BILL ANALYSIS Ó
SENATE COMMITTEE ON TRANSPORTATION AND HOUSING
Senator Jim Beall, Chair
2015 - 2016 Regular
Bill No: AB 1964 Hearing Date: 6/28/16
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|Author: |Bloom |
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|Version: |5/5/2016 |
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|Urgency: |No |Fiscal: |Yes |
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|Consultant|Erin Riches |
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SUBJECT: High-occupancy vehicle lanes: vehicle exceptions
DIGEST: This bill modifies the Clean Air Vehicle program, which
enables certain low-emission vehicles to access carpool lanes
with a single occupant, and creates a new program to take effect
when the Clean Air Vehicle program sunsets in 2019.
ANALYSIS:
HOV lanes
Existing law provides that a high-occupancy vehicle (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 to allow certain
low-emission vehicles with a single occupant to use HOV lanes.
If the 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 mph) during 90% of the
time over a consecutive 180-day period during morning or evening
weekday peak-hour periods. Pursuant to federal law, state law
authorizes the state Department of Transportation (Caltrans), if
it is able to attribute unacceptable congestion levels to clean
AB 1964 (Bloom) Page 2 of ?
vehicles, to ban them from HOV lanes.
Clean Air Vehicle program
Existing state law exempts certain clean, alternative-fuel
vehicles from HOV lane occupancy requirements, so that a
single-occupant vehicle 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:
a)White HOV stickers: AB 71 (Cunneen, Chapter 330, Statutes of
1999) established the "white sticker program," which allows
certain clean air vehicles 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, Tesla Model S, and Toyota Mirai, among
others. State law does not limit the number of white
stickers; as of June 14, 2016, the state Department of Motor
Vehicles (DMV) had issued 106,706 white stickers. White
stickers expire on January 1, 2019.
b)Yellow HOV stickers (expired): AB 2618 (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 (primarily the Toyota
Prius). The number of vehicles under this program was
ultimately capped at 85,000, a limit that was reached in 2007;
all yellow stickers expired on July 1, 2011.
c)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 - to drive in carpool lanes. Eligible vehicles
include the Chevrolet Volt, Ford C-Max Energi, Honda Accord
Plug-in Hybrid, and Toyota Prius Plug-in, among others. State
law limits the number of green stickers that DMV may issue to
85,000; this cap was reached in December 2015. Existing green
stickers expire on January 1, 2019.
ZEV goals
Executive Order B-16-12 of 2012 established a goal of 1.5
million zero-emission vehicles (ZEVs) on California's roads by
AB 1964 (Bloom) Page 3 of ?
2025. SB 1275 (De León, Chapter 530, Statutes of 2014) builds
on this goal by establishing the Charge Ahead California
Initiative, which aims to place one million electric cars,
trucks, and buses on California's roads by 2023. The ZEV
regulation, commonly known as the ZEV mandate, sets a goal for
ZEVs and near-ZEVs to comprise 15% of new cars sold in
California by 2025. The ZEV regulation requires a certain
percentage of a vehicle manufacturer's fleet each year to be
battery electric and fuel-cell vehicles, clean plug-in hybrids,
clean hybrids, and/or clean gasoline vehicles with near-zero
tailpipe emissions. If a manufacturer fails to meet its ZEV
requirement, it is subject to financial penalties.
This bill:
a)Removes the cap on the number of green stickers that DMV may
issue.
b)Allows the white sticker program to sunset on January 1, 2019,
pursuant to existing law.
c)Provides that green stickers issued prior to January 1, 2018,
shall sunset on January 1, 2019, pursuant to existing law, but
provides that green stickers issued between January 1, 2018
and January 1, 2019, are valid until January 1, 2021.
d)Provides that stickers issued on or after January 1, 2019,
under the new program established by this bill (which
effectively replaces the green sticker program), are valid
until January 1st of the third year after the year of
issuance. Requires the new stickers to be distinguishable
from prior stickers.
e)Prohibits the DMV from issuing stickers under the new program
if the sale of eligible vehicles reaches at least 8.6% of the
total new car market share for two consecutive years.
Prohibits the DMV from reinstating the program in a later year
if sales fall below that point.
f)Provides that if the new program becomes inoperative due to
expiration of federal authorization, the driver of a vehicle
with an otherwise valid sticker shall not be cited for a
violation within the first 60 days of the program becoming
inoperative.
AB 1964 (Bloom) Page 4 of ?
COMMENTS:
1)Purpose. The author states that the green sticker program has
helped spur the sale of plug-in hybrid electric vehicles, but
has currently reached its limit of 85,000 stickers. According
to the author, it is vital for the state to quickly address
the long-term strategy for the program because long-term
certainty will encourage consumers to purchase these vehicles
and help manufacturers meet ZEV goals. This bill will help
create a more sustainable, long-term program once the current
program expires. The author states that as numerous
environmental programs compete for a limited amount of General
Fund and Greenhouse Gas Reduction Fund monies, it is important
that we fortify this non-monetary incentive to help the state
meet its ZEV and greenhouse gas (GHG) reduction goals.
2)What does the budget do? SB 838, the Senate transportation
budget trailer bill, maintains the January 1, 2019, sunset on
both the green and white sticker programs and removes the
85,000 cap on the green sticker program. AB 1610, the
Assembly transportation budget trailer, does not include any
provisions relating to the Clean Air Vehicle program. The
Governor has proposed to extend the white sticker program
until October 1, 2025, pursuant to FAST Act authorization;
this language is not currently included in either SB 838 or AB
1610. As of this writing, neither bill has moved to the
Governor's desk. There has been some discussion of taking the
Clean Air Vehicle Program out of budget discussion and instead
resolving it in policy discussion (e.g., this bill), but as of
this writing those negotiations are ongoing.
3)ZEV goal: How are we doing? According to the state Air
Resources Board (ARB), as of December 2015 there were 180,000
ZEVs on California's roads, representing about 3.5% of new car
sales. About 1.4 million ZEVs were sold between 2010 and
2015. ARB's 2013 Climate Change Scoping Plan and current
draft Mobile Source Strategy both point to the need for the
light-duty vehicle fleet to be largely electrified by 2050,
with ZEV sales of nearly 100% by that point.
4)Do single-occupant vehicles clog carpool lanes? According to
Caltrans' most recent HOV lane degradation report,
approximately 54% of HOV lanes in California were degraded
during the first half of the year and 59% during the second
half of the year. Caltrans identifies key causes of HOV lane
AB 1964 (Bloom) Page 5 of ?
congestion as vehicles from HOV lanes merging into
general-purpose lanes at the end of the HOV lane, highway
congestion, lane-change conflicts when drivers attempt to
enter or exit the HOV lane, traffic incidents on the freeway,
and severe weather resulting in lower speeds. Caltrans states
that it is not considering prohibitions on clean vehicles in
HOV lanes because they account for a relatively small
percentage of peak-hour HOV volume. Proponents of this bill
state that the "rolling" program established by this bill
(e.g., stickers only being valid for three years) is intended
to help address traffic congestion concerns.
5)How many stickers are enough? As noted on the ARB website
regarding the yellow sticker program, "The California
legislature limited the time of this early hybrid vehicle
program to help promote and encourage development of newer
plug-in hybrid and other zero-emissions technologies."
Automakers are already working to develop these technologies
in response to the federal Corporate Average Fuel Economy
(CAFE) and greenhouse gas emissions standards, which aim to
increase fuel economy to the equivalent of 54.5 miles per
gallon for cars and light-duty trucks by 2025. Automakers
argue, however, that producing the cars does no good if
consumers are not motivated to buy them; the green sticker
program provides an incentive to do so. In addition, this
bill was amended in the Assembly to prohibit DMV from issuing
new stickers if the sale of eligible vehicles reaches a
certain percentage of total market share for two consecutive
years. This bill also, however, removes the cap entirely.
6)How many incentives are enough? The state, federal, and local
governments offer several incentives to purchase and drive
clean cars. The Clean Vehicle Rebate Program (CVRP) provides
rebates of up to $5,000 for the purchase or lease of a new ZEV
or near-ZEV. In addition, the U.S. Department of Energy
offers a $7,500 federal tax credit for the purchase of an
electric vehicle. Clean vehicle owners also tend to enjoy
free parking in commercial garages, among other benefits.
7)Social equity concerns. For a variety of reasons,
low-emission vehicles generally have higher purchase prices
than comparable gasoline-powered vehicles. These higher
prices generally make low-emission vehicles that qualify for
HOV lane access unaffordable for low-income drivers. Some
critics question whether it is appropriate to "buy"
AB 1964 (Bloom) Page 6 of ?
single-occupant lane access to lanes that are intended to
promote ridesharing.
8)Is the Clean Air Vehicle program achieving its goals? The
sponsor of this bill, the Alliance of Automobile
Manufacturers, points to a recent UCLA study showing that 40%
of ZEV sales in major urban areas of California are tied to
green and white stickers. However, the overarching goal of
the program is to improve air quality. In a February 2015
report, the State Auditor pointed out that state law does not
require any state agency to monitor the goals and objectives
of the program and that ARB had not studied the effect of the
program on air quality.
9) Time to narrow the program? A coalition comprised of the
American Lung Association of California, Coalition for Clean
Air, Natural Resources Defense Council, and Union of Concerned
Scientists has taken a "support if amended" position on this
bill. The coalition seeks two amendments:
a) Provide that only vehicles achieving an all-electric
range of at least 25 miles would be eligible for green
stickers, with the all-electric range gradually
increasing over time based on technology review by ARB.
This provision would continuously spur stronger PHEV
technologies while preserving HOV lane mobility benefits.
b) Develop a process directing Caltrans to work with
state metropolitan planning organizations regional
transportation planning agencies, and the California
Highway Patrol to address regional sources of HOV lane
congestion, including HOV lane violations.
10)Concerns about HOV lane congestion. The Los Angeles County
Metropolitan Transportation Authority (LACMTA) has taken a
"work with author" position on this bill. LACMTA states that
although it supports deployment of alternative-fuel vehicles
to reduce GHG emissions, it has general concerns about the
potential impacts to its Metro ExpressLanes program operations
on the I-10 and I-110 corridors and overall HOV lane
congestion in Los Angeles County that could result from
increased use of alternative-fuel vehicles. The Metropolitan
Transportation Commission, which has not taken a position on
this bill, states that the Bay Area has the highest share of
stickered vehicles in the state, which has significantly
AB 1964 (Bloom) Page 7 of ?
degraded speeds in its HOV lanes.
11)Amendments. The author will accept amendments in this
committee to do the following:
a) Require Caltrans to eliminate access to individual
HOV lanes, or portions of these lanes, for stickered cars
upon the request of, and with the concurrence of, the
regional transportation agency whose jurisdiction
includes HOV lanes, following a finding by Caltrans as
follows:
i. The lane or portion of the lane exceeds a
specified level of service.
ii. The operation or projected operation
within the next 12 months of stickered vehicles in
these lanes significantly contributes, or is
projected to significantly contribute, to congestion
of these lanes.
iii. Alleviating the congestion by reducing
the use of the lane by non-eligible vehicles through
increased enforcement or further increasing vehicle
occupancy is either infeasible within the immediate
future or is forecast to result in increased
congestion in the corridor overall.
b) Provide that stickers issued under the program
established by this bill, on or after January 1, 2019,
are valid until January 1st of the fourth year after the
year of issuance (rather than the third year as this bill
currently specifies).
c) Prohibits the DMV from issuing stickers under the
new program if the sale of eligible vehicles reaches at
least 9.2% of the total new-car market share for two
consecutive years (rather than 8.6% as this bill
currently specifies).
Related Legislation:
AB 95 (Committee on Budget, Chapter 12, Statutes of 2015) -
increases the cap on the "green sticker" Clean Air Vehicle
program from 70,000 to 85,000.
AB 1964 (Bloom) Page 8 of ?
Assembly Votes:
Floor: 50-19
Approps: 12-6
Trans: 14-2
FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes
Local: Yes
POSITIONS: (Communicated to the committee before noon on
Wednesday,
June 22, 2016.)
SUPPORT:
Alliance of Automobile Manufacturers (sponsor)
California Electric Transportation Coalition
California Natural Gas Vehicle Coalition
Clean Energy
Silicon Valley Leadership Group
OPPOSITION:
None received
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