BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | AB 1964|
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THIRD READING
Bill No: AB 1964
Author: Bloom (D), et al.
Amended: 8/17/16 in Senate
Vote: 21
SENATE TRANS. & HOUSING COMMITTEE: 10-0, 6/28/16
AYES: Beall, Cannella, Allen, Gaines, Galgiani, Leyva,
McGuire, Mendoza, Roth, Wieckowski
NO VOTE RECORDED: Bates
SENATE APPROPRIATIONS COMMITTEE: 5-1, 8/11/16
AYES: Lara, Beall, Hill, McGuire, Mendoza
NOES: Bates
NO VOTE RECORDED: Nielsen
ASSEMBLY FLOOR: 50-19, 5/12/16 - See last page for vote
SUBJECT: High-occupancy vehicle lanes: vehicle exceptions
SOURCE: Alliance of Automobile Manufacturers
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
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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
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. (See Background for HOV sticker
programs.)
This bill:
1)Removes the cap on the number of green stickers that the
Department of Motor Vehicles (DMV) may issue.
2)Allows the white sticker program to sunset on January 1, 2019,
pursuant to existing law.
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3)Provides that green stickers issued prior to January 1, 2018,
shall sunset on January 1, 2019, pursuant to existing law, but
green stickers issued between January 1, 2018 and January 1,
2019, shall be valid until January 1, 2021.
4)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 1 of the fourth year after the year of issuance.
Requires the new stickers to be distinguishable from prior
stickers.
5)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.
6)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.
7)Requires 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 appropriate
regional transportation agency, following a specified finding
by Caltrans.
8)Prohibits DMV, beginning January 1, 2019, from issuing a
sticker to an applicant who has received a CVRP rebate, unless
the applicant's income falls below the following income
limits: $125,000 for a single filer, $170,000 for a
head-of-household filer, or $250,000 for a joint filer.
Requires DMV to collaborate with ARB to establish procedures
to implement this provision, including, but not limited to:
a) Amending the applications for both CVRP and the Clean
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Air Vehicle Program to include a statement indicating that
the applicant cannot participate in both programs unless he
or she meets the income limits prescribed in this bill.
b) Notifying consumers through existing education and
outreach efforts of the eligibility criteria and
conditions.
c) Establishing appropriate compliance and enforcement
measures.
d) Establishing information sharing between DMV and ARB to
implement the requirements of this bill.
Background
Clean Air Vehicle program
The state has implemented three clean-air vehicle HOV sticker
programs in recent years:
1)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 (BEVs), dedicated compressed natural gas or
liquid petroleum gas vehicles, and hydrogen fuel cell electric
vehicles (FCEVs), 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 DMV had
issued 106,706 white stickers. White stickers expire on
January 1, 2019.
2)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,
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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.
3)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 (PHEVs) - 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
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
BEVs and FCEVs, clean PHEVs, 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.
Clean Vehicle Rebate Project (CVRP)
CVRP is intended to encourage and accelerate zero- and near-zero
emission, on-road light-duty vehicle deployment, and technology
innovation. The program, which is administered by the Air
Resources Board's (ARB) contractor, the California Center for
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Sustainable Energy, provides rebates of up to $4,000 for
purchasing or leasing a new BEV, up to $3,000 for a PHEV, and up
to $6,000 for an FCEV. There is no cap on the number of rebates
which may be issued, but rebates are subject to funding
availability and the program has more than once been forced to
stop issuing rebates and create a waiting list due to funds
running out. Currently, all applications submitted after June
10, 2016, are being placed on a waiting list.
Amidst concerns that the program was primarily benefiting
wealthy car buyers who would likely have bought an alternative
vehicle regardless of the rebate, SB 1275 required CVRP
eligibility to be based on income. Accordingly, in March 2016,
ARB set an income cap of $250,000 for single filers, $340,000
for head-of-household filers and $500,000 for joint filers. The
ARB also modified the program to increase rebates by $1,500 for
consumers with household incomes less than or equal to 300% of
the federal poverty level (about $73,000 for a family of four).
Comments
1)Purpose. The author states that the green sticker program has
helped spur the sale of PHEVs, 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)ZEV goal: How are we doing? According to 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
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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.
3)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
congestion as vehicles from HOV lanes merging into
general-purpose lanes at the end of the HOV lane, highway
congestion, and 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.
4)How many stickers are enough? The now-defunct yellow sticker
program was terminated at 85,000 stickers to help promote
development of newer plug-in hybrid and other zero-emission
technologies. Automakers are working to develop these
technologies in response to the federal Corporate Average Fuel
Economy and GHG 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 prohibits DMV
from issuing new stickers if the sale of eligible vehicles
reaches a certain percentage of total market shares for two
consecutive years. This bill also, however, removes the cap
entirely.
5)How many incentives are enough? State, federal, and local
governments offer several incentives to purchase and drive
clean cars. CVRP provides rebates for the purchase or lease
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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.
6)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"
single-occupant lane access to lanes that are intended to
promote ridesharing.
7)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 noted that state law does not
require any state agency to monitor program goals and
objectives and that ARB had not studied the program's effect
on air quality.
8)Recent amendments. This bill was amended in the Senate
Appropriations Committee to prohibit the DMV from issuing a
sticker to an applicant who has received a CVRP rebate unless
the applicant falls within specified income limits. The
amendments also require DMV to collaborate with ARB to
implement this bill, as specified.
Related/Prior Legislation
AB 95 (Committee on Budget, Chapter 12, Statutes of 2015)
increased the cap on the "green sticker" Clean Air Vehicle
program from 70,000 to 85,000.
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FISCAL EFFECT: Appropriation: No Fiscal
Com.:YesLocal: Yes
According to the Senate Appropriations Committee:
Caltrans would incur ongoing administrative costs of
approximately $125,000 for the duration of the extended
operative date of the green sticker program. Costs are
attributable to continuing analysis and reporting activities
required under federal law. (State Highway Account)
Unknown Caltrans costs, in the range of $400,000 to $1
million, related to provisions that allow a regional
transportation planning agency to request the removal of a
clean-air vehicle exemption in HOV lanes (State Highway
Account). Actual costs would be informed by the number of
requests and the complexity of each impacted region. Costs
include data collection and analysis to determine the merit of
a request, sign replacement costs, and educational campaigns
in affected regions.
DMV costs to revise the green sticker program would be minor
and absorbable, and any costs would be offset by decal fees.
Additional costs to limit eligibility for higher income
applicants are unknown at this time. (Motor Vehicle Account)
California ARB costs of approximately $39,000 annually (Motor
Vehicle Account) to review and verify green sticker eligible
vehicles and track the market share of those vehicles for
purposes of the bill. Additional costs to coordinate with DMV
to establish procedures to limit eligibility for decals and
rebates provided under the Clean Vehicle Rebate Program (are
unknown at this time. (Greenhouse Gas Reduction Fund)
Minor and absorbable costs to the California Highway Patrol
(CHP). Staff notes that the rolling expiration dates of the
revised green sticker program will complicate enforcement
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efforts because CHP would need to verify eligibility for HOV
access by running a plate rather than simple visual
verification that a vehicle has a decal. (Motor Vehicle
Account)
SUPPORT: (Verified8/17/16)
Alliance of Automobile Manufacturers (source)
California Electric Transportation Coalition
California Natural Gas Vehicle Coalition
ChargePoint
Clean Energy
Silicon Valley Leadership Group
OPPOSITION: (Verified8/18/16)
Plug In America
ASSEMBLY FLOOR: 50-19, 5/12/16
AYES: Achadjian, Alejo, Arambula, Atkins, Baker, Bloom,
Bonilla, Bonta, Campos, Chau, Chiu, Chu, Cooley, Dababneh,
Daly, Dodd, Frazier, Eduardo Garcia, Gatto, Gipson, Gomez,
Gordon, Hadley, Roger Hernández, Holden, Irwin, Kim, Levine,
Linder, Lopez, Low, Maienschein, McCarty, Medina, Melendez,
Mullin, Nazarian, O'Donnell, Olsen, Patterson, Ridley-Thomas,
Rodriguez, Santiago, Mark Stone, Thurmond, Ting, Weber, Wilk,
Williams, Rendon
NOES: Travis Allen, Bigelow, Brough, Brown, Chávez, Cooper,
Dahle, Beth Gaines, Gallagher, Gray, Grove, Harper, Lackey,
Mathis, Obernolte, Salas, Steinorth, Wagner, Waldron
NO VOTE RECORDED: Burke, Calderon, Chang, Eggman, Cristina
Garcia, Gonzalez, Jones, Jones-Sawyer, Mayes, Quirk, Wood
Prepared by:Erin Riches / T. & H. / (916) 651-4121
8/18/16 17:17:58
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