BILL ANALYSIS
AB 744
Page 1
Date of Hearing: May 13, 2009
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Kevin De Leon, Chair
AB 744 (Torrico) - As Amended: April 21, 2009
Policy Committee:
TransportationVote:12-1
Urgency: No State Mandated Local Program:
Yes Reimbursable: Yes
SUMMARY
This bill authorizes the Bay Area Toll Authority (BATA) to
develop and finance a Bay Area Express Lane Network.
Specifically, this bill:
1.Authorizes BATA to construct and operate an express lane
network on state highways within the geographic jurisdiction
of the Metropolitan Transportation Commission (nine-county Bay
Area), and authorizes expenditures for the network funded from
network revenues, revenue bonds issued for this purpose, and
contributions from federal, state, and local agencies.
2.Authorizes BATA, to the extent funding is not available from
the sources in (1), to use bridge toll revenues for the
network, providing this does not necessitate an increase in
toll rates.
3.Authorizes BATA to pledge toll bridge revenues to provide
security for revenue bonds issued for the network if BATA
determines funding for the network is otherwise not available
on acceptable terms without such a pledge and will not
necessitate an increase in toll rates.
4.Authorizes BATA, notwithstanding (3), to subsequently increase
bridge toll rates if required to meet its contractual and
statutory obligations.
5.Requires BATA to establish a project oversight committee for
the network-with specified representation including
representatives from Caltrans and the CHP-to recommend to BATA
a network development plan, including a phasing plan and an
AB 744
Page 2
operational plan.
6.Requires Caltrans and the CHP to provide approval, prior to
the committee's recommendations, of those elements of the plan
under each department's authority.
7.Requires the oversight committee to establish corridor working
groups as subcommittees, including representatives of Caltrans
and the CHP, to prepare and submit corridor investment plans,
as specified, to the committee.
8.Requires BATA to carry out the network program in cooperation
with Caltrans pursuant to an agreement addressing design,
construction, maintenance, and operation.
9.Requires that cooperative agreements between BATA, Caltrans,
and the CHP provide for reimbursement of state agencies from
network-generated revenues for additional costs to the state
agencies for their work in connection with implementation and
operation of the network, and continuously appropriates monies
for these purposes to Caltrans and the CHP.
10.Requires that network revenue remaining after paying
obligations and expenses incurred per (1), less a reserve of
up to 5% of this remaining revenue, shall be allocated by BATA
to the various corridors in proportion to the revenue
generated by each corridor, to be spent on projects consistent
with the corridor investment plans.
11.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.
c. Santa Clara Valley Transportation Authority (VTA).
FISCAL EFFECT
1.The sponsor, the Metropolitan Transportation Commission (MTC)
estimates that the network will cost $7.6 billion to build,
finance, and operate, and will generate $13.7 billion in toll
AB 744
Page 3
revenue over the next 25 years. The $6.1 billion in net
revenue over this period would be available to finance
additional improvements in the express lane corridors.
2.Significant additional costs to Caltrans for staff to
participate in the oversight committee and each of the
corridor working groups, which Caltrans estimates will total
15. The bill does not establish deadlines for the work
products of these entities, but costs would probably be around
$1 million for two to three years and somewhat less after this
time. Costs for CHP participation on the oversight committee
and working groups would probably be around one-half of
Caltrans costs.
3.The bill continuously appropriates all moneys necessary for
BATA to reimburse the CHP and Caltrans for all costs related
to the network program, pursuant to cooperative agreements.
Continuous appropriations are contrary to the general policy
of this committee. MTC argues that this would be a continuous
appropriation of "local" funds, i.e. those generated through
tolls imposed by a regional body.
COMMENTS
Purpose . According to MTC, AB 744 authorizes BATA to finance,
construct, and operate an 800-mile express lane network,
involving converting 500 miles of existing or fully-funded HOV
lanes to congestion-priced express lanes and constructing 300
miles of additional such lanes. The network is expected to
provide free-flowing traffic for carpools, buses, and toll
payers, using congestion pricing. Tolls for non-carpools using
the express lanes will be collected electronically. The
commission expects the network to boost worker productivity, by
reducing freeway delays, and to reduce CO2 emissions. This bill
is intended to create a framework for collaboration and
partnership in development of the network.
Analysis Prepared by : Chuck Nicol / APPR. / (916) 319-2081