BILL ANALYSIS                                                                                                                                                                                                    �



                                                                            



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                                    THIRD READING


          Bill No:  AB 2250
          Author:   Daly (D)
          Amended:  6/26/14 in Senate
          Vote:     21


           SENATE TRANSPORTATION & HOUSING COMMITTEE  :  11-0, 6/24/14
          AYES:  DeSaulnier, Gaines, Beall, Cannella, Galgiani, Hueso,  
            Lara, Liu, Pavley, Roth, Wyland

           SENATE APPROPRIATIONS COMMITTEE  :  Senate Rule 28.8

           ASSEMBLY FLOOR  :  78-0, 5/15/14 (Consent) - See last page for  
            vote


           SUBJECT  :    Toll revenue expenditures

           SOURCE  :     Author


           DIGEST  :    This bill requires that any toll revenue generated by  
          a managed lane on the state highway system which is administered  
          by a local agency be expanded only in the corridor containing  
          that managed lane.

           ANALYSIS  :    Existing law authorizes the San Diego Association  
          of Governments, the Santa Clara Valley Transportation Authority,  
          and the Alameda County Transportation Commission to construct  
          high-occupancy toll (HOT) lanes.  An agency operating a HOT lane  
          essentially sells excess capacity in under-subscribed  
          high-occupancy vehicle (HOV) lanes to single-occupant vehicle  
          drivers by charging a toll.
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          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.

          Until 2012, existing law authorized regional transportation  
          agencies, in cooperation with the Department of Transportation,  
          to apply to the California Transportation Commission (CTC) to  
          develop and operate HOT lanes.  Before this authority expired,  
          the CTC approved HOT lane facilities in the San Francisco Bay  
          Area, Los Angeles County, and Riverside County.

          This bill: 

          1.Requires that any toll revenue generated by a managed lane on  
            the state highway system which is administered by a local  
            agency be expanded only in the corridor containing that  
            managed lane.

          2.Defines a managed lane as either of the following:

             A.   A HOT lane.

             B.   An express toll lane, which is a dedicated lane that  
               requires all vehicles to pay a toll, but may provide for a  
               discounted toll for HOVs.

           Comments
           
          In 2013, Governor Brown directed the California State  
          Transportation Agency to convene a workgroup of stakeholders to  
          explore, among other things, long-term transportation funding  
          options to help address the state's growing transportation  
          needs.  From that work, the Transportation Agency concluded that  
          one option to consider includes expanding the use of pricing and  
          express lanes to better manage congestion and generate revenues  







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          for preservation of the current system.  According to the  
          author's office, some stakeholders have concerns that the state  
          may move toward using locally generated toll revenues to fund  
          highway maintenance and preservation on other parts of the state  
          highway system outside the managed lane corridor.  The author  
          intends, with this bill, to ensure that locally operated toll  
          lane revenues can only be spent within the corridor in which  
          they are generated.

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

           SUPPORT  :   (Verified  8/5/14)

          California Asphalt Pavement Association
          Orange County Transportation Authority
          Self-Help Counties Coalition

           ARGUMENTS IN SUPPORT  :    The Orange County Transportation  
          Authority states in support, "As the owner of the 91 Express  
          Lanes, a four-lane ten-mile toll road in Orange County, OCTA can  
          attest to the host of benefits these lanes offer including  
          congestion mitigation, expanded travel options, and providing a  
          means to allow  for increased investment within the corridors of  
          the managed lanes facility through the investment of excess  
          revenues for such things as transit and rail service, along the  
          highway improvements within the corridor.  This bill will ensure  
          such benefits are provided for in future facilities.  Otherwise,  
          local agencies may be deterred from investing in these  
          facilities due to the risk that the revenue they generate may be  
          diverted for state purposes that are not necessarily within the  
          same corridor.  With local sales tax funding often being used to  
          advance the construction of these facilities, the decision as to  
          how excess revenues should be used is a decision that should  
          remain with the local agency that leads the project development  
          and assumes the risk for the construction of the facility."

           ASSEMBLY FLOOR :  78-0, 5/15/14
          AYES:  Achadjian, Alejo, Allen, Ammiano, Bigelow, Bloom,  
            Bocanegra, Bonilla, Bonta, Bradford, Brown, Buchanan, Ian  
            Calderon, Campos, Chau, Ch�vez, Chesbro, Conway, Cooley,  
            Dababneh, Dahle, Daly, Dickinson, Donnelly, Eggman, Fong, Fox,  
            Frazier, Beth Gaines, Garcia, Gatto, Gomez, Gonzalez, Gordon,  
            Gorell, Gray, Grove, Hagman, Hall, Harkey, Roger Hern�ndez,  







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            Holden, Jones, Jones-Sawyer, Levine, Linder, Logue, Lowenthal,  
            Maienschein, Medina, Melendez, Mullin, Muratsuchi, Nazarian,  
            Nestande, Olsen, Pan, Patterson, Perea, John A. P�rez, V.  
            Manuel P�rez, Quirk, Quirk-Silva, Rendon, Ridley-Thomas,  
            Rodriguez, Salas, Skinner, Stone, Ting, Wagner, Waldron,  
            Weber, Wieckowski, Wilk, Williams, Yamada, Atkins
          NO VOTE RECORDED:  Mansoor, Vacancy


          JA:e  8/6/14   Senate Floor Analyses 

                           SUPPORT/OPPOSITION:  SEE ABOVE

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