

burden, invites the general public and 

other Federal agencies to take this 

opportunity to comment on proposed 

and/or continuing information 

collections, as required by the 

Paperwork Reduction Act of 1995, 

Public Law 104–13 (44 U.S.C. 

3506(c)(2)(A)). Currently, the IRS is 

soliciting comments concerning Form 

8928, Return of Certain Excise Taxes 

Under Chapter 43 of the Internal 

Revenue Code. 

DATES: Written comments should be 

received on or before October 5, 2009 to 

be assured of consideration. 

ADDRESSES: Direct all written comments 

to R. Joseph Durbala, Internal Revenue 

Service, room 6129, 1111 Constitution 

Avenue NW., Washington, DC 20224. 

FOR FURTHER INFORMATION CONTACT: 

Requests for additional information or 

copies of the form and instructions 

should be directed to Dawn Bidne, (202) 

622–3933, at Internal Revenue Service, 

room 6129, 1111 Constitution Avenue 

NW., Washington, DC 20224, or through 

the Internet at Dawn.E.Bidne@irs.gov. 


srobinson on DSKHWCL6B1PROD with NOTICES