SB 264: High-occupancy toll lanes: Interstate 405 Improvement Project high-occupancy toll lanes.
- Session Year: 2017-2018
- House: Senate
- Latest Version Date: 2017-04-04
Existing law provides that the Department of Transportation has full possession and control of the state highway system. Existing law authorizes a regional transportation agency or the department to apply to the California Transportation Commission to develop and operate high-occupancy toll (HOT) lanes or other toll facilities. Existing law defines regional transportation agency for these purposes to include, among other agencies, a county transportation commission established under the County Transportation Commissions Act. Existing law requires certain excess revenue generated by the toll facility to be used in the corridor from which the revenue was generated pursuant to an expenditure plan developed by the sponsoring agency, as provided.
This bill would instead refer to a county transportation commission or authority established under that act. instead require net excess toll revenues, as defined, received from high-occupancy toll lanes on a specified portion of an approximately 16-mile-long project corridor in the County of Orange on Interstate 405 and that traverses the Cities of Costa Mesa, Fountain Valley, Huntington Beach, Westminster, and Seal Beach to be allocated to the Orange County Transportation Authority and certain project corridor jurisdictions according to a specified schedule. The bill would require these moneys to be spent on specified transportation improvement projects.
Existing law provides that the Department of Transportation has full possession and control of the state highway system. Existing law authorizes a regional transportation agency or the department to apply to the California Transportation Commission to develop and operate high-occupancy toll (HOT) lanes or other toll facilities. Existing law defines regional transportation agency for these purposes to include, among other agencies, a county transportation commission established under the County Transportation Commissions Act.
This bill would instead refer to a county transportation commission or authority established under that act.
(a)Notwithstanding Section 149.7, Section 14106 of the Government Code, or any other law, this section applies to the Interstate 405 Improvement Project high-occupancy toll lanes in the project corridor between State Highway Route 73 and Interstate 605.
(b)Net excess toll revenue shall be allocated as follows:
(1)Twenty percent to the Orange County Transportation Authority.
(2)Seventy percent to be equally distributed to the project corridor jurisdictions along the project corridor.
(3)Ten percent to be equally distributed to project corridor jurisdictions not along the project corridor.
(c)(1)Moneys received under subdivision (b) shall be expended only to enhance traffic flow, reduce traffic congestion, and to mitigate road wear to streets within three miles of the Interstate 405 Improvement Project high-occupancy toll lanes in the project corridor between State Highway Route 73 and Interstate 605. Eligible expenditures are limited to capital improvements, operational improvements, and maintenance to on-ramps, off-ramps, connector roads, roadways, bridges, or other structures that are related to the tolled or nontolled facilities within three miles of Interstate 405 Improvement Project high-occupancy toll lanes in the project corridor between State Highway Route 73 and Interstate 605.
(2)(A)Subject to paragraph (1), the Orange County Transportation Authority may use its share of excess toll revenues under subdivision (b) as it desires for transportation needs.
(B)Subject to paragraph (1), a project corridor jurisdiction may use its share of excess toll revenues under subdivision (b) as it desires for transportation needs in its jurisdiction.
(d)For purposes of this section the following terms have the following meanings:
(1)Net excess toll revenue means all revenues available for transportation improvements after debt service and debt service coverage ratios are met and operating and major maintenance reserves are fully funded.
(2)Project corridor means the approximately 16-mile-long project corridor in the County of Orange on Interstate 405 and that traverses the Cities of Costa Mesa, Fountain Valley, Huntington Beach, Westminster, and Seal Beach.
(3)Project corridor jurisdictions along the project corridor means the Cities of Costa Mesa, Fountain Valley, Huntington Beach, Westminster, and Seal Beach.
(4)Project corridor jurisdictions not along the project corridor means project corridor jurisdictions within three miles, north or south, from the Interstate 405 high-occupancy toll lanes between State Highway Route 73 and Interstate 605, limited to the Cities of Santa Ana, Garden Grove, Stanton, and Los Alamitos and the County of Orange.
All matter omitted in this version of the bill appears in the bill as introduced in the Senate, February 8, 2017. (JR11)(a)Notwithstanding Sections 149 and 30800, a regional transportation agency, as defined in subdivision (k), or the department may apply to the commission to develop and operate high-occupancy toll lanes or other toll facilities, including the administration and operation of a value pricing program and exclusive or preferential lane facilities for public transit or freight.
(b)Each application for the development and operation of the toll facilities described in subdivision (a) shall be subject to review and approval by the commission pursuant to eligibility criteria set forth in guidelines established by the commission. Prior to approving an application, the commission shall conduct at least one public hearing at or near the proposed toll facility for the purpose of receiving public comment. Upon approval of an application, the regional transportation agency or the department may develop and operate the toll facility proposed in the application.
(c)The eligibility criteria set forth in the guidelines established by the commission pursuant to subdivision (b) shall include, at a minimum, all of the following:
(1)A demonstration that the proposed toll facility will improve the corridors performance by, for example, increasing passenger throughput or reducing delays for freight shipments and travelers, especially those traveling by carpool, vanpool, and transit.
(2)A requirement that the proposed toll facility is contained in the constrained portion of a conforming regional transportation plan prepared pursuant to Section 65080 of the Government Code.
(3)Evidence of cooperation between the applicable regional transportation agency and the department.
(4)A discussion of how the proposed toll facility meets the requirements of this section.
(5)A requirement that a project initiation document has been completed for the proposed toll facility.
(6)A demonstration that a complete funding plan has been prepared.
(d)A regional transportation agency that applies to the commission to develop and operate toll facilities pursuant to this section shall reimburse the commission for all of the commissions costs and expenses incurred in processing the application.
(e)Toll facilities approved by the commission on or after January 1, 2016, pursuant to this section, shall be subject to the following minimum requirements:
(1)A regional transportation agency sponsoring a toll facility shall enter into an agreement with the Department of the California Highway Patrol that addresses all law enforcement matters related to the toll facility and an agreement with the department that addresses all matters related to design, construction, maintenance, and operation of the toll facility, including, but not limited to, liability, financing, repair, rehabilitation, and reconstruction.
(2)A regional transportation agency sponsoring a toll facility shall be responsible for reimbursing the department and the Department of the California Highway Patrol for their costs related to the toll facility pursuant to an agreement between the agency and the department and an agreement between the agency and the Department of the California Highway Patrol.
(3)The sponsoring agency shall be responsible for establishing, collecting, and administering tolls, and may include discounts and premiums for the use of the toll facility.
(4)The revenue generated from the operation of the toll facility shall be available to the sponsoring agency for the direct expenses related to the following:
(A)Debt issued to construct, repair, rehabilitate, or reconstruct any portion of the toll facility, payment of debt service, and satisfaction of other covenants and obligations related to indebtedness of the toll facility.
(B)The development, maintenance, repair, rehabilitation, improvement, reconstruction, administration, and operation of the toll facility, including toll collection and enforcement.
(C)Reserves for the purposes specified in subparagraphs (A) and (B).
(5)All remaining revenue generated by the toll facility shall be used in the corridor from which the revenue was generated pursuant to an expenditure plan developed by the sponsoring agency, as follows:
(A)(i)For a toll facility sponsored by a regional transportation agency, the regional transportation agency shall develop the expenditure plan in consultation with the department.
(ii)For a toll facility sponsored by the department, the department shall develop the expenditure plan in consultation with the applicable regional transportation agency.
(B)(i)For a toll facility sponsored by a regional transportation agency, the governing board of the regional transportation agency shall review and approve the expenditure plan and any updates.
(ii)For a toll facility sponsored by the department, the commission shall review and approve the expenditure plan and any updates.
(6)The sponsoring agencys administrative expenses related to operation of a toll facility shall not exceed 3 percent of the toll revenues.
(f)For any project under this section involving the conversion of an existing high-occupancy vehicle lane to a high-occupancy toll lane, the sponsoring agency shall demonstrate that the project will, at a minimum, result in expanded efficiency of the corridor in terms of travel time reliability, passenger throughput, or other efficiency benefit.
(g)This section shall not prevent the construction of facilities that compete with a toll facility approved by the commission pursuant to this section, and the sponsoring agency shall not be entitled to compensation for the adverse effects on toll revenue due to those competing facilities.
(h)A sponsoring agency that develops or operates a toll facility pursuant to this section shall provide any information or data requested by the commission or the Legislative Analyst. The commission, in cooperation with the Legislative Analyst, shall annually prepare a summary report on the progress of the development and operation of any toll facilities authorized pursuant to this section. The commission may submit this report as a section in its annual report to the Legislature required pursuant to Section 14535 of the Government Code.
(i)(1)A regional transportation agency may issue bonds, refunding bonds, or bond anticipation notes, at any time, to finance construction of, and construction-related expenditures for, a toll facility approved pursuant to this section, and construction and construction-related expenditures that are included in the expenditure plan adopted pursuant to paragraph (5) of subdivision (e), payable from the revenues generated from the toll facility. The bonds, refunding bonds, and bond anticipation notes shall bear such interest rates and other features and terms as the regional transportation agency shall approve and may be sold by the regional transportation agency at public or private sale.
(2)A bond, refunding bond, or bond anticipation note issued pursuant to this subdivision shall contain on its face a statement to the following effect:
Neither the full faith and credit nor the taxing power of the State of California is pledged to the payment of principal of, or the interest on, this instrument.
(3)Bonds, refunding bonds, and bond anticipation notes issued pursuant to this subdivision are legal investments for all trust funds, the funds of all insurance companies, banks, trust companies, executors, administrators, trustees, and other fiduciaries.
(4)Interest earned on any bonds, refunding bonds, and bond anticipation notes issued pursuant to this subdivision shall at all times be free from state personal income tax and corporate income tax.
(5)(A)For a toll facility operated by the department, the California Infrastructure and Economic Development Bank or the Treasurer may issue bonds, refunding bonds, or bond anticipation notes, at any time, to finance development, construction, or reconstruction of, and construction-related expenditures for, a toll facility approved pursuant to this section and construction and construction-related expenditures that are included in the expenditure plan adopted pursuant to paragraph (5) of subdivision (e), payable solely from the toll revenue and ancillary revenues generated from the toll facility.
(B)This subdivision shall be deemed to provide all necessary state law authority for purposes of Section 63024.5 of the Government Code.
(j)(1)Before submitting an application pursuant to subdivision (a), a regional transportation agency shall consult with every local transportation authority designated pursuant to Division 12.5 (commencing with Section 131000) or Division 19 (commencing with Section 180000) of the Public Utilities Code and every congestion management agency whose jurisdiction includes the toll facility that the regional transportation agency proposes to develop and operate.
(2)A regional transportation agency shall give a local transportation authority or congestion management agency described in paragraph (1) the option to enter into agreements, as needed, for project development, engineering, financial studies, and environmental documentation for each construction project or segment that is part of the toll facility. The local transportation authority or congestion management agency may be the lead agency for these construction projects or segments.
(k)Notwithstanding Section 143, for purposes of this section, regional transportation agency means any of the following:
(1)A transportation planning agency described in Section 29532 or 29532.1 of the Government Code.
(2)A county transportation commission or authority established under Section 130050, 130050.1, or 130050.2 of the Public Utilities Code.
(3)Any other local or regional transportation entity that is designated by statute as a regional transportation agency.
(4)A joint exercise of powers authority established pursuant to Chapter 5 (commencing with Section 6500) of Division 7 of Title 1 of the Government Code, with the consent of a transportation planning agency or a county transportation commission for the jurisdiction in which the transportation project will be developed.
(5)The Santa Clara Valley Transportation Authority established pursuant to Part 12 (commencing with Section 100000) of Division 10 of the Public Utilities Code.
(l)A regional transportation agency or the department may require any vehicle accessing a toll facility authorized under this section to have an electronic toll collection transponder or other electronic device for enforcement or tolling purposes.
(m)Nothing in this section shall authorize or prohibit the conversion of any existing nontoll or nonuser-fee lanes into tolled or user-fee lanes, except that a high-occupancy vehicle lane may be converted into a high-occupancy toll lane.
(n)Nothing in this section shall apply to, modify, limit, or otherwise restrict the authority of any joint powers authority described in Section 66484.3 of the Government Code to establish or collect tolls or otherwise operate any toll facility or modify or expand a toll facility.
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Date
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Status
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|---|---|
| Feb 1, 2018 | Returned to Secretary of Senate pursuant to Joint Rule 56. |
| Apr 25, 2017 | April 25 set for first hearing canceled at the request of author. |
| Apr 19, 2017 | Set for hearing April 25. |
| Apr 6, 2017 | Re-referred to Com. on T. & H. |
| Apr 4, 2017 | From committee with author's amendments. Read second time and amended. Re-referred to Com. on RLS. |
| Feb 16, 2017 | Referred to Com. on RLS. |
| Feb 9, 2017 | From printer. May be acted upon on or after March 11. |
| Feb 8, 2017 | Introduced. Read first time. To Com. on RLS. for assignment. To print. |
This list shows positions taken on this bill by organizations on the date displayed, which is linked to the original source.
Positions by individuals are not included.
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Organization
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Position
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Date
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|---|---|---|
| Hntb Corporation | ** Against | Apr 20, 2017 |
| Professional Engineers In California Government | ** Against | Apr 20, 2017 |
| Self-Help Counties Coalition | ** Against | Apr 20, 2017 |
SENATE COMMITTEE ON TRANSPORTATION AND HOUSING
Senator Jim Beall, Chair
2017 - 2018 Regular
Bill No: SB 264 Hearing Date: 4/25/2017
Author: | Nguyen | ||
Version: | 4/4/2017 | ||
Urgency: | No | Fiscal: | Yes |
Consultant: | Manny Leon | ||
SUBJECT: High-occupancy toll lanes: Interstate 405 Improvement Project high-occupancy toll lanes.
DIGEST: This bill requires excess toll revenue from the high-occupancy toll lanes (HOT) planned to be constructed on Interstate 405 (I-405) to be allocated in a specified manner.
ANALYSIS:
Existing law:
- Provides that the State Department of Transportation (Caltrans) has full possession and control of the state highway system.
- Authorizes a regional transportation agency or Caltrans to apply to the California Transportation Commission (CTC) to develop and operate high-occupancy toll (HOT) lanes or other toll facilities.
- Requires certain excess revenue generated by the toll facility to be used in the corridor from which the revenue was generated pursuant to an expenditure plan developed by the sponsoring agency, as provided.
- Creates the Orange County Transportation Authority (OCTA) which serves as the regional transportation planning agency and transit operator for Orange County.
- At the local level, in 2006 Orange County voters passed Measure M (M2), a regional half-cent sales tax measure to provide funding for a number of highway, road, and transit improvement projects.
This bill:
- Defines the corridor for the I-405 Improvement Project (Project) to be between State Route 73 and Interstate 605.
- Requires OCTA to allocate excess toll revenues from the Project in the following manner:
- 20 percent to OCTA
- 70 percent to local agencies along the I-405 project corridor .
- 10 percent to local agencies not along the I-405 project corridor.
- Provides specific parameters on how excess toll revenues are to be spent, as specified.
COMMENTS:
- Author’s statement. According to the author, “this bill provides small but significant relief to communities directly impacted by the constriction of I-405 Improvement project. These impacted communities will endure traffic delays and detours made worse by the construction of the project forcing cities to use additional recourses for mitigation.”
- What are HOT Lanes? High-occupancy toll (HOT) lanes are lanes where carpools can travel for free or at a reduced charge and other vehicles may travel upon payment of a higher charge, which varies based on congestion. An agency operating a HOT lane essentially sells excess capacity in undersubscribed high-occupancy vehicle lanes to single-occupant vehicle drivers by charging a toll. 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 ensure that operation of the toll facility does not undermine the intended benefits of promoting carpooling with access to the faster high-occupancy vehicle lane.
Transportation agencies have had an interest in HOT lanes for years, viewing them as a way to more efficiently use freeway capacity and to help fund expansion of high-occupancy vehicle or carpool lanes and transit service. Thus, HOT lanes are increasingly being implemented in metropolitan areas around the state and nation.
- Local vs. State control? AB 194 Frazier (Chapter 687, Statutes of 2016) set the statutory framework to allow local transportation agencies to construct HOT lanes if certain conditions were met and the project received approval from the CTC. Prior to AB 194, aside from several demonstration programs, local transportation agencies typically had to receive legislative approval to construct HOT lanes in their respective regions. This resulted in local transportation agencies engaging in a prolonged process and exposed each individual project to policy issues that, many times, were not relevant to the specific project. This also resulted in a patchwork of statutes that lacked any consistent criteria relative to authorizing HOT lanes throughout the state. AB 194 remedied many of these issues by providing local agencies the opportunity develop a HOT lane project that would ultimately go through the CTC approval process. Furthermore, to ensure consistency, AB 194 also set forth specific eligibility criteria for the CTC to use in evaluating applications for toll facilities. The I-405 improvement project was submitted to the CTC by OCTA and approved under the AB 194 authority.
The provisions specified in this bill would unravel the process established in AB 194 by changing how certain toll revenues would be allocated for the I-405 project. The existing process currently requires a transportation agency to develop an expenditure plan for excess toll revenues that requires public input and comment. As a result, it is unclear why statutory direction is needed for the I-405 project when an expenditure plan would need to be approved by the OCTA Board of Directors, which represents the corridor identified in this bill.
- Premature proposal? The I-405 project will be one of the most complex transportation projects in the nation. This project is estimated to cost $1.9 billion and will add one general purpose lane in each direction and also add an additional lane in each direction that will combine with the existing high-occupancy vehicle lane to provide dual express lanes in each direction. The project also includes significant improvements to the local street network in the area of the project, including the replacement of 18 local street bridges that travel over I-405. With most of the I-405 project being funded through M2 revenue, OCTA is currently in the process of attempting to secure the remaining funding gap for the project through a Transportation Infrastructure Finance and Innovation Act (TIFIA) loan from the federal government. The project is anticipated to break ground on construction sometime in 2018 with forecasted excess toll revenue (revenues after debt service and maintenance, repair, and administrative expenses) not expected to be available until 2028 at the earliest. As full funding for the project has not been secured, this proposal may be premature considering OCTA does not know the project’s future financial obligations (e.g. debt service, interest rates, etc.). Moreover, the provisions specified in this bill may impede OCTA’s ongoing negotiations with bond creditors and the federal government by prematurely directing future revenues when the Authority is currently in the process of securing funding for the project.
Related Legislation:
AB 194, Frazier (Chapter 687, Statutes of 2016) — extends indefinitely the California Transportation Commission's (CTC's) authority to authorize regional transportation agencies to develop and operate HOT lanes and expands the authority to include other toll facilities; adds similar authority for the CTC to authorize the California Department of Transportation (Caltrans) to develop toll facilities.
FISCAL EFFECT: Appropriation: Fiscal Com.: Local:
POSITIONS: (Communicated to the committee before noon on Wednesday,
April 19, 2017.)
SUPPORT:
None received.
OPPOSITION:
HNTB Corporation
Self-Help Counties Coalition
Professional Engineers in California Government
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Bill Author
Bill Co-Author(s):