BILL ANALYSIS Ó Senate Appropriations Committee Fiscal Summary Senator Christine Kehoe, Chair AB 2583 (Blumenfield) - Alternatively fueled vehicles: state fleet: public parking. Amended: July 6, 2012 Policy Vote: GO 7-5 T&H 7-2 Urgency: No Mandate: No Hearing Date: August 6, 2012 Consultant: Bob Franzoia This bill meets the criteria for referral to the Suspense File. Bill Summary: AB 2583 would require the Department of General Services (department) to purchase, or approve contracts for the purchase of, new vehicles for the state fleet that are alternatively fueled vehicles and make related infrastructure improvements. Fiscal Impact: Potentially minor costs annually from the Service Revolving Fund as the department is generally implementing the provisions of this bill. Beginning 2015, major General Fund and special fund costs to state agencies, for example CalFIRE, Caltrans and Department of Water Resources to purchase alternatively fueled medium or heavy duty vehicles. Unknown, likely major General Fund and special fund costs to purchase alternatively fueled vehicles that may not be as cost effective to operate as standard fuel vehicles. Major General Fund and special fund cost pressure to develop new infrastructure, incentive preferential or reduced cost parking, or provide grants for these purposes. Background: As noted in the policy committee analysis, the department procures vehicle fleet purchases on behalf of state agencies. There are several existing federal and state laws and state executive orders directing the department to purchase vehicles for the state fleet that meet higher emission standards. The department indicates it already meets or exceeds those requirements. This bill requires the department to encourage, to the extent feasible, the operation of state alternatively fueled vehicles on the alternative fuel for which the vehicle is designed and AB 2583 (Blumenfield) Page 1 the development of commercial infrastructure for alternative fuel pumps and charging stations at or near state vehicle fueling or parking sites. The department indicates it is implementing this provision. The department was awarded US Department of Energy and California Energy Commission grants to establish approximately 75 new E85 (flexible fuel from 100 percent gasoline to 85 percent gasoline/15 percent ethanol) locations statewide. To date, 15 E85/biodiesel locations have been completed. The department 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. The department would be required to work with other public agencies to incentivize state employee use of alternatively fueled vehicles and authorizes the department to provide grants or enter into interagency agreements to implement the provisions of this bill. The department indicates that they are offering state employees' incentives for using alternatively fueled vehicles and will be developing a policy and expanding those efforts in the next few months. The department is also expecting to enter into an interagency agreement for an outreach and marketing campaign to promote alternatively fueled vehicle usage. This bill requires the department to purchase alternatively fueled vehicles at a rate of 50 percent of new vehicle purchases beginning January 1, 2013, and 100 percent of new vehicle purchases beginning January 1, 2015. This bill would mandate state agencies to purchase alternatively fueled vehicles, beginning in 2015, for light, medium, and heavy-duty vehicles. Currently, state agencies have the option of buying an alternatively fueled vehicle. Proposed Law: The department would have the following duties: - Encourage the operation of state alternatively fueled vehicles on the alternative fuel for which the vehicle is designed. - Encouraged to develop commercial infrastructure for alternative fuel pumps and charging stations and to work with other state agencies to incentivize and promote state employee operation of alternatively fueled vehicles through preferential or reduced cost parking, access to charging stations, or other AB 2583 (Blumenfield) Page 2 means. - Authorize the department to provide grants or enter into interagency agreements to implement these goals. - Require the department and Caltrans to implement advanced technology vehicle parking incentive programs in specified public parking facilities to incentivize the purchase of alternatively fueled vehicles in the state. - Exempt from a prohibition relating to commercial activities on fringe or transportation corridor parking facilities under the jurisdiction of Caltrans a person implementing advanced technology vehicle parking incentive programs. Related Legislation: AB 236 (Lieu) Chapter 593/2007 required the department, in conjunction with the Air Resources Board and the California Energy Commission, by December 31, 2008, to amend and revise existing purchasing methodology to rank environmental and energy benefits, and costs of motor vehicles for potential procurement by state and local governments and to develop a vehicle ranking containing specified criteria. In particular, AB 236 amended Public Resources Code 25722.5 to require the department to: - Evaluate and score emissions, fuel costs, and fuel economy in addition to capital cost to enable the department to choose the vehicle with the lowest life-cycle cost when awarding a state vehicle procurement contract. - Maximize the purchase or lease of alternative fuel vehicles. AB 236 also maintained the exemption for generally police, firefighting, public safety and emergency vehicles.