BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 1500
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          Date of Hearing:   March 20, 2009

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Kevin De Leon, Chair

                     AB 1500 (Lieu) - As Amended:  April 29, 2009

          Policy Committee:                               
          TransportationVote:9-5

          Urgency:     No                   State Mandated Local Program:  
          Yes    Reimbursable:              No

           SUMMARY  

          This bill extends the sunset date, from January 1, 2011 to  
          January 1, 2016, on a program granting high occupancy vehicle  
          (HOV) driving privileges to electric vehicles and natural gas  
          vehicles whether or not they have the required number of  
          occupants.  This special access would not be extended for hybrid  
          vehicles.

          Extending the program continues the requirement that Caltrans  
          remove the special HOV access provided by this program during  
          peak congestion periods on any HOV lane where the department  
          finds that the operation of such vehicles will significantly  
          increase HOV lane congestion.

           FISCAL EFFECT  

          Caltrans devotes eight staff statewide to monitor and report on  
          the performance of its 1,300 miles of HOV lanes pursuant to  
          federal requirements, thus this monitoring would continue even  
          with the sunset of this program.  Nevertheless, there is some  
          marginal cost, probably under $150,000 for the department to  
          continue monitoring the additional impact that the low-emission  
          vehicle privilege has on HOV lane performance.  Furthermore,  
          since the special access to HOV lanes for hybrid vehicles-which  
          constitute the vast majority of low-emission vehicles currently  
          allowed special access-will not be continued past the current  
          sunset date, it is far less likely that the remaining low  
          emission vehicles in the program would contribute significantly  
          to any HOV lane congestion.

           COMMENTS  








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           1)Background  .  An HOV lane, commonly referred to as a "carpool"  
            or "diamond" lane, is part of a traffic management strategy  
            designed to reduce the number of single occupancy vehicles  
            during peak periods of traffic congestion.  These lanes are  
            intended to provide an incentive for commuters to form  
            carpools by offering reduced travel times.  AB 71  
            (Cunneen)/Chapter 330 of 1999, extended to certain "Clean Air"  
            vehicles the privilege of using HOV lanes even when required  
            occupancy levels are not met.  Vehicles meeting AB 71's  
            standard are generally limited to battery-powered vehicles and  
            those operating on compressed natural gas, neither of which is  
            especially prevalent in California's vehicle fleet.

            AB 2628 (Pavley)/Chapter 725 of 2004, extended the Clean Air  
            provisions of AB 71 to hybrid vehicles that achieve 45 miles  
            per gallon fuel economy.  Since allowing large numbers of  
            hybrids into HOV lanes would reduce the effectiveness of the  
            lanes, AB 2628 limited the aggregate number of stickers for  
            hybrids to 75,000 and allowed Caltrans to suspend HOV lane  
            privileges for hybrids on any particular lane that reaches a  
            specified level of congestion.  AB 2600 (Lieu)/Chapter 614 of  
            2006, increased the limit on hybrid stickers to 85,000 and  
            extended AB 2628's 2008 sunset date to 2011.  (The DMV reached  
            the 85,000 sticker cap for hybrids in February 2007 and is no  
            longer issuing new hybrid stickers.)

            In June of 2007, the Federal Highway Administration (FHWA)  
            requested Caltrans to submit a plan to address "HOV lane  
            degradation" on California freeways.  Caltrans' analysis had  
            indicated that 54% of its HOV lanes had experienced such  
            degradation-the lane does not maintain 45 mph or greater  
            operating speed during peak commute hours for 90% or more of  
            180 consecutive workdays.  Recognizing that one component of  
            HOV lane congestion may be the presence of hybrid vehicles,  
            one of the options that Caltrans is considering is banning  
            hybrids in certain HOV lanes, as it is already authorized to  
            do.

           2)Purpose  .  This bill extends, for an additional five years, the  
            authorization for natural gas and electric vehicles to operate  
            in HOV lanes but would allow that authorization for hybrids to  
            sunset as scheduled on January 1, 2011.  This is in  
            recognition that, while natural gas and electric vehicles are  
            small in number and the extended authorization might continue  








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            providing a purchase incentive for these vehicles, the number  
            of hybrids in California has already surpassed the  
            85,000-vehicle cap, thus an HOV lane privilege no longer  
            provides a purchase incentive.

           3)Related Legislation  .  A similar bill, SB 535 (Yee), is pending  
            in Senate Appropriations.

           Analysis Prepared by  :    Chuck Nicol / APPR. / (916) 319-2081