BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



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          |SENATE RULES COMMITTEE            |                  AB 1224|
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                                 THIRD READING


          Bill No:  AB 1224
          Author:   Eng (D)
          Amended:  4/27/10 in Senate
          Vote:     21

           
           SENATE TRANSPORTATION & HOUSING COMMITTEE  :  8-0, 6/15/10
          AYES:  Lowenthal, Huff, Ashburn, DeSaulnier, Harman, Kehoe,  
            Pavley, Simitian
          NO VOTE RECORDED:  Oropeza
           
          SENATE APPROPRIATIONS COMMITTEE  :  Senate Rule 28.8

           ASSEMBLY FLOOR  :  68-0, 1/27/10 (Consent) - See last page  
            for vote


           SUBJECT  :    High-occupancy toll lanes:  Los Angeles

           SOURCE  :     Los Angeles County Metropolitan Transportation  
          Authority


           DIGEST  :    This bill extends the sunset and reporting dates  
          for the high-occupancy toll 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 (LACMTA), in cooperation with the Department of  
          Transportation (Caltrans), to operate a value- pricing and  
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          transit development demonstration program.  Under this  
          program, which LACMTA refers to as "ExpressLanes," the  
          high-occupancy vehicle (HOV) lanes on portions of  
          Interstate 10 and Interstate 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 LACMTA may  
          implement the program, including the following:

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

          2. Each proposed HOT lane shall have non-tolled  
             alternatives available for public use in the same  
             corridor.

          3. 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.

          4. 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 LACMTA.

          In addition, LACMTA is required to conduct a public  
          outreach plan to solicit input in the development of the  

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          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, LACMTA 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 on  
          January 15, 2013.
           
           This bill:

          1. 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.

          2. 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  

           Why the delay  ?  According to Caltrans and LACMTA, there are  
          several reasons for the delay.  First, when LACMTA  
          initially applied for the federal funds, it assumed the  
          environmental document would be a Finding of No Significant  
          Impact and that only nominal construction would be needed  
          as the project would be converting existing HOV lane  
          facilities into HOT lanes.  Because LACMTA Board of  
          Directors raised concerns about bottlenecks on State Route  
          (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.   
          LACMTA 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 area.  The work on SR 10 conflicts with a  
          rehabilitation project that is currently underway (and  
          behind schedule).  Finally, LACMTA opted to complete a full  
          Environmental Impact Report for the demonstration program,  
          which requires more time to complete than if LACMTA had  

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          made a finding of no significant impact. 

           Description of LACMTA'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.   
          LACMTA'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  
          two-plus persons per vehicle. 

          The I-10 HOV lane is a single lane in each direction.   
          LACMTA 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 nine of the 14 miles.  The minimum occupancy standard  
          for this facility is two-plus per vehicle except for during  
          peak commute hours at which time the minimum is increased  
          to three.  

          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.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    

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          Local:  No

           SUPPORT  :   (Verified  6/29/10)

          Los Angeles County Metropolitan Transportation Authority  
          (source)


           ARGUMENTS IN SUPPORT  :    According to the author's office,  
          LACMTA received $210 million from the United States  
          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 the 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 ExpressLanes 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), LACMTA would like the  
          additional time to allow for a fair evaluation of  
          congesting pricing in Los Angeles.  The author's office  
          contends that the $210 million in federal funding is at  
          risk if LACMTA 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,  
          LACMTA would like to complete critical road improvements  
          that enhance capacity and relieve bottlenecks in the  
          corridors.  


           ASSEMBLY FLOOR  : 
          AYES:  Adams, Ammiano, Anderson, Arambula, Beall, Bill  
            Berryhill, Tom Berryhill, Blakeslee, Block, Blumenfield,  
            Bradford, Brownley, Buchanan, Caballero, Charles  
            Calderon, Chesbro, Cook, Coto, De La Torre, Emmerson,  
            Eng, Evans, Feuer, Fletcher, Fong, Fuentes, Fuller,  
            Furutani, Gaines, Galgiani, Garrick, Gilmore, Hagman,  
            Harkey, Hayashi, Hernandez, Hill, Huber, Huffman,  

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            Jeffries, Jones, Knight, Lieu, Logue, Bonnie Lowenthal,  
            Ma, Mendoza, Miller, Monning, Nava, Nestande, Niello,  
            Nielsen, John A. Perez, Portantino, Ruskin, Saldana,  
            Silva, Skinner, Smyth, Solorio, Audra Strickland,  
            Swanson, Torres, Torrico, Tran, Villines, Yamada
          NO VOTE RECORDED:  Carter, Conway, Davis, De Leon, DeVore,  
            Hall, V. Manuel Perez, Salas, Torlakson, Bass


          JJA:mw  6/29/10   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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