BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | AB 2013| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- THIRD READING Bill No: AB 2013 Author: Muratsuchi (D) Amended: 6/12/14 in Senate Vote: 21 SENATE TRANSPORTATION & HOUSING COMMITTEE : 9-0, 6/10/14 AYES: DeSaulnier, Cannella, Galgiani, Hueso, Lara, Liu, Pavley, Roth, Wyland NO VOTE RECORDED: Gaines, Beall SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8 ASSEMBLY FLOOR : 63-4, 5/1/14 - See last page for vote SUBJECT : High-occupancy vehicle lanes: low-emission vehicles SOURCE : Alliance of Automobile Manufacturers DIGEST : This bill raises the cap on the green sticker Clean Air Vehicle program, which allows certain low-emission vehicles to access high-occupancy vehicle (HOV) lanes with a single occupant. ANALYSIS : An HOV lane, also known as a carpool 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. Existing federal law authorizes states, until September 30, CONTINUED AB 2013 Page 2 2017, to allow certain low-emission and energy-efficient vehicles with a single occupant to use HOV lanes. A state that enacts such a policy must monitor its HOV system and report to the Federal Highway Administration (FHWA) on the impact these vehicles have on highway operations. If these vehicles cause a degradation of HOV lane operations, the state must limit or discontinue clean air vehicle use of the lanes. Federal law deems that an HOV lane is degraded if vehicles operating in the lane fail to maintain a minimum average operating speed (generally 45 miles per hour) during 90% of the time over a consecutive 180-day period during morning or evening weekday peak-hour periods. Federal law requires states to take action on degraded facilities within 180 days of identifying them as degraded. If a state fails to comply, FHWA may impose sanctions, including withholding payment of federal funds and withholding approval of projects. Existing state law exempts certain clean, alternative-fuel vehicles from HOV lane 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 implemented three clean air vehicle HOV sticker programs in recent years: 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 BMW i3EV, Chevy Spark EV, Fiat 500e, Ford Focus EV, Honda Civic CNG, Honda Fit EV, Hyundai Tucson Fuel Cell, Mitsubishi i-MiEV, Nissan Leaf, Tesla Model S, and Toyota RAV4 EV, among others. State law places no limit on the number of stickers that can be issued; as of May 5, 2014, the Department of Motor Vehicles (DMV) had issued 47,516 white stickers. This program expires on January 1, 2019. Yellow HOV stickers (expired) . AB 2628 (Pavley, Chapter 725, Statutes of 2004) established the "yellow sticker program," which granted HOV lane access to certain single-occupant, hybrid or alternatively fueled vehicles. DMV began issuing yellow stickers for the Toyota Prius and Honda Civic Hybrid in April 2006, when the FHWA granted conditional approval of the AB 2013 Page 3 program. The number of vehicles that might be issued these stickers was ultimately capped at 85,000, a limit that was reached in 2007; all yellow stickers expired on July 1, 2011. 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 strictest emissions standard - to drive in carpool lanes. The vehicles eligible to date for green stickers are the BMW i3 Rex, Cadillac ELR, Chevrolet Volt, Ford C-Max Energi, Ford Fusion Energi, Honda Accord Plug-in Hybrid, and Toyota Prius Plug-in. State law limits the number of green stickers that DMV may issue to 40,000. The green sticker program began on January 1, 2012; on May 9, 2014, DMV issued the 40,000th sticker. This program expires on January 1, 2019. Pursuant to federal law, state law authorizes the Department of Transportation (Caltrans), if it is able to attribute unacceptable congestion levels to clean vehicles, to ban them from HOV lanes. This bill raises the cap on the green sticker program from 40,000 to 70,000. Comments Federal law requires a state that allows clean vehicles to use an HOV lane to submit an annual report to FHWA on HOV lane performance. Federal law also requires a state, if it finds that clean vehicles cause degradation of HOV lane operations, to limit or discontinue clean air vehicle use of these lanes. Caltrans submitted its most recent HOV lane degradation report to FHWA in November 2011. This report showed that approximately 43% of HOV lanes in California were degraded during the first half of the year and approximately 49% were degraded during the second half of the year. This increase occurred despite the fact that the state law allowing 85,000 hybrid vehicles with yellow stickers to access HOV lanes expired on July 1, 2011. According to Caltrans, this increase has been observed in prior years and is associated with seasonal increases in traffic volume, not with clean vehicles. Caltrans identified factors AB 2013 Page 4 such as vehicles from HOV lanes merging into general-purpose lanes at the end of the HOV lane, "rubbernecking" due to traffic incidents on the freeway, and inclement weather resulting in lower speeds, as key causes of HOV lane congestion. Caltrans submitted an action plan to FHWA in July 2013. The plan did not propose to ban clean vehicles from HOV lanes because, according to the plan, "These vehicles constitute a very low percentage of users of HOV lanes. Furthermore, 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 of these vehicles." In January 2014, FHWA rejected Caltrans' 2011 action plan. Caltrans is currently developing a new action plan to improve HOV lane performance, which reportedly would not include removal of clean air vehicles, but would include raising vehicle occupancy levels. For example, the plan could propose requiring three occupants in a vehicle, rather than two, in order to access an HOV lane. Excluding double-occupant vehicles from HOV lanes, while preserving the right of single-occupant clean vehicles to access them, would appear to violate the basic purpose of HOV lanes - namely, to promote carpooling. The Center for Sustainable Energy released a set of survey results at the Governor's zero emission vehicle summit in March 2014 showing that HOV lane access was the primary reason a consumer bought a vehicle for 16% of Nissan Leafs, 27% of Chevy Volts, and 57% of Toyota Priuses, purchased or leased prior to the third quarter of 2012. However, HOV lane access accounted for only 15% of Nissan Leaf, 20% of Chevy Volt, and 34% of Toyota Prius purchases or leases in the fourth quarter of 2013. The fourth quarter 2013 results also included Tesla purchases, none of which were attributable to a desire for HOV lane access. For the fourth quarter 2013 purchases, nearly half of Nissan Leaf (48%) and Chevy Volt (48%) purchases or leases, as well as 34% of Toyota Prius purchases or leases, were attributable to a desire to save money on fuel (this factor was not in evidence in Tesla purchases). FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes Local: No AB 2013 Page 5 SUPPORT : (Verified 7/1/14) Alliance of Automobile Manufacturers (source) California Electric Transportation Coalition California Manufacturers and Technology Association Ford Motor Company Orange County Transportation Authority Sacramento Municipal Utility District South Coast Air Quality Management District OPPOSITION : (Verified 7/1/14) Metropolitan Transportation Commission Transportation Authority of Marin ARGUMENTS IN SUPPORT : According to the author, "This bill will increase the cap on the number of Green HOV Stickers to 70,000 in order to accommodate growing participation in this successful program at a time when the market for these vehicles is at a critical juncture. Expanding this program will continue to promote the growth and sale of these alternative fuel vehicles, helping to reach clean air and greenhouse gas reduction goals." ARGUMENTS IN OPPOSITION : The Metropolitan Transportation Commission notes that "over 40 percent of the state's HOV lanes that were monitored by Caltrans failed to meet the performance standard set in federal law ? the system is not working optimally today and unfortunately, AB 2013 will simply make matters worse." ASSEMBLY FLOOR : 63-4, 5/1/14 AYES: Achadjian, Alejo, Ammiano, Atkins, Bigelow, Bloom, Bocanegra, Bonilla, Bonta, Bradford, Buchanan, Ian Calderon, Campos, Chau, Chesbro, Cooley, Dababneh, Dahle, Daly, Dickinson, Eggman, Fong, Fox, Frazier, Garcia, Gatto, Gomez, Gonzalez, Gordon, Gray, Hagman, Harkey, Roger Hernández, Holden, Jones-Sawyer, Levine, Linder, Lowenthal, Maienschein, Medina, Mullin, Muratsuchi, Nazarian, Nestande, Olsen, Pan, Patterson, Perea, V. Manuel Pérez, Quirk, Quirk-Silva, Rendon, Ridley-Thomas, Rodriguez, Skinner, Stone, Ting, Wagner, Weber, Wieckowski, Wilk, Williams, John A. Pérez NOES: Donnelly, Grove, Jones, Logue AB 2013 Page 6 NO VOTE RECORDED: Allen, Brown, Chávez, Conway, Beth Gaines, Gorell, Hall, Mansoor, Melendez, Salas, Waldron, Yamada, Vacancy JA:k 7/1/14 Senate Floor Analyses SUPPORT/OPPOSITION: SEE ABOVE **** END ****