The Secretary is to report to Congress every two years on the effects of local value pricing pilot programs. The Congress has mandated this program as an experimental program aimed at learning the potential of different value pricing approaches for reducing congestion. Value pricing, also known as congestion pricing or peak-period pricing, entails fees or tolls for road use which vary by level of congestion. Fees are typically assessed electronically to eliminate delays associated with manual toll collection facilities. This concept of 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.
Airlines offer off-peak discounts and hotel rooms cost more during peak tourist seasons.
A shift in a relatively small proportion of peak-period trips can lead to substantial reductions in overall congestion. And, while congestion charges create incentives for more efficient use of existing capacity, they also provide improved indicators of the potential need for future capacity expansion and are generating revenues that can be used to further enhance urban mobility. Funds allocated by the Secretary to a State under this section shall remain available for obligation by the State for a period of three years after the last day of the fiscal year for which funds are authorized. Funds available for the Pilot Program can be used to support pre-project study activities and to pay for implementation costs of value pricing projects.