BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                       AB 914


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          ASSEMBLY THIRD READING


          AB  
          914 (Brown)


          As Amended  April 29, 2015


          Majority vote


           ------------------------------------------------------------------- 
          |Committee       |Votes |Ayes                |Noes                  |
          |                |      |                    |                      |
          |                |      |                    |                      |
          |----------------+------+--------------------+----------------------|
          |Transportation  |15-0  |Frazier, Achadjian, |                      |
          |                |      |Baker, Bloom, Chu,  |                      |
          |                |      |Daly, Dodd, Eduardo |                      |
          |                |      |Garcia, Gomez,      |                      |
          |                |      |Linder, Medina,     |                      |
          |                |      |Melendez, Nazarian, |                      |
          |                |      |O'Donnell, Santiago |                      |
          |                |      |                    |                      |
          |----------------+------+--------------------+----------------------|
          |Appropriations  |17-0  |Gomez, Bigelow,     |                      |
          |                |      |Bloom, Bonta,       |                      |
          |                |      |Calderon, Chang,    |                      |
          |                |      |Daly, Eggman,       |                      |
          |                |      |Gallagher, Eduardo  |                      |
          |                |      |Garcia, Holden,     |                      |
          |                |      |Jones, Quirk,       |                      |
          |                |      |Rendon, Wagner,     |                      |
          |                |      |Weber, Wood         |                      |
          |                |      |                    |                      |
          |                |      |                    |                      |
           ------------------------------------------------------------------- 








                                                                       AB 914


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          SUMMARY:  Grants the San Bernardino County Transportation  
          Commission (Commission) authority to develop high-occupancy toll  
          (HOT) lanes and other facilities, under certain conditions.   
          Specifically, this bill:  


          1)Authorizes the Commission, notwithstanding specific provisions  
            of existing law related to preferential lanes and tolling, to  
            conduct, administer, and operate a value-pricing program in the  
            Interstate 10 (I-10) and Interstate 15 (I-15) corridors in San  
            Bernardino County; provides that the value-pricing program may  
            include HOT lanes or other toll facilities.


          2)Allows the Commission to extend the value-pricing program to  
            include the approaching and departing connectors on I-10 into  
            Los Angeles County and on I-15 into Riverside County pursuant to  
            agreements with the county transportation commission in those  
            counties.


          3)Grants the Commission the power of eminent domain for purposes  
            related to the value-pricing program. 


          4)Grants the Commission authority to set, levy, and collect tolls,  
            user fees, or similar charges to use the toll facilities in San  
            Bernardino County.  Also grants the Commission the authority to  
            collect any other incidental or related fees or charges in a  
            manner determined by the Commission and in the amount required  
            for the following expenditures in the corridors in San  
            Bernardino County:


             a)   Capital outlay, including design, construction,  
               right-of-way acquisition, and utilities adjustment;









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             b)   Operations and maintenance;


             c)   Repair and rehabilitation;


             d)   Loans, advances, and related financial costs;


             e)   Reserves; and


             f)   Administration, not to exceed 3% of the toll revenues.  


          5)Directs any excess revenues to be used pursuant to an  
            expenditure plan adopted by the Commission's governing board and  
            to the benefit of the corridors, including the following:


             a)   To enhance transit service designed to reduce traffic  
               congestion within the corridors in San Bernardino County,  
               including transit operating assistance, acquisition of  
               transit vehicles, and transit capital improvements; and


             b)   To make operations or capacity improvements to reduce  
               traffic congestion or improve the flow of traffic in the toll  
               or non-tolled segments of the corridors.


          6)Requires the Commission to carry out the value-pricing program  
            authorized by these provisions in cooperation with the  
            California Department of Transportation (Caltrans) pursuant to a  
            cooperative agreement.


          7)Authorizes the Commission to issue bonds to finance any costs  








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            related to implementing the value-pricing program and other  
            capital outlay, operations, maintenance, repair, rehabilitation,  
            indebtedness, reserve set aside, and administration purposes  
            related to the corridors; also allows the Commission to issue  
            bonds for purposes otherwise identified in the expenditure plan.  
             


          8)Limits bond indebtedness to no more than may be serviced from  
            projected revenues generated by the value-pricing program.  


          9)Provides that bonds may be issued pursuant to a resolution  
            adopted by a majority vote of the Commission's governing board.   



          10)Requires San Bernardino Associated Governments (SANBAG) to  
            report to the Legislative Analyst on its findings, conclusions,  
            and recommendations concerning the value-pricing program.  


          11)Explicitly provides that this bill does not limit the authority  
            of Caltrans or any local agency to construct improvements in the  
            corridors that compete with the Commission's value-pricing  
            program.


          12)Provides that the bill's provisions are severable.  


          13)Declares that the provisions of this bill do not authorize the  
            conversion of any existing non-tolled or nonuser-fee lanes,  
            except than a high-occupancy vehicle (HOV) lane may be converted  
            to an HOT lane.  


          FISCAL EFFECT:  According to the Assembly Appropriations  
          Committee, any costs to the commission are non-reimbursable, as  








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          they would be incurred only to the extent the commission elects to  
          exercise the authority provided in the bill.  Any costs to the  
          Caltrans would be absorbable within existing resources.


          COMMENTS:  Value-priced toll facilities (e.g., 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.  Although value-pricing programs 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.   


          SANBAG, which is also legally organized as the Commission, is  
          sponsoring this bill.  The agency is responsible for cooperative  
          regional planning and furthering an efficient multi-modal  
          transportation system countywide.  As the county transportation  
          commission, SANBAG supports freeway construction projects,  
          regional and local road improvements, train and bus  
          transportation, railroad crossings, call boxes, ridesharing,  
          congestion management efforts and long-term planning studies.   
          SANBAG also administers Measure I, the half-cent transportation  
          sales tax approved by county voters in 1989.


          SANBAG is proposing two projects for which it is seeking authority  
          to impose tolls:


          1)The proposed I-10 Corridor Project consists of improving all or  
            a portion of the existing 35-mile stretch of I-10 from the City  
            of Pomona to the City of Redlands.  As a major regional  
            east-west freeway corridor, I-10 is heavily used by travelers  
            between Los Angeles and San Bernardino counties and it is also a  
            major truck route between southern California and the rest of  








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            the nation.  
          2)The proposed I-15 Corridor Project consists of improvements on  
            the 35-mile stretch of I-15 in San Bernardino County.  As a  
            major regional north-south freeway corridor, I-15 is heavily  
            used by commuters and recreational travelers, and is also a  
            major goods-movement corridor.


          SANBAG hopes to have statutory authority in place to develop toll  
          facilities (including HOT lanes) before it begins the process of  
          applying for financing under the federal Transportation  
          Infrastructure Finance and Innovation Act (TIFIA).  The TIFIA  
          program provides federal credit assistance in the form of direct  
          loans, loan guarantees, and standby lines of credit to finance  
          surface transportation projects of national and regional  
          significance.  In the case of HOT lanes, the federal government  
          requires legal authority to be established prior to beginning the  
          process of applying for TIFIA financing. 


          According to the author, the I-10 and I-15 corridors are  
          increasingly urbanized, making continued expansion a challenge.   
          The author notes that these particular corridors are amongst the  
          most congested in the state, and are likely to become even more  
          congested as San Bernardino County's population is expected to  
          grow from 2.1 million to 3.4 million by 2050.  The author is  
          pursuing this bill to provide an alternative way of managing  
          congestion to serve the growing needs of the area.  


          Supporters believe this bill will give the Commission the tools  
          its needs to better manage its existing congestion as well as  
          accommodate future growth in these commuter and trade corridors.   
          This bill is opposed by one individual who objects to the  
          imposition of debt that will be needed to finance the  
          value-pricing program.  











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          Please see the policy committee analysis for a full discussion of  
          this bill.




          Analysis Prepared by:                                               
                          Janet Dawson / TRANS. / (916) 319-2093  FN:  
          0000515