BILL ANALYSIS                                                                                                                                                                                                    �



                                                                            



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                                    THIRD READING


          Bill No:  SB 242
          Author:   Wyland (R), et al.
          Amended:  4/23/13
          Vote:     21

           
           SENATE TRANSPORTATION & HOUSING COMMITTEE  :  10-0, 4/16/13
          AYES:  DeSaulnier, Gaines, Beall, Cannella, Galgiani, Hueso,  
            Lara, Liu, Roth, Wyland
          NO VOTE RECORDED:  Pavley

           SENATE APPROPRIATIONS COMMITTEE  :  Senate Rule 28.8


           SUBJECT  :    Highway toll collection pilot programs

           SOURCE  :     TransCore


           DIGEST  :    This bill permits, until January 1, 2018, the  
          Department of Transportation (Caltrans) or local and regional  
          transportation agencies to conduct a pilot program of  
          alternative electronic toll collection (ETC) technologies.  

           ANALYSIS  :    Toll agencies may employ an automatic vehicle  
          identification system to facilitate toll operations, such as the  
          FasTrak transponder that is commonly used in California.  These  
          systems allow subscribers to prepay tolls thereby eliminating  
          the need to stop and pay at a toll plaza. 

          Last summer, United States Congress passed and the President  
          signed the surface transportation reauthorization bill, the  
          Moving Ahead for Progress in the 21st Century Act (MAP-21).   
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          Among MAP-21's many provisions is the requirement that all  
          highway toll facilities that were constructed with federal funds  
          implement technologies or business practices that provide for  
          the interoperability of ETC by October 1, 2016.  The goal of  
          interoperability is that pre-paid toll customers are able to pay  
          tolls on any participating toll facility in the country using a  
          single account.  Currently, there are roughly 10 different ETC  
          system standards in use around the country with varying degrees  
          of interoperability between states. 

          Existing law requires that the Caltrans and toll operators  
          develop functional specifications and standards for ETC systems  
          to ensure interoperability between systems in the state.  These  
          specifications rely on radio-frequency identification (RFID)  
          technologies, which involve a transmitter in each vehicle and a  
          reader to process the vehicle as it enters the toll facility.   
          While state toll operators have achieved interoperability  
          between toll facilities within the state, California toll  
          collection devices are not currently interoperable with  
          out-of-state toll facilities.

          In 2010, the Legislature passed SB 1268 (Simitian, Chapter 489,  
          Statutes of 2010) which established privacy protections for  
          subscribers to ETC systems and anyone else using toll  
          facilities.  Specifically, the bill prohibited transportation  
          agencies from selling or otherwise providing personally  
          identifiable information about their subscribers, with some  
          minor exceptions such as for law enforcement purposes or to  
          comply with the state's interoperability efforts.

          This bill 

           1. Permits, until January 1, 2018, Caltrans or local and  
             regional transportation agencies to conduct a pilot program  
             of alternative ETC technologies to the existing RFID  
             technology by exempting the pilot program from the state's  
             interoperability requirements.  The pilot projects may last  
             up to four years.

           2. Specifies the agencies are not required to post any signs  
             specific to the pilot program.

           3. Requires any participating agency submit a summary report to  
             the Legislature and the Governor within four years of  

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             commencing the pilot program, that discusses the following:

                   The effectiveness of the technology,
                   Market performance,
                   Congestion management results,
                   Safety issues,
                   Implementation and related management obstacles and  
                opportunities, and
                   Other relevant factors.

           1. Requires the alternative technology vendor must cover all  
             related costs incurred by the state or participating agency,  
             including the preparation of the required report.

           2. Specifies an agency may only conduct a pilot program if it  
             does not result in a reduction in federal aid highway funds.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  No

           SUPPORT  :   (Verified  5/7/13)

          TransCore (source)
          Smart Plate Mobile

           OPPOSITION  :    (Verified  5/7/13)

          Department of Finance

           ARGUMENTS IN SUPPORT  :    According to the author's office,  
          encouraging alternatives to existing RFID tolling technology has  
          the potential to save millions of dollars in infrastructure  
          costs while accelerating toll revenues that can be reinvested  
          back into needed infrastructure.  Existing law only authorizes  
          RFID technologies for toll collection in the state, which has  
          eliminated the option to apply new and advanced technologies to  
          toll collection.  Utilizing infrastructure-free technology such  
          as global positioning system or existing cellular networks may  
          provide for lower cost tolling infrastructure and lower  
          operating costs.  This bill creates the opportunity for regions  
          to create limited pilot projects to test these new technologies  
          and determine their feasibility, with the intention of enabling  
          technology to help us address our transportation challenges at  
          reduced costs.

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           ARGUMENTS IN OPPOSITION  :    The Department of Finance (DOF)  
          states this bill is unnecessary and could lead the state away  
          from its current fully interoperable ETC system.  This bill will  
          allow Caltrans, local, and regional agencies to conduct pilot  
          automated toll collection programs outside of established state  
          interoperability standards.

          This bill is intended to encourage development of alternatives  
          to existing RFID tolling technology that may have the potential  
          to save infrastructure costs and accelerate revenue collection.   
          The MAP-21 requires that all electronic toll collection systems  
          in the country be interoperable by October 1, 2016.  Caltrans is  
          concerned that this bill will jeopardize California's current  
          interoperable toll infrastructure and make it more difficult to  
          comply with planned national standards.


          JA:k  5/7/13   Senate Floor Analyses 

                           SUPPORT/OPPOSITION:  SEE ABOVE

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