BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 1721
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          Date of Hearing:   April 21, 2014

                        ASSEMBLY COMMITTEE ON TRANSPORTATION
                               Bonnie Lowenthal, Chair
                 AB 1721 (Linder) - As Introduced:  February 13, 2014
           
          SUBJECT  :  High-occupancy vehicle lanes:  Riverside County:   
          State Route 15

           SUMMARY  :  Provides that statutes that exempt clean air vehicles  
          from toll charges imposed on single-occupancy vehicles in  
          high-occupancy toll (HOT) lanes do not apply to the Interstate  
          15 HOT lanes operated by the Riverside County Transportation  
          Commission (RCTC).  
           
           EXISTING LAW  :  

          1)Directs the Department of Motor Vehicles to issue stickers for  
            clean air vehicles, until January 1, 2019, as follows:  

             a)   White clean air vehicle stickers are available for an  
               unlimited number of vehicles that meet California's super  
               ultra-low emission vehicle standard for exhaust emissions  
               and the federal inherently low-emission vehicle evaporative  
               emission standard.  Vehicles that meet these requirements  
               are typically certified pure zero-emission vehicles (100%  
               battery electric and hydrogen fuel cell) and compressed  
               natural gas vehicles; and, 

             b)   Green clean air vehicle stickers are available for  
               40,000 vehicles that meet California's enhanced advanced  
               technology partial zero-emission vehicle standard or  
               transitional zero-emission vehicle standard.  

          1)Requires clean air vehicles that display the appropriate white  
            or green access sticker to be allowed to use high-occupancy  
            vehicle (HOV) lanes and freeway ramps, regardless of occupancy  
            level, until such time as the Department of Transportation  
            (Caltrans) determines that federal law does not authorize the  
            state to allow these vehicles to use HOV lanes or ramps.  

          2)Authorizes HOT lane facilities, as follows:

             a)   The San Diego Association of Governments is authorized  
               to establish HOT lanes on Interstate 15, Interstate 5, and  








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               up to two unspecified corridors in San Diego County.  

             b)   The Sunol Smart Carpool Lane Joint Powers Authority is  
               authorized to establish HOT lanes on the Sunol Grade  
               segment of Interstate 680 in Alameda and Santa Clara  
               counties.  

             c)   The Alameda County Transportation Commission is  
               authorized to establish HOT lanes in one unspecified  
               corridor in Alameda County.  

             d)   The Santa Clara Valley Transportation Authority is  
               authorized to establish HOT lanes on any two corridors in  
               Santa Clara County.  

             e)   Any regional transportation planning agency could have,  
               until January 1, 2012, applied to the California  
               Transportation Commission (CTC) to establish HOT lanes.  Up  
               to four unspecified HOT lanes were authorized under this  
               provision, two in Northern California and two in Southern  
               California.  The CTC found that the following three HOT  
               facilities were eligible under this provision:  

               i)     The Metropolitan Transportation Commission (MTC):   
                 285 miles on Interstate 80 in Solano, Contra Costa, and  
                 Alameda counties; Interstate 680 in Solano and Contra  
                 Costa counties; Interstate 880 in Alameda County; and  
                 State Route 92 and State Route 84 in Alameda County;

               ii)    RCTC:  Interstate 15 in Riverside County; and,

               iii)   The Los Angeles County Metropolitan Transportation  
                 Authority: Interstate 110 and Interstate 210, Interstate  
                 10, and State Route 60, all within Los Angeles County.  

               (Previously, under this provision the CTC was required to  
               submit eligible HOT lane applications to the Legislature  
               for approval via statute.  As a result, applications for  
               HOT lanes in both Riverside County and Los Angeles County  
               were ratified via statute.  The requirement that the  
               Legislature ratify HOT lane applications had been repealed  
               by the time MTC brought its HOT lane application to the  
               CTC.)  

          3)Authorizes MTC, serving as the Bay Area Toll Authority, to  








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            grant toll-free or reduced-rate passage on toll bridges to  
            HOVs; if it does, it must grant the same toll-free and/or  
            reduced-rate passage to a clean air vehicle displaying the  
            appropriate HOV access sticker.

          4)Prohibits HOT lane operators from charging clean air vehicles  
            (displaying the appropriate sticker) single-occupant vehicle  
            tolls.  

          5)Does not preclude, however, toll agencies from charging a  
            single-occupant clean air vehicle a reduced rate.  

           FISCAL EFFECT  :  Unknown 

           COMMENT:   HOT lanes are increasingly being implemented in  
          metropolitan areas around the state and the nation.  HOT lanes  
          allow single-occupant or lower-occupant vehicles to use an HOV  
          lane for a fee, while maintaining free or reduced travel to  
          qualifying HOVs.  The purported benefits of HOT lanes include  
          enhanced mobility and travel options in congested corridors and  
          better usage of underutilized HOV lanes.  

          California is currently in the embryonic stage of what is sure  
          to be a substantial build out of HOT lanes around the state in  
          the very near future.  MTC, for example, is in the midst of  
          developing a regional HOT lane network that will extend for  
          hundreds of miles from Sonoma County in the north to Gilroy in  
          the south.  

          While single-occupant clean air vehicles enjoy access to HOV  
          lanes in California, they do not necessarily enjoy free passage  
          on toll bridges or toll highways.  In fact, clean air vehicles  
          must pay full fare to use the toll roads in Orange County but  
          enjoy discounted rates to cross the San Francisco Bay Area  
          bridges and to use the 91 Express Lanes in Orange and Riverside  
          counties.  

          Last session, the Legislature passed and the Governor signed AB  
          2405 (Blumenfield), Chapter 674, Statutes of 2012 to exempt  
          clean air vehicles from toll charges equivalent to those imposed  
          on single-occupant vehicles in HOT lanes.  The purpose of that  
          bill was to give current and future clean air vehicle owners  
          certainty regarding HOT lane access and to continue to provide a  
          valuable incentive for purchasing clean air vehicles by  
          offsetting some of the additional costs associated with the  








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          purchase of new and expensive technology.  

          Opponents of AB 2405 argued that a proliferation of clean air  
          vehicles in HOV lanes would add to the congestion that buses  
          will encounter in those lanes.  They also voiced concerns that  
          allowing clean air vehicles free access to HOT lanes would  
          reduce the revenue that these lanes will generate, particularly  
          as the number of these cars grows.  

          The clean air vehicle program is, indeed, growing.  At the time  
          AB 2405 was signed, the clean air vehicle program was set to  
          expire on January 1, 2015, the number of allowable white  
          stickers was limitless, and the number of allowable green  
          stickers was (and currently still is) 40,000.  Legislation  
          enacted last year, AB 266 (Blumenfield), Chapter 405, Statutes  
          of 2013 and SB 286 (Yee), Chapter 414, Statutes of 2013 extended  
          the sunset dates for the white and the green sticker clean air  
          vehicle programs, respectively, from 2015 to 2019.  Furthermore,  
          pending legislation, AB 2013 (Muratsuchi), will increase the  
          number of allowable green stickers to 85,000.

          AB 1721 excludes the Interstate 15 HOT lanes in Riverside County  
          from existing law that exempts clean air vehicles from being  
          charged single-occupant vehicle tolls.  While the author  
          acknowledges the importance of reducing emissions from mobile  
          sources, such as by increasing the use of clean air vehicles, he  
          believes this policy goal runs afoul of another important policy  
          goal-transportation infrastructure financing.  The author also  
          has other concerns, including:

          1)The state-imposed prohibition against charging single-occupant  
            tolls on clean air vehicles is an unfunded state mandate  
            because it interferes with local tolling policy and reduces  
            revenue available to meet bond repayment requirements.  

          2)Tolling policy should be left to the agency with direct  
            financial responsibility.  In the case of the Interstate 15  
            HOT lanes in Riverside County, existing law unfairly requires  
            RCTC to pay a potentially hefty risk premium as it seeks to  
            secure federal loans and sell toll revenue bonds to construct  
            the Interstate 15 express lanes.  The author asserts that  
            tolling policy must be left to the agency with direct  
            financing responsibility.  

          3)Many clean air vehicles (e.g., all electric vehicles) do not  








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            pay any state or federal excise taxes on motor vehicle fuels,  
            which are the primary source of funding for maintenance and  
            repair of California highways.  As a result, the author  
            asserts that clean air vehicle drivers are not paying their  
            fair share of their impacts on California's deteriorating  
            roadways.  The existing exemption for clean air vehicles in  
            HOT lanes only exacerbates this inequity.  

           Suggested amendment:   The bill may go too far in correcting the  
          clash of state priorities.  As a middle-ground approach, the  
          committee suggests amendments that would explicitly allow HOT  
          lane operators to charge clean air vehicles a reduced rate.  In  
          this way, the original intent of AB 2405 will remain intact-an  
          incentive to purchase a clean air vehicle-but HOT lane operators  
          will be better able to manage the related financial  
          implications.  The author has indicated he intends to take this  
          amendment as an author's amendment in committee.  

          Related legislation:  AB 2013 (Muratsuchi) raises the cap on the  
          number of green clean air vehicle stickers that can be issued  
          from 40,000 to 85,000.  AB 2013 passed Assembly Transportation  
          on a vote of 14-0 and is currently pending reconsideration on  
          the Assembly Floor.  

          Previous legislation:  AB 1467 (Nunez), Chapter 32, Statutes of  
          2006, authorized up to four unspecified HOT lane facilities:   
          two in Northern California and two in Southern California.  

          AB 1954 (Jeffries), Chapter 421, Statutes of 2008, specifically  
          authorized HOT lanes on Interstate 15 in Riverside County.  

          AB 2405 (Blumenfield), Chapter 674, Statutes of 2012, exempted  
          clean air vehicles from toll charges imposed on single-occupant  
          vehicles in HOT lanes.  

          AB 266 (Blumenfield), Chapter 405, Statutes of 2013, and SB 286  
          (Yee), Chapter 414, Statutes of 2013, extended the sunset dates  
          for the white and the green sticker clean air vehicle programs,  
          respectively, from 2015 to 2019.  

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          Riverside County Transportation Commission (sponsor)








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          American Council of Engineering Companies of California
          Self-help Counties Coalition
          Southern California Association of Governments

           Opposition 
           
          None on file

           
          Analysis Prepared by  :   Janet Dawson / TRANS. / (916) 319-2093