DENVER -- Denver could soon get $1.1 billion in federal aid to help smooth out its traffic congestion.

The city has been selected as a finalist for the Department of Transportation's Urban Partnership program, which will provide federal investments of up to $1.1 billion to cut traffic tie-ups in America's most congested cities, U.S. Secretary of Transportation Mary E. Peters announced Wednesday.

"Denver's proposal is designed to keep the Mile High City free from miles-long traffic jams," said Peters. "This plan represents the kind of innovative thinking we need to tackle traffic in our fastest growing communities."

Denver's plan calls for new variably-priced carpool lanes along the 18-mile stretch of U.S. Highway 36 from Boulder to Denver, which would connect with existing high occupancy vehicle lanes on Interstate 25. The lanes would give free access to buses and high-occupancy vehicles, while charging lone drivers a toll that would vary based on the amount of traffic on the road.

Denver's grant application, which was submitted earlier this week, requests $234 million for the proposal that could be completed in 2009. It was submitted by the U.S. 36 Mayors and Commissioners Coalition, made up of members from the City of Westminster, City and County of Broomfield, City of Louisville, Town of Superior, City of Boulder, Boulder County, City and County of Denver.

Peters noted that the proposal would improve bus service along U.S. 36, and provide drivers across the region with real-time information about traffic congestion and alternative routes to avoid construction and accident delays.

Peters, who traveled to Denver Wednesday to meet with Gov. Bill Ritter and tour a Safeway distribution center near Interstate 70, said that fighting traffic jams in the city was necessary to keep commuters moving and companies growing.

According to the Texas Transportation Institute, congestion costs Denver-area residents over $1 billion every year, Peters said.

If selected by the program, Denver will receive significant technical support and new flexibility to get important transportation projects through the federal review process, in addition to new federal funding.

"This program is designed to show the nation that gridlock is not guaranteed," said Peters.

Over the next few weeks the transportation department will work with Denver and the other finalist cities to evaluate their traffic plans to see if they can reduce traffic immediately.

"For too long, growth has brought longer traffic jams to America's cities," said Peters. "Cities can thrive and grow without having the kind of traffic jams that commuters from Aurora to Littleton experience every day."

Additional Information:

Click here to view the plans for U.S. Highway 36.