Los Angeles County One Gateway Plaza 213 Metropolitan Transportation Authority Los Angeles, CA me

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Los Angeles County One Gateway Plaza 213 Metropolitan Transportation Authority Los Angeles, CA 90012-2952 me 58 REGULAR BOARD MEETING July 23, 2009 SUBJECT: STATE LEGISLATION ACTION: ADOPT STAFF RECOMMENDED POSITIONS RECOMMENDATION A) SB 535 (Yee) - Which would allow a new class of clean fuellhybrid vehicles to use the High Occupancy Vehicle (HOV) lanes without meeting the minimum occupancy requirement. WORK WlTH AUTHOR B) AB 1500 (Lieu) - Which would extend the sunset provision authorizing existing alternative fuel vehicles, mainly compressed natural gas powered vehicles, to use the HOV lanes without meeting the minimum occupancy requirement WORK WlTH AUTHOR ATTACHMENTS Attachments A - B Prepared by: Michael Turner, Deputy Executive Officer Patricia Torres Bruno, Government Relations Administrator

Matthew kymond Chief Communications Officer Arthur T. Leahy Chief Executive Officer

ATTACHMENT A BILL: SB 535 AUTHOR: SUBJECT: STATUS: ACTION: SENATOR LELAND YEE (D - SAN FRANCISCOISAN MATEO) HIGH OCCUPANCY VEHICLES - ULTRA LOW EMMISSION VEHICLES SENATE WORK WITH AUTHOR RECOMMENDATION Adopt a "Work with Author" position on SB 535 (Yee), which would allow a new generation of ultra fuel efficient vehicles to utilize the high occupancy vehicle (HOV) lanes without meeting the vehicle occupancy requirements from 201 1 to 201 5. ISSUE Senator Yee introduced SB 535 on behalf of General Motors to allow the next generation of ultra low emission vehicles to use the HOV lanes. Currently, our HOV lanes have reached or are reaching levels of degradation that could impact our ability to manage congestion on the HOV lanes. In addition, we are concerned that this policy could impact our ability to implement our Express Lanes demonstration program. Existing law requires the Department of Transportation (Caltrans) to designate certain lanes for the exclusive use of HOVs, which lanes may also be used, until January 1, 201 1, by certain low-emission, hybrid, or alternative fuel vehicles not carrying the requisite number of passengers otherwise required for the use of an HOV lane, if the vehicle displays a valid identifier. A violation of provisions relating to HOV lane use by vehicles with those identifiers is a crime. Specifically, SB 535 would: Require that between January 1,201 1, and January 1,201 5, the Department of Motor Vehicles issue up to 65,000 identifiers to vehicles that meet California's enhanced advanced technology partial zero-emission vehicle (enhanced AT PZEV) standard and have a 65 miles per gallon or greater combined fuel economy rating, except the Department's authorization to do so would end if the Secretary of State (Secretary) receives the specified notice before then. Authorize vehicles with that identifier to use HOV lanes until January 1, 2015, or until the Secretary receives a specified notice, whichever occurs first. 3

With respect hybrid vehicles, this provision shall be operative only until January 1, 201 1, or only until the Secretary receives that specified notice, whichever occurs first. IMPACT ANALYSIS Current law authorizes certain clean fuel vehicles to use the HOV system without meeting the minimum occupancy requirements. There are generally two types of classifications for clean fuel vehicles that are allowed to use the HOV system. Hybrids are allocated yellow stickers and electric and compressed natural gas (CNG) vehicles are allocated white stickers. The classification of clean fuel vehicles is actually more complicated, but the stickers are either yellow or white. In the case of hybrid vehicles, current law authorizes a total of 85,000 yellow stickers to be issued and the vehicles may use the lanes until January 1, 201 1. White sticker vehicles which are cleaner, usually alternative fuel vehicles are limited by the other factors such as the availability of CNG fueling facilities. These vehicles are primarily in fleets and approximately 20,000 such vehicles now have stickers to use the HOV lanes. Current law allows these vehicles to use the HOV system until January 1, 201 1. Senator Leland Yee has introduced SB 535 to allow the next generation of ultra-low emission vehicles to utilize the HOV lanes without meeting the vehicle occupancy requirements. The intent is to provide incentives for consumers to purchase ultra low emission vehicle. Under SB 535, the existing sunset of January 1, 201 1, for current yellow sticker vehicles (hybrids) to use the HOV system would remain, meaning that these vehicles will not be allowed to use the HOV system beyond that date. SB 535 would allow 65,000 new stickers to be issued to a new class of vehicles, namely those vehicles that obtain 65 miles per gallon. One such vehicle that meets this standard is the Chevy Volt. Our agency is currently in the process of implementing its Express Lanes Project and our project is scheduled to be implemented by December of 201 0. This implementation coincides with the expiration of the sunset for hybrid vehicles to use the HOV lane system so current law does not require our project to allow hybrid vehicles to access the Express Lanes. SB 535 would require that the new class of vehicles be allowed in the Express Lanes without being charged a toll. That authorization would challenge the effectiveness of our program and hinder our ability to improve the movement of everyone traveling in these corridors including transit patrons. Overall, staff are concerned that the continued use of HOV lanes by non-hov users degrades the effectiveness of our system. Los Angeles County's HOV system is nearing capacity and in many cases, the HOV lanes are at or exceed capacity. A contributing factor to that congestion is the use of the lanes by non-hov users. SB 535 would continue to allow a non-hov user in to the system contributing to the degradation of the lanes.

Staff has begun discussions with Senator Yee to seek an exemption for our Express Lanes project from SB 535. The Senator is amenable to this exception and has agreed to include the exemption in his bill. As mentioned, General Motors is the sponsor of the bill. The California Electric Transportation Coalition and Tesla Motors are registered in support of the bill. The Metropolitan Transportation Commission is registered in opposition to the bill.

BILL: AB 1500 AUTHOR: SUBJECT: STATUS: ACTION: ASSEMBLMEMBER TED LIEU (D - TORRANCE) HIGH OCCUPANCY LANES - LOW EMMISSION VEHICLES SENATE WORK WITH AUTHOR RECOMMENDATION Adopt a "Work with Author" position on AB 1500 which would extend the sunset for "white sticker" decals. Assemblymember Ted Lieu has introduced AB 1500 to encourage the market for the next generation of ultra low emission vehicles by allowing them to use the high occupancy vehicle (H0V)lanes. However, HOV lanes are already experiencing degradation. These types of policies could impact our agency's ability to manage congestion on HOV lanes and could impact our ability to implement our Express Lanes pilot program. PROVISIONS Existing law authorizes the Department of Transportation to designate certain lanes for the exclusive use of high-occupancy vehicles (HOV), which lanes may also be used, until January 1, 201 1, by certain low-emission and hybrid vehicles not carrying the requisite number of passengers otherwise required for the use of an HOV lane if the vehicle displays a valid identifier issued by the Department of Motor Vehicles. Existing law, until January 1, 201 1, makes it a misdemeanor to illegally use a decal, label, or other identifiers issued by the department. Specifically, AB 1500 would: Extend the date, to January 1, 201 6, that specified low-emission vehicles can use high-occupancy lanes, the Department can issue low-emission decals or other identifiers, and that illegal use of a department-issued decal on a lowemission vehicle is considered a misdemeanor.

Current law authorizes certain clean fuel vehicles to use the HOV system without meeting the minimum occupancy requirements. There are generally two types of classifications for clean fuel vehicles that are allowed to use the HOV system. Hybrids are allocated yellow stickers and electric and compressed natural gas vehicles are allocated white stickers. The classification of clean fuel vehicles is actually more complicated, but the stickers are either yellow or white. In the case of hybrid vehicles, current law authorizes a total of 85,000 yellow stickers to be issued and the vehicles may use the lanes until January 1, 201 1. White sticker vehicles which are cleaner, usually alternative fuel vehicles are limited by the other factors such as the availability of CNG fueling facilities. These vehicles are primarily in fleets and approximately 20,000 such vehicles exist now. Current law allows these vehicles to use the HOV system until January 1, 201 1. Assembly Member Lieu has introduced AB 1500 to extend the sunset for white sticker cars until 201 6. Under existing law, white sticker vehicles are not capped. Their growth is constrained by other factors and these other factors have limited the total number of such vehicles on the road. AB 1500 does not do anything to increase the number of vehicles since it merely extends the sunset, but it is reasonable to expect that the number of clean fuel vehicles will continue to grow. Any expansion of this type of vehicle would mean an increase in the number of non-hov vehicles that can use the HOV system. Overall, staff are concerned that the continued use of HOV lanes by non-hov users degrades the effectiveness of our system. Los Angeles County's HOV system is nearing capacity and in many cases, the HOV lanes are at or exceed capacity. A contributing factor to that congestion is the use of the lanes by non-hov users. AB 1500 would continue to allow a non-hov user in to the system contributing to the degradation of the lanes. Staff are currently exploring two possible amendments to AB 1500. First, we have requested an exemption for our Express Lanes project. Alternatively, we have suggested that the total number of vehicles should be capped. Our discussions with Assembly Member Lieu, and the sponsors are ongoing and we would like to express our gratitude for their willingness to discuss our concerns. At this point, we are recommending that the Board adopt a Work with Author position on AB 1500 while we explore these alternatives. The sponsor of the bill is the California Natural Gas Vehicle Coalition. The Alameda County Congestion Management Agency have registered opposition to the bill.