BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  SB 1298
                                                                  Page  1

          Date of Hearing:   August 6, 2014

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                  SB 1298 (Hernandez) - As Amended:  June 17, 2014 

          Policy Committee:                              
          TransportationVote:12-1

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:               

           SUMMARY  

          This bill repeals authority for the Los Angeles County  
          Metropolitan Transportation Authority (LACMTA) to operate a  
          value-pricing and transit development program involving  
          high-occupancy toll (HOT) lanes on State Routes (SRs) 10 and 110  
          and instead provides LACMTA authority to operate the program  
          indefinitely.  The bill also recasts the program by:

          1)Specifically authorizing LACMTA to continue requiring  
            high-occupancy vehicles to have an electronic transponder for  
            enforcement purposes.

          2)Requiring revenue generated to also be used for maintenance of  
            the state highway facilities related to the HOT lanes.

          3)Allowing revenue generated beyond that needed to operate and  
            maintain the program and facilities to also be used for  
            improvements in the transportation corridor from where the  
            revenue was generated.

           FISCAL EFFECT  

          Caltrans indicates that the two HOT lanes have generated nearly  
          $17 million in toll revenue in the first 10 months of operation.  
          Under its agreement with LACMTA, Caltrans is reimbursed for its  
          associated operational and maintenance expenditures.

           COMMENTS  

           Background and Purpose  . In 2008, the U.S. Department of  
          Transportation awarded LACMTA and Caltrans a $210 million  








                                                                  SB 1298
                                                                  Page  2

          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 SB 1422  
          (Ridley-Thomas)/Statutes of 2008, provided for congestion  
          pricing (by converting HOV lanes to HOT lanes) on SR 10 and SR  
          110, improved transit service, 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. SB 1422 extended state authority for the  
          program to January 2013, and AB 1224 (Eng)/Statutes of 2010  
          further extended authority until January 2015.

          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. 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.

          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  
          except as described in the summary above.

           Analysis Prepared by  :    Chuck Nicol / APPR. / (916) 319-2081