BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 1459


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          Date of Hearing:  April 20, 2015


                        ASSEMBLY COMMITTEE ON TRANSPORTATION


                                 Jim Frazier, Chair


          AB 1459  
          (Kim) - As Amended April 14, 2015


          SUBJECT:  Toll lanes:  County of Orange


          SUMMARY:  Prohibits the California Department of Transportation  
          (Caltrans) from seeking or providing funding for the  
          construction of a toll lane on a public highway in Orange County  
          unless the toll lane project is first approved by a two-thirds  
          vote of the Orange County Transportation Authority (OCTA).   
          Specifically, this bill:  


          1)Makes legislative findings and declarations regarding the  
            history of Orange County's sales tax measure for  
            transportation and the Interstate 405 (I-405) high-occupancy  
            toll (HOT) project.


          2)States that it is the intent of the Legislature to protect the  
            will of the voters of Orange County by requiring a two-thirds  
            vote of OCTA in order to approve construction of a toll lane  
            funded by Caltrans on a public highway in Orange County.


          3)Prohibits Caltrans, notwithstanding certain provisions of law,  
            from seeking or providing funding for construction of a toll  
            lane on a public highway in Orange County unless the toll lane  








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            project is first approved by a two-thirds vote of OCTA.  


          EXISTING LAW:  


          1)Prescribes the membership of OCTA as follows:

             a)   Five members of the Orange County Board of Supervisors,  
               appointed by the board; 

             b)   Ten city members, each of which must be a mayor or a  
               city council member serving within the county; and, 

             c)   Two public members appointed by a majority vote of the  
               other 15 voting members of OCTA; public members may not be  
               elected officials.  

          2)Grants OCTA broad authority to acquire, construct, develop,  
            lease, own, operate, and control transportation facilities in  
            Orange County.  

          3)Generally requires lead agencies with the principal  
            responsibility for carrying out or approving a proposed  
            project to prepare a negative declaration, mitigated negative  
            declaration, or environmental impact report (EIR) for this  
            action, pursuant to the California Environmental Quality Act  
            (CEQA).  

          4)Sets forth the process, parameters, and guidelines for  
            preparing an EIR, including procedures meant to ensure  
            opportunities for public participation.  

          FISCAL EFFECT:  Unknown

          COMMENTS:  In 2006, Orange County voters voted to renew a  
          half-cent sales tax for transportation (Measure M2).  The  
          measure included funding for a project to add one general  
          purpose lane in each direction on a 16-mile stretch of I-405  








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          between Costa Mesa and Seal Beach.  The project is being  
          developed jointly between Caltrans and OCTA, with Caltrans being  
          the lead agency.

          The I-405 draft EIR was released in May 2012 and included three  
          build alternatives in addition to the no-build alternative.  All  
          of the build alternatives included at least one general purpose  
          lane in each direction, as provided for and approved in Measure  
          M2.  One of the build alternatives included HOT lanes as part of  
          the proposed solution.  

          The proposal to develop HOT lanes met with contentious public  
          outcry.  Opponents argued that HOT lanes would essentially be a  
          "tax on a tax" because the lanes would first be built with sales  
          tax measure money and, after they were built, drivers would have  
          to pay yet again to use them.  Others argued that the HOT lanes  
          would hurt local businesses because there would be few exits  
          within the HOT lane facility and traffic would bypass cities  
          within the interior stretches of the HOT lane corridor.  

          OCTA ultimately voted to recommend to Caltrans that the project  
          proceed with construction of one general purpose lane in each  
          direction, without HOT lanes, consistent with Measure M2.   
          However, Caltrans, as the project lead, has the final decision  
          on the project alternative and in July 2014 opted to proceed  
          with the HOT lane alternative, despite OCTA's objections.

          To date, the issue of the I-405 HOT lane project is not yet  
          entirely resolved.  Earlier in the year, Caltrans committed $82  
          million from deferred operations funds to the project and, in  
          response, the OCTA Board of Directors directed its staff to  
          re-engage in discussions with Caltrans related to the project.   
          Specifically, staff was asked to return to the board with an  
          alternative option for OCTA to proceed as the lead agency for  
          the HOT lane alternative.  The board also directed staff to  
          begin developing policies that will be required for operations,  
          management, and excess revenue use.  

          The author introduced AB 1459 to ensure no toll facility is  








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          constructed in Orange County without a two-thirds vote of the  
          OCTA Board of Directors.  The author asserts that "Caltrans does  
          not have the right to leverage over one billion dollars in local  
          money to build a project that was not approved by the residents  
          of the county, and was not approved by the local transportation  
          authority."  AB 1459 is meant to address what the author  
          characterizes as an overreach of power by Caltrans and to  
          empower the local transportation agency to make the ultimate  
          decision regarding which alternative gets built.

          Opponents object to AB 1459 because they believe it undermines  
          the flexibility of OCTA and Caltrans to find the best solutions  
          to reduce traffic congestion in this highly impacted  
          transportation corridor.  



           Committee concerns:    The current process is not broken and does  
          not need to be fixed.  The situation in Orange County is playing  
          out just as it should, with appropriate checks and balances in  
          place.  Caltrans, with which the Legislature has vested broad  
          authorities and powers and full possession of the state highway  
          system, is the lead agency on the I-405 improvement project.  In  
          its estimation, the HOT lane is the superior alternative for  
          longer-term, more sustainable congestion relief in the corridor;  
          hence it identified it as its preferred alternative.  In fact,  
          Caltrans is not alone in this estimation.  In 2012, OCTA staff  
          recommended to the Board of Directors that OCTA that they adopt  
          the HOT lane alternative as the recommended preferred  
          alternative for the project.  

          The OCTA Board of Directors, weighing the pros and cons of the  
          various project alternatives as well as the public opinion on  
          the project, as is appropriate, voted first to reject the HOT  
          lane alternative then later voted to re-engage with Caltrans in  
          considering the HOT lane alternative.  Clearly the board, in its  
          many deliberations and votes, is striving to balance residents'  
          concerns with critical transportation needs.   









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          The bottom line is this:  if these two agencies do not cooperate  
          with one another, no project will get built.  OCTA cannot build  
          on the state highway system without a cooperative agreement with  
          Caltrans and Caltrans cannot practically build the HOT lane  
          alternative without OCTA's cooperation related to, for example,  
          property acquisition, project financing, and operations.   
          Contrary to the author's fears, OCTA will, in reality, have a  
          say on which project alternative gets built.  Subjecting its  
          board to an arbitrary two-thirds vote requirement will harm the  
          process, not fix it.

          Double-referral:  This bill will be referred to the Assembly  
          Local Government Committee should it pass out of this committee.



          Previous legislation:  AB 2036 (Mansoor) of 2014, would have  
          required approval by a two-thirds vote of the people within  
          Orange County to authorize a toll road in that county.  AB 2036  
          failed passage in this committee. 





          REGISTERED SUPPORT / OPPOSITION:


          


          Support


          


          None on file









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          Opposition


          


          Automobile Club of Southern California


          HNTB


          Orange County Business Council


          Self-Help Counties Coalition





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





















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