BILL ANALYSIS
Senate Appropriations Committee Fiscal Summary
Senator Christine Kehoe, Chair
1245 (Simitian)
Hearing Date: 05/27/2010 Amended: 04/22/2010
Consultant: Mark McKenzie Policy Vote: T&H 8-0
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BILL SUMMARY: SB 1245 would prohibit the charging of tolls on
high-occupancy vehicles (HOVs) that meet the applicable
occupancy level for use of an HOV or high-occupancy toll (HOT)
lane, excluding toll bridges. The bill would also condition an
increase in the vehicle occupancy level for an HOV lane on a
determination by the Department of Transportation (Caltrans)
that the change would maximize person throughput on the affected
highway. Caltrans would report to the Legislature on the basis
for making an occupancy level change at least 30 days in advance
of the change.
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Fiscal Impact (in thousands)
Major Provisions 2010-11 2011-12 2012-13 Fund
Toll revenue impact potential future loss of toll revenues by
Special*/
prohibiting HOV tolls Local
Occupancy level change minor costs in a future year to determine
Special*
person throughput for occupancy change
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* State Highway Account
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STAFF COMMENTS: SUSPENSE FILE.
Existing law authorizes Caltrans and local transportation
agencies to permit exclusive or preferential use of highway
lanes for HOVs. Existing law also authorizes the development of
13 specified HOT lane facilities, which are HOV lanes that may
be accessed by single occupancy vehicles for a fee. These HOT
lane projects are located or planned for corridors in Alameda,
Orange, Los Angeles, Riverside, San Diego, and Santa Clara
Counties. The current minimum standard occupancy level for
access of HOV lanes is two persons, but a three person
requirement has been established on parts of Interstate 80 in
Alameda and Contra Costa Counties near the Bay Bridge (which has
a 3+ occupancy requirement for HOV lanes at the toll booth) and
on the El Monte Busway on Interstate 10 during peak commuting
periods.
This bill would prevent Caltrans and local transportation
agencies from collecting tolls on HOVs, resulting in a potential
loss of future revenue. Currently HOVs are not charged tolls
for use of HOV lanes, HOT lanes, or toll bridges, but the Bay
Area Toll Authority will begin charging a reduced toll on HOVs
who cross the bridges under its authority on July 1, 2010. SB
1245 explicitly exempts toll bridge facilities from the
restriction proposed by this bill, but the bridge case serves as
an example of potential for future revenue losses and how some
agencies may wish to provide preferential treatment to HOVs by
charging a reduced fee. At a minimum, the prohibition against
charging tolls to HOVs would preclude Caltrans or a tolling
authority from having
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SB 1245 (Simitian)
maximum flexibility to use tolling as a tool to mitigate
congestion or to raise revenue to satisfy bondholders. This
would place the full burden of toll payment and future toll
increases on single-occupancy vehicles.
The bill also restricts the flexibility of Caltrans and
transportation agencies to readily change occupancy requirements
as a tool to manage congestion. Staff notes, however, that
apart from a single case on the El Monte Busway, occupancy
standards for HOV lanes have never been increased. Rather than
basing any changes to occupancy standards on congestion
management and vehicle throughput, this bill would require any
changes to occupancy standards to be based solely upon person
throughput.