BILL ANALYSIS                                                                                                                                                                                                    






           SENATE TRANSPORTATION & HOUSING COMMITTEE       BILL NO: AB 1224
          SENATOR ALAN LOWENTHAL, CHAIRMAN               AUTHOR:  Eng
                                                         VERSION: 4/27/10
          Analysis by:  Jennifer Gress                   FISCAL:  yes
          Hearing date:  June 15, 2010





          SUBJECT:

          High-occupancy toll (HOT) lanes in Los Angeles

          DESCRIPTION:

          This bill extends the sunset and reporting dates for the HOT  
          lane facilities under development on state highway routes 10 and  
          110 in Los Angeles by two years from January 2013 to January  
          2015.

          ANALYSIS:

          In 2008, the Legislature passed and the Governor signed SB 1422  
          (Ridley-Thomas), Chapter 547, to allow the Los Angeles County  
          Metropolitan Transportation Authority (Metro), in cooperation  
          with the California Department of Transportation (Caltrans), to  
          operate a value- pricing and transit development demonstration  
          program.  Under this program, which Metro refers to as  
          "ExpressLanes," the high-occupancy vehicle (HOV) lanes on  
          portions of I-10 and I-110 in Los Angeles County will be  
          converted to HOT lanes whereby single-occupant vehicles may  
          access the HOV lane for a fee.  

          HOT lanes typically employ a pricing method known as value  
          pricing or congestion pricing.  Under this scheme, the amount of  
          the fee (toll) varies in accordance with traffic congestion  
          levels such that as congestion on the HOT lanes increases so too  
          will the toll amount.  As the price to use the facility goes up,  
          fewer people will choose to use it thereby reducing demand for  
          the facility and maintaining free-flow travel conditions.

          SB 1422 established the conditions under which Metro may  
          implement the program, including the following:






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           Metro may not change the minimum vehicle occupancy standard  
            for access to the HOV lane during the demonstration period.



           Each proposed HOT lane shall have nontolled alternatives  
            available for public use in the same corridor.



           Toll revenues generated from the program may be used for the  
            direct expenses related to the maintenance, administration,  
            and operation, including collection and enforcement, of the  
            demonstration program.  Administrative expenses are capped at  
            three percent of toll revenues.



           All revenues in excess of those necessary for the  
            implementation of the program shall be used in the corridor  
            from which the revenue was generated exclusively for  
            preconstruction, construction, and related costs of HOV  
            facilities and the improvement of transit service in the  
            corridor, pursuant to an expenditure plan adopted by Metro.



          In addition, Metro is required to conduct a public outreach plan  
          to solicit input in the development of the demonstration  
          program.  It is also required to identify the affected  
          communities and work with those communities to identify impacts  
          and develop measures to mitigate those impacts.



          Under existing law, Metro and Caltrans shall, by December 31,  
          2012, provide a report to the Legislature on the impacts of the  
          program.  The authority to operate the value-pricing and transit  
          development program expires January 15, 2013.

           This bill  :

           Extends by two years the sunset date on the value-pricing and  
            transit development program in Los Angeles from January 15,  
            2013 to January 15, 2015.




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           Extends by two years the date that a report on the program is  
            due to the Legislature from December 31, 2012 to December 31,  
            2014.
          
          COMMENTS:

           1.Purpose  .  According to the author, Metro received $210 million  
            from the U.S. Department of Transportation (U.S. DOT) to  
            develop and operate the Express Lanes project.  The project is  
            governed by a Memorandum of Understanding (MOU) between it,  
            Caltrans, and U.S. DOT. The MOU originally indicated that the  
            ExpressLanes would be operational by December 2010, however,  
            Metro and Caltrans believe the ExpressLanes would operate more  
            efficiently if some critical infrastructure projects were  
            completed in advance of starting operations.  U.S. DOT agreed  
            and, with the understanding that certain infrastructure  
            projects would be completed, the Express Lanes are now  
            expected to begin operating in 2012.  While opening the lanes  
            in 2012 would still allow the demonstration program to operate  
            for a portion of time (less than a year), Metro would like the  
            additional time to allow for a fair evaluation of congesting  
            pricing in Los Angeles.  The author contends that the $210  
            million in federal funding is at risk if Metro obtains less  
            than 12 months of data from the demonstration program.  In  
            order to ensure a fair evaluation of congestion pricing in Los  
            Angeles County and remain eligible for the full amount of  
            federal funding, Metro would like to complete critical road  
            improvements that enhance capacity and relieve bottlenecks in  
            the corridors.  

           2.Why the delay  ?  According to Caltrans and Metro, there are  
            several reasons for the delay.  First, when Metro initially  
            applied for the federal funds, it assumed the environmental  
            document would be a Finding of No Significant Impact (FONSI)  
            and that only nominal construction would be needed as the  
            project would be converting existing HOV lane facilities into  
            HOT lanes.  Because the Metro Board of Directors raised  
            concerns about bottlenecks on SR 110 and SB 1422 prohibited  
            Metro from increasing occupancy standards on the HOV/HOT lanes  
            during the demonstration period, increasing operational  
            efficiency on the HOV/HOT lanes on both SR 10 and SR 110 prior  
            to implementing the demonstration program became a priority.   
            Metro identified several physical improvements to both.  The  
            work on SR 110, however, is being coordinated with that which  
            is occurring on the Expo Line Light Rail project in the same  




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            area.  The work on SR 10 conflicts with a rehabilitation  
            project that is currently underway (and behind schedule).   
            Finally, Metro opted to complete a full Environmental Impact  
            Report for the demonstration program, which requires more time  
            to complete than if Metro had made a finding of no significant  
            impact. 

           3.Length of demonstration program  . When SB 1422 was heard in  
            this committee in August 2008, the MOU between U.S. DOT,  
            Caltrans, and Metro stipulated that the HOT lanes must be  
            placed in service by December 31, 2010.  With a sunset date of  
            January 15, 2013,          SB 1422 established a demonstration  
            program of about two years in length.  With the physical  
            improvements planned, Metro estimates that SR 110 will become  
            operational in September 2012 and SR 10 will become  
            operational in December 2012, which will keep the  
            demonstration program at just over two years in length.
           
           4.Description of Metro's ExpressLanes project  .  The intent of  
            the ExpressLanes project is to test innovative strategies to  
            alleviate congestion, maximize freeway capacity, and enhance  
            transit alternatives in the I-10 and I-110 corridors.  A large  
            component of the program is to convert certain segments of HOV  
            lanes into HOT lanes whereby single-occupant vehicles may  
            access the lane for a fee.  In addition to allowing  
            single-occupant vehicles to use the lanes for a fee, Metro  
            intends to increase bus service that currently operates in  
            those HOV lanes and make a variety of improvements to transit  
            facilities in the region.

            I-110 currently has two HOV lanes in each direction.  Metro's  
            proposal involves converting the 11-mile segment of the HOV  
            lane that extends in both directions from 182nd Street/Artesia  
            Transit Center to Adams Boulevard into a HOT lane.  The  
            minimum occupancy standard for this facility is 2+ persons per  
            vehicle. 
           
            The I-10 HOV lane is a single lane in each direction.  Metro  
            will convert a14-mile segment extending from Alameda  
            Street/Union Station to I-605 into a HOT lane.  Under the  
            demonstration program, a buffer zone that currently exists  
            within that 14-mile segment will be removed in order to  
            establish a second HOT lane.  This second lane will extend for  
            9 of the 14 miles.  The minimum occupancy standard for this  
            facility is 2+ per vehicle except for during peak commute  
            hours at which time the minimum is increased to three.  




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            Both facilities will involve electronic tolling using  
            technology similar to FasTrak utilized on other toll  
            facilities in the state.  There will be no tollbooths where  
            motorists may pay their toll in cash. The HOT lanes will  
            utilize dynamic pricing whereby the price of tolls may change  
            as frequently as once every five minutes to manage demand for  
            use of the facility.  The HOT lanes had been expected to  
            become operational in January 2011 with conclude January 2013.
          
          Assembly votes are not relevant.

          POSITIONS:  (Communicated to the Committee before noon on  
          Wednesday,  
                     June 9, 2010)

               SUPPORT:  Los Angeles County Metropolitan Transportation  
          Authority (sponsor)
          
               OPPOSED:  None received.