BILL ANALYSIS Ó
AB 1964
Page 1
ASSEMBLY THIRD READING
AB
1964 (Bloom)
As Amended May 5, 2016
Majority vote
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|Committee |Votes|Ayes |Noes |
| | | | |
| | | | |
| | | | |
|----------------+-----+----------------------+---------------------|
|Transportation |14-2 |Frazier, Linder, |Brown, Melendez |
| | |Baker, Bloom, Chu, | |
| | |Daly, Dodd, | |
| | | | |
| | | | |
| | |Eduardo Garcia, | |
| | |Gomez, Kim, Mathis, | |
| | |Medina, Nazarian, | |
| | |O'Donnell | |
| | | | |
|----------------+-----+----------------------+---------------------|
|Appropriations |12-6 |Bloom, Bonilla, |Bigelow, Chang, |
| | |Bonta, Calderon, |Gallagher, Jones, |
| | |Daly, Eggman, Eduardo |Obernolte, Wagner |
| | |Garcia, Holden, | |
| | |Quirk, Santiago, | |
| | |Weber, Wood | |
| | | | |
| | | | |
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AB 1964
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SUMMARY: Creates a new program (upon expiration of the existing
program) to allow plug-in hybrid electric vehicles (PHEVs)
access to high-occupancy vehicle (HOV) lanes for a three-year
period, regardless of vehicle occupancy level. Specifically,
this bill:
1)Provides that decals issued in the green sticker HOV access
program (discussed below) prior to January 1, 2018, are valid
until January 1, 2019, also consistent with the existing
sunset date; provides that decals issued in the green sticker
HOV access program on or after January 1, 2018, and before
January 1, 2019, are valid until January 1, 2021.
2)Strikes the cap on the number of decals that can be issued in
the green sticker program.
3)Creates a new program, beginning January 1, 2019, that
provides for the issuance of an unlimited number of decals to
allow HOV access for PHEVs until January 1 of the third year
after the year of issuance; requires decals for this program
to be distinguishable from white or green stickers.
4)Sunsets the reconstituted HOV access program when the new car
PHEV market share reaches 8.6% cumulatively for two
consecutive years.
5)Makes other, non-substantive changes to related provisions.
FISCAL EFFECT: According to the Assembly Appropriations
Committee, costs to the Department of Motor Vehicles are minor
and absorbable. California Department of Transportation will
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continue to incur annual special fund costs of around $100,000
beyond the current sunset date for one position associated with
federally required analysis and reporting regarding compliance
of HOV lanes with federal performance standards.
COMMENTS: In 2012, Governor Brown issued an executive order
laying the foundation for 1.5 million zero- or near-zero
emission vehicles (ZEV) to be on California's roadways by 2025
(referred to as the ZEV mandate). In response, the California
Air Resources Board promulgated regulations requiring the
largest automakers to derive 15% of their annual California
sales from electric vehicles and other zero- or near-zero
emissions vehicles by 2025. This equates to approximately
270,000 vehicles annually.
Transitioning to clean air vehicles presents some significant
hurdles for consumers to overcome, for example, upfront costs
are higher than internal combustion engine (ICE) vehicles.
Moreover, electric vehicles, with their relatively limited
miles-per-charge capability, often induce range anxiety. Given
this, and given the importance of these vehicles in meeting
climate change goals, federal and state governments offer
incentives to spur the commercial success of these vehicles.
Typical incentives include: reduced purchase prices, tax
credits, rebates, sales tax exemptions, HOV access, and free
parking. These incentive programs appear to have been
successful in enticing consumers to purchase clean air vehicles
over ICE vehicles. For example, in a survey report released in
2014 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.
According to the author, this bill is necessary to provide
long-term certainty for consumers of PHEVs. As the 2019 sunset
date approaches, the author asserts that the value of the green
sticker and the incentive for purchasing a PHEV will continually
AB 1964
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diminish. Furthermore,
this bill recognizes that the HOV access incentive should, at
some point, stop. The state should not have to be in the
position of indefinitely subsidizing or otherwise incentivizing
ZEVs. That was not the intent of the initial HOV access
incentive, as evidenced by both a sunset date and a cap on the
number of decals that could be issued. This bill addresses this
issue by including a performance metric for the revised program.
Under this bill, HOV access incentives for PHEVs will cease
after the PHEV market share of total cars sold reaches 8.6% and
sustains at least this level for two consecutive years. This
will ensure the incentive is in place long enough for the market
to be able to sustain itself. (Of the 15% ZEV mandate, PHEVs
are estimated to likely make up 8.6% of the total cars sold.)
Committee comments and concerns:
1)That the state should help spur the commercial market for ZEVs
is undeniable. First, transitioning from ICE vehicles to
vehicles that meet the ZEV mandate is the cornerstone of the
state's efforts to reduce greenhouse gas emissions from the
transportation sector. The more ZEVs that are purchased, the
sooner we meet these goals and the sooner we realize a
healthier environment. Second, the 15% ZEV mandate will not
be easy for automakers to attain and HOV access for clean air
vehicles has proven to be an effective incentive to help. A
recent University of California, Los Angeles study showed that
the ability to access HOV lanes prompted the purchase of more
than 24,000 plug-in electric cars and hybrids, representing
40% of ZEV sales in major urban areas. This bill represents a
creative approach to providing a more sustainable way to
continually offer this incentive.
2)Increasingly, the HOV lane performance is degraded. This bill
will effectively allow a significant increase in the number of
vehicles that will be eligible to access the HOV lanes,
thereby exacerbating the HOV lane degradation to the point
that carpool requirements may have to be increased to three or
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more occupants.
Please see the policy committee analysis for full discussion of
this bill.
Analysis Prepared by:
Janet Dawson / TRANS. / (916) 319-2093 FN:
0002855