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:
AB 1224 (ENG) Page 2
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.
AB 1224 (ENG) Page 3
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
AB 1224 (ENG) Page 4
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.
AB 1224 (ENG) Page 5
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.