Assigned to PS FOR COMMITTEE ARIZONA STATE SENATE Fifty-Seventh Legislature, First Regular Session FACT SHEET FOR H.B. 2887 alternative fuel vehicles; HOV lanes Purpose Allows a person who owns a motor vehicle that uses alternative fuel to apply for a license plate or special plate, rather than an alternative fuel vehicle special plate. Background A person who owns a motor vehicle that has either been converted or manufactured to use an alternative fuel as the vehicle's exclusive fuel source and is incapable of operating on any other type of fuel and is subject to motor fuel taxes must apply for an alternative fuel vehicle special plate. The Arizona Department of Transportation (ADOT) must issue alternative fuel vehicle special plates, or an alternative fuel vehicle sticker, to a person that: 1) owns a motor vehicle that is exclusively powered by an alternative fuel and is incapable of operating on any other type of fuel; 2) provides prescribed certificates; and 3) pays an $8 special plate administration fee. The Director of ADOT can permit a request for an alternative fuel vehicle special plate to be combined with a request for a personalized special plate which is subject to fees for the personalized special plate and the alternative fuel vehicle special plate. If a motor vehicle qualifies and any other special plates are issued, ADOT may issue an alternative fuel vehicle sticker to a person who owns a qualifying vehicle. The alternative fuel vehicle sticker must be diamond-shaped, indicate the type of alternative fuel used by the vehicle and be placed on the motor vehicle as prescribed by ADOT. A person may drive a motor vehicle with alternative fuel vehicle special plates or an alternative fuel vehicle sticker in high occupancy vehicle lanes at any time, regardless of occupancy level, without penalty (A.R.S. § 28-2416). There is no anticipated fiscal impact to the state General Fund associated with this legislation. Provisions 1. Allows, rather than requires, a person who owns a motor vehicle that has either been converted or manufactured to exclusively use an alternative fuel to apply for an alternative fuel vehicle special plate. 2. Allows an owner of an alternative fuel motor vehicle that does not apply for an alternative fuel vehicle special plate to apply for a license plate or special plate and an alternative fuel vehicle sticker. FACT SHEET H.B. 2887 Page 2 3. Specifies that a person who owns an alternative fuel motor vehicle and applies for an alternative fuel vehicle special plate must pay a $8 special plate administration fee or alternative fuel vehicle sticker fee. 4. Requires ADOT to deposit all alternative fuel vehicle sticker fees in the State Highway Fund. 5. Makes technical changes. 6. Becomes effective on the general effective date. House Action TI 2/19/25 DP 7-0-0-0 3 rd Read 3/3/25 49-9-2 Prepared by Senate Research March 17, 2025 KJA/NRG/mg