BILL ANALYSIS AB 1500 Page 1 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 AB 1500 Page 2 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 AB 1500 Page 3 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