<p> Reena Neogi Econ 156 O’Toole case study</p><p>Case Study: Orange County’s 91 Express Lanes</p><p>The 91 Express Lanes project in Orange County was California’s “first experiment with long-term public private partnerships” for toll roads. According to </p><p>Randal O’Toole, it is too complicated to define this project as solely a success or failure. </p><p>When the development of this 4-lane expansion was first authorized, there was a definitive need for more space on the roads to improve the flow of traffic. Since public funds were not available to start the construction of the project, the proposal to implement privately financed toll road pilot projects was underway. With no cost to taxpayers, this privately funded project was the first toll road in the world to not use tollbooths but instead using electronic tolls. This toll road was also the first to use “value pricing” to keep the roads uncongested. Leading in technology, the express lane toll roads of Orange County have been very effective in making long commutes quicker, safer, and highly satisfactory to its users. It was financially successful as well. The revenue made from the toll road was enough to cover debt, maintenance, operations, patrol services, and property taxes. Yet the express lanes were sold, despite its success, because of ownership handoffs that took place.</p><p>From Kiewit to Level 3 Communications, the express lanes were handed over as a secondary profitable project. As such, though the express lanes were profitable, a good selling price was enough to make the company happy and able to fund opportunities they found more important. Overall, the express lanes were financially and transportationally a success, but politically its success has been somewhat debated. With political controversy over the “non-compete” provision which placed profits in competition with public interest. Though the Express Lanes company won the legal fight against Caltrain to construct additional lanes, they lost in court due to lack of public support. Today, non- compete clauses no longer needed with the emergence of “HOTlanes” charging commuters much higher tolls for the convenience of bypassing traffic. </p><p>From the experiences with this development of the 91 express lanes, policymakers may take away a lot of useful information which may help them in the future. It is good to know that private capital is available for funding the construction of new toll projects. </p><p>Also, this express lane project has shown how beneficial it really is to utilize advanced technology. Doing so has increased the effectiveness as well as the efficiency of toll roads, making them faster and more reliable. Variable pricing has also proved to be a good to keep congestion low by looking at this case study. Another interesting finding is that rigid non-compete provisions are not necessary for new toll project. With this, despite its complications and controversies, the express lanes of highway 91 in Orange </p><p>County have been beneficial to not only commuters of today, but of policymakers for tomorrow. </p>