BILL ANALYSIS Ó AB 1721 Page 1 ASSEMBLY THIRD READING AB 1721 (Linder) As Amended April 24, 2014 Majority vote TRANSPORTATION 15-0 ----------------------------------------------------------------- |Ayes:|Lowenthal, Linder, | | | | |Achadjian, Ammiano, | | | | |Bloom, Bonta, Buchanan, | | | | |Daly, Frazier, Gatto, | | | | |Holden, Nazarian, | | | | |Patterson, Quirk-Silva, | | | | |Waldron | | | |-----+--------------------------+-----+--------------------------| | | | | | ----------------------------------------------------------------- SUMMARY : Requires clean air vehicles to be granted toll-free or reduced-rate passage in high-occupancy toll (HOT) lanes. EXISTING LAW : 1)Directs the Department of Motor Vehicles to issue stickers for clean air vehicles, until January 1, 2019, as follows: a) White clean air vehicle stickers are available for an unlimited number of vehicles that meet California's super ultra-low emission vehicle standard for exhaust emissions and the federal inherently low-emission vehicle evaporative emission standard. Vehicles 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 for 40,000 vehicles that meet California's enhanced advanced technology partial zero-emission vehicle standard or transitional zero-emission vehicle standard. 1)Requires clean air vehicles that display the appropriate white or green access sticker to be allowed to use high-occupancy vehicle (HOV) lanes and freeway ramps, regardless of occupancy level, until such time as the Department of Transportation AB 1721 Page 2 (Caltrans) determines that federal law does not authorize the state to allow these vehicles to use HOV lanes or ramps. 2)Authorizes HOT lane facilities, as follows: a) The San Diego Association of Governments is authorized to establish HOT lanes on Interstate 15, Interstate 5, and up to two unspecified corridors in San Diego County. b) The Sunol Smart Carpool Lane Joint Powers Authority is authorized to establish HOT lanes on the Sunol Grade segment of Interstate 680 in Alameda and Santa Clara Counties. c) The Alameda County Transportation Commission is authorized to establish HOT lanes in one unspecified corridor in Alameda County. d) The Santa Clara Valley Transportation Authority is authorized to establish HOT lanes on any two corridors in Santa Clara County. e) Any regional transportation planning agency could have, until January 1, 2012, applied to the California Transportation Commission (CTC) to establish HOT lanes. Up to four unspecified HOT lanes were authorized under this provision, two in Northern California and two in Southern California. The CTC found that the following three HOT facilities were eligible under this provision: i) The Metropolitan Transportation Commission (MTC): 285 miles on Interstate 80 in Solano, Contra Costa, and Alameda Counties; Interstate 680 in Solano and Contra Costa Counties; Interstate 880 in Alameda County; and State Route 92 and State Route 84 in Alameda County; ii) Riverside County Transportation Commission (RCTC): Interstate 15 in Riverside County; and, iii) The Los Angeles County Metropolitan Transportation Authority: Interstate 110 and Interstate 210, Interstate 10, and State Route 60, all within Los Angeles County. (Previously, under this provision the CTC was required to AB 1721 Page 3 submit eligible HOT lane applications to the Legislature for approval via statute. As a result, applications for HOT lanes in both Riverside and Los Angeles Counties were ratified via statute. The requirement that the Legislature ratify HOT lane applications had been repealed by the time MTC brought its HOT lane application to the CTC.) 3)Authorizes MTC, serving as the Bay Area Toll Authority, to grant toll-free or reduced-rate passage on toll bridges to HOVs; if it does, it must grant the same toll-free and/or reduced-rate passage to a clean air vehicle displaying the appropriate HOV access sticker. 4)Prohibits HOT lane operators from charging clean air vehicles (displaying the appropriate sticker) single-occupant vehicle tolls. FISCAL EFFECT : None. This bill is keyed non-fiscal by the Legislative Counsel. COMMENT: 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 or reduced 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. California is currently in the embryonic stage of what is sure to be a substantial build out of HOT lanes around the state in the very near future. MTC, for example, is in the midst of developing a regional HOT lane network that will extend for hundreds of miles from Sonoma County in the north to Gilroy in the south. While single-occupant clean air vehicles enjoy access to HOV lanes in California, they do not necessarily enjoy free passage on toll bridges or toll highways. In fact, clean air vehicles 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. Last session, the Legislature passed and the Governor signed AB AB 1721 Page 4 2405 (Blumenfield), Chapter 674, Statutes of 2012, to exempt clean air vehicles from toll charges equivalent to those imposed on single-occupant vehicles in HOT lanes. The purpose of that bill was to give current and future clean air vehicle owners certainty regarding HOT lane access and to continue to provide a valuable incentive for purchasing clean air vehicles by offsetting some of the additional costs associated with the purchase of new and expensive technology. Opponents of AB 2405 argued that a proliferation of clean air vehicles in HOV lanes would add to the congestion that buses will encounter in those lanes. They also voiced concerns that allowing clean air vehicles free access to HOT lanes would reduce the revenue that these lanes will generate, particularly as the number of these cars grows. The clean air vehicle program is, indeed, growing. At the time AB 2405 was signed, the clean air vehicle program was set to expire on January 1, 2015, the number of allowable white stickers was limitless, and the number of allowable green stickers was (and currently still is) 40,000. Legislation enacted last year, AB 266 (Blumenfield), Chapter 405, Statutes of 2013, and SB 286 (Yee), Chapter 414, Statutes of 2013, extended the sunset dates for the white and the green sticker clean air vehicle programs, respectively, from 2015 to 2019. Furthermore, AB 2013 (Muratsuchi) of the current legislative session, will increase the number of allowable green stickers to 85,000. While the author acknowledges the importance of reducing emissions from mobile sources, such as by increasing the use of clean air vehicles, he believes this policy goal runs afoul of another important policy goal-transportation infrastructure financing. The author also has other concerns, including: 1)The state-imposed prohibition against charging single-occupant tolls on clean air vehicles is an unfunded state mandate because it interferes with local tolling policy and reduces revenue available to meet bond repayment requirements. 2)Tolling policy should be left to the agency with direct financial responsibility. In the case of the Interstate 15 HOT lanes in Riverside County, existing law unfairly requires RCTC to pay a potentially hefty risk premium as it seeks to AB 1721 Page 5 secure federal loans and sell toll revenue bonds to construct the Interstate 15 express lanes. The author asserts that tolling policy must be left to the agency with direct financing responsibility. 3)Many clean air vehicles (e.g., all electric vehicles) do not pay any state or federal excise taxes on motor vehicle fuels, which are the primary source of funding for maintenance and repair of California highways. As a result, the author asserts that clean air vehicle drivers are not paying their fair share of their impacts on California's deteriorating roadways. The existing exemption for clean air vehicles in HOT lanes only exacerbates this inequity. The author has introduced this bill to require that clean air vehicles displaying a green or white HOV access decal be granted toll-free or reduced-rate passage in HOT lanes. In this way, the original intent of AB 2405 will remain intact-an incentive to purchase a clean air vehicle-but HOT lane operators will be better able to manage the related financial implications. Related legislation: AB 2013 (Muratsuchi) of the current legislative session, raises the cap on the number of green clean air vehicle stickers that can be issued from 40,000 to 85,000. AB 2013 passed Assembly Transportation on a vote of 14-0 and is currently pending in the Assembly. Previous legislation: AB 1467 (Núñez), Chapter 32, Statutes of 2006, authorized up to four unspecified HOT lane facilities: two in Northern California and two in Southern California. AB 1954 (Jeffries), Chapter 421, Statutes of 2008, specifically authorized HOT lanes on Interstate 15 in Riverside County. AB 2405 (Blumenfield), Chapter 674, Statutes of 2012, exempted clean air vehicles from toll charges imposed on single-occupant vehicles in HOT lanes. AB 266 (Blumenfield), Chapter 405, Statutes of 2013, and SB 286 (Yee), Chapter 414, Statutes of 2013, extended the sunset dates for the white and the green sticker clean air vehicle programs, respectively, from 2015 to 2019. AB 1721 Page 6 Analysis Prepared by : Janet Dawson / TRANS. / (916) 319-2093 FN: 0003219