BILL ANALYSIS Ó AB 2405 Page 1 Date of Hearing: April 16, 2012 ASSEMBLY COMMITTEE ON TRANSPORTATION Bonnie Lowenthal, Chair AB 2405 (Blumenfield) - As Amended: April 10, 2012 SUBJECT : High-occupancy Toll Lanes: qualifying clean alternative fuel vehicles SUMMARY : Exempts qualifying clean alternative fuel vehicles from toll charges imposed on single-occupant vehicles in high-occupancy toll (HOT) lanes, unless prohibited by federal law. The bill specifically provides that this exemption does not apply to the imposition of tolls on toll roads, toll highways, or toll bridges. EXISTING LAW: 1)Grants the California Department of Transportation (Caltrans) and local authorities, for highways under their respective jurisdictions, general authority to permit exclusive or preferential use of highway lanes for high-occupancy vehicles. 2)Allows, until January 1, 2015, qualifying clean alternative fuel vehicles that display the proper clean air vehicle decal to use high-occupancy vehicle (HOV) lanes, regardless of the number of occupants in the vehicle. Qualifying vehicles include vehicles that are 100% battery electric, hydrogen fuel cell, compressed natural gas vehicles, and advanced technology partial zero emission vehicles. 3)Authorizes specific HOT lane programs in Alameda, Santa Clara, and San Diego Counties. HOT lane programs allow drivers of single-occupant vehicles to pay to use HOV lanes. 4)Additionally, grants authority to the Los Angeles County Metropolitan Transportation Authority (Metro), in cooperation with Caltrans and pursuant to memorandum of understanding with the United States Department of Transportation (US DOT), to operate a HOT lane and transit development demonstration program on State Routes (SR) 10 and 110 in Los Angeles County. 5)Establishes the California Transportation Financing Authority AB 2405 Page 2 (CTFA) within the Office of the Treasurer and authorizes CTFA to issue, or approve the issuance of, revenue bonds to finance transportation projects. CTFA also has the authority to approve the imposition of tolls as a part of a transportation agency's financing plan to repay revenue bonds. FISCAL EFFECT : Unknown COMMENTS : HOT lanes are increasingly being implemented in metropolitan areas around the state and the nation. HOT lanes allow single-occupant or lower-occupant vehicles to use an HOV lane for a fee, while maintaining free travel to qualifying HOVs. The purported benefits of HOT lanes include enhanced mobility and travel options in congested corridors and better usage of underutilized HOV lanes. Currently, there are only a handful of HOT lanes in operation in California, including: 1)14 miles of southbound Interstate 680 through the Sunol Grade in Alameda and Santa Clara counties; and, 2)20 miles of Interstate 15 in San Diego County. These routes represent only the embryonic stage of what is sure to be a substantial build out of HOT lanes around the state in the very near future. The Metropolitan Transportation Commission, for example, is in the midst of developing an 800-mile Regional HOT Network that will extend from Sonoma County in the north to Gilroy in the south. Metro is embarking on a one-year pilot project that includes development of HOT lanes on the Interstate 10 and Interstate 110 in Los Angeles County. Additionally HOT lane projects are underway in Riverside County and are being studied in the Sacramento region. While single-occupant clean alternative fuel vehicles enjoy access to HOV lanes in California, they do not necessarily enjoy free passage on toll bridges or toll highways. In fact, qualifying clean cars must pay full fare to use the toll roads in Orange County but enjoy discounted rates to cross the San Francisco Bay Area bridges and to use the 91 Express Lanes in Orange and Riverside Counties. Also, there will be no discounted rate for clean cars using Metro's Express Lanes when they open later this year. AB 2405 Page 3 With the increase of HOV lanes being converted to HOT lanes, the author is concerned that the incentives provided today to encourage the proliferation of clean cars, namely access to HOV lanes, remain available. In this way, the author believes that "AB 2405 will give current and future clean car owners certainty and will continue to provide a valuable incentive for purchasing clean air vehicles to help offset some of the additional costs associated with the purchase of new and expensive technology." Opponents argue that a proliferation of hybrid vehicles into HOV lanes will add to the congestion that buses will encounter in those lanes. They are also concerned that allowing clean cars free access to HOT lanes will reduce the revenue that these lanes will generate, particularly as the number of these cars grows. As of the end of last month, almost 19,000 white stickers and 176 green stickers have been issued. Both clean car programs are set to expire on January 1, 2015. REGISTERED SUPPORT / OPPOSITION : Support California Natural Gas Vehicle Coalition California Electric Transportation Coalition CALSTART Clean Energy Opposition American Council of Engineering Companies California Transit Association Analysis Prepared by : Janet Dawson / TRANS. / (916) 319-2093