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 








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          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 








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          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.