BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 475
                                                                  Page  1

          Date of Hearing:   April 13, 2011

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

                    AB 475 (Butler) - As Amended:  March 24, 2011 

          Policy Committee:                              
          TransportationVote:13-0

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

           SUMMARY  

          This bill modifies existing authority for a parking facility to 
          designate parking spaces for use only by a vehicle displaying a 
          zero emission vehicle (ZEV) sticker so the authority applies to 
          vehicles displaying an electric vehicle (EV) sticker.  
          Specifically, this bill:

          1)Authorizes an offstreet parking facility to designate parking 
            spaces for the exclusive use of vehicles displaying an EV 
            sticker, issued by the Department of Motor Vehicles (DMV), and 
            plugged in for fueling.

          2)Makes it an infraction to park in an EV-designated space, 
            punishable by a fine of up to $100.

          3)Requires the operator of an offstreet parking facility to post 
            notice that vehicles parked in an EV-designated space that do 
            not display a valid EV sticker or that are not plugged in for 
            fueling may be towed at the owner's expense.

          4)Authorizes the operator of an offstreet parking facility to 
            cause the towing of a vehicle parked in an EV-designated space 
            if the vehicle does not display an EV sticker and is not 
            plugged in for fueling.

          5)Requires DMV to make available an EV sticker for display on 
            vehicles that do not produce tailpipe emissions or that meet 
            the Air Resources Board's definition of a plug-in hybrid 
            electric vehicle (PHEV).

          6)Requires DMV to charge a fee for the distribution of EV 








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            stickers sufficient to reimburse DMV costs.

           FISCAL EFFECT  

          1)Minor, absorbable one-time costs to DMV to design, produce and 
            distribute EV decals to holders of existing ZEV stickers, 
            about 800 of which currently exist. 

          2)Minor, ongoing costs to DMV, in the range of no more than 
            thousands of dollars a year, to distribute EV stickers to 
            owners of new EVs, fully covered by fee revenue. (Motor 
            Vehicle Account.) These costs and revenues could become more 
            significant should PHEV sales increase dramatically, thereby 
            requiring distribution of a greater number of EV stickers.  
            DMV reports, however, that its conversations with automobile 
            industry representatives lead it to believe that PHEV sales 
            will be fairly modest for the next five years, at least.

          3)Annual revenue of an unknown amount to local governments that 
            levy fines pursuant to the infraction described in this bill.

           COMMENTS  

           1)Rationale.   According the author and sponsor, statute needs to 
            be updated to reflect the diversity of electric vehicles 
            available to California drivers.  These proponents describe 
            existing law as seeking to encourage the use of less-polluting 
            electric vehicles by allowing offstreet parking facilities to 
            reserve spaces equipped with charging equipment for the use of 
            such vehicles, which receive ZEV stickers from DMV.  The 
            proponents note recent market developments that make available 
            PHEVs, which, like ZEVs, use electric power but, unlike ZEVs, 
            have a gasoline-powered auxiliary motor and therefore cannot 
            qualify for the ZEV sticker.  The author and sponsor contend 
            the justifications for providing potential parking privileges 
            to ZEVs apply equally to PHEVs and, therefore, seek to extend 
            them to PHEVs.  

          2)Background. 
                 
               a)   Drive More LEVs and ZEVs, ARB Says.   ARB's Low-Emission 
               Vehicle (LEV) Program, which began in 1990, seeks to 
               improve the state's air quality through regulating the 
               reduction of emission standards for automobiles.   The LEV 
               Program includes goals for the introduction of 








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               zero-emission vehicles, meaning vehicles that produce no 
               tailpipe emissions.  At one time, the LEV program required 
               that at least 10% of the vehicles offered for sale in 
               California by large manufacturers be ZEVs.   

             b)   State Law Seeks to Provide Parking and Charging for 
               ZEVs.   To help encourage the public use of ZEVs, the 
               Legislature passed AB 1314 (Chapter 640, Statutes of 2002, 
               Havice), which authorized parking facility operators to 
               designate parking spaces for the fueling and parking of 
               vehicles affixed with a ZEV sticker, to be issued by DMV.  
               The statute also provided authority to remove vehicles 
               inappropriately parked in or blocking such spaces and 
               created an infraction, punishable by a fine of up to $100, 
               for vehicles inappropriately parked in such spaces. 
               According to DMV, it has issued about 800 ZEV stickers.  
                 
               c)   Some ZEVs, More PHEVs?   Achieving ARB's ZEV goals has 
               proven difficult, and ARB has modified the regulation 
               several times.  One challenge facing ZEVs is concern over 
               the availability of ZEV fueling.  Because charging stations 
               are infrequently available, there is concern that a ZEV may 
               exhaust its electric charge before the driver can recharge 
               the vehicle.  
                
               One response to these charging concerns was passage of AB 
               1314, described above.  Another response was the offering 
               by automobile manufacturers of PHEVs.  Like ZEVs, PHEVs 
               primarily are powered by electricity.  PHEVs, however, and 
               unlike ZEVs, include a gasoline-powered auxiliary motor, 
               decreasing PHEVs' susceptibility to running out of power.  
               While the inclusion of the auxiliary gasoline-powered motor 
               may increase the utility of PHEVs, it disqualifies these 
               lower-emission vehicles from being classified as ZEVs.  It 
               also precludes them from receiving a ZEV sticker from DMV. 

               Few PHEVs are on California roads today.  In fact, the 
               Chevrolet Volt is the first PHEV to be available in 
               California.  Nonetheless, some industry observers predict 
               the increased use of PHEVs in the coming years.

           3)Electric Vehicles Don't Fuel, They Charge. And They Don't Have 
            to Be Plugged In.   Industry representatives indicate that they 
            prefer the term "charge" to "fuel" when describing a PHEV's 
            receipt of energy.  They additionally note that some PHEVs can 








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            be connected to a charging station without the use of a plug 
            and electric cable.  The bill, however, requires that a PHEV 
            be "plugged in for fueling" to be legitimately parked in an 
            EV-designated space.  The committee may wish to amend the bill 
            to better reflect technology and industry terminology.  

          4)A Sticker Is a Sticker Is a Sticker.   Currently, about 800 
            registered owners of ZEVs have received ZEV stickers from DMV. 
             This bill would require these owners to receive new EV 
            stickers and to affix them to their ZEVs in order to continue 
            to be eligible to park their ZEVs in designated EV charging 
            stations.  It would be more efficient, and more convenient for 
            ZEV owners, to amend to bill to specify that vehicles affixed 
            with preexisting ZEV stickers may continue to use 
            EV-designated charging stations.   
                 
            5)Support.   This bill is supported by General Motors (sponsor) 
            and some electric vehicle advocacy groups.  
                 
            6)There is no registered opposition to the bill.   However, 
            LincolNEV, an organization of neighborhood electric vehicle 
            (NEV) enthusiasts in Lincoln, California, expresses concern 
            that the bill will make charging stations available to more 
            vehicles, thereby lessening the opportunity for NEV owners to 
            charge their vehicles.  
           
           Analysis Prepared by  :    Jay Dickenson / APPR. / (916) 319-2081