BILL ANALYSIS Ó AB 194 Page 1 Date of Hearing: April 29, 2015 ASSEMBLY COMMITTEE ON APPROPRIATIONS Jimmy Gomez, Chair AB 194 (Frazier) - As Amended April 7, 2015 ----------------------------------------------------------------- |Policy |Transportation |Vote:|14 - 1 | |Committee: | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | ----------------------------------------------------------------- Urgency: No State Mandated Local Program: NoReimbursable: No SUMMARY: This bill extends indefinitely the California Transportation Commission's (CTC's) authority to approve regional transportation agencies' applications to develop and operate high-occupancy toll (HOT) lanes, and expands the authority to AB 194 Page 2 include applications submitted by Caltrans in cooperation with a regional transportation agency. Specifically, this bill: 1)Authorizes Caltrans to apply to CTC to develop and operate HOT lanes using essentially the same process previously used by regional transportation agencies. 2)Extends indefinitely the process whereby CTC reviews and approves applications from regional transportation agencies to develop and operate HOT lanes. 3)Deletes the limitation on the number of HOT lane applications (currently four) that CTC may approve. 4)Requires regional transportation agencies, but not Caltrans, to reimburse CTC for its costs and expenses in reviewing HOT lane applications. 5)Directs CTC to develop guidelines for the development and operation of HOT lanes approved by the commission after January 1, 2016, subject to the following minimum requirements: a) HOT lane facilities must be developed and operated in cooperation between Caltrans and regional transportation agencies and the CHP. b) The applicant is responsible for establishing, collecting, and administering tolls, and for paying for the maintenance of the facilities from net toll revenues. c) Toll revenue will be available to the applicant for direct expenses, and excess revenue is to be used in the corridor from which it was generated. d) Development of a HOT lane shall not prevent competing facilities from being constructed and the applicant shall not be entitled to compensation for the adverse effects on toll revenues because of competing facilities. AB 194 Page 3 6)Provides authority for regional transportation agencies to bond against toll revenues. 7)Stipulates that none of the authority provided above allows nor prohibits conversion of any existing non-tolled or non-user-fee lanes into tolled or user-fee lanes, except for the conversion of HOV lanes to HOT lanes. FISCAL EFFECT: Based on substantially similar legislation in 2014, the CTC will need to update its guidelines for HOT lanes and implement and oversee the approval process, as well as perform independent financial analysis and operational analysis of HOT lane applications. Ongoing costs for one senior-level position would be around $190,000 (State Highway Account), and consulting costs to review each application would be around $300,000. The consulting costs would be reimbursed for applications by regional transportation agencies. COMMENTS: 1)Background and Purpose. HOT lanes allow single-occupant or lower-occupancy vehicles to use a high-occupancy vehicle (HOV) lane for a fee, while maintaining free or reduced travel to qualifying HOVs. This is intended to enhance mobility and travel options in congested corridors and to take advantage of underutilized HOV lanes. In 1993, the San Diego Association of Governments was first granted legislative authority to operate a HOT lane, on Interstate 15. AB 2032 (Dutra)/Statutes of 2004, authorized HOT lane facilities in Alameda, San Diego, and Santa Clara counties. With the successful implementation of these programs, which were originally authorized as demonstration AB 194 Page 4 programs then extended indefinitely, the Legislature delegated responsibility for approving toll facilities to the CTC (AB 1467 (Nunez)/Statutes of 2005). This delegation was limited to no more than four projects. In 2013, the Governor directed the California State Transportation Agency (CalSTA) to convene a workgroup to, among other tasks, explore long-term, pay-as-you-go funding options. In February of last year, CalSTA released its vision and interim recommendations, which included: a) Working with the Legislature to expand Caltrans' use of pricing and express lanes to better manage congestion and the operation of the state highway system while generating new revenues for preservation and other corridor improvements. b) Supporting efforts to maintain and expand the availability of local funds dedicated to transportation improvements. Consistent with this direction, SB 194 expands the potential for HOT lanes in California by granting CTC broad, indefinite authority to review and approve HOT lane applications submitted by regional transportation agencies and by Caltrans. 2)Related Legislation. The administration is proposing similar legislation as a trailer bill to the 2015-16 Budget Act. 3)Prior Legislation. SB 983 (Hernández), which was substantially similar to this bill, was held on this committee's Suspense file. Analysis Prepared by:Chuck Nicol / APPR. / (916) 319-2081 AB 194 Page 5