BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON TRANSPORTATION AND HOUSING
                              Senator Jim Beall, Chair
                                2015 - 2016  Regular 

          Bill No:          AB 914            Hearing Date:     6/23/2015
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          |Author:   |Brown                                                 |
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          |Version:  |4/29/2015                                             |
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          |Urgency:  |No                     |Fiscal:      |Yes             |
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          |Consultant|Eric Thronson                                         |
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          SUBJECT:  Toll facilities:  County of San Bernardino


            DIGEST:  This bill authorizes the San Bernardino County  
          Transportation Commission to conduct, administer, and operate a  
          value-pricing program on Interstate 10 and Interstate 15 in San  
          Bernardino County.

          ANALYSIS:
          
          Existing law: 

          1)Generally restricts the state and regional transportation  
            agencies from collecting tolls on public highways without  
            explicit statutory authority.  For example, in 1989, the  
            Legislature authorized the California Department of  
            Transportation (Caltrans) to enter into contractual agreements  
            with private entities for the construction and operation of  
            toll roads.  The toll facility on State Route 91 in Orange  
            County is a result of this authorization.
          
          2)Specifically authorizes a particular type of toll facility,  
            called high-occupancy toll (HOT) lane facilities, in Alameda,  
            San Diego, and Santa Clara counties.  An agency operating a  
            HOT lane essentially sells excess capacity in undersubscribed  
            high-occupancy vehicle lanes to single-occupant vehicle  
            drivers by charging a toll.  HOT lanes typically employ a  
            pricing method known as value pricing or congestion pricing.   
            Under this scheme, the amount of the toll varies in accordance  
            with the level of congestion in that particular lane, such  







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            that as congestion increases, so too will the toll amount.  As  
            the price to use the lane goes up, fewer people presumably  
            will choose to use it, thereby reducing demand for the  
            facility and maintaining free-flow travel conditions.  With  
            this mechanism, an agency can ensure that operation of the  
            toll facility does not undermine the intended benefits of  
            promoting carpooling with access to the faster high-occupancy  
            vehicle lane.

          3)In addition to the three counties with specific HOT lane  
            authority, existing law authorized regional transportation  
            agencies to apply to the California Transportation Commission  
            (CTC) to develop and operate HOT lanes until 2012.  This  
            authority limited CTC to approving up to four HOT lane  
            projects, two in Northern California and two in Southern  
            California.  The CTC approved HOT lane facilities in the San  
            Francisco Bay Area, Los Angeles County, and Riverside County  
            under this provision.  

          4)Creates the San Bernardino County Transportation Commission  
            (also known as San Bernardino Association of Governments or  
            SANBAG) to oversee transportation planning and coordination in  
            the county.

          This bill:

          1)Authorizes SANBAG to conduct, administer, and operate a  
            value-pricing program on Interstate 10 and Interstate 15 in  
            San Bernardino County, including HOT lanes or other toll  
            facilities.

          2)Authorizes SANBAG to set and levy tolls in amounts to cover at  
            least the following expenses:

             a)   Capital outlay including design, right-of-way  
               acquisition, and construction.
             b)   Operations and maintenance of the facilities.
             c)   Repair and rehabilitation.
             d)   Indebtedness, including related financial costs.
             e)   Reserves.
             f)   Administration, not to exceed 3% of the revenues.

          1)Requires SANBAG to use any excess revenues exclusively for the  
            benefit of the corridors and to adopt an expenditure plan  
            describing how it plans to spend excess revenue.  








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          2)Requires SANBAG to enter into agreements with neighboring  
            counties providing for the coordination of the toll facilities  
            operated by each county, and to develop the projects pursuant  
            to a cooperative agreement with Caltrans.

          3)Authorizes SANBAG to issue bonds to finance the projects  
            pursuant to a majority vote of its governing board.

          4)Requires SANBAG to submit a report to the Legislative Analyst  
            not later than three years after beginning toll collection  
            that summarizes its findings, conclusions, and recommendations  
            relating to the value-pricing program.
          COMMENTS:

          1)Purpose.  According to the author, the Inland Empire is the  
            fastest growing region in Southern California.  As a result,  
            the Interstate 10 and Interstate 15 corridors are amongst the  
            most congested in the state, seeing up to 260,000 and 223,000  
            vehicles per day respectively.  In 2045, these volumes are  
            expected to reach 668,500 vehicles per day combined, a 38%  
            increase.

            These routes are also utilized as important goods movement  
            corridors, seeing up to 47,500 trucks per day combined.  The  
            author argues that alternative ways of managing congestion  
            must be utilized to serve the growing needs in this area.   
            This bill - by authorizing SANBAG to establish an express lane  
            program - will work to meet these growing needs and help  
            alleviate congestion. 

          2)Similar legislation.  AB 194 (Frazier) extends indefinitely  
            CTC's authority to administratively authorize HOT lanes and  
            expands the authority to include other toll facilities.  If  
            enacted, AB 194 could provide an avenue for SANBAG to seek  
            authority to develop a value-pricing program.  However, AB 194  
            could not practically be implemented in time to give SANBAG  
            the statutory authority it needs to apply for federal  
            financing programs in a timely manner; hence SANBAG is seeking  
            the standalone authority in this bill.

          3)HOT lanes vs. express lanes.  While similar, HOT lanes and  
            express lanes are at the heart very different.  HOT lanes are  
            high-occupancy vehicle lanes that, when not fully subscribed  
            by high-occupancy vehicles, can be accessed by single-occupant  








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            vehicles for a toll.  Express lanes, on the other hand, are  
            toll roads that may allow high-occupancy vehicles access for a  
            reduced rate or no toll.  HOT lanes are designed to maximize  
            passenger throughput; if successful then a HOT lane collects  
            few tolls and moves the most people through a corridor.   
            Express lanes are more focused on raising revenues through  
            tolls, resulting in moving more vehicles through a corridor,  
            and not necessarily more people.

            According to SANBAG, with this authority it intends to convert  
            roughly 8 miles of an existing high-occupancy vehicle lane to  
            a HOT lane and then construct 62 miles of additional tolled  
            express lanes.  While the planning process isn't complete,  
            SANBAG suggests that it may only allow reduced-rate access to  
            its express lanes for vehicles with three or more occupants.   
            Some would argue that this type of scheme does not really  
            encourage carpooling, but does ensure more capacity for  
            single-occupant toll payers and therefore more revenue  
            generation.  

            Studies show that building more lanes to increase the number  
            of vehicles through a corridor does not ultimately reduce  
            congestion but instead inevitably induces more demand for the  
            facility.  This higher vehicle throughput can lead to  
            expansive land use characterized by sprawl.  Alternatively,  
            focusing on better corridor management and the effective  
            throughput of people and goods can lead to less environmental  
            impacts and better land management, consistent with the  
            Legislature's priorities of the last 15 years.  In order to  
            try to partially mitigate this concern, the committee and  
            author may wish to amend the bill to require SANBAG to make a  
            determination that their tolling program will improve corridor  
            performance in ways such as increased passenger throughput or  
            improved travel times.

          4)Technical amendments.

                 Page 3, line 40, strike "commission" and replace with  
               "San Bernardino County Transportation Commission"
                 Page 4, line 16, following "corridors" add "included in  
               the value pricing program created by this section."
                 Page 4, lines 23 and 24, strike "in the County of San  
               Bernardino" and replace with "included in the value pricing  
               program created by this section."
                 Page 4, line 31, strike "in the County of San  








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               Bernardino" and replace with "included in the value pricing  
               program created by this section."
                 Page 4, lines 36 and 37, strike "in the County of San  
               Bernardino" and replace with "included in the value pricing  
               program created by this section."
          
          Related Legislation:
          
          AB 2250 (Daly, Chapter 500, Statutes of of 2014) - required any  
          revenue generated in toll lanes to be used in the corridor in  
          which it was generated.

          SB 983 (Hernández, 2014) - was similar to AB 194.  SB 983 was  
          held in the Assembly Appropriations Committee.

          SB 1298 (Hernández, Chapter 531, Statutes of 2014) - repealed  
          and recast specific authority for the Los Angeles County  
          Metropolitan Transportation Authority to operate a value-pricing  
          and transit development program, including HOT lanes on State  
          Routes 10 and 110.  

          AB 1467 (Nunez, Chapter 32, Statutes of 2005) - originally  
          granted authority to the CTC to review regional transportation  
          agencies' applications for HOT lanes, for up to four projects,  
          until January 1, 2012.  

          AB 2032 (Dutra, Chapter 418 of 2004) - authorized HOT lane  
          facilities in Alameda, San Diego, and Santa Clara counties.  

          AB 713 (Goldsmith, Chapter 962, Statutes of 1993) - authorized a  
          HOT lane facility in San Diego County.

          Assembly Votes:

            Floor:     69-7
            Appr:      17-0
            Trans:     15-0
          
          FISCAL EFFECT:  Appropriation:  No    Fiscal Com.:  Yes     
          Local:  No


            POSITIONS:  (Communicated to the committee before noon on  
          Wednesday,
                          July 17, 2015.)








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            SUPPORT:  

          American Council of Engineering Companies of California
          California Asphalt Pavement Association
          City of Ontario
          City of San Bernardino
          CH2MHILL
          Inland Empire Chapter of Women in Transportation
          Inland Action
          Mobility 21
          Orange County Business Council
          Riverside County Transportation Commission
          San Bernardino Associated Governments
          San Diego Association of Governments
          Self Help Counties Coalition
          Southern California Association of Governments

          OPPOSITION:

          None received
                                      -- END --