BILL ANALYSIS Ó
SENATE TRANSPORTATION & HOUSING COMMITTEE BILL NO: ab 2583
SENATOR MARK DESAULNIER, CHAIRMAN AUTHOR: Blumenfield
VERSION: 4/9/12
Analysis by: Carrie Cornwell FISCAL: yes
Hearing date: July 3, 2012
SUBJECT:
Alternatively fueled vehicles: state fleet and public parking
DESCRIPTION:
This bill requires that the state when buying vehicles buy 50%
alternative fuel vehicles by 2013 and 100% by 2020.
ANALYSIS:
Existing law assigns the Department of Transportation (Caltrans)
responsibility for overseeing the design, construction,
maintenance, and operation of the California state highway
system and related facilities, including the establishment and
operation of park and ride lots.
Existing law declares that it is the policy of this state to
evaluate fully the economic and environmental costs of petroleum
use, to establish a state transportation energy policy that
results in the least environmental and economic cost to the
state, and to purchase the cleanest and most efficient
automobiles for state vehicle fleets.
The Department of General Services (DGS) serves as the business
manager for the state, providing centralized procurement of
goods, services and real estate, property management, and fleet
administration, among other things. Existing law places
numerous requirements on DGS when acquiring and directing the
use of vehicles in the state fleet.
Most recently, AB 236 (Lieu), Chapter 593, Statutes of 2007,
required DGS, in conjunction with the Air Resources Board (ARB)
and the California Energy Commission (CEC), by 2009 to update
its vehicle purchasing methodology to rank the environmental and
energy benefits and costs of motor vehicles. AB 236 requires
DGS's rankings to include both of the following:
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Reduction in greenhouse gas emissions, air pollutant
emissions, and petroleum use on a full fuel-cycle basis, to
the extent possible, based on existing data available to the
ARB, the CEC, or other specified reliable sources.
The life-cycle costs of the vehicle and fuel, including
maintenance.
In addition, AB 236 required DGS, by December 31, 2008, to
revise its procurement procedures for state vehicles to base
those procedures on performance specifications developed for
vehicles needed for various tasks. Based on this, DGS
established vehicle "classes" depending upon the required work
or tasks and the necessary performance specifications. Under
this system, DGS must:
Evaluate vehicles for potential addition to the state and
local fleets on an annual basis reflecting annual new vehicle
availability.
Procure only vehicles for use in the state fleet that meet
certain federal requirements and have been ranked best in
their class by the state's purchasing methodology. If fueling
infrastructure for the fuel used to rank a vehicle best in
class is not available, or planned to be available within two
years, DGS shall procure the vehicle ranked next best in class
for which fueling infrastructure is or will be available.
During the normal course of coordination and contracting with
nearby fueling stations, provide information related to the
alternative fuel vehicles in the state fleet and request the
station provide a fuel supply to meet that demand.
When replacing, retrofitting, or installing a fueling tank or
infrastructure at a facility that fuel state vehicles,
consider requesting competitive bids for alternative fuel
infrastructure that meets the needs of vehicles used, or
planned to be used, in that facility.
AB 236 also required the Secretary of State and Consumer
Services by July 1, 2009 to develop, implement, and submit to
the Legislature and Governor a plan to improve the overall state
fleet's use of alternative fuels, synthetic lubricants, and
fuel-efficient vehicles to reduce or displace the consumption of
petroleum products by 10% by 2012 and by 20% by 2020. DGS must
report annually to the Department of Finance and the Legislature
AB 2583 (BLUMENFIELD) Page 3
on its progress in meeting these goals.
In addition, each state agency that has flex fuel vehicles in
its fleet (i.e., those that can run either on gasoline or an
alternative fuel) shall "to the maximum extent practicable" use
the alternative fuel in those vehicles.
This bill :
1.Defines "alternatively fueled vehicles" to mean vehicles that
reduce petroleum usage and related emissions by using advanced
technologies and fuels, including, among others, vehicles that
qualify for California clean air stickers allowing
single-occupant access to carpool lanes, hybrid and plug-in
hybrid vehicles, and battery electric vehicles.
2.Requires that DGS, beginning in 2013, purchase at least 50
percent alternatively fueled vehicles and beginning in 2015,
purchase 100 percent alternatively fueled vehicles.
3.Requires DGS and Caltrans to develop and implement advanced
technology vehicle parking incentive programs in public
parking facilities of 50 spaces or more that DGS operates and
at park and ride lots that Caltrans operates. The bill
dictates that these programs shall provide meaningful,
tangible benefits for drivers of alternatively fueled
vehicles, which may include preferential parking places,
reduced fees, and fueling infrastructure for alternatively
fueled vehicles that use the parking lots and the park and
ride lots.
4.Requires DGS to encourage the operation of state vehicles that
can operate on alternative fuels to do so and to encourage the
development of commercial infrastructure for alternative fuel
pumps and charging stations at or near state vehicle fueling
or parking sites.
5.Directs 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.Permits DGS to provide grants or to enter into interagency
agreements in furtherance of the bill's purposes.
COMMENTS:
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1.Purpose . The author notes that California has a goal that by
2025 zero-emission or plug-in hybrid vehicles will account for
15 percent, or one in seven, of new cars sold in California.
If achieved, this goal will reduce vehicular greenhouse gas
(GHG) emissions as a component of California's strategy to
reduce total GHG emissions by 80 percent by 2050. The author
notes that these vehicles are expected to provide consumer
savings on fuel costs of an average of $6,000 over the life of
the car.
Despite significant progress in reducing smog-forming and
particulate matter emissions from vehicles across the state,
GHG emissions must be drastically reduced if we are to meet
our goal of an 80 percent reduction by 2050. According to the
Air Resources Board, in order to meet our 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 in order to have nearly an entire
advanced technology fleet by 2050. By establishing new
alternative fuel targets for California's state fleet, as well
as incentivizing and promoting state employee operation of
alternatively fueled vehicles through preferential or
reduced-cost parking, access to charging, or other means, this
bill aims not only to reduce emissions from the state-owned
fleet, but also to help reduce barriers that currently
restrict consumers from buying an alternatively fueled
vehicle.
The author states that one roadblock for more widespread use
of electric vehicles is the frequency of battery recharging
needed and the lack of public places to do the recharging. The
latest Consumer Reports National Research Center survey
revealed that 87% of consumers have a concern about electric
vehicles and that for 77% of them range is the issue.
According to the U.S. Department of Energy, only 5,084 public
chargers are scattered around the country, one-fourth of which
are in California. Providing charging access and other
benefits at state-owned parking facilities, as this bill
prescribes, would reduce range anxiety of a potential
purchaser.
2.What is a meaningful benefit at a park and ride facility ?
This bill directs Caltrans to offer meaningful, tangible
benefits for drivers of alternatively fueled vehicles who park
those vehicles at park and ride lots. Park and ride lots may
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only be used by those using transit, ride sharing, or
bicycling. Caltrans does not charge for any of these lots, so
meaningful benefits would likely mean parking spaces closer to
the transit stop, some of which may be currently designated as
disabled parking, or fueling facilities. Existing state law
prohibits vending in park and ride lots, and, therefore, would
need to be amended if the benefit conferred is an alternative
fuel facility. In addition, because vehicles at a park and
ride lot are typically left all day, Caltrans would face a
challenge as to how to provide charging stations for many cars
over the course of any given day in these lots. To address an
obstacle to providing benefits at park and ride lots, the
committee may wish to amend this bill to allow vending of
alternative fuels in park and ride lots.
3.Who will pay ? The benefits this bill directs DGS and Caltrans
to confer on the drivers of alternatively fueled vehicles in
DGS parking facilities and Caltrans' park and ride lots will
cost money. For DGS operated parking facilities, which likely
levy a charge for parking, DGS could raise parking rates on
all to pay for the benefits to those who drive alternative
fuel vehicles. Caltrans, however, does not charge and
believes it is precluded from charging for its park and ride
lots. It is unclear, therefore, what funding source would
support benefits to those driving alternatively fueled
vehicles that use those lots.
4.What is the Legislature's goal for the state vehicle fleet ?
Existing law, enacted in 2007 and implemented in 2009,
requires that DGS procure a state vehicle fleet that is cost
effective, is fuel efficient, has as few SUVs as possible,
includes a maximum number of alternatively fueled vehicles,
reflects the state's air quality and greenhouse gas emission
goals, operates on alternative fuels to the maximum extent
possible, complies with federal energy law, and meets the work
tasks for which it is needed. The several pages of state
statute dedicated to directing what DGS's vehicle purchase
practices shall include, how those vehicles shall operate, and
what information DGS shall report about these vehicles to the
Legislature makes some ask what goal the Legislature is trying
to achieve through state fleet purchases. This bill sets
simple targets, but they are additive to the existing list of
goals. The committee may wish to amend this bill to also
delete some provisions of DGS's of fleet procurement law that
the bill would make obsolete.
AB 2583 (BLUMENFIELD) Page 6
5.Committee of second referral . The Rules Committee referred
this bill to the Governmental Organization Committee and to
the Transportation and Housing Committee. This bill passed
that committee on June 26 by a 7 to 5 vote.
Assembly Votes:
Floor: 50 - 24
Appr: 12 - 5
Trans: 9 - 0
POSITIONS: (Communicated to the committee before noon on
Wednesday, June 27,
2012)
SUPPORT: American Lung Association
CALSTART
California Natural Gas Vehicle Coalition
Clean Energy
South Coast Air Quality Management District
OPPOSED: None received.