BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 1721
                                                                  Page  1

          CONCURRENCE IN SENATE AMENDMENTS
          AB 1721 (Linder)
          As Amended  August 6, 2014
          Majority vote
           
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          |ASSEMBLY:  |72-2 |(May 1, 2014)   |SENATE: |36-0 |(August 11,    |
          |           |     |                |        |     |2014)          |
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           Original Committee Reference:   TRANS.  

           SUMMARY  :  Requires clean air vehicles to be granted toll-free or  
          reduced-rate passage in high-occupancy toll (HOT) lanes.

           The Senate amendments  resolve potential chaptering out conflicts  
          with AB 2013 (Muratsuchi) of the current legislative session. 
           
           FISCAL EFFECT  :  None.  This bill is keyed non-fiscal by the  
          Legislative Counsel.   

           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 State Route 91 Express Lanes in Orange  
          and Riverside Counties.  

          Last session, the Legislature passed and the Governor signed AB  








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          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  
          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 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.  Moreover, SB 853 (Budget and  
          Fiscal Review Committee), Chapter 27, Statutes of 2014,  
          immediately increased from 40,000 to 55,000 the allowable number  
          of green stickers, and AB 2013 will further increase that number  
          to 70,000.  

          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  
            Riverside County Transportation Commission to pay a  








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            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  
            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.  

          The author has introduced this bill to require that clean air  
          vehicles displaying a green or white HOV access decal be granted  
          toll-free or reduced-rate passage in HOT lanes.  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.  

          Related legislation:  AB 2013 raises the cap on the number of  
          green clean air vehicle stickers that can be issued from 40,000  
          to 85,000.  AB 2013 is currently pending on the Senate Floor.  

          SB 853 (Budget and Fiscal Review Committee), Chapter 27,  
          Statutes of 2014, was one of the budget trailer bills and  
          included provisions to increase the number of allowable green  
          stickers from 40,000 to 55,000.

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


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