BILL ANALYSIS
SB 1422
Page 1
SENATE THIRD READING
SB 1422 (Ridley-Thomas)
As Amended August 25, 2008
Majority vote
SENATE VOTE :Vote not relevant
TRANSPORTATION 10-0
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|Ayes:|DeSaulnier, Carter, | | |
| |Furutani, Galgiani, | | |
| |Horton, Houston, Huff, | | |
| |Karnette, Nava, Ruskin | | |
|-----+--------------------------+-----+--------------------------|
| | | | |
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SUBJECT : Authorizes, until January 15, 2013, the Los Angeles
County Metropolitan Transportation Authority (Metro) to operate
a value-pricing and transit development demonstration program
involving high-occupancy toll (HOT) lanes. Specifically, this
bill :
1)Makes legislative findings and declarations regarding traffic
congestion and air pollution in the Los Angeles region; states
the Legislature's intent that the California Department of
Transportation (Caltrans) consider taking measures to increase
capacity on Interstate 10 (I-10), such as re-striping the
existing highway to add an additional lane in each direction.
2)States legislative intent that Metro use a portion of toll
revenue collected on the I-10 to fund a bus maintenance
facility in El Monte.
3)Stipulates that nothing in this bill is to be construed to
require Caltrans to take any action contrary to federal law.
4)Provides, pursuant to existing authority and to a memorandum
of understanding (MOU) between Metro, the United States
Department of Transportation (USDOT), and Caltrans, that Metro
may operate a value-pricing and transit development
demonstration program involving HOT lanes on Interstate 110
(I-110) and I-10 in Los Angeles County, under the following
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conditions:
a) Metro and Caltrans must enter into a cooperative
agreement to address all matters related to design,
construction, maintenance, and operation of state highway
facilities in connection with the demonstration program;
b) Vehicles not meeting high-occupancy vehicles (HOV)
occupancy requirements may be authorized to use the HOT
lane facility under conditions set forth by Metro.
c) Metro is prohibited from changing the vehicle occupancy
requirement for access to HOV lanes in these two corridors
for the duration of the demonstration program.
d) Each proposed HOT lane shall have non-tolled alternative
lanes available for public use in the same corridor;
e) Metro must initiate a public outreach program to solicit
public input regarding the demonstration program;
f) Metro must work with impact communities to develop
mitigation measures;
g) Metro will set and/or adjust the toll rate but only
after a 30-day public review period;
h) Metro must provide some form of mitigation, such as
reduced tolls, to low-income commuters; and,
i) Toll paying commuters must have the option to purchase
any necessary toll paying equipment and the ability to
prepay tolls and renew toll payments by cash or by using a
credit card.
5)Requires Metro and Caltrans to submit a report to the
Legislature by December 31, 2012, summarizing the
demonstration program and addressing specific elements of the
program.
6)Authorizes operation of the demonstration program until
January 15, 2013, and prohibits Metro from issuing bonds for
the demonstration program during this time.
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7)Provides that revenue generated from the demonstration program
may be available to Metro for direct expenses related to
maintenance, administration, and operation of the lanes,
including toll collection, enforcement, and administration.
8)Limits Metro's administration expenses to no more than 3% of
the toll revenues.
9)Requires any excess revenue to be used in the corridor from
which the revenue was generated and requires that toll revenue
be used exclusively for preconstruction, construction, and
other related costs of the HOV facilities and the improvement
of transit service in the corridor.
EXISTING LAW:
1)Created Metro as one of several special transportation
commissions in southern California and charges Metro with
broad responsibilities for coordinating state highway planning
and transit service within the county.
2)Authorizes a regional transportation agency, in cooperation
with Caltrans, to apply to the California Transportation
Commission (CTC) to develop and operate HOT lanes, including
the administration and operation of a congestion-pricing
program, using the following process:
a) CTC is to review each application for HOT lane
development;
b) For each project, CTC is required to conduct at least
one public hearing in northern California and one in
southern California;
c) Following the hearings, CTC is to submit the
application, including any public comments made at the
hearings, to the Legislature for rejection or approval;
d) Approval by the Legislature must be by statute;
e) The number of projects under this authority is limited
to four, two in northern California and two in southern
California;
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f) CTC, in cooperation with the Legislative Analyst, must
annually report to the Legislature on the progress of the
development and operation of HOT lanes; and,
g) No application may be approved under this authority
after January 1, 2012.
FISCAL EFFECT : Unknown. Proponents of the demonstration
project assert that the demonstration project will be financed
almost entirely by a federal government grant. It is unclear
what the source of funds, or the resultant impacts, will be to
complete the project.
COMMENTS : In July, 2008, USDOT, Metro, and Caltrans entered
into an MOU to govern a $210.6 million federal transit grant for
the purpose of enabling Metro to carry out a congestion
reduction demonstration program where HOV lanes on selected
freeways in Los Angeles County would be converted into HOT lanes
during the demonstration period (i.e., until January 15, 2013).
Some of the key provisions of the MOU include:
1)A requirement that the HOT lane facilities must be in revenue
operation no later than December 31, 2010.
2)A requirement that, in the event the level of service on the
I-110 HOT lane facility drops below 45 miles per hour for 75%
or more of 180 consecutive weekdays, the occupancy requirement
for the HOV designation in that lane must be increased to
three or more.
3)For each month during with the I-110 HOT lane facility does
not maintain a level of service over 45 miles per hour,
Caltrans and Metro must refund the toll amount paid to each
single-occupancy driver using the HOT lane that experienced a
level of service below 45 miles per hour.
In a statement issued upon signing the MOU, USDOT Secretary,
Mary Peters, issued a statement citing, "I am announcing that
Los Angeles has been selected to receive $210.6 million in
federal Congestion Reduction funds. This money will make
commuting faster, air cleaner, and transit better. These funds
will provide the financial leverage this region needs to begin
converting up to eighty-five miles of local HOV lanes into new,
more reliable high occupancy toll - or HOT - lanes.
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"These roads will use electronic tolling technology to allow
single drivers to pay a fee for access to less-congested lanes.
Sophisticated sensors will monitor the region's freeways and,
based on traffic levels, will adjust the fares for these new
lanes. Drivers will be able to choose to avoid back ups when
getting home a little earlier means the difference between
paying day care late fees or missing your daughter's first
t-ball grand slam. That's a better option than being stuck in
traffic and staring at an open lane just to your left. No
matter what you earn or how you commute, time is important and
valuable to all of us. And Los Angeles's plan is designed to
make commuting easier even if you take transit. That is because
funds generated by the tolls can be used to finance new
ambitious bus service designed to take advantage of these new
HOT lanes.
"Indeed, there are few cities in America that have been as
creative and successful in finding new ways to make buses as
attractive for commuters. As part of the city's plan, new buses
will begin running on this HOT-lane network. As the city's
traffic fighting measures start going on-line over the coming
months, commuters will notice a real difference. As more cars
take advantage of the new HOT lanes, data and experience tells
us traffic on the other lanes will improve as well. That means
it will take less time to get to work, to go out for a night on
the town, or even to make it to a Dodgers game.
"In addition to the new buses, transit services will see other
improvements. That's because the revenue created by the HOT
lane charges will also be available for investments in subway
and light rail services throughout the region. Even if you are
one of the few folks who never use a highway, getting around
town is still going to get easier with this plan. And as
congestion pricing cuts polluting traffic tie ups and drives
more people to transit, it will help clear this city's air.
This plan will help put the story of smog in Los Angeles where
it belongs: in a museum. And it will help all of us breathe a
little easier, whether we're commuting to work, going for a jog
or watching our kids on the playground."
According to Secretary Peters, the Los Angeles region has until
October 15, 2008, to obtain the legislative authority needed to
convert existing HOV lanes into new HOT lanes. This bill is the
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legislative vehicle needed to secure the required legislative
approval for the program.
The CTC, in a letter dated July 31, 2008, submitted a letter to
the Legislature affirming that the proposed demonstration
program was eligible for consideration by the Legislature,
pursuant to AB 1467 (Nunez), Chapter 32, Statutes of 2006.
Accompanying the letter were public comments gathered at the
requisite two public hearings. Comments were generally neutral
regarding the program. However, members of the southern
California Congressional delegation wrote to the CTC to express
"deep concern" about the implementation of the congestion
pricing program. The members wrote, "?we do not believe such an
expansive project throughout the region is a responsible
solution and urge you to consider our concerns when developing a
formal position for transmittal to the California State
Legislature." The letter cited several specific concerns,
including:
1)Many drivers who currently meet requirements to drive in HOV
lanes could be charged tolls under the program.
2)The congestion reduction program, as outlined in the MOU,
fails to include an assessment of the impact that congestion
pricing will have on the economies of impacted communities.
3)Traffic congestion would be transferred from freeways to local
roads.
4)Funds would have to be diverted away from planned bus and rail
services to complete construction of the demonstration
program. (Note: Funding for the demonstration program has not
been entirely identified. Funds need to supplement the
federal grant could come from a variety of sources not
necessarily limited to funds for bus and rail services.)
Related legislation: AB 1954 (Jeffries) authorizes a value
pricing and transit program involving HOT lanes on State Route
15 in Riverside County, using authority already granted in
existing law to develop two HOT lane projects in Southern
California. AB 1954 is in enrollment.
AB 3021 (Nava) creates the California Transportation Financing
Authority to provide for increased construction of new capacity
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or improvements for the state transportation system through the
issuance of revenue bonds secured by tolls. That bill is on the
Senate Floor.
Previous legislation: AB 1467 (Nunez), Chapter 32, Statutes of
200,) provides for development of four HOT lane projects and
four public-private partnership projects, under certain, limited
conditions.
Analysis Prepared by : Janet Dawson / TRANS. / (916) 319-2093
FN: 0007622