BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 1245
                                                                  Page  1

          Date of Hearing:  June 21, 2010

                        ASSEMBLY COMMITTEE ON TRANSPORTATION
                               Bonnie Lowenthal, Chair
                   SB 1245 (Simitian) - As Amended:  April 22, 2010

           SENATE VOTE  :  35-0
           
          SUBJECT  :  High-occupancy toll lanes:  high-occupancy vehicles

           SUMMARY  :  Prohibits high-occupancy vehicles (HOVs) from being  
          charged a toll to use a high-occupancy toll (HOT) facility;  
          imposes restrictions and notification requirements on the  
          California Department of Transportation (Caltrans) related to  
          increasing vehicle occupancy level requirements for HOV lanes.   
          Specifically,  this bill  :  

          1)Prohibits a vehicle that has the required occupancy level  
            needed to travel in a high-occupancy (HOV) lane from being  
            charged to use the lane; this includes the use of HOT lanes,  
            which are HOV lanes that provide access to non-HOVs for a fee.  
             

          2)Exempts toll bridges from this prohibition.  

          3)Limits the ability of Caltrans to increase the required  
            vehicle occupancy level for HOV lanes; an increase in vehicle  
            occupancy requirements will only be allowed if it will  
            maximize person throughput on the impacted highway segment.  

          4)Requires Caltrans, at least 30 days prior to effecting a  
            change in HOV lane occupancy levels, to report the basis for  
            making the change to the appropriate legislative policy and  
            fiscal committees.  

           EXISTING LAW  :

          5)Authorizes Caltrans to establish HOV lanes but only after  
            completion of competent engineering estimates of the effect of  
            the lanes on safety, congestion, and highway capacity.  

          6)Requires Caltrans, whenever it authorizes preferential use of  
            highway lanes for HOVs, to obtain the approval of the relevant  
            transportation planning agency or county transportation  
            commission prior to establishing the HOV lanes.  








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          7)Specifically directs Caltrans, with certain restrictions, to  
            develop ridesharing programs and to construct HOV lanes with  
            the goal of reducing energy demands and automobile-caused  
            pollution.  

          8)Authorizes over a dozen specific high-occupancy toll (HOT)  
            lanes in Alameda, Orange, Los Angeles, Riverside, San Diego,  
            and Santa Clara counties.  

           FISCAL EFFECT  :  Unknown, but SB 1245 will prevent Caltrans and  
          local transportation agencies from collecting tolls on HOVs,  
          resulting in a potential loss of future revenue.  

           COMMENTS  :  California has nearly 1,500 miles of existing HOV  
          lanes and an additional 2000 miles are being planned.  HOV  
          systems are a traffic management strategy to promote carpooling  
          and bus patronage, improve reliability of travel time, improve  
          air quality, and maximize the efficiency of the freeway system.   


          The author has introduced this bill out of concern that Caltrans  
          and regional transportation agencies are increasingly looking to  
          HOT lanes as a source of revenue.  A HOT lane facility can only  
          be successful if the lane has sufficient capacity to offer  
          access to non-HOVs for a fee.  One way to create additional  
          capacity is to increase the HOV occupancy level requirements.   
          As occupancy level requirements increase, the number of HOVs in  
          the lane decreases, at least initially, and HOT lanes can "sell"  
          the freed up capacity to non-HOVs for a fee.  

          The author seeks to avert this pressure by prohibiting Caltrans  
          from increasing vehicle occupancy level requirements unless it  
          determines that the change will maximize person throughput on  
          the affected highway.  Furthermore, he seeks to establish a  
          process by which HOV occupancy level requirements may be  
          increased and to daylight proposed increases by requiring  
          Caltrans to report to legislative policy and fiscal committees  
          30 days in advance of a change.  

          On the state's existing toll facilities, tolling policies for  
          HOVs are not uniform.  For example, on the South Bay Expressway  
          in San Diego, HOVs must pay the full toll rate.  The 91 Express  
          Lanes in Riverside and Orange County offer vehicles with three  
          or more persons free passage during most hours, and a 50%  








                                                                 SB 1245
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          discounted rate during highly congested hours.  Beginning July  
          1, 2010, HOVs on the San Francisco-Oakland Bay Bridge will be  
          required to pay 50% of regular toll rate during congested  
          periods.  

          The Orange County Transportation Authority (OCTA), writing in  
          opposition to this bill, argues that when Caltrans seeks to  
          change the vehicle occupancy requirements for an HOV lane, its  
          guidelines require multiple factors to be considered, such as:   
          maximizing vehicle throughout, maintaining levels of service  
          standards, and coordinating with other HOV lanes in the region.   
          Forcing Caltrans to limit its consideration for changing HOV  
          occupancy levels based solely on people throughput discounts  
          other important considerations.  

           Committee concerns:   

          9)Under this bill, HOVs cannot be charged a toll; hence, the  
            full burden of toll payment and future toll increases will be  
            born by non-HOVs.  In conversations with the author's office,  
            staff suggests that providing free passage to HOVs is  
            appropriate given that those drivers "have already paid for  
            the lanes" (presumably through taxes) and ought not to be  
            required to pay for them again.  Why that burden should be  
            transferred entirely to single-occupancy vehicles, that have  
            "paid for the lanes" in an identical fashion is unclear.  

          10)Prohibiting HOVs from being tolled could have the perverse  
            affect of eliminating discounts for HOVs on toll lanes.  A  
            toll facility that offers a discounted toll rate to HOVs could  
            be considered a HOT lane and, under this bill, will be allowed  
            free passage.  As a result, toll operators will be discouraged  
            from offering discounted rates for HOVs.  

          11)Limiting increases in occupancy levels only to situations  
            where Caltrans determines that the change will maximize person  
            throughput is unwise.  In addition to the nearly 1,500 miles  
            of existing HOV lanes in California, another 2,000 lane are  
            planned.  Presumably, some of these new lanes will be adjacent  
            to existing lanes.  Occupancy level requirements should be  
            able to be set to provide continuity among the highway  
            segments, among other factors that may appropriately apply.  

          12)This bill seeks to provide greater legislative oversight when  
            changes are proposed to HOV occupancy level requirements.   








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            Existing state and federal law, policy, and guidelines already  
            require that any significant operational change proposed for  
            an HOV facility be reviewed and approved by the Federal  
            Highway Administration, Caltrans, and the regional  
            transportation agency.  Significant operational changes to HOV  
            lanes are seldom made and, when they are, they involve  
            substantial public outreach and notification as well as  
            significant costs (to modify signage, for example).  Further  
            oversight seems unnecessary.  

           REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          None on file

           Opposition 
           
          California Department of Transportation
          Orange County Transportation Authority


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