Regional Council Wins $1.8 Million Value Pricing Grant

U.S. Transportation Secretary Norman Mineta announced that the Regional Council will receive a $1.88 million value pricing grant. The grant will apply global positioning system technology in a pilot project aimed at finding the best ways to advance value pricing tools in transportation planning.

The grant was included in an announcement of over $56 million in grants for projects in 43 states.

"President Bush and I recognize the importance of investing in our nation's infrastructure to help ensure America's continued growth and prosperity," Secretary Mineta said. "The projects we are funding will strengthen our transportation system, create jobs across the country and boost our nation's economy."

The $1.88 million Regional Council grant was among $8.8 million in grant awards through the FHWA's Value Pricing Pilot Program. The project is expected to start this fall and be completed in 2005.

Read the summary of the project proposal.

For more information, contact Matthew Kitchen at (206) 464-6196, e-mail mkitchen@psrc.org.

What Is Value Pricing?
Value pricing is a way of harnessing the power of the market and reducing the waste associated with congestion. It employs fees or tolls for road use that vary with the level of congestion. Just as airlines offer off-peak discounts, telephone long-distance rates differ by time of day, and hotel rooms cost more during peak tourist seasons, road-use charges that vary with the level of congestion can provide incentives to shift some trips to off-peak times, less-congested routes, or alternative transportation modes. A shift in a 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 provide improved indicators of the potential need for future capacity expansion, while also generating revenues that can be used to further enhance urban mobility.