BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 2405
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          ASSEMBLY THIRD READING
          AB 2405 (Blumenfield)
          As Amended  April 10, 2012
          Majority vote 

           TRANSPORTATION      9-3                                         
           
           ----------------------------------------------------------------- 
          |Ayes:|Bonnie Lowenthal,         |     |                          |
          |     |Blumenfield, Bonilla,     |     |                          |
          |     |Buchanan, Eng, Ma,        |     |                          |
          |     |Galgiani, Portantino,     |     |                          |
          |     |Solorio                   |     |                          |
          |     |                          |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |Nays:|Jeffries, Achadjian,      |     |                          |
          |     |Miller                    |     |                          |
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           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.  Specifically  this bill  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 
            (HOVs).  

          2)Allows, until January 1, 2015, qualifying clean alternative 
            fuel vehicles that display the proper clean air vehicle decal 
            to use 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 








                                                                  AB 2405
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            single-occupant vehicles to pay to use HOV lanes.  

          4)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 
            (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.  This bill is keyed non-fiscal by the 
          Legislative Counsel. 

           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.

          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 








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          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.  

          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 March 2012, almost 19,000 white stickers and 
          176 green stickers have been issued.  Both clean car programs 
          are set to expire on January 1, 2015.  

           
          Analysis Prepared by  :    Janet Dawson / TRANS. / (916) 319-2093  



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