BILL ANALYSIS Ó
AB 620
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Date of Hearing: April 27, 2015
ASSEMBLY COMMITTEE ON TRANSPORTATION
Jim Frazier, Chair
AB 620
(Roger Hernández) - As Introduced February 24, 2015
SUBJECT: High-occupancy toll lanes: exemptions from tolls
SUMMARY: Expands the low-income assistance program associated
with the Los Angeles County Metropolitan Transportation
Authority's (Metro's) value-pricing and transit development
program (Express Lanes Program). Specifically, this bill:
1)Expands the requirement that Metro work with low-income
commuters in communities affected by the Express Lanes Program
in the Interstate 10 (I-10) and Interstate 110 (I-110)
corridors to require that mitigation measures (such as reduced
toll charges and toll charges for transit users) be extended
also to moderate-income commuters and transit users; refers to
provisions within the state's housing and home finance laws to
define "moderate- and low-income."
2)Requires Metro to exempt commuters from Express Lanes toll
charges if they meet the eligibility requirements for any one
of the following public assistance programs:
a) California Work Opportunity and Responsibility to Kids
Act (CalWORKS Program);
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b) State Supplementary Program for Aged, Blind and
Disabled;
c) County Aid Relief to Indigents;
d) CalFresh (a.k.a. Food Stamp Program);
e) Food Assistance Program for Legal Immigrants; or
f) Cash Assistance Program for Aged, Blind, and Disabled
Legal Immigrants.
EXISTING LAW:
1)Authorizes Metro to conduct, administer, and operate the
Express Lanes Program on I-10 and I-110 in Los Angeles County.
2)Requires Metro, when implementing the program, to work with
affected communities in the two highway corridors and provide
mitigation measures for low-income commuters, including
reduced toll charges and toll credits for transit users.
3)Requires that participants in the low-income assistance
program meet eligibility requirements for any one of several
specific public assistance programs.
4)Requires Metro and the California Department of Transportation
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(Caltrans) to report to the Legislature by January 15, 2015,
on the results of the demonstration program.
FISCAL EFFECT: None
COMMENTS: SB 1422 (Ridley-Thomas), Chapter 547, Statutes of
2008, authorized Metro, until January 15, 2013, to develop and
operate a value-pricing and transit development demonstration
program involving HOT lanes, referred to as Express Lanes. The
program was primarily funded with a $210 million congestion
reduction demonstration grant from the U.S. Department of
Transportation. Tolling began on November 10, 2012, on the
I-110 and February 23, 2013, on the I-10. AB 1224 (Eng),
Chapter 441, Statutes of 2010, extended the sunset and reporting
dates for the Express Lanes program from January 2013 to January
2015, and SB 1298 (Hernández), Chapter 531, Statutes of 2013,
recast the program and extended it indefinitely.
According to Metro, its low-income assistance program is the
first in the nation to address equity concerns on toll lane
projects. Metro supported provisions in enabling legislation
that require it to work with communities affected by the Express
Lanes Program. The low-income assistance program was developed
by an independent consultant through extensive outreach with
affected communities and designed to reflect community concerns.
Metro reports that the program was subsequently reviewed and
endorsed by a peer review team of individuals representing the
Environmental Defense Fund, the University of California, Los
Angeles, and the University of Southern California.
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Eligibility criteria for the low-income assistance program
require that the applicant be a Los Angeles County resident with
an annual household income at or below two times the federal
poverty level (i.e., $39,060 in 2013). Qualifying residents
receive a $25 credit when they set up an account, which can be
applied to either the transponder deposit or pre-paid toll
deposit. The monthly account maintenance fee is waived. As of
December 31, 2014, 5,740 households were enrolled in the
low-income assistance program. Under AB 620, commuters whose
annual income is roughly $75,000 or less would be eligible for
reduced toll charges and toll credits for transit.
Numerous economic studies show that the biggest burden on family
incomes is the cost of housing and transportation. For example,
a report by Smart Growth America found that transportation is
the second largest expense for American households, costing more
than food, clothing, and health care. Furthermore, it has been
documented that the working poor spend a fraction of what other
workers spend on commuting expenses, but those costs amounted to
a significantly higher proportion of their income.
Consequently, concerns about the impact that Metro's Express
Lanes Program could have on low-income families are well
founded.
Although studies indicate that low-income commuters heartily
support the Express Lanes Program, data show that they do not
use the toll lanes in large numbers. In fact, Metro reports
that participants in its low-income assistance program made up
only 1.2% of the tolled lane usage. Arguably, these numbers
support the author's belief that Metro's low-income assistance
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program is underperforming. Of the nearly 200,000 Express Lanes
account holders, just over 4,000 are enrolled in the low-income
assistance program.
In 2008, when congestion pricing was in its infancy in the
United States, the Federal Highway Administration (FHWA)
published a primer entitled, "Income-Based Equity Impact of
Congestion Pricing." According to the report, a well-designed
value-pricing program like Express Lanes can be less burdensome
to low-income citizens than current systems of highway financing
that are based on regressive taxes, such as car registration
fees, sales taxes, and the gas tax. The report found that,
while fewer low-income drivers use express lanes than those in
other income categories, they are as likely to approve of the
lanes as drivers with higher incomes. This is not surprising
given that studies have shown that lower income individuals face
the greatest financial harm when they are denied adequate travel
choices. Lack of choice to pay a toll in exchange for reliable
travel times can result in lost wages or late fees for daycare,
for example.
AB 620 requires Metro to expand its low-income program for
commuters to include moderate-income commuters and transit users
as well. Furthermore, AB 620 would require Metro to offer
toll-free passage to commuters that are eligible for any of the
above-listed public assistance programs.
Writing in opposition to the bill, Metro argues that the overall
goal of the Express Lanes is to improve mobility for commuters
in the two corridors. Metro is concerned that AB 620 could
allow a significantly larger number of vehicles into the Express
Lanes and could obviate the usefulness of tolling as a
congestion management tool. Furthermore, Metro argues that AB
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620 could have far-reaching, unintended consequences by reducing
the toll revenues used to operate enhanced transit services in
the corridor. Finally, Metro is concerned that AB 620 would
significantly impair its ability to secure the financing
necessary to extend or implement additional Express Lanes, among
other transportation improvements.
Committee concerns: More can and should be done to reduce the
disproportionate impact that transportation costs have on
low-income families, but AB 620 goes too far. Allowing
significantly more commuters into the lanes for toll-free or
reduce-rate passage diminishes the ability of the Express Lanes
Program to manage congestion and reduces revenue from
toll-paying commuters. This is a "no-win" scenario. The lanes
will be congested and transit service in the corridors will be
harmed.
Previous legislation: SB 1298 (Hernández), Chapter 531,
Statutes of 2013, recast the program and extended it
indefinitely.
AB 1224 (Eng),Chapter 441, Statutes of 2010, extended the sunset
and reporting dates for the Express Lanes program from January
2013 to January 2015.
SB 1422 (Ridley-Thomas), Chapter 547, Statutes of 2008,
authorized, until January 15, 2013, Metro to operate the Express
Lanes Program.
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REGISTERED SUPPORT / OPPOSITION:
Support
None on file
Opposition
Los Angeles County Metropolitan Transportation Authority
Analysis Prepared by:Janet Dawson / TRANS. / (916) 319-2093