BILL ANALYSIS                                                                                                                                                                                                    �



                                                                            



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                                    THIRD READING


          Bill No:  SB 286
          Author:   Yee (D) and Pavley (D), et al.
          Amended:  3/18/13
          Vote:     21

           
           SENATE TRANSPORTATION & HOUSING COMMITTEE  :  11-0, 4/2/13
          AYES:  DeSaulnier, Gaines, Beall, Cannella, Galgiani, Hueso,  
            Lara, Liu, Pavley, Roth, Wyland

           SENATE APPROPRIATIONS COMMITTEE  :  Senate Rule 28.8


           SUBJECT  :    Vehicles:  high-occupancy vehicle lanes

           SOURCE  :     Author


           DIGEST  :    This bill extends the "green sticker" and "white  
          sticker" Clean Air Vehicle programs, which allow certain  
          low-emission vehicles to access high-occupancy vehicle (HOV)  
          lanes with a single occupant, from January 1, 2015, to January  
          1, 2018.  

           ANALYSIS  :    A HOV lane, also known as a carpool lane or diamond  
          lane, aims to promote and encourage ridesharing.  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 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 implemented  
          three clean air vehicle HOV sticker programs in recent years:
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            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 March 1,  
            2013, the Department of Motor Vehicles (DMV) had issued 23,223  
            white stickers.  This program expires on January 1, 2015.

            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.  Federal law allows  
            single-occupant vehicles in HOV lanes only if they have been  
            federally certified as low-emission vehicles; at that time, no  
            hybrid vehicles met federal emissions requirements.  To  
            address this prohibition, AB 2628 conditioned its  
            implementation on the state receiving a federal waiver.  In  
            April 2006, the Federal Highway Administration (FHWA) granted  
            conditional approval, enabling the yellow sticker program to  
            go into effect.  Under this program, DMV issued yellow  
            stickers for the Toyota Prius and Honda Civic Hybrid.  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  
            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 March 1, 2013,  
            DMV had issued 10,881 green stickers.  These stickers are  
            valid until January 1, 2015.

          This bill extends both the white sticker and green sticker  

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          programs by three years, to January 1, 2018.

           Comments  :

           HOV access incentivize clean car purchases  .  The primary  
          argument for granting low- or zero-emission vehicles access to  
          HOV or HOT 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 the 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."  

           Single-occupant clean vehicles carpool lanes  .  In April 2006,  
          FHWA granted conditional approval to allow hybrid vehicles in  
          HOV lanes, enabling the yellow sticker program 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  
          percent 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.

          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.  

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          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 ILEV/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  4/12/13)

          Alliance of Automobile Manufacturers
          American Lung Association
          California Electric Transportation Coalition 
          California Natural Gas Vehicle Coalition 
          CALSTART
          Clean Energy
          EMCOR Services Mesa Energy Systems
          Ford Motor Company
          G&S Transit Management, Inc. dba City Cab
          General Motors
          Honda
          LA City Cab, LLC
          Nissan North America
          San Diego Gas and Electric Company
          Southern California Gas Company
          Tri City Transportation Systems, Inc.,
              dba Checker Cab and dba Yellow Cab Company


           ARGUMENTS IN SUPPORT  :    According to the author's office,  
          continuing access to these alternative fuel vehicles has proven  
          to be the strongest non-monetary incentive California offers to  
          consumers to purchase the next generation of more  
          technologically advanced vehicles.  By extending the life of the  
          available stickers, this bill will provide a much greater  

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          incentive for individuals to purchase these clean cars.


          JJA:d  4/15/13   Senate Floor Analyses 

                           SUPPORT/OPPOSITION:  SEE ABOVE

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