BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 744
                                                                  Page  1

          Date of Hearing:   April 27, 2009

                        ASSEMBLY COMMITTEE ON TRANSPORTATION
                                   Mike Eng, Chair
                    AB 744 (Torrico) - As Amended:  April 21, 2009
           
          SUBJECT  :  Bay Area Toll Authority:  Express Lane Network

           SUMMARY  :   Authorizes the Bay Area Toll Authority (BATA) to  
          develop a Bay Area Express Lane Network (network).   
          Specifically,  this bill  :  

          1)Declares the intent of the Legislature to authorize BATA to  
            develop the network to provide the following objectives:  

             a)   Higher vehicle and passenger throughput and reduce  
               travel delays;

             b)   An efficient, effective, consistent, and seamless system  
               for network customers;

             c)   Benefits to travelers within each corridor commensurate  
               with the revenues collected in that corridor;

             d)   Expedited delivery of the network using a rapid delivery  
               approach that, to the greatest extent possible relies on  
               the existing highway right of way and minimizes  
               environmental impacts; and,

             e)   Use of network revenue to finance construction of the  
               network and other corridor improvements, operation and  
               maintenance of the network, and to provide transit services  
               in the network corridors.  

          2)Further declares the intent of the Legislature that:

             a)   Network policies be developed by BATA in collaboration  
               with the California Department of Transportation  
               (Caltrans), Department of the California Highway Patrol  
               (CHP), and Bay Area congestion management agencies; 

             b)   The network use a corridor-based structure to recognize  
               commute sheds and geographic communities of interest as the  
               most effective and user-responsive models for  
               implementation of the network;








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             c)   Network corridor revenues be reinvested in the corridor,  
               based on corridor investment plans, to provide, for  
               example, additional capital improvements on the freeway and  
               parallel arterials, transit capital and service  
               improvements, and enhanced operations and management of the  
               corridor; and,

             d)   The network provides customers with an efficient,  
               easy-to-use system, including for example, consistent  
               geometric design and signage.  

          3)Authorizes BATA to use toll bridge revenues for the network,  
            under specified conditions and so long as BATA anticipates  
            that funding the network will not necessitate an increase in  
            the amount of tolls collected.  

          4)Authorizes BATA to pledge bridge toll revenues and other  
            income to acquire, construct, administer, and operate the  
            network if it determines that funding for the network is not  
            available on acceptable terms without the pledge and provided  
            it projects the additional obligations will not necessitate an  
            increase in bridge tolls.

          5)Authorizes, nonetheless, BATA to increase tolls if it is  
            necessary to do so to meet its obligations.

          6)Requires BATA to establish a Bay Area Express Lane Network  
            Project Oversight Committee (committee) and prescribes its  
            membership to include representatives of BATA, Caltrans, and  
            CHP.  The committee will also include a representative of each  
            of the congestion management agencies within the geographic  
            jurisdiction of BATA's sister agency, the Metropolitan  
            Transportation Commission (MTC), that has:

             a)   Committed substantial funding to the development of an  
               express lane corridor;

             b)   Adopted a policy in support of developing an express  
               lane; or,

             c)   Whose residents comprise a significant share of the  
               potential users of the network.  

          7)Requires the committee to recommend a development plan, with  








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            prescribed elements, and policies for the network, and  
            prescribes the approval process to be followed by BATA.  

          8)Sets forth procedures and requirements for the establishment  
            of corridor working groups to develop corridor investment  
            plans that provide consistency with the overall network yet  
            reflect the needs of individual corridors; prescribe elements  
            to be included in the corridor investment plans, including an  
            examination of equity considerations and the impact of the  
            proposed network segment on low-income travelers, transit  
            riders, and carpoolers; provides procedures to govern the  
            approval process of corridor investment plans by BATA.  

          9)Grants BATA broad authority to acquire, construct, administer,  
            and operate an express lane network on state highways within  
            the geographic jurisdiction of MTC, to be funded from network  
            revenues, revenue bonds, and contributions and loans from  
            federal, state, or local agencies.  

          10)Authorizes BATA to impose a fee for use of the network, based  
            on a fee structure developed by BATA.  

          11)Sets forth requirements BATA must adhere to in setting and  
            changing toll schedules, including providing public hearings.   


          12)Requires BATA to carry out the network in cooperation with  
            Caltrans and CHP and to ensure minimum specific levels of  
            service are maintained.  

          13)Continuously appropriates to Caltrans, for expenditures  
            related to the network, all amounts paid to it by BATA;  
            provides similar continuous appropriation authority for the  
            CHP.  

          14)Requires agreements between BATA, Caltrans, and the CHP and  
            requires the agreements to assign specific obligations,  
            responsibilities, and liabilities.  

          15)Directs all revenue generated by the network to be deposited  
            in BATA's Express Lane Network Account (account), created by  
            this bill, and prescribes eligible expenditures from the  
            account.  

          16) Prescribes allowable uses of "net corridor revenue," as  








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            defined; allows BATA to reserve up to 5% of the net corridor  
            revenue as a reserve and directs all remaining net corridor  
            revenue to be distributed to corridors for expenditure  
            according to each corridor investment plan; also authorizes  
            BATA to disburse net corridor revenue to approved recipients,  
            including congestion management agencies.  

          17)Vests BATA with the responsibility to control and maintain  
            the account.  

          18)Requires BATA to, within one year from the effective date of  
            this bill, assume all rights and obligations of the following  
            agencies with respect to their individual authorities to  
            construct and operate value-pricing, high-occupancy toll (HOT)  
            lanes:

             a)   Sunol Smart Carpool Lane Joint Powers Authority;

             b)   Alameda County Congestion Management (ACCM) Agency; and,

             c)   Santa Clara Valley Transportation Authority (VTA).  

          19)Grants BATA authority to issue bonds secured by network  
            revenues, with the stipulation that the state will not  
            authorize fee-based publicly or privately owned express lanes  
            or high-occupancy vehicle (HOV) lanes within the geographic  
            jurisdiction of the MTC, other than express lanes authorized  
            in the network.  

           EXISTING LAW:  

          20)Created MTC as the transportation planning, coordinating, and  
            financing agency for the nine-county San Francisco Bay Area  
            and prescribed its membership and responsibilities.  

          21)Created BATA, within MTC, to administer all tolls on the San  
            Francisco Bay Area's seven state-owned toll bridges and to  
            provide joint oversight of the toll bridge construction  
            program with Caltrans and the CTC . Caltrans owns and operates  
            the state-owned bridges.  

          22)Authorizes a joint powers authority (consisting of the ACCM  
            Agency, Alameda County Transportation Improvement Authority,  
            and VTA to conduct, administer, and operate a value-pricing  
            HOT lane program on the Sunol Grade on State Route 680 in  








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            Alameda and Santa Clara Counties.  

          23)Authorizes the ACCM Agency to conduct, administer, and  
            operate a value-pricing HOT lane program on a corridor within  
            in Alameda County and VTA to operate a value-pricing HOT lane  
            program on any two corridors in its HOV lane system.  

          24)Authorizes the San Diego Association of Governments to  
            conduct, administer, and operate a value-pricing and transit  
            development program on no more than two corridors within San  
            Diego County.  Allows the HOV lanes to be used as HOT lanes.  

          25)Authorizes regional transportation agencies or Caltrans to  
            enter into an unlimited number of comprehensive development  
            lease agreement with public or private entities for  
            transportation projects, under the following key conditions:  

             a)   Projects must be primarily designed achieve improved  
               mobility, improved operations or safety, and quantifiable  
               air quality benefits; 

             b)   At least 60 days prior to executing a final lease  
               agreement, the project sponsor (i.e., Caltrans or a  
               regional transportation agency) must submit the agreement  
               to the Legislature and to the Public Infrastructure  
               Advisory Committee for review;  

             c)   Prior to submitting a proposal, the project sponsor  
               would have to conduct a least one public hearing;

             d)   Existing non-toll or non-user-fee lanes cannot be  
               converted to toll lanes except that HOV lanes can be  
               converted to HOT for vehicles not otherwise meeting the  
               occupancy level requirements for those lanes; and, 

             e)   No lease agreements can be entered into after January 1,  
               2017.  

           FISCAL EFFECT  :  Unknown

           COMMENTS  :  AB 744 authorizes BATA to finance, construct, and  
          operate an 800-mile express lane network, involving conversion  
          of 500 miles of existing or fully funded HOV lanes to  
          congestion-priced express lanes.  The network is expected to  
          provide free-flowing traffic for carpools, buses, and toll  








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          payers, using congestion pricing.  Tolls for non-carpools using  
          the express lanes will be collected electronically.  

          MTC estimates that the network will:

          26)Generate $6.1 billion in revenue over 25 years.  

          27)Cost $7.6 billion to build, finance, and operate over the  
            next 25 years.  

          28)Complete funding and construction of the 800-mile network of  
            congestion-free lanes for carpools, buses, and toll payers.  

          29)Boost worker productivity by $100 billion by reducing freeway  
            delay.  

          30)Reduce CO2 by 10 million metric tons.  

          This bill is intended to create a framework for collaboration  
          and partnership in development of the network.  It establishes  
          BATA as the lead agency to plan, finance, and manage the HOT  
          network.  Expenditure plans will be developed from a "bottoms  
          up" process in each individual travel corridor, led by  
          congestion management agencies.  

          Although AB 744 represents a region-wide congestion pricing plan  
          that is bolder than most that have come before the Legislature,  
          it is not the first.  Congestion pricing HOT lanes have already  
          been approved by the Legislature in specific corridors in both  
          northern and southern California.  Furthermore, just last year  
          the Legislature passed congestion-pricing authorizations for  
          Riverside County and Los Angeles County, not to mention broad  
          authority for public-private partnerships passed already this  
          session.  

          According to the California Automobile Association (AAA) of  
          Northern California, writing in support of this bill, "Research  
          from the first HOT lane projects built in the late 1990s in  
          Southern California and the Houston area shows that the toll  
          lanes are used by motorists of all income levels on an as-needed  
          basis?HOT lanes in California and Texas also gained support  
          among motorists who didn't use them regularly because they were  
          seen as diverting more vehicles from the regular lanes.  To that  
          end, AAA of Northern California believes that a HOT lane network  
          is supportable so long as there are parallel free existing lanes  








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          for commuters and that toll revenue is used to improve the  
          corridor(s) in which it is collected."  

           Related legislation  :  SBX2 4 (Cogdill), Chapter 2, Statutes of  
          2009, grants broad authority for pubic-private partnerships for  
          transportation.  

          AB 798 (Nava) of 2009 would create the California Transportation  
          Financing Authority (CTFA) to provide for increased construction  
          of new capacity or improvements for transportation systems  
          through the issuance of revenue bonds.  That bill is in Assembly  
          Appropriations Committee.  

          AB 2032 (Dutra), Chapter 418, Statutes of 2004, authorized HOT  
          lane programs in Alameda, San Diego, and Santa Clara Counties.  

          AB 574 (Torrico), Chapter 498, Statutes of 2007, struck the  
          sunset date on the authority to administer HOT lanes in these  
          three counties.  

           REGISTERED SUPPORT / OPPOSITION  :  

           Support 
           
          Metropolitan Transportation Commission (sponsor)
          AAA of Northern California 

           Opposition 
           
          Paul Thiebaut, III (an individual)
           

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