BILL ANALYSIS Ó SENATE COMMITTEE ON APPROPRIATIONS Senator Ricardo Lara, Chair 2015 - 2016 Regular Session AB 914 (Brown) - Toll facilities: County of San Bernardino ----------------------------------------------------------------- | | | | | | ----------------------------------------------------------------- |--------------------------------+--------------------------------| | | | |Version: June 30, 2015 |Policy Vote: T. & H. 10 - 0 | | | | |--------------------------------+--------------------------------| | | | |Urgency: No |Mandate: No | | | | |--------------------------------+--------------------------------| | | | |Hearing Date: July 13, 2015 |Consultant: Mark McKenzie | | | | ----------------------------------------------------------------- This bill does not meet the criteria for referral to the Suspense File. Bill Summary: SB 914 would authorize the San Bernardino County Transportation Commission (SBCTC) to conduct, administer, and operate a value-pricing program on Interstate 10 (I-10) and Interstate 15 (I-15) in San Bernardino County. Fiscal Impact: Unknown costs and revenue gains for SBCTC to develop and operate HOT lanes and express lanes (local funds). For illustrative purposes, High-Occupancy Toll (HOT) lanes administered by the Los Angeles Metropolitan Transportation Agency generate approximately $17 million annually. AB 914 (Brown) Page 1 of ? Department of Transportation (Caltrans) costs for ongoing maintenance and California Highway Patrol (CHP) costs for ongoing enforcement of new toll lane facilities would be fully recovered from toll revenues, pursuant to required agreements with SBCTC. Background: HOT lanes allow single-occupancy vehicles to use designated High-Occupancy Vehicle (HOV) lanes at certain times of the day for a fee. They are designed to accomplish four main goals: (1) increase the use of HOV lanes; (2) relieve traffic congestion in other lanes; (3) fund new transportation projects; and (4) test the concept of "value pricing programs," whereby the toll varies depending on the time of day and level of congestion. Another value-pricing model is express lanes, which are toll roads that may allow high-occupancy vehicles to access the lanes for free or at a reduced toll. Existing law authorizes the San Diego Association of Governments (SANDAG), the Santa Clara Valley Transportation Authority, and the Alameda County Transportation Commission to construct and operate HOT lanes. AB 1467 (Nunez), Ch. 32/2006, established a HOT lane demonstration program that authorized regional transportation entities to submit applications to the California Transportation Commission (CTC) until January 1, 2012 for the development and operation of HOT lanes. AB 1467 required the Legislature to select HOT lane projects by enacting legislation, and limited the authorization to four projects, two each in southern and northern California. The CTC's role is limited to establishing eligibility criteria, determining whether a particular project is eligible, holding public hearings in both northern and southern California on each eligible application, and submitting eligible applications to the Legislature for approval or rejection. The CTC subsequently approved HOT lane facilities in the San Francisco Bay Area, Los Angeles County, and Riverside County. Existing law requires toll revenues generated from HOT lanes and express toll lanes to be expended within the corridor of the managed lanes. Proposed Law: AB 914 would authorize the San Bernardino County Transportation Commission to conduct, administer, and operate a AB 914 (Brown) Page 2 of ? value-pricing program, including HOT lanes or other toll facilities, on the I-10 and I-15 corridors in San Bernardino County, upon a determination in a public meeting that the program will improve the performance of the affected corridors, as specified. The bill would also do the following: Authorize SBCTC to set, levy, and collect tolls or other charges to pay for capital outlay expenditures, operations and maintenance, repair and rehabilitation, indebtedness and financing costs, and administration (up to 3% of toll revenues). Require SBCTC to use any excess revenues exclusively for the benefit of the respective corridors pursuant to a specified expenditure plan adopted by the board. Require SBCTC to enter into cooperative agreements with neighboring counties, to the extent the facilities extend into those counties and connect to, or are near, similar toll facilities, and to develop the projects pursuant to a cooperative agreement with Caltrans. Require agreements between SBCTC and Caltrans and CHP, respectively, to provide for reimbursements from toll revenues for costs incurred in connection with the implementation or operation of the program. Authorize SBCTC to issue bonds to finance any costs related to the projects, payable from toll revenues and other available revenues, as specified. The bonds must contain a statement that neither the full faith and credit nor the taxing power of the State of California is pledged to the payment of the bonds. Require SBCTC to submit a report to the Legislative Analyst's Office within three years after first collecting tolls on its findings, conclusions, and recommendations concerning the value-pricing program and facilities. Specify that the bill does not authorize the conversion of any non-tolled lanes into tolled lanes, except that existing HOV lanes may be converted to HOT lanes. Related Legislation: AB 194 (Frazier), currently pending in the Senate Transportation and Housing Committee, would permanently extend the authority for CTC to approve the development and operation of HOT lanes, and expand the authority to include other toll facilities. AB 194 is similar to SB 983 (Hernandez), which was held on the Assembly Appropriations Committee's Suspense File AB 914 (Brown) Page 3 of ? last year. Staff Comments: This bill is intended to provide authority for SBCTC to develop toll facilities along all or a portion of 35 miles of I-10 between the Cities of Pomona and Redlands, and a 35-mile stretch of I-15 from the Riverside County line to US Route 395 to improve the movement of people and goods along the heavily-traveled corridors. The authority would allow SBCTC to apply for financing under the 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. -- END --