BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



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                                 THIRD READING


          Bill No:  AB 1381
          Author:   John A. Perez (D)
          Amended:  4/15/09 in Assembly
          Vote:     21

           
           SENATE TRANSPORTATION COMMITTEE:    9-1, 6/16/09
          AYES:  Lowenthal, Huff, DeSaulnier, Harman, Hollingsworth,  
            Kehoe, Pavley, Simitian, Wolk
          NOES:  Ashburn
          NO VOTE RECORDED:  Oropeza
           
          SENATE APPROPRIATIONS COMMITTEE  :  Senate Rule 28.8

           ASSEMBLY FLOOR  :  64-3, 5/14/09 - See last page for vote


           SUBJECT  :    High-occupancy toll lanes:  Los Angeles County

           SOURCE  :    California Department of Transportation    
                      Los Angeles County Metropolitan Transportation  
          Authority


           DIGEST  :    This bill requires, rather than permits, the Los  
          Angeles County Metropolitan Transportation Authority  
          (LACMTA) to implement a value-pricing and transit  
          development demonstration program in cooperation with the  
          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  
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          that may compete with the high-occupancy toll 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 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  

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          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:

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

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

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

          4. 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.

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

          6. 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
           
          The purpose of this bill is to make clean-up changes to SB  
          1422 (Ridley-Thomas).  SB 1422 provided the necessary  
          legislative authorization to convert the HOV lanes on I-10  

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          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 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.

           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.   

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          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 nine 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.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  No

           SUPPORT  :   (Verified  6/16/09) (unable to re-verify)

          California Department of Transportation (co-source)
          Los Angeles County Metropolitan Transportation Authority  
          (co-source)


           ASSEMBLY FLOOR  : 
          AYES:  Adams, Arambula, Beall, Bill Berryhill, Tom  
            Berryhill, Blakeslee, Block, Blumenfield, Brownley,  
            Buchanan, Caballero, Charles Calderon, Carter, Chesbro,  
            Cook, Coto, De La Torre, De Leon, Emmerson, Eng, Evans,  
            Feuer, Fletcher, Fong, Fuller, Furutani, Galgiani,  

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            Garrick, Gilmore, Hagman, Hall, Harkey, Hayashi, Hill,  
            Huber, Huffman, Jones, Knight, Krekorian, Lieu, Logue,  
            Bonnie Lowenthal, Ma, Mendoza, Monning, Nava, Nestande,  
            Niello, Nielsen, John A. Perez, V. Manuel Perez,  
            Portantino, Price, Ruskin, Salas, Silva, Skinner,  
            Solorio, Audra Strickland, Swanson, Torres, Torrico,  
            Tran, Yamada
          NOES:  Anderson, Hernandez, Miller
          NO VOTE RECORDED:  Ammiano, Conway, Davis, DeVore, Duvall,  
            Fuentes, Gaines, Jeffries, Saldana, Smyth, Torlakson,  
            Villines, Bass


          JJA:do  6/30/09   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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