BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                            



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                                    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





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          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  







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            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  







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          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








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           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







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          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

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