BILL ANALYSIS                                                                                                                                                                                                    Ó



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          ASSEMBLY THIRD READING
          AB 2013 (Muratsuchi)
          As Amended  April 2, 2014
          2/3 vote.  Urgency 

           TRANSPORTATION      14-0        APPROPRIATIONS      14-1        
           
           ----------------------------------------------------------------- 
          |Ayes:|Lowenthal, Linder,        |Ayes:|Gatto, Bocanegra,         |
          |     |Achadjian, Ammiano,       |     |Bradford,                 |
          |     |Bloom, Bonta, Buchanan,   |     |Ian Calderon, Campos,     |
          |     |Daly, Frazier, Gatto,     |     |Eggman, Gomez, Holden,    |
          |     |Holden, Nazarian,         |     |Linder, Pan, Quirk,       |
          |     |Patterson, Quirk-Silva    |     |Ridley-Thomas, Wagner,    |
          |     |                          |     |Weber                     |
          |-----+--------------------------+-----+--------------------------|
          |     |                          |Nays:|Donnelly                  |
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           SUMMARY  :  Increases the number of advanced technology partial  
          zero-emission vehicles (enhanced AT PZEVs) that may be allowed  
          access to high-occupancy vehicle (HOV) lanes, regardless of  
          vehicle occupancy levels from 40,000 to 85,000; provides that  
          these provisions are to take effect immediately.  

           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 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 (ILEV)  
               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, 









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             b)   Green clean air vehicle stickers are available for  
               40,000 vehicles that meet California's enhanced AT PZEV  
               requirement or transitional zero-emission vehicles (TZEV)  
               standard. (Both vehicles types will be referred to  
               throughout the remainder of the analysis as AT PZEVs.)  

          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 these vehicles to use HOV 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 clean air  
            vehicle access privileges if it finds that the lanes exceed 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 in the HOV lanes  
            will significantly increase congestion.  

          3)Authorizes states, under the federal Moving Ahead for Progress  
            in the 21st Century Act (MAP-21), until September 30, 2017, to  
            allow low-emission, energy-efficient vehicles to use HOV lanes  
            regardless of vehicle occupancy levels.  States that provide  
            HOV access to clean air vehicles must do all the following:

             a)   Monitor the HOV system and report on the impact that  
               clean air vehicles have on operation of the system; and,

             b)   Limit or discontinue the use of the facility by clean  
               air vehicles if the presence of the vehicles degrades the  
               operation of the facility.  The standard used for purposes  
               of determining whether a facility is degraded is if  
               vehicles operating on the facility are failing to maintain  
               a minimum average operating speed (generally 45 miles per  
               hour) 90% of the time over a consecutive 180 day period  
               during morning or evening weekday peak hour periods.  
           
          FISCAL EFFECT  :  According to the Assembly Appropriations  
          Committee, minor costs to the DMV to issue additional decals,  
          fully offset by fees charged to vehicle owners.  









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           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.  

          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  
          ILEVs (white sticker vehicles).  The intent of this original  
          authority (and subsequent authorities) was to incentivize the  
          purchase of clean air vehicles.  Clean air vehicle programs  
          have, in fact, been shown to be quite successful in this vain.   
          For example, in a survey conducted last year by the California  
          Center for Sustainable Energy, 59% of respondents indicated that  
          access to HOV lanes was an important motivation for purchasing a  
          clean air vehicle.  That same survey also found that 74% of the  
          clean air vehicle owners reportedly display an HOV sticker on  
          their vehicles.  

          Expanding access to the green sticker program will ensure that  
          this important incentive is in place to encourage greater  
          saturation of AT PZEV vehicles.  

          As of March 28, 2014, 38,179 green stickers have been issued and  
          the 40,000 cap is expected to be reached by the end of spring.   
          As a result, the author has included an urgency clause in the  
          bill to ensure timely enactment.  

          Despite the success of clean air vehicle programs there remain  
          concerns that allowing additional cars in the HOV lanes could  
          result in degraded performance of the lanes.  The fear is that,  
          if HOV lanes become sufficiently degraded, their benefits (i.e.,  
          traffic congestion relief, fuel conservation, and reduced  
          emissions) will be lost and carpooling will be discouraged.   
          Consequently, both state and federal existing laws require  
          Caltrans to monitor the performance of HOV lanes and to take  
          action to remedy the degradation if it occurs.  

          The latest HOV performance monitoring report issued by Caltrans  
          (based on 2011 data), indicates that in the first half of 2011,  
          43% of the HOV lanes were degraded.  That number rose to 49% for  
          the second half of 2011.  (This upward turn in HOV lane  








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          degradation is particularly notable because this was the time  
          period immediately after an 85,000-yellow sticker clean air  
          vehicle program for hybrid vehicles expired and those hybrid  
          vehicles were no longer allowed in HOV lanes.)  According to  
          Caltrans, data indicate that recurrent congestion and other  
          contributing factors are primary causes for HOV lane  
          degradation.  

          Consistent with federal law, Caltrans submitted to the Federal  
          Highway Administration (FHWA) an action plan to remedy the  
          degradation.  That plan called for, among other strategies,  
          increased enforcement, improved incident management response  
          times, and improved detection.  The action plan specifically  
          stated that Caltrans is not considering prohibiting clean air  
          vehicles from HOV lanes at this time because:  

          1)These vehicles constitute a very low percentage of the users  
            of HOV lanes; and,

          2)Prohibiting these vehicles runs counter to an existing  
            Governor's Executive Order that directs state agencies to take  
            action to support and incentivize the purchase and use of  
            these vehicles.  

          FHWA responded to Caltrans' proposed action plan in January this  
          year, indicating that the plan did not adequately provide  
          "proactive or tangible strategies to affect immediate mitigation  
          for bringing the facilities into compliance or at least leading  
          towards that goal."  As a result, Caltrans will be considering  
          other options (reportedly not including removal of clean air  
          vehicles) to improve HOV lane performance, such as raising  
          vehicle occupancy levels.  

          While raising the existing cap from 40,000 to 85,000 will likely  
          not help the HOV lane degradation problem, past experience  
          indicates it is unlikely to make the situation significantly  
          worse.  

          Writing in opposition to this bill, however, the Metropolitan  
          Transportation Commission (MTC) is concerned that the landscape  
          of California's HOV lanes has changed considerably since clean  
          air vehicles were first allowed in them.  In particular, MTC  
          notes that virtually every metropolitan region in the state is  
          operating or is planning to operate high-occupancy toll lanes  








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          whereby single-occupant vehicles may access HOV lanes for a fee.  
           MTC does not believe access to these lanes should be given away  
          for free.  

           Previous legislation  :  AB 71 (Cunneen), Chapter 330, Statutes of  
          1999, first authorized access to HOV lanes for vehicles in the  
          white sticker program.  

          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 was feared to 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 yellow stickers at  
          that point).  
          SB 535 (Yee), Chapter 215, Statutes of 2010, essentially  
          replaced the hybrid yellow sticker program with a new program  
          aimed at incentivizing the purchase of enhanced AT PZEV  
          vehicles.  The new program (which uses green stickers) was  
          capped at 40,000 vehicles and was originally scheduled to sunset  
          on January 1, 2015.  Sunset dates for both the green sticker and  
          white sticker programs were subsequently extended to January 1,  
          2019, by SB 286 (Yee), Chapter 414, Statutes of 2013, and AB 266  
          (Blumenfield), Chapter 405, Statutes of 2013.  

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


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