BILL ANALYSIS                                                                                                                                                                                                    �



                                                                            



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                                    THIRD READING


          Bill No:  AB 1811
          Author:   Buchanan (D)
          Amended:  4/8/14 in Assembly
          Vote:     21

           
           SENATE TRANSPORTATION & HOUSING COMMITTEE  :  10-0, 6/17/14
          AYES:  DeSaulnier, Gaines, Beall, Cannella, Galgiani, Hueso,  
            Lara, Liu, Roth, Wyland
          NO VOTE RECORDED:  Pavley

           ASSEMBLY FLOOR  :  71-2, 5/1/14 - See last page for vote


           SUBJECT  :    High-occupancy vehicle lanes

           SOURCE  :     Alameda County Transportation Commission 


           DIGEST  :    This bill allows the Alameda County Transportation  
          Commission (ACTC) to restrict high-occupancy vehicle access to  
          its high-occupancy toll (HOT) lanes contingent on the vehicle  
          having an electronic transponder.

           ANALYSIS  :    In 1970, the Legislature passed and the Governor  
          signed AB 1 (Biddle, Chapter 1295) which, among other things,  
          authorized the state to construct preferential freeway lanes for  
          high-occupancy vehicles (HOV lanes).  AB 1 specified that it was  
          the intent of the Legislature to encourage individual citizens  
          to pool their vehicular resources and thereby lessen emission of  
          air pollutants.  

          The theory behind carpool-only lanes is that, in heavily  
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          congested areas, these lanes should be less congested than  
          all-purpose lanes and therefore faster, inducing people who  
          might otherwise not carpool to do so in order to avoid the  
          heaviest congestion.  Increasing the number of carpools, in  
          turn, should reduce the overall number of cars travelling in the  
          corridor (as drivers leave their cars at home in favor of  
          sharing a ride with someone).  In order to be effective, HOV  
          lanes must be less congested than other lanes, otherwise the  
          incentive is lost.  Highway lanes with lower congestion  
          typically are able to accommodate more vehicles and still  
          maintain their allure.  This additional capacity has value.

          AB 2032 (Dutra, Chapter 418, Statutes of 2004) authorized the  
          San Diego Association of Governments (SANDAG), the Sunol Smart  
          Carpool Lane Joint Powers Authority, the Santa Clara Valley  
          Transportation Authority (VTA), and the Alameda County  
          Congestion Management Agency (now known as the Alameda County  
          Transportation Commission or ACTC) to construct HOV lanes and  
          convert them to HOT lanes.  HOT lanes are HOV lanes in which the  
          administering agency sells any extra capacity to toll-paying  
          single-occupant vehicles.  AB 2032 declared the Legislature's  
          intent that these HOT lanes increase efficiency of the  
          transportation system by taking advantage of existing capacity  
          without forfeiting the congestion mitigation and air quality  
          benefits provided by HOV lanes.

          HOT lanes typically employ a pricing method known as value  
          pricing or congestion pricing.  Under this scheme, the amount of  
          the toll varies in accordance with the level of congestion in  
          that particular lane, such that as congestion increases, so too  
          will the toll amount.  As the price to use the lane goes up,  
          fewer people presumably will choose to use it, thereby reducing  
          demand for the facility and maintaining free-flow travel  
          conditions.  With this mechanism, an agency can attempt to  
          ensure that operation of the toll facility does not undermine  
          the intended benefits of promoting carpooling with access to the  
          faster HOV lane.

          Existing law requires that high-occupancy vehicles have  
          unrestricted access to the HOT lanes authorized by AB 2032 at  
          all times.    

          This bill allows ACTC to restrict high-occupancy vehicle access  
          to its HOT lanes contingent on the vehicle having an electronic  

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          transponder for law enforcement purposes.

           Comments

           Currently, any vehicle with two or more occupants can enter into  
          the HOT lane in Alameda County without paying a toll.  This bill  
          may result in that no longer being the case, as passage of this  
          bill enables ACTC to adopt a policy in which only vehicles with  
          switchable transponders will be able to access for free any HOT  
          lanes in the county.  A switchable transponder is like a Fastrak  
          device with a switch on it that allows the driver of the vehicle  
          to signal the number of occupants in the vehicle.  In this way,  
          a driver can switch from a toll-paying single-occupant driver to  
          a non-paying carpooler with a flip of the switch on his or her  
          transponder.  

          ACTC will not be the first public agency in California to  
          restrict carpool access by requiring a transponder.  The express  
          lane on SR 91, operated by Orange County Transportation  
          Authority, as well as the toll bridges in the Bay Area, require  
          carpoolers to use transponders to take advantage of the free or  
          reduced fares on their facilities.  The HOT lanes operated by  
          Los Angeles County Metropolitan Transportation Authority  
          (LACMTA) on Interstates 10 and 110 require switchable  
          transponders for carpools.  Existing law authorizing these  
          entities to operate toll facilities does not require them to  
          provide carpoolers unrestricted access, enabling them to require  
          transponders.

          According to LACMTA, their market research found that more than  
          70% of existing carpoolers would continue to carpool even with a  
          transponder requirement, because they like the idea of reducing  
          the number of cheaters in the lanes.  LACMTA's finding also  
          suggests that nearly 30% of carpoolers responded that they would  
          not continue to carpool with the transponder requirement.   
          Research related to prior bills involving the privacy aspects of  
          transponders suggests that there is a segment of society who  
          prefer not to use transponders for fear of the government or  
          others tracking their movement and location.  Others are  
          distrustful of or uncomfortable with technology in general and  
          oppose using electronic transponders for those reasons.  

          ACTC contends that switchable transponders are needed for HOT  
          lanes in order to improve enforcement of non-paying single  

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          occupant vehicles accessing the lane.  LACMTA reports that, by  
          requiring switchable transponders, their violation rate is 10%  
          to 15% lower than what other HOT lanes experience (from 20-25%  
          violation rate to 10-15% violation rate).  Administering  
          agencies suggest that enforcement is important because drivers  
          who either pay the toll or appropriately access the lane by  
          carpooling get very frustrated and upset when they see  
          "cheaters" who access the lane illegally.

          Another potential reason for requiring transponders and  
          improving enforcement is to reduce the number of vehicles  
          illegally accessing the lane and therefore creating increased  
          capacity and improved travel times for those appropriately using  
          the facility.  Reducing the number of violators also increases  
          the number of toll-paying vehicles that can access the lane  
          before the lane slows down so much that it no longer provides an  
          incentive for use.  Increasing the number of toll-payers  
          ultimately increases the amount of revenue the administering  
          agency can collect.  Finally, improved enforcement can help  
          reduce the amount of leakage in the HOT lane's revenue stream.   
          Reducing the number of free riders by 10% could equate to  
          essentially a 10% increase in revenues.

          Many transportation experts suggest that HOT lanes represent  
          good transportation finance policy because they can accomplish  
          two aims, namely, encouraging carpooling and selling access  
          capacity to generate much-needed transportation revenue.  By  
          accomplishing these two goals, however, HOT lanes also create a  
          tension between competing interests.  At some point, operators  
          have to choose between the two objectives, because successfully  
          filling the lane with carpoolers will adversely affect revenue,  
          and vice versa.  The Legislature has clearly indicated in past  
          legislation that encouraging carpoolers is its priority.   
          Administering agencies operate these toll facilities and keep  
          the revenue for their own use, potentially tempting them to  
          operate the lanes to maximize revenue instead of the number of  
          carpoolers.  ACTC and others adamantly object to the idea that  
          they would do so, but the temptation remains.

          Local agencies administer these toll facilities based on the  
          authority the Legislature grants them in enabling statute.  At  
          the time it passed AB 2032, giving ACTC the authority to operate  
          two HOT lanes, the Legislature required unrestricted access for  
          carpoolers to the lanes.  This bill allows ACTC to institute a  

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          relatively minor restriction for carpoolers.  While there may be  
          good reasons to enact this change, it is important that the  
          committee take note of the change in policy and be aware of the  
          precedent it sets.  Further changes to HOT lane policies have  
          the potential of eroding the facilities' ability to encourage  
          carpooling for the sake of increasing HOT lane revenue  
          generation.

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

           SUPPORT  :   (Verified  6/19/14)

          Alameda County Transportation Commission (source) 
          California Special Districts Association
          Contra Costa County Board of Supervisors
          Metropolitan Transportation Commission 

           ARGUMENTS IN SUPPORT  :    According to the author, this bill is  
          necessary to ensure that statute is flexible enough to  
          accommodate rapidly changing technology.  Current law does not  
          allow ACTC to restrict carpool access to the HOT lanes by  
          requiring the use of a transponder.  ACTC feels, however, that  
          implementing a policy requiring the use of transponders by both  
          toll-paying single-occupant vehicles and non-paying carpoolers  
          will enable it to enforce appropriate use of the lanes and  
          improve overall performance of its facilities.


           ASSEMBLY FLOOR  :  71-2, 5/1/14
          AYES:  Achadjian, Alejo, Allen, Ammiano, Atkins, Bigelow, Bloom,  
            Bocanegra, Bonilla, Bonta, Bradford, Buchanan, Ian Calderon,  
            Campos, Chau, Ch�vez, Chesbro, Conway, Cooley, Dababneh,  
            Dahle, Daly, Dickinson, Eggman, Fong, Fox, Frazier, Beth  
            Gaines, Garcia, Gomez, Gonzalez, Gordon, Gorell, Gray, Grove,  
            Hagman, Harkey, Roger Hern�ndez, Holden, Jones, Jones-Sawyer,  
            Linder, Logue, Lowenthal, Maienschein, Medina, Melendez,  
            Mullin, Muratsuchi, Nazarian, Nestande, Olsen, Pan, Patterson,  
            Perea, V. Manuel P�rez, Quirk, Quirk-Silva, Rendon, Rodriguez,  
            Skinner, Stone, Ting, Wagner, Waldron, Weber, Wieckowski,  
            Wilk, Williams, Yamada, John A. P�rez
          NOES:  Gatto, Levine
          NO VOTE RECORDED:  Brown, Donnelly, Hall, Mansoor,  
            Ridley-Thomas, Salas, Vacancy

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          JA:nl  6/19/14   Senate Floor Analyses 

                           SUPPORT/OPPOSITION:  SEE ABOVE

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