BILL ANALYSIS Ó AB 194 Page 1 ASSEMBLY THIRD READING AB 194 (Frazier) As Amended June 1, 2015 Majority vote ------------------------------------------------------------------- |Committee |Votes |Ayes |Noes | | | | | | | | | | | |----------------+------+--------------------+----------------------| |Transportation |14-1 |Frazier, Achadjian, |Kim | | | |Baker, Bloom, | | | | |Campos, Chu, Daly, | | | | |Dodd, Gomez, | | | | |Linder, Medina, | | | | |Melendez, Nazarian, | | | | |O'Donnell | | | | | | | |----------------+------+--------------------+----------------------| |Appropriations |11-3 |Gomez, Bonta, |Bigelow, Jones, | | | |Calderon, Daly, |Wagner | | | |Eggman, | | | | | | | | | | | | | | |Eduardo Garcia, | | | | |Gordon, Holden, | | | | |Quirk, Rendon, Wood | | | | | | | | | | | | ------------------------------------------------------------------- AB 194 Page 2 SUMMARY: Extends indefinitely the California Transportation Commission's (CTC's) authority to authorize regional transportation agencies to develop and operate high-occupancy toll (HOT) lanes and expands the authority to include other toll facilities; adds similar authority for the CTC to authorize the California Department of Transportation (Caltrans) to develop toll facilities. Specifically, this bill: 1)Makes legislative findings and declarations regarding the potential benefits of toll facilities. 2)Sets forth a process whereby Caltrans can apply to CTC for authorization to develop and operate HOT lanes and other toll facilities. 3)Extends indefinitely the process whereby CTC reviews and approves applications from regional transportation agencies, in cooperation with Caltrans, to develop and operate HOT lanes and other toll facilities, including preferential lanes for transit and freight. 4)Deletes the limitation on the number (four) of HOT lane applications CTC may approve, thereby granting open-ended authority to approve applications. 5)Directs CTC to develop guidelines to evaluate and approve applications submitted by regional transportation agencies for the development and operation of HOT lanes and other toll facilities, subject to specific minimum requirements. 6)Explicitly provides that the authority being granted to develop toll facilities does not prevent other agencies from constructing facilities that compete with a toll facility. 7)Authorizes regional transportation agencies to bond against toll AB 194 Page 3 revenue. 8)Requires a regional transportation agency to give a local transportation agency within its jurisdiction the option to enter into an agreement to govern a toll project authorized under provisions of this bill. FISCAL EFFECT: According to the Assembly Appropriations Committee, 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: HOT lanes are increasingly being implemented in metropolitan areas around the state and the nation, primarily to deal with increased congestion. 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. The acknowledged benefits of HOT lanes include enhanced mobility and travel options in congested corridors and better usage of underutilized HOV lanes. This bill expands the potential for toll facilities in California by granting CTC broad, indefinite authority to review and approve toll facility applications submitted by regional transportation agencies and by Caltrans. This bill builds on the authority previously granted to regional transportation agencies and is consistent with protocols that have evolved to guide development of the HOT lane programs, such as the requirement that any excess revenue be used in the corridor in which it was generated. AB 194 Page 4 Regional transportation agencies up and down the state, as well as Caltrans, struggle with meeting the challenges of increasing traffic congestion and decreasing transportation revenue. Although HOT lanes should be primarily a congestion management tool, they may have the added benefit of generating net revenue that can be put back into the corridor from which it was generated for additional improvements or other benefits. Given the success of multiple HOT lane demonstration programs to date, it is appropriate now to provide an administrative process whereby regional transportation agencies and Caltrans can work together with CTC to develop and operate toll facilities. This bill defines clear roles and responsibilities between Caltrans and regional transportation agencies in the development of toll facilities. In cooperation with one another, this bill appropriately places control of a facility's tolling policy and toll revenue with whatever agency is bearing the responsibility and financial risk to develop the program, under prescribed requirements. Furthermore, this bill includes provisions that ensure that not only do Caltrans and regional transportation agencies work cooperatively but that a regional transportation agency and local transportation agencies within its jurisdiction work cooperatively as well. Finally, this bill makes it clear that the authority to develop toll lanes does not in any way include the conversion of existing non-tolled or nonuser-fee lanes into tolled or user-fee lanes, either by authorizing them or prohibiting them. Any efforts to implement such a conversion will require separate statutory authority. Please see the policy committee analysis for full discussion of this bill. AB 194 Page 5 Analysis Prepared by: Janet Dawson / TRANS. / (916) 319-2093 FN: 0000643