BILL ANALYSIS Ó
SB 1298
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Date of Hearing: June 23, 2014
ASSEMBLY COMMITTEE ON TRANSPORTATION
Bonnie Lowenthal, Chair
SB 1298 (Hernandez) - As Amended: June 17, 2014
SENATE VOTE : 31-0
SUBJECT : Value-pricing and transit development program: Los
Angeles County Metropolitan Transportation Authority
SUMMARY : Repeals and recasts specific authority for the Los
Angeles County Metropolitan Transportation Authority (LACMTA) to
operate a value-pricing and transit development program
(program) including high-occupancy toll (HOT) lanes on State
Route (SR) 10 and SR 110. Specifically, this bill :
1)Repeals LACMTA's authority to operate a value-pricing and
transit development demonstration program on SR 10 and SR 110
involving HOT lanes; instead, recasts authority for LACMTA to
conduct, administer, and operate the program indefinitely and
generally under the same terms and conditions that governed
the demonstration program.
2)Explicitly authorizes LACMTA to continue to require high
occupancy vehicle lanes (HOVs) to have electronic transponders
or other electronic devices for enforcement purposes.
3)Directs LACMTA to implement the program in cooperation with
the California Department of Transportation (Caltrans) and
with the active participation of the California Highway Patrol
(CHP), pursuant to agreements between the parties.
4)Directs LACMTA to establish, with Caltrans' consent,
appropriate performance measures (such as speed or travel
times) for the purpose of ensuring optimal use of the HOT
lanes without affecting other traffic on the state highway
system.
5)Requires agreements between LACMTA, Caltrans, and CHP to
provide for reimbursement to the state agencies from toll
revenues, or other funding sources that are not otherwise
available to state agencies for transportation-related
projects, for costs incurred in connection with implementation
or operation of the HOT lanes and for maintenance of state
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highway facilities related to the HOT lanes.
6)Explicitly authorizes, pursuant to an expenditure plan adopted
by LACMTA, all remaining revenue to be used in the corridor in
which it was generated for preconstruction, construction, and
other related costs of HOV facilities, transportation corridor
improvements, and improved transit service in the corridor.
7)Limits LACMTA's administrative expenses related to the
operation of the program to 3% of the revenue.
8)Directs LACMTA to continue to work with affected communities
to provide mitigation measures for commuters of low income,
including reduced toll charges and toll credits for transit
users.
9)Requires LACMTA and Caltrans, by January 31, 2015, to report
on a number of specific elements related to the HOT lanes.
10)Provides that neither Caltrans nor any local agency can be
prohibited from constructing toll facilities that compete with
the HOT lanes, and states that LACMTA is not entitled to
compensation for any adverse effects on toll revenue due to
competing facilities.
11)Grants LACMTA authority to issue revenue bonds related to the
program.
EXISTING LAW :
1)Authorized, until January 1, 2012, the California
Transportation Commission (CTC) to approve applications from
regional transportation agencies to develop and operate HOT
lanes consistent with establish standards, requirements, and
limitations set forth by reference to other provisions of
existing law that authorize specific HOT lane facilities in
San Diego, Santa Clara, and Alameda counties.
2)Limited CTC to approving no more than four applications: two
in northern California and two in southern California.
3)Authorizes LACMTA's value-pricing and transit development
demonstration program as one of the four allowable HOT lane
facilities until January 15, 2015, pursuant to specified
conditions.
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4)Requires LACMTA, by December 31, 2014, to report to the
Legislature on the results of the demonstration program.
FISCAL EFFECT : Unknown
COMMENTS : In 2008, the United State Department of
Transportation awarded LACMTA and Caltrans a $210 million
federal grant to implement the LACMTA ExpressLanes Program, one
of six Urban Partnership demonstration projects competitively
selected to deploy innovative programs to reduce congestion
through the implementation of congestion pricing. The one-year
demonstration program, ratified by enactment of SB 1422
(Ridley-Thomas), Chapter 547, Statutes of 2008, provided for
congestion pricing (by converting HOV lanes to HOT lanes) on SR
10 and SR 110; improved transit service (including $140 million
in transit improvements and 59 new buses) and other alternatives
to driving; updated transit facilities; and demand-based parking
pricing in downtown Los Angeles. Additionally, LACMTA
instituted an equity plan to offer low-income Los Angeles County
residents a one-time $25 toll credit and an automatic waiver of
the monthly account maintenance fee.
The stated goals of LACMTA's ExpressLanes Program are to
leverage pricing for sustainable change that creates travel time
savings, increases trip reliability, creates cost savings, and
improves air quality. The program provides the option for
single-occupant drivers to use the HOV lane for a fee ranging
from 25[ a mile to $1.40 a mile. Carpools, vanpools, buses, and
motorcycles travel toll-free. General purpose lanes are not
tolled.
LACMTA's federal Urban Partnership grant required a formal
evaluation of the demonstration program by an independent firm
retained by the Federal Highway Administration. Preliminary
results of the evaluation indicate that the demonstration
projects are generally accomplishing many of their goals and
objectives. For instance, public acceptance of the project is
generally high and congestion reduction, although not
immediately realized, is increasingly improving.
The evaluation also found that LACMTA's equity plan enrolled
more than 4,000 low-income households and issued more than
$100,000 in toll credits. The program also resulted in net
tolls of roughly $20 million, which is to be spent in three
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categories pursuant to an expenditure plan adopted by LACTMA for
reinvestment in local communities: 40% for transit users, 40%
for active transportation/system connectivity, and 20% for
highway use.
SB 1298 sets forth provisions to govern LACMTA's HOT lanes going
forward after its successful demonstration period. These
provisions generally mirror the original demonstration program
and reflect similar statutory authority granted to other
transportation agencies to develop and operate HOT lanes. There
are some notable differences, however, between the authority
granted in this bill versus the demonstration program. For
example, provisions specifically related to the start-up of the
demonstration program are not included in the ongoing authority
provided for in this bill, such as requirements for public
outreach, communication plans, and public hearings. However, SB
1298 still requires LACMTA to work with affected communities to
provide ongoing mitigation measures for commuter of low income,
including reduced tolls and toll credits for transit users.
Furthermore, SB 1298 explicitly provides that LACMTA has the
authority to continue to require HOVs to use an electronic toll
tag for enforcement purposes and would allow LACMTA to change
the minimum occupancy standard for free access to the HOT lane.
SB 1298 deviates from other HOT lane statutes in that it
specifically authorizes the use of toll revenues to pay for
transportation corridor improvements, including improvements
that may or may not be directly linked to the HOT lane facility
so long as the improvements are in the same corridor as the HOT
lane. These improvements might include, for instance,
ingress/egress modifications or intelligent transportation
systems for better corridor efficiencies. Statutory authority
for other transportation agencies restricts toll revenue
expenditures to improvements to the HOT lane directly or to
transit operations in the corridor. The exception to this is
Riverside County's HOT lane authority which allows toll revenues
to be used for other transportation corridor improvements in the
corridor.
SB 1298 further deviates from established HOT lane parameters in
that it requires LACMTA to reimburse Caltrans for maintenance of
HOT lane facilities. The issue of using HOT lane revenue to pay
for state highway maintenance is generating increasingly hearty
debates between state and regional transportation agencies.
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Some have suggested that the state is entitled to a share of HOT
lane revenues as a "return on its investment" in the state
highway system. Revenues received from HOT lanes could be
applied to the state's woefully underfunded maintenance program.
The Self-Help Counties Coalition (SHCC) takes a different,
although not necessarily mutually exclusive view. In a letter
dated February 9, 2014, SHCC outlines its recommendations for
policies and guidelines related to managed lanes, such as HOT
lanes. SHCC asserts that decisions over revenue allocation
should rest with the agency assuming the project development,
construction, and financing risk. (In SB 1298, that agency is
LACMTA.) Although SHCC suggests that local and regional
agencies should work with Caltrans to ensure corridor system
management tools such as tolls are used effectively, any amount
of revenue dedicated to maintenance of adjacent general purpose
lanes, for example, should be determined by the regional agency,
albeit in consultation with Caltrans.
Numerous community groups, economic development agencies, and
other regional transportation agencies support efforts to extend
the ExpressLane program, citing benefits of improved travel
throughout the community and the potential to generate revenue
for additional transportation improvements. There is no
opposition to this bill concerning the continuation of LACMTA's
ExpressLanes. (The Department of Finance expressed opposition
to provisions in an earlier version of the bill that have since
been deleted.)
Technical concerns : Existing law requires LACMTA and Caltrans
to report to the Legislature on the results of the original
ExpressLanes demonstration program by December 31, 2014. SB
1298 repeals this requirement on January 1, 2015. The Senate
Transportation and Housing Committee, concerned that the
original report requirement may not be fulfilled, asked that SB
1298 be amended to reinstate the same report requirement but to
push the due date out one month, until January 31, 2015, so that
report requirement would remain operative.
The problem is that this amendment effectively requires LACMTA
to submit two reports-one by December 31, 2014, under existing
law and the second by January 31, 2015, under provisions of SB
1298. Before this bill passes the Legislature, the author
should resolve this conflict so that LACMTA is not required to
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submit two reports and so that Senate Transportation and Housing
retains some measure of comfort that the report requirement will
be fulfilled.
Related legislation : AB 2250 (Daly) requires any revenue
generated in managed lanes to be used in the corridor in which
it was generated. That bill is in Senate Transportation and
Housing.
SB 983 (Hernández) provides regional transportation agencies the
opportunity to apply to the CTC for approval to operate HOT
lanes. SB 983 is scheduled to be heard in this committee on
June 23, 2014.
Previous legislation : SB 1422 (Ridley-Thomas), Chapter 547,
Statutes of 2008 authorized LACMTA's value-pricing and transit
development demonstration project.
REGISTERED SUPPORT / OPPOSITION :
Support
Los Angeles County Metropolitan Transportation Authority
(sponsor)
Avalon Church of Christ
Bethany Baptist Church of West Los Angeles
Bible Enrichment Fellowship International Church
Bryant Temple African American Episcopal Church
Christ the Good Shepherd Episcopal Church
Christian's Community Center
City on the Hill
Congregation Church of Christian Fellowship
Divine Deliverance Ministries
Foothill Transit
Grace Temple Baptist Church
Greater True Light Missionary Baptist Church, Inc.
Greater Zion Church Family
HNTB
LAX Coastal Chamber of Commerce
Los Angeles County 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
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New Shady Grove Missionary Baptist Church
Paradise Baptist Church
Saint Paul Baptist Church
San Bernardino Associated Governments
San Gabriel Valley Economic Partnership
San Gabriel Valley Economic Partnership
Self-Help Counties Coalition
Southern California Association of Governments
St. Andrews Missionary Baptist Church
The Music Center
True Friendship Missionary Baptist Church
True Vine Baptist Church
Weller Street Missionary Baptist Church
Opposition
Professional Engineers in California Government
Department of Finance
Analysis Prepared by : Janet Dawson / TRANS. / (916) 319-2093