BILL ANALYSIS                                                                                                                                                                                                    �



                                                                            



           ----------------------------------------------------------------- 
          |SENATE RULES COMMITTEE            |                        AB 266|
          |Office of Senate Floor Analyses   |                              |
          |1020 N Street, Suite 524          |                              |
          |(916) 651-1520         Fax: (916) |                              |
          |327-4478                          |                              |
           ----------------------------------------------------------------- 
           
                                           
                                    THIRD READING


          Bill No:  AB 266
          Author:   Blumenfield (D) and Bloom (D)
          Amended:  8/19/13 in Senate 
          Vote:     21

           
           SENATE TRANSPORTATION & HOUSING COMMITTEE  :  11-0, 7/2/13
          AYES:  DeSaulnier, Gaines, Beall, Cannella, Galgiani, Hueso,  
            Lara, Liu, Pavley, Roth, Wyland

           SENATE APPROPRIATIONS COMMITTEE  :  Senate Rule 28.8

           ASSEMBLY FLOOR  :  49-22, 5/20/13 - See last page for vote


           SUBJECT  :    High-occupancy lanes:  low-emission vehicles

           SOURCE  :     Author


           DIGEST  :    This bill extends, from January 1, 2015, to January  
          1, 2019, the sunset date on provisions of existing law that  
          allows certain clean air vehicle to use high-occupancy vehicle  
          (HOV) lanes with a single occupant, deletes obsolete and  
          redundant provisions, and is double-jointed to, and contingent  
          upon successful enactment of, SB 286 (Yee).

           ANALYSIS  :    An HOV lane, also known as a carpool lane or  
          diamond lane, aims to promote and encourage ridesharing, thereby  
          alleviating traffic congestion and improving air quality.   
          Depending on the particular HOV lane, a vehicle must have a  
          minimum of either two or three occupants in order to access the  
          lane during operational hours.  Existing law exempts certain  
                                                                CONTINUED





                                                                     AB 266
                                                                     Page  
          2

          clean, alternative-fuel vehicles from these occupancy  
          requirements, so that a vehicle with just one occupant may use  
          an HOV lane if it displays a Clean Air Vehicle sticker.  The  
          state has two clean air vehicle HOV sticker programs:

           White HOV stickers  .  AB 71 (Cunneen, Chapter 330, Statutes of  
          1999) established the "white sticker program," which allows  
          vehicles that meet certain strict emission standards to drive in  
          carpool lanes with a single occupant.  These vehicles are  
          typically pure battery electric vehicles, dedicated compressed  
          natural gas or liquid petroleum gas vehicles, and hydrogen fuel  
          cell vehicles, such as the Nissan Leaf, the Tesla Roadster, and  
          the Honda Civic CNG.  State law places no limit on the number of  
          stickers that can be issued.  As of May 31, 2013, the Department  
          of Motor Vehicles (DMV) had issued 27,780 white stickers.  This  
          program expires on January 1, 2015.

           Green HOV stickers  .  SB 535 (Yee, Chapter 215, Statutes of 2010)  
          established the "green sticker program," which allows certain  
          single-occupant vehicles, generally, plug-in hybrid vehicles  
          that meet the Air Resources Board's (ARB) strictest emission  
          standard, to drive in carpool lanes.  The only vehicles eligible  
          to date for green stickers are the Chevrolet Volt, Ford C-Max  
          Energi, Ford Fusion Energi, Toyota Prius Plug-In, and Honda  
          Accord Plug-In Hybrid.  State law limits the number of green  
          stickers that DMV may issue to 40,000.  This program began on  
          January 1, 2012.  As of May 31, 2013, DMV had issued 14,525  
          green stickers.  These stickers are valid until January 1, 2015.

          Existing law allows single-occupant clean air vehicles to  
          operate in HOV lanes until such time as Caltrans determines that  
          federal law does not authorize the state to allow such vehicles  
          to use those lanes, and 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.

          This bill:

          1. Extends the sunset date on provisions of existing law that  
             allows white HOV sticker vehicles to use HOV lanes with a  
             single occupant from January 1, 2015, to January 1, 2019, or  
             until federal authorization expires or until the Secretary of  
             State receives that specified notice, whichever occurs first.

                                                                CONTINUED





                                                                     AB 266
                                                                     Page  
          3


          2. Deletes obsolete and redundant provisions of existing law.

          3. Is double-jointed to, and contingent upon successful  
             enactment of, SB 286 (Yee).

           Comments
           
           Does HOV access incentivize clean car purchases  ?  The primary  
          argument for granting low- or zero-emission vehicles access to  
          HOV or high-occupancy toll lanes is that it provides a  
          non-monetary incentive to purchase these vehicles, thereby  
          increasing the adoption of new technologies.  Studies do not  
          overwhelmingly conclude that HOV access does in fact incentivize  
          this behavior.  An April 2011 paper by Sharon Shewmake of  
          Vanderbilt University Law School and Lovell Jarvis of University  
          of California, Davis found that HOV lane access was so important  
          to some drivers that "many hybrid owners were willing to pay  
          upwards of $3,200 per sticker" - suggesting that the stickers  
          are indeed an effective incentive to get people to buy clean  
          cars.  The study also noted, however, that "despite having a  
          high value, the stickers were less effective at stimulating the  
          demand for hybrid electric vehicles than an equivalent cash  
          subsidy."  

           Do single-occupant clean vehicles clog carpool lanes  ?  In April  
          2006, the Federal Highway Administration (FHWA) granted  
          conditional approval to allow hybrid vehicles in HOV lanes,  
          enabling the yellow sticker program, which expired July 1, 2011,  
          to go into effect.  FHWA required the Department of  
          Transportation (Caltrans) to monitor and report on the  
          performance of HOV lanes and to take steps to address congestion  
          if necessary.  

          In July 2006, after the state had issued 50,000 yellow stickers  
          to eligible vehicles, Caltrans found that approximately 46% of  
          HOV lane segments operated under degraded conditions.  While  
          Caltrans could not attribute the increased congestion solely to  
          single-occupant hybrid vehicles accessing the lanes, FHWA  
          asserted that these vehicles did not have to be the cause of  
          degradation in order for Caltrans to take action to reduce HOV  
          lane congestion.  Accordingly, FHWA requested that Caltrans  
          develop a plan to improve the performance of HOV lanes.


                                                                CONTINUED





                                                                     AB 266
                                                                     Page  
          4

           Caltrans submitted this report to FHWA in August 2007  .  The plan  
          outlined short- and long-term measures to improve HOV lane  
          performance, including increased enforcement, improved system  
          management, infrastructure improvements, public education, and,  
          if necessary, a prohibition of single-occupant hybrid vehicles  
          from accessing the most congested segments of the HOV lane  
          network.  

          Caltrans' most recent HOV lane degradation report, submitted to  
          FHWA in November 2011, concluded that HOV lane degradation may  
          continue to be the result of high traffic demand and congestion  
          across the entire freeway facility rather than attributed to the  
          single occupancy hybrids alone.

          While California's HOV lanes are indeed congested, this  
          congestion is not attributable solely to single-occupant clean  
          vehicles.  Moreover, if Caltrans is able to attribute  
          unacceptable congestion levels to these cars, it has statutory  
          authority to ban them from HOV lanes and thereby override this  
          bill.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  Yes

           SUPPORT  :   (Verified  8/20/13)

          Alliance of Automobile Manufacturers
          California Electric Transportation Coalition
          CALSTART
          General Motors
          Honda North America, Inc.
          Plug In America

           ARGUMENTS IN SUPPORT  :    According to the author's office, under  
          the ARB's Advanced Clean Car Rules, California aims to have  
          zero-emission or plug-in hybrid cars account for 15% of new  
          vehicles sold each year by 2025.  The author's office notes that  
          the Clean Air Vehicle Sticker Program is an important incentive  
          for clean car purchases and that just as more manufacturers are  
          entering the market with more clean and/or zero-emission cars,  
          the program is set to expire.  The author's office further  
          states that by providing long-term incentives to consumers for  
          making green vehicle choices, this bill helps to leverage  
          California's position as the clean technology capital of the  

                                                                CONTINUED





                                                                     AB 266
                                                                     Page  
          5

          world, create good jobs, and meet state emissions reduction  
          goals.

           ASSEMBLY FLOOR :  49-22, 5/20/13
          AYES:  Alejo, Ammiano, Atkins, Bloom, Blumenfield, Bocanegra,  
            Bonilla, Bonta, Bradford, Brown, Buchanan, Ian Calderon,  
            Campos, Chau, Chesbro, Cooley, Daly, Dickinson, Eggman, Fong,  
            Frazier, Garcia, Gatto, Gomez, Gordon, Hall, Roger Hern�ndez,  
            Levine, Linder, Lowenthal, Maienschein, Medina, Mitchell,  
            Mullin, Muratsuchi, Nazarian, Nestande, Pan, Perea, Quirk,  
            Quirk-Silva, Rendon, Skinner, Stone, Ting, Weber, Wieckowski,  
            Williams, John A. P�rez
          NOES:  Achadjian, Allen, Bigelow, Ch�vez, Conway, Dahle,  
            Donnelly, Beth Gaines, Gorell, Gray, Grove, Hagman, Harkey,  
            Jones, Mansoor, Morrell, Olsen, Patterson, V. Manuel P�rez,  
            Wagner, Waldron, Wilk
          NO VOTE RECORDED:  Fox, Holden, Jones-Sawyer, Logue, Melendez,  
            Salas, Yamada, Vacancy, Vacancy


          JJA:d  8/21/13   Senate Floor Analyses 

                           SUPPORT/OPPOSITION:  SEE ABOVE

                                   ****  END  ****
          



















                                                                CONTINUED