BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 266
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          ASSEMBLY THIRD READING
          AB 266 (Blumenfield and Bloom)
          As Amended  April 9, 2013
          Majority vote 

           TRANSPORTATION      12-3        APPROPRIATIONS      13-4        
           
           ----------------------------------------------------------------- 
          |Ayes:|Gordon, Linder, Ammiano,  |Ayes:|Gatto, Bocanegra,         |
          |     |Blumenfield, Bonta,       |     |Bradford,                 |
          |     |Buchanan, Daly, Frazier,  |     |Ian Calderon, Campos,     |
          |     |Gatto, Holden, Nazarian,  |     |Eggman, Gomez, Hall,      |
          |     |Quirk-Silva               |     |Holden, Linder, Pan,      |
          |     |                          |     |Quirk, Weber              |
          |-----+--------------------------+-----+--------------------------|
          |Nays:|Logue, Morrell, Patterson |Nays:|Harkey, Bigelow,          |
          |     |                          |     |Donnelly, Wagner          |
           ----------------------------------------------------------------- 
           SUMMARY  :  Extends the sunset date on provisions that grant  
          high-occupancy vehicle (HOV) lane driving privileges to clean  
          air vehicles.  Specifically,  this bill  :  

          1)Extends, from January 1, 2015, to January 1, 2020, the sunset  
            date on a program granting HOV lane driving privileges to  
            electric vehicles and natural gas vehicles (the white sticker  
            program).  

          2)Extends from January 1, 2015, to January 1, 2018, the sunset  
            date on a similar program for advanced partial zero-emission  
            vehicles (AT PZEV) (the green sticker program).  

          3)Deletes obsolete and redundant provisions.  
             
           EXISTING LAW  :

          1)Prohibits the operation of single occupant vehicles in HOV  
            lanes, with the exception of motorcycles and clean air  
            vehicles.  

          2)Directs the Department of Motor Vehicles (DMV) to issue  
            stickers for the following clean air vehicles, until January  
            1, 2015, as follows: 

             a)   White clean air vehicle stickers are available to an  








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               unlimited number of qualifying vehicles that meet  
               California's super ultra-low emission vehicle standard for  
               exhaust emissions and the federal inherently low-emission  
               vehicle (ILEV) evaporative emission standard.  This  
               includes certain zero-emission vehicles.  Cars that meet  
               these requirements are typically certified pure  
               zero-emission vehicles (100% battery electric and hydrogen  
               fuel cell) and compressed natural gas vehicles; and, 

             b)   Green clean air vehicle stickers are available to the  
               first 40,000 applicants that purchase or lease cars meeting  
               California's enhanced AT PZEV requirement.  

          1)Allows single-occupant clean air vehicles to operate in HOV  
            lanes until such time as the Department of Transportation  
            (Caltrans) determines that federal law does not authorize the  
            state to allow such vehicles to use those lanes.  Requires  
            Caltrans to submit a notice of such a determination to the  
            Secretary of State, at which time HOV lane access privileges  
            for single-occupant, clean air vehicles will be terminated.  

          2)Requires Caltrans to remove individual HOV lanes, or HOV lane  
            segments, during periods of peak congestion from these access  
            provisions if it finds that the lane exceeds a level of  
            service C (generally meaning at or near free-flowing traffic  
            with minimal delays), and that the operation or projected  
            operation of clean air vehicles will significantly increase  
            HOV lane congestion.  

          3)Exempts qualifying clean air vehicles from toll charges  
            imposed on single-occupant vehicles in high-occupancy toll  
            (HOT) lanes, with exceptions.  

          4)Authorizes, under the federal Moving Ahead for Progress in the  
            21st Century Act (MAP-21), until September 30, 2017, states to  
            allow low-emission, energy-efficient vehicles to use HOV lanes  
            regardless of occupancy levels.  

           FISCAL EFFECT  :  According to the Assembly Appropriations  
          Committee, continued minor ongoing administrative cost (around  
          $60,000) for the equivalent of one-half position at Caltrans  
          associated with federally-required analysis and reporting  
          regarding HOV lanes allowing single-occupant vehicles.  With  
          extension of the sunsets, the one-time $700,000 cost for  








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          removing freeway signs that inform clean vehicle motorists of  
          HOV lane privileges would be deferred.  

           COMMENTS  :  An HOV lane, commonly referred to as a "carpool" or  
          "diamond" lane, is part of a traffic management strategy  
          designed to provide an incentive for commuters to form carpools  
          by offering reduced travel times.  The declared legislative  
          intent in establishing these lanes is to relieve traffic  
          congestion, conserve fuel, and reduce vehicular emissions.  Over  
          the years, advocates for many groups have suggested using HOV  
          lane access to reward certain behaviors or to ease the commute  
          for one class of motorists or another.  

          HOV lane access to single-occupant clean air vehicles was first  
          authorized in 1999 with the passage of AB 71 (Cunneen), Chapter  
          330, Statutes of 1999, for super ultra-low emission vehicles and  
          inherently low-emission vehicles (white sticker vehicles).  That  
          access was later expanded by AB 2628 (Pavley), Chapter 725,  
          Statutes of 2006, to allow hybrid vehicles.  Since allowing  
          large numbers of hybrids into HOV lanes would reduce the  
          effectiveness of the lanes by compromising their ability to  
          offer a quicker commute than adjacent mixed-flow 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, Statutes of 2006,  
          increased the limit on hybrid stickers to 85,000 and extended AB  
          2628's 2008 sunset date to 2011.  (DMV reached the 85,000  
          sticker cap for hybrids in February 2007 and stopped issuing new  
          hybrid stickers at that point.)  

          In June of 2007, the Federal Highway Administration 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.  Recognizing  
          that one component of HOV lane congestion may be the presence of  
          hybrid vehicles, the authorization for hybrids to use HOV lanes  
          was allowed to sunset.  The authorization for natural gas and  
          electric vehicles, however, was extended for five years, until  
          January 1, 2015, by AB 1500 (Lieu), Chapter 1500, Statutes of  
          2010.  As of May 2012, DMV had issued less than 20,000 white  
          stickers and approximately 9,000 green stickers.  

          This bill would extend the white sticker program until 2020 and  








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          the green sticker program to 2018.  

          According to the author, the timing of this bill is essential.   
          Extending HOV incentives for clean air vehicles will complement  
          recently adopted Air Resources Board regulations that will  
          require one in seven new cars sold in California in 2025 to be  
          an electric or other zero-emission vehicle.  According to the  
          author, "As more manufacturers are entering the market  
          presenting consumers with more clean and/or zero emission cars  
          than ever before, this important program is set to expire in  
          2015.  By providing long-term incentives to consumers for making  
          green vehicle choices, we can leverage California's position as  
          the clean technology capital of the world, create good jobs, and  
          meet our emissions reduction goals that will not be met without  
          widespread adoption of clean car technology."  

          Writing in support of this bill, Honda North America, Inc.,  
          asserts, "HOV lane access for single-occupant vehicles is a  
          non-financial incentive that has become one of the top reasons  
          cited by consumers for buying the Civic Natural Gas.  For  
          example, in California the largest market for the Civic Natural  
          Gas, sales to consumers have steadily increased since 2000, the  
          year that single-occupant ILEV certified alternative fuel  
          vehicles were granted access to HOV lanes."  

           Related legislation  :  AB 220 (Ting) provides a variety of  
          incentives to encourage the purchase and use of low-emission  
          vehicles in California.  That bill is pending in the Assembly  
          Revenue and Taxation Committee.  

          SB 286 (Yee) similarly extends the white and green sticker  
          programs, both until January 1, 2018.  That bill is currently  
          pending in the Assembly.  

           Previous legislation  :  SB 535 (Yee), Chapter 215, Statutes of  
          2010, allows enhanced AT PEZ vehicles (i.e., those eligible for  
          green stickers) access to HOV lanes regardless of vehicle  
          occupancy, until January 1, 2015.  

          AB 1500 (Lieu), Chapter 1500, Statutes of 2010, extended HOV  
          lane privileges natural gas and electric vehicles for five  
          years, until January 1, 2015.  

          AB 2600 (Lieu), Chapter 614, Statutes of 2006, allowed an  








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          additional 10,000 high-mileage hybrid vehicles to obtain  
          stickers allowing them to drive in HOV lanes regardless of the  
          number of occupants; extended the sunset date on the  
          authorization for these and other "Clean Air" vehicles to  
          operate in HOV lanes.  

          AB 2628 (Pavley), Chapter 725 Statutes of 2004, allowed AT PZEVs  
          to use HOV lanes.  

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


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