BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | SB 1298|
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THIRD READING
Bill No: SB 1298
Author: Hernandez (D)
Amended: 5/7/14
Vote: 21
SENATE TRANSPORTATION & HOUSING COMMITTEE : 11-0, 4/29/14
AYES: DeSaulnier, Gaines, Beall, Cannella, Galgiani, Hueso,
Lara, Liu, Pavley, Roth, Wyland
SENATE APPROPRIATIONS COMMITTEE : 7-0, 5/23/14
AYES: De León, Walters, Gaines, Hill, Lara, Padilla, Steinberg
SUBJECT : High-occupancy toll lanes
SOURCE : Los Angeles County Metropolitan Transportation
Authority
DIGEST : This bill removes specified limitations on the state
high-occupancy toll (HOT) lane program, thereby authorizing any
regional transportation agency to apply to the California
Transportation Commission (CTC) to develop and operate HOT
lanes. This bill also deletes the January 15, 2015 sunset on
the authority for the Los Angeles County Metropolitan
Transportation Authority (LACMTA) to operate HOT lanes on State
Highway Routes (SR) 10 and 110 in Los Angeles County, and revise
and recast those provisions.
ANALYSIS : Until 2012, existing law authorized regional
transportation agencies, in cooperation with the California
Department of Transportation (Caltrans), to apply to the CTC to
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develop and operate HOT lanes. An agency operating a HOT lane
essentially sells excess capacity in under-subscribed
high-occupancy vehicle lanes to single-occupant vehicle drivers
by charging a toll. This authority limited CTC to deeming up to
four HOT lane projects eligible for construction, two in
Northern California and two in Southern California. CTC was
also required to hold public hearings on any eligible project.
The original legislation required the Legislature to ultimately
approve any HOT lane projects deemed eligible by the CTC;
subsequent legislation eliminated the legislative approval
requirement, but failed to identify the replacement entity
ultimately responsible for approving the project.
HOT lanes typically employ a pricing method known as value
pricing or congestion pricing. Under this scheme, the amount of
the toll varies in accordance with the level of congestion in
that particular lane, such that as congestion increases, so too
will the toll amount. As the price to use the lane goes up,
fewer people presumably will choose to use it, thereby reducing
demand for the facility and maintaining free-flow travel
conditions. With this mechanism, an agency can ensure that
operation of the toll facility does not undermine the intended
benefits of promoting carpooling with access to the faster
high-occupancy vehicle lane.
In 2008, following an eligibility review by the CTC, the
Legislature passed and the Governor signed SB 1422
(Ridley-Thomas, Chapter 547), which allowed LACMTA, in
cooperation with Caltrans, to operate a value-pricing and
transit development demonstration program. Under this program,
which LACMTA refers to as "ExpressLanes," LACMTA converted the
high-occupancy vehicle lanes on portions of SR-10 and SR-110 in
Los Angeles County to HOT lanes.
SB 1422 established the conditions under which LACMTA could
implement the program, including the following:
1.LACMTA could implement the program with Caltrans, and needed
Caltrans' consent to establish appropriate performance
measures for ensuring optimal use of the HOT lanes.
2.LACMTA could not change the minimum vehicle occupancy standard
for free access to the HOT lane during the demonstration
period.
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3.Each proposed HOT lane must have non-tolled alternatives
available for public use in the same corridor.
4.LACMTA could use toll revenues generated from the program for
the direct expenses related to the maintenance,
administration, and operation, including collection and
enforcement, of the demonstration program. It could spend no
more than 3% of toll revenues on administration expenses.
5.LACMTA must adopt an expenditure plan in which all revenues in
excess of those necessary for the implementation of the
program are spent in the corridor from which the revenue was
generated exclusively for preconstruction, construction, and
related costs of HOT facilities and the improvement of transit
service in the corridor.
In addition, SB 1422 required LACMTA to conduct a public
outreach plan to solicit input in the development of the
demonstration program, and 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,
2014, provide a report to the Legislature on, among other
things, the impact of the program on carpoolers and affected
communities, as well as how the program impacted transit service
or alternative modes of transportation. The authority for
LACMTA to operate this HOT lane demonstration program expires
January 15, 2015.
This bill:
1.As it pertains to the state HOT lane program:
A. Deletes the 2012 deadline for regional transportation
agencies to submit HOT lane applications to the CTC, and
deletes the limit on the number of facilities that may be
approved by the CTC.
B. Subjects HOT lane proposals to CTC review and approval.
C. Requires the Governor to include resources for the CTC
to fulfill the bill's requirements in the proposed annual
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budget.
1.As it pertains to LACMTA's authority to operate HOT lanes on
SR 10 and 110, SB 1298 deletes the authorizing statute and
recast it by making the following changes:
A. Deleting the sunset date, thereby authorizing LACMTA to
operate the HOT lanes indefinitely.
B. Deleting a prohibition against LACMTA issuing bonds for
the demonstration program.
C. Deleting a requirement that LACMTA get the consent of
Caltrans to establish performance measures ensuring optimal
use of the HOT lanes.
D. Authorizing LACMTA to change the vehicle occupancy
requirement for access to the HOT lanes.
E. Deleting specified conditions under which LACMTA may
implement a demonstration program.
F. Requiring agreements between LACMTA, Caltrans, and the
California Highway Patrol (CHP) to identify obligations,
liabilities, and responsibilities of each party and to
explicitly provide reimbursement of state agencies for
costs related to implementation and operation of the
program and maintenance of the state highway system in
connection with the program.
G. Delaying the deadline for a report to the Legislature by
one month.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
According to the Senate Appropriations Committee:
CTC costs of approximately $200,000 per application for due
diligence reviews and approvals of HOT lane proposals. (State
Highway Account). It is unlikely that more than one or two
proposals would be submitted for approval in a single year.
Caltrans costs for ongoing maintenance and CHP costs for
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ongoing enforcement of new HOT lane facilities would be fully
recovered from toll revenues, pursuant to required agreements
with local agencies.
Unknown costs and revenue gains for local transportation
agencies to develop and operate HOT lanes. For illustrative
purposes, HOT lanes administered by LACMTA generate
approximately $17 million annually.
SUPPORT : (Verified 5/25/14)
Los Angeles County Metropolitan Transportation Authority
(source)
Avalon Church of Christ
Bethany Baptist Church of West Los Angeles
Bible Enrichment Fellowship International Church
Bryant Temple
Christ the Good Shepherd Episcopal Church
Christian's Community Center
City on the Hill
Congregational Church of Christian Fellowship
Divine Deliverance Ministries
Foothill Transit
Grace Temple Baptist Church
Greater True Light M.B.C., Inc.
Greater Zion Church Family
HNTB Corporation
LAX Coastal Chamber of Commerce
Los Angeles Area Chamber of Commerce
Los Angeles County Business Federation
Los Angeles World Airports
Macedonia Baptist Church
Mount Moriah Baptist Church of Los Angeles, Inc.
Mount Zion Missionary Baptist Church
Music Center
New Shady Grove Missionary Baptist Church
Paradise Baptist Church
Saint Paul Baptist Church
San Bernardino Associated Governments
Southern California Association of Governments
St. Andrews Missionary Baptist Church
True Friendship Missionary Baptist Church
True Vine Baptist Church
Weller Street Missionary Baptist Church
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OPPOSITION : (Verified 5/25/14)
Professional Engineers in California Government
ARGUMENTS IN SUPPORT : According to the author, the LACMTA
ExpressLanes demonstration project is considered a success by
stakeholder groups, cities, and local officials. This bill is
necessary to make the project permanent.
ARGUMENTS IN OPPOSITION : The Professional Engineers in
California Government opposes the bill unless it is amended to
provide a reasonable amount of HOT lane revenue to the state for
maintenance and operations of the state highway system.
JA:e 5/25/14 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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