BILL ANALYSIS Ó AB 194 Page 1 CONCURRENCE IN SENATE AMENDMENTS AB 194 (Frazier) As Amended September 4, 2015 Majority vote -------------------------------------------------------------------- |ASSEMBLY: | | (June 3, |SENATE: |27-10 | (September 10, | | |62-17 |2015) | | |2015) | | | | | | | | | | | | | | | -------------------------------------------------------------------- Original Committee Reference: TRANS. 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. The Senate amendments: 1)Combine statutes specific to Caltrans with statutes specific to regional transportation agencies. 2)Add legislative declarations regarding highway tolling. AB 194 Page 2 3)Set forth specific eligibility criteria for the CTC to use in evaluating applications for toll facilities. 4)Limit agencies' administrative expenses related to the operation of the facilities to no more than 3% of toll revenues. 5)Require agencies to demonstrate that projects involving the conversion of high-occupancy vehicles (HOV) lanes to HOT lanes will result in improved efficiency in the corridor. 6)Impose requirements for agreements between regional transportation agencies, Caltrans, and the California Highway Patrol. 7)Expand the lists of purposes for which toll revenue can be used. 8)Allow agencies to require the use of electronic toll collection transponders. 9)Protect statutory authority already granted to the Transportation Corridors Agency related to the development and operation of toll facilities in Orange County. 10)Make enactment of this bill contingent on enactment of AB 914 (Brown) of the current legislative session, which authorizes tolling for the San Bernardino County Transportation Commission. FISCAL EFFECT: According to the Senate Appropriations Committee: AB 194 Page 3 1)CTC costs of approximately $200,000 per application for due diligence reviews and approvals of project proposals. Costs to review proposals submitted by regional transportation agencies will be reimbursed by the applicant, but CTC would need additional resources for each proposal submitted by Caltrans. 2)Unknown costs to Caltrans and regional transportation agencies to develop and operate HOT lanes. This bill authorizes Caltrans and regional transportation agencies to retain up to 3% of toll revenues for administrative expenses related to the operation of the facilities. 3)Unknown toll revenue gains for Caltrans and regional transportation agencies related to the operation of HOT lanes and other toll facilities. For illustrative purposes, HOT lanes administered by Metropolitan Transportation Authority generate approximately $17 million annually. Excess revenues must be used within the corridor from which it was generated. 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 an 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 AB 194 Page 4 which it was generated. 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. Analysis Prepared by: Janet Dawson / TRANS. / (916) 319-2093 FN: 0002311 AB 194 Page 5