BILL ANALYSIS                                                                                                                                                                                                    






           SENATE TRANSPORTATION & HOUSING COMMITTEE       BILL NO: ab 1381
          SENATOR ALAN LOWENTHAL, CHAIRMAN               AUTHOR:  J. Perez
                                                         VERSION: 4/15/09
          Analysis by:  Jennifer Gress                   FISCAL:  yes
          Hearing date:  June 16, 2009










          SUBJECT:

          High-occupancy toll (HOT) lanes:  Los Angeles County

          DESCRIPTION:

          This bill requires, rather than permits, the Los Angels County  
          Metropolitan Transportation Authority (LACMTA) to implement a  
          value-pricing and transit development demonstration program in  
          cooperation with the California Department of Transportation  
          (Caltrans) and adds the California Highway Patrol (CHP) as an  
          agency with which LACMTA must work to implement the program.   
          The bill also provides that the demonstration program does not  
          preclude Caltrans or any local agency from developing facilities  
          that may compete with the HOT lane facilities and states that  
          LACMTA is not entitled to compensation for adverse effects on  
          toll revenue that may be due to those competing facilities.

          ANALYSIS:

          High-occupancy toll (HOT) lanes permit single-occupant vehicles  
          to use high-occupancy vehicle (HOV) lanes for a fee.  Since  
          1993, several bills have been enacted to authorize a total of 13  
          HOT lane facilities. 

          AB 713 (Goldsmith), Chapter 962, Statutes of 1993, authorized  
          the San Diego Association of Governments (SANDAG) to allow  
          single-occupant vehicles into the HOV lanes on Interstate 15 in  
          San Diego County for a fee.  The project was part of a federal  
          demonstration program to assess the application of congestion  
          pricing and to increase revenues for transit development in the  




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          I-15 corridor.

          In 2004, AB 2032 (Dutra), Chapter 418, authorized the Sunol  
          Smart Carpool Lane Joint Powers Authority, the Alameda County  
          Congestion Management Agency, the Santa Clara Valley  
          Transportation Authority, and SANDAG to develop and operate HOT  
          lane facilities using value or congestion pricing on a specified  
          number of transportation corridors within their jurisdictions,  
          subject to certain conditions.  

          AB 1467 (N??ez), Chapter 32, Statutes of 2006, authorized, until  
          January 1, 2012, regional transportation agencies, in  
          cooperation with Caltrans, to apply to the California  
          Transportation Commission (CTC) to develop and operate up to  
          four HOT lane projects, including the administration and  
          operation of a value pricing program and exclusive or  
          preferential lane facilities for public transit.  Under AB 1467,  
          HOT lanes are approved by the enactment of a statute.

          In accordance with AB 1467, the Legislature passed and the  
          Governor signed SB 1422 (Ridley-Thomas), Chapter 547, Statutes  
          of 2008, to authorize, until January 15, 2013, LACMTA to convert  
          existing HOV lanes on Interstates 10 and 110 to HOT lanes as  
          part of a value-pricing and transit development demonstration  
          program pursuant to a Memorandum of Understanding (MOU) set  
          forth by the United States Department of Transportation (U.S.  
          DOT), Caltrans, and LACMTA.  



          SB 1422  permits  LACMTA to enter into a cooperative agreement  
          with Caltrans for all matters relating to design, construction,  
          maintenance, and operation of the facilities and to establish  
          traffic flow guidelines for the purpose of ensuring optimal use  
          of the HOT lanes by high-occupancy vehicles.  SB 1422 also  
          establishes several conditions under which LACMTA may implement  
          the value pricing and transit development program.

           This bill  :

           Requires, rather than permits, LACMTA to implement the  
            value-pricing and transit development demonstration program in  
            cooperation with Caltrans.  

           Adds CHP as an agency with which LACMTA must cooperate to  
            implement the demonstration program.




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           Provides examples of specific performance measures that the  
            facility should meet.

           Provides that the statute authorizing the demonstration  
            program does not preclude Caltrans or any local agency from  
            developing facilities that may compete with the HOT lane  
            demonstration project program.

           States that LACMTA is not entitled to compensation for adverse  
            effects on toll revenue that may be due to those competing  
            facilities.

           Makes technical and clarifying changes to make consistent  
            references to state highways in statute (i.e., replacing  
            "Interstate" with "State Highway Route"), to articulate the  
            role of Caltrans more precisely, and to reference LACMTA more  
            precisely. 
          
          COMMENTS:

           1.Purpose and Background  .  The purpose of this bill is to make  
            clean-up changes to SB 1422.  SB 1422 provided the necessary  
            legislative authorization to convert the HOV lanes on I-10 and  
            I-110 to HOT lanes so that LACMTA could receive $210.6 million  
            in federal transit aid as part of a program administered by  
            U.S. DOT to encourage the implementation of congestion pricing  
            in metropolitan areas.  

            U.S. DOT conditioned its approval of LACMTA's proposal on  
            receiving the necessary legislative authorization to implement  
            an MOU between it, Caltrans, and LACMTA and established a  
            deadline of October 15, 2008.  To take advantage of the  
            federal funds, therefore, it was necessary to pass SB 1422 by  
            the conclusion of the 2007-2008 legislative session.  In  
            drafting the bill and moving it through the process quickly,  
            the proponents inadvertently left out certain provisions and  
            there was insufficient time to make corrections.

            Additionally, the Professional Engineers in California  
            Government (PECG) proposed changes to SB 1422 to ensure that  
            Caltrans and local agencies could build transportation  
            facilities near the HOT lane facilities and to specify that  
            payment of compensation would not be due if those facilities  
            resulted in a reduction of toll revenue on the HOT lanes.  In  
            the final days of the 2007-08 session, the Director of  




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            Caltrans, Will Kempton, and LACMTA Chief Executive Officer,  
            Roger Snoble, wrote a letter to PECG stating, "Given the very  
            limited time remaining in the current Legislative Session, we  
            want to commit to addressing both your concerns in legislation  
            next year."  This bill fulfills that commitment.

           2.Description of the HOT lanes authorized by SB 1422  .  The  
            intent of LACMTA's proposal is to test innovative strategies  
            to alleviate congestion, maximize freeway capacity, and  
            enhance transit alternatives in the I-10 and I-110 corridors.   
            A large component of the program is to convert certain  
            segments of HOV lanes into HOT lanes whereby single-occupant  
            vehicles may access the lane for a fee.  In addition to  
            allowing single-occupant vehicles to use the lanes for a fee,  
            LACMTA intends to increase bus service that currently operates  
            in those HOV lanes and make a variety of improvements to  
            transit facilities in the region.

            I-110 currently has two HOV lanes in each direction.  LACMTA's  
            proposal involves converting the 11-mile segment of the HOV  
            lane that extends in both directions from 182nd Street/Artesia  
            Transit Center to Adams Boulevard into a HOT lane.  The  
            minimum occupancy standard for this facility is 2+ persons per  
            vehicle. 
           
            The I-10 HOV lane is a single lane in each direction.  LACMTA  
            will convert a14-mile segment extending from Alameda  
            Street/Union Station to I-605 into a HOT lane.  Under the  
            demonstration program, a buffer zone that currently exists  
            within that 14-mile segment will be removed in order to  
            establish a second HOT lane.  This second lane will extend for  
            9 of the 14 miles.  The minimum occupancy standard for this  
            facility is 2+ per vehicle except for during peak commute  
            hours at which time the minimum is increased to three.  

            Both facilities will involve electronic tolling using  
            technology similar to FasTrak utilized on other toll  
            facilities in the state.  There will be no tollbooths where  
            motorists may pay their toll in cash. The HOT lanes will  
            utilize dynamic pricing whereby the price of tolls may change  
            as frequently as once every five minutes to manage demand for  
            use of the facility.  During peak periods, toll rates will  
            increase thereby decreasing the number of single-occupant  
            vehicles likely to choose to use the lane.  The HOT lanes will  
            become operational in January 2011. 
          




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          Assembly Votes:
               Floor:    64-3
               Appr: 14-2
               Trans:    9-1


           POSITIONS:  (Communicated to the Committee before noon on  
                     Wednesday,                              
                      June 10, 2009)

               SUPPORT:  California Department of Transportation  
          (co-sponsor)
                         Los Angeles County Metropolitan Transportation  
          Authority (co-sponsor)
          
               OPPOSED:  None received.