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AB 657

Otay Mesa East Toll Facility Act: public-private partnership agreements: toll revenues.

2025-2026 Regular Session Introduced by David Alvarez

AB 657 enables private companies to build and operate the Otay Mesa East toll road, collecting tolls to recoup costs and profit while sharing revenues with California and San Diego County.

Re-referred to Com. on TRANS.
#otaymesaeasttollfacilityact #public-privatepartnershipagreements #tollrevenues
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WeVote Research Nonpartisan
Bill Summary · AB 657

Legislative bill overview

AB 657 authorizes public-private partnership (PPP) agreements for the Otay Mesa East Toll Facility in San Diego, allowing private entities to design, build, finance, operate, and maintain a new toll road in exchange for toll revenue collection rights. The bill establishes the framework for how toll revenues would be shared between the private partner and the state/local agencies.

Why is this important

The Otay Mesa East corridor is a major regional transportation project intended to improve cross-border commerce and traffic flow between San Diego and Mexico. PPP structures allow infrastructure development without immediate full public funding, but shift financial risk and long-term revenue streams to private operators, raising questions about public benefit versus private profit.

Potential points of contention

  • Toll burden on users: Private operators typically charge tolls to recover investments and generate profit, potentially creating higher user costs than publicly-funded alternatives
  • Revenue sharing terms: The bill's specifics on how toll revenues are split between private partners and public agencies will determine whether the public receives adequate returns on its assets
  • Long-term public control: PPP agreements often lock in terms for decades; questions arise about whether future generations can modify or terminate agreements if circumstances change

Compiled from official sources — confirm details with the bill’s official record.

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