BILL ANALYSIS                                                                                                                                                                                                    Ķ



                                                                  AB 2583
                                                                  Page  1

          Date of Hearing:   April 23, 2012

                        ASSEMBLY COMMITTEE ON TRANSPORTATION
                               Bonnie Lowenthal, Chair
                  AB 2583 (Blumenfield) - As Amended:  April 9, 2012
           
          SUBJECT  :  Alternatively fueled vehicles: state fleet: public 
          parking.  

           SUMMARY  :  Requires the Department of General Services (DGS) and 
          the California Department of Transportation (Caltrans) to 
          increase use of and infrastructure support for alternatively 
          fueled vehicles (AFVs).  Specifically,  this bill  :  

          1)Requires DGS to purchase new vehicles that are alternatively 
            fueled according to the following schedule:  

             a)   50% of all new vehicles purchased beginning January 1, 
               2013; and,  

             b)   100% of new vehicles purchased beginning January 1, 
               2015.  

          2)Exempts from this provision types of vehicles for which 
            alternatively fueled vehicles are not available.  

          3)Requires DGS to encourage the operation of alternatively 
            fueled state vehicles on the alternative fuel that the vehicle 
            was designed for.  

          4)Requires DGS to encourage develop commercial infrastructure 
            for alternative fuel pumps and charging stations at or near 
            state vehicle fueling or parking sites.  

          5)Requires DGS to work with other public agencies to incentivize 
            and promote state employee operation of alternatively fueled 
            vehicles through preferential or reduced-cost parking, access 
            to charging, or other means.  

          6)Authorizes DGS to provide grants or enter into interagency 
            agreements to implement the requirements of this bill.  

          7)Defines "alternatively fueled vehicles" as light-, medium-, 
            and heavy-duty vehicles that reduce petroleum usage and 
            related emissions by using advanced technologies and fuels, 








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            including, but not limited to, hybrid, plug-in hybrid, battery 
            electric, natural gas, or fuel cell vehicles.  

          8)Requires DGS and Caltrans to develop and implement advanced 
            technology vehicle parking incentive programs in DGS-operated 
            public parking facilities with 50 spaces or more and 
            Caltrans-operated park and ride lots to incentivize the 
            purchase and use of AFVs in the state.  

          9)Requires the parking incentive programs developed by DGS and 
            Caltrans to provide meaningful, tangible benefits to AFV 
            drivers, and allows these incentives to include preferential 
            spaces, reduced fees, and fueling infrastructure for AFVs that 
            use these parking facilities or park and ride lots.  


           EXISTING LAW  :  

          1)Establishes the Global Warming Solutions Act of 2006, 
            requiring the Air Resources Board (ARB) to establish a 
            statewide greenhouse gas (GhG) emissions limit and to reduce 
            GhG emissions to 1990 levels.  

          2)Establishes DGS as the business manager for the state, 
            offering centralized procurement of goods, services and real 
            estate; property management; and fleet administration, among 
            other things.  DGS is authorized to conduct procurements on 
            behalf of local governments and other public entities as a 
            means of reducing state and local government costs through the 
            leveraged purchasing power gained because of a larger buying 
            pool.  

          3)Requires all new state fleet purchases of passenger vehicles 
            and light duty trucks, powered solely by internal combustion 
            engines utilizing fossil fuels, to meet the fuel economy 
            standard established by DGS and California Energy Commission 
            (CEC) on or after     January 1, 2008.  

          4)Requires the Secretary of State and Consumer Services, in 
            consultation with DGS and other appropriate agencies that 
            maintain or purchase vehicles, to develop and implement a plan 
            with the goal of improving use of alternative fuels, synthetic 
            lubricants, and fuel-efficient vehicles by reducing or 
            displacing the consumption of petroleum products by the state 
            fleet when compared to 2003 consumption levels.  








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             a)   Requires that the plan be submitted to the Legislature 
               and the Governor.  

             b)   Requires that the plan implement the following schedule: 
                

                i.      10% reduction or displacement by January 1, 2012; 
                  and,  

                ii.     20% reduction or displacement by January 1, 2020.  


          1)Requires DGS to provide the Department of Finance (DOF) and 
            the Legislature a progress report on their efforts to meet the 
            overall goals of the Plan beginning on April 1, 2010, and 
            annually thereafter and that the progress report be published 
            on DGSs Internet Web site.  

           FISCAL EFFECT  :  Unknown  

           COMMENTS  :  According to the author's office, "California has a 
          goal that by 2025 zero-emission or plug-in hybrid vehicles will 
          account for 15%, or one in seven, new cars sold in California.  
          If achieved, having this number of AFVs on California roadways 
          is expected to reduce vehicular GhG emissions by 80% by 2050.  

          According to the California Air Resources Board (CARB), in order 
          to meet the 2050 GhG goal, vehicles across the state will need 
          to be primarily composed of advanced technology vehicles such as 
          electric and fuel cell vehicles by 2035.  By establishing new 
          alternative fuel targets for California's state fleet, as well 
          as incentivizing and promoting state employee operation of AFVs 
          through preferential or reduced-cost parking, access to 
          charging, or other means, it is expected that the state will not 
          only reduce emissions from the state-owned fleet, but will also 
          help reduce barriers that currently restrict consumers from 
          buying AFVs.  

           Background  .  DGS procures vehicle fleet purchases on behalf of 
          state agencies.  There are existing federal and state laws, and 
          state executive orders, directing DGS to green the state fleet.  
          DGS has met or exceeded those requirements, which are discussed 
          below.  









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          The Federal Energy Policy Act (EPA) requires that 75% of new 
          vehicle purchases, with certain exceptions, be capable of 
          running on alternative fuels.  DGS has been compliant with the 
          EPA since its enactment in 1992 and, in some years, already 
          exceeded the 75% requirement.  According to DGS, in fiscal year 
          2009-10, 99% of new vehicle purchases were AFVs, but 106 
          vehicles were exempt from the EPA definition of AFV, which does 
          not include hybrid or hybrid electric vehicles.  Based on the 
          EPA definition of AFV, DGS was 86% compliant with the law.  This 
          bill would include hybrid and plug-in hybrid vehicles in the 
          definition of an AFV.  

          California has taken measures to reduce GhG emissions from state 
          vehicles and encourage the use of AFVs.  In 2005, the Governor 
          issued EO S-3-05 and established the GhG reduction targets to: 
          by 2010, reduce GHG emissions to 2000 levels; by 2020, reduce 
          GHG emissions to 1990 levels; by 2050, reduce GHG emissions to 
          80 percent below 1990 levels.  

          AB 32 (Nuņez), Chapter 488, Statutes of 2006, established the 
          Global Warming Solutions Act of 2006, which required CARB to 
          establish a statewide GhG emissions limit and reduce GhG 
          emissions to 1990 levels.  AB 236 (Lieu), Chapter 593, Statutes 
          of 2007, established the goal of reducing or displacing the 
          consumption of petroleum products by the state fleet when 
          compared to the 2003 consumption levels based on the following 
          schedule: 10% by January 1, 2012, and 20% by January 1, 2020.  
          As a result of these measures, DGS is currently working to 
          expand the use of AFVs on alternative fuels.  

          This bill requires DGS to encourage, to the extent feasible, the 
          operation of state AFVs on the alternative fuel for which the 
          vehicle is designed and the development of commercial 
          infrastructure for alternative fuel pumps and charging stations 
          at or near state vehicle fueling or parking sites.  DGS is 
          currently implementing this bill's provisions.  DGS was awarded 
          United States Department of Energy and CEC grants to establish 
          approximately 75 new E85 (flexible fuel from 100% gasoline to 
          85% gasoline/15% ethanol) fueling locations statewide.  To date, 
          15 E85/biodiesel locations have been completed.  DGS recently 
          installed 24 electric vehicle (EV) charging stations at five 
          state parking facilities in Sacramento and is applying for 
          grants to install additional EV charging stations.  

          This bill requires DGS to work with other public agencies to 








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          incentivize state employee use of AFVs and authorizes DGS to 
          provide grants or enter into interagency agreements to implement 
          the provisions of this bill.  DGS has indicated that they 
          already offer state employees incentives for using AFVs and will 
          be developing a policy and expanding those efforts in the next 
          few months.  DGS is also expecting to enter into an interagency 
          agreement for an outreach and marketing campaign to promote AFV 
          usage.  

          This bill requires DGS to purchase AFVs at a rate of 50% of new 
          vehicle purchases beginning January 1, 2013, and 100% of new 
          vehicle purchases beginning January 1, 2015.  This bill would 
          mandate state agencies to purchase AFVs, beginning in 2015, for 
          light-, medium-, and heavy-duty vehicles.  Currently, state 
          agencies have the option of buying an AFV.  While this bill 
          exempts AFVs if certain types of vehicles are unavailable, 
          certain agencies whose work is related to law enforcement, 
          transportation, and construction may wish to purchase vehicles 
          that are not AFVs.  

          According to Caltrans' website, the department has taken a 
          number of proactive steps toward greater use of AFV by 
          purchasing and utilizing AFVs and developing supporting AFV 
          infrastructure.  The Caltrans Fleet Greening Program began as a 
          five-year plan in August 2000 to reduce emissions from the 
          Caltrans fleet, stay ahead of emerging regulations, and set the 
          example for the use of emerging, clean air technologies. Today 
          Caltrans' policies continue to promote an efficient fleet mix 
          and use of efficient, low emission vehicles to lower Caltrans' 
          use of petroleum as well as reduce emissions of criteria air 
          pollutants and GhGs.  Through a combination of regulation 
          compliance, state purchasing policies, and innovative programs 
          Caltrans uses hybrid passenger vehicles, solar-powered 
          equipment, propane-fueled vehicles.  Caltrans also indicates 
          that it operates two hydrogen demonstration vehicles and 
          established various E-85 fuel ethanol demonstration projects.  

          According to CALSTART, "California's state fleet should clearly 
          reflect the state's clean air and advanced vehicle mandates.  AB 
          2583 would transition the state fleet toward clean vehicles and 
          ensure that state-owned garages support and encourage the use of 
          these vehicles.  

          "The benefits of proactively transitioning the state fleet from 
          status-quo 'dirty' petroleum and toward cleaner alternatives 








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          would be significant.  In addition to directly reducing 
          emissions, the bill would show real commitment on the part of 
          California to meet its climate and air quality targets 
          accelerate clean transportation technologies by supporting 
          crucial early markets for alternative fuels.  Moreover, in an 
          era of high and volatile fuel prices, reducing dependence on 
          petroleum will yield direct fuel cost savings for California.  

           Double-referral .  This bill was heard in the Business, 
          Professions and Consumer Protection Committee and was passed 
          with 9 votes in favor and none opposed.  

           Previous legislation  :  AB 236 (Lieu) Chapter 593, Statutes of 
          2007 revised current policies regarding the purchase of vehicles 
          for state and local government fleets in order to increase fuel 
          efficiency and the use of alternative fuels.  

          AB 32 (Nuņez), Chapter 488, Statutes of 2006, established the 
          Global Warming Solutions Act of 2006, which requires ARB to 
          establish a statewide GhG emissions limit and to reduce GhG 
          emissions to 1990 levels.  

          AB 2264 (Pavley), Chapter 767, Statutes of 2006, which required 
          DGS, in consultation with the State Energy Resources 
          Conservation and Development Commission to establish a minimum 
          fuel economy standard for the purchase of all state fleet 
          vehicles powered by internal combustion engines utilizing fossil 
          fuels, and mandated DGS and any other state entity, as defined, 
          to purchase new state passenger and light duty vehicles in 
          accordance with that minimum fuel economy standard.  

          AB 1357 (Ruskin) of 2005, would have required the Director of 
          DGS to compile and maintain information on the number of bifuel 
          natural gas and bifuel propane vehicles purchased or leased by 
          the state during the year, the total number owned or leased as 
          of December 31 of each year, and the total amount of fuel used 
          during the year by those vehicles, itemized by type of fuel, as 
          of December 31 of each year.  That bill was vetoed by the 
          Governor.  

          AB 1660 (Pavley), Chapter 580, Statutes of 2005, enacted the 
          California Energy-Efficient Vehicle Group Purchase Program to 
          encourage the purchase of energy-efficient vehicles by local and 
          state agencies through a group-purchasing program that uses the 
          purchasing leverage of state and local agencies to lower the 








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          purchase price of those vehicles.  

           REGISTERED SUPPORT / OPPOSITION  :  

           Support 
           
          CALSTART

           Opposition 
           
          None on file
           

          Analysis Prepared by  :   Victoria Alvarez / TRANS. / (916) 319- 
          2093