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 16, 2012                     Consultant: 
          Bob Franzoia  
          
          SUSPENSE FILE.  AS PROPOSED TO BE AMENDED.

          
          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, 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 General Fund and special fund costs to purchase 
              alternatively fueled vehicles that may not be as cost 
              effective to operate as standard fuel vehicles.
              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.

          The proposed amendments would amend Public Resources Code 
          25722.8, add Public Resources Code 225722.9 and amend Vehicle 
          Code 22518, as follows: 

          Section 25722.8 of the Public Resources Code is amended to read:

          25722.8. (a) On or before July 1, 2009, the Secretary of State 
          and Consumer Services, in consultation with the Department of 
          General Services and other appropriate state agencies that 
          maintain or purchase vehicles for the state fleet, including the 
          campuses of the California State University, shall develop and 
          implement, and submit to the Legislature and the Governor, a 
          plan to improve the overall state fleet's use of alternative 
          fuels, synthetic lubricants, and fuel-efficient vehicles by 








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          reducing or displacing the consumption of petroleum products by 
          the state fleet when compared to the 2003 consumption level 
          based on the following schedule:

          (1) By January 1, 2012, a 10-percent reduction or displacement.

          (2) By January 1, 2020, a 20-percent reduction or displacement.

          (b)  Beginning April 1, 2010, and annually thereafter, the 
          Department of General Services shall provide to the Department 
          of Finance and the appropriate legislative committees of the 
          Legislature a progress report on meeting the goals specified in 
          subdivision (a). The Department of General Services shall also 
          make the progress report available on its Internet Web site.
           
           (c) (1) Except as provided in paragraph (2), the Department of 
          General Services shall purchase, or approve contracts for the 
          purchase of, new vehicles for the state fleet that are 
          alternatively fueled vehicles based on the following schedule:

          (A) Beginning January 1, 2013, 50 percent of the new vehicles 
          purchased.

          (B) Beginning January 1, 2015, 100 percent of the new vehicles 
          purchased.

          (2) Paragraph (1) shall not apply to the purchase of types of 
          vehicles for which an alternatively fueled vehicle is not 
          available.
          
           (3) The Department of General Services shall encourage, to the 
          extent feasible, the operation of state alternatively fueled 
          vehicles 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.

          (4) The Department of General Services shall work with other 
          public agencies to incentivize and promote, to the extent 
          feasible, state employee operation of alternatively fueled 
          vehicles through preferential or reduced-cost parking, access to 
          charging, or other means.

           (5) The Department of General Services may provide grants or 








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          enter into interagency agreements to implement this subdivision.
           
           (6)  (5) For purposes of this subdivision, "alternatively fueled 
          vehicles" means light-, medium-, and heavy-duty vehicles that 
          reduce petroleum usage and related emissions by using advanced 
          technologies and fuels, including, but not limited to, hybrid, 
          plug-in hybrid, battery electric, natural gas, or fuel cell 
          vehicles and including those vehicles described in Section 
          5205.5 of the Vehicle Code.

          Section 25722.9 of the Public Resources Code is added to read:

          25722.9. (a) For purposes of this section, "alternatively fueled 
          vehicles" means light-, medium-, and heavy-duty vehicles that 
          reduce petroleum usage and related emissions by using advanced 
          technologies and fuels, including, but not limited to, hybrid, 
          plug-in hybrid, battery electric, natural gas, or fuel cell 
          vehicles and including those vehicles described in Section 
          5205.5 of the Vehicle Code.

          (b) The Department of General Services and the Department of 
          Transportation shall develop and implement advanced technology 
          vehicle parking incentive programs, to the extent feasible, in 
          public parking facilities of 50 spaces or more operated by the 
          Department of General Services and park and ride lots owned and 
          operated by the Department of Transportation to incentivize the 
          purchase and use of alternatively fueled vehicles in the state. 
          These programs shall provide meaningful, tangible benefits for 
          drivers of alternatively fueled vehicles. These incentives may 
          include preferential spaces, reduced fees, and fueling 
          infrastructure for alternatively fueled vehicles that use these 
          parking facilities or park and ride park-and-ride lots.

          Section 25722.8 of the Vehicle Code is amended to read:

          22518. (a) Fringe and transportation corridor parking facilities 
          constructed, maintained, or operated by the Department of 
          Transportation pursuant to Section 146.5 of the Streets and 
          Highways Code shall be used only by persons using a bicycle or 
          public transit, or engaged in ridesharing, including, but not 
          limited to, carpools or vanpools.  A person shall not park a 
          vehicle 30 feet or more in length, engage in loitering or 
          camping, or engage in vending or any other commercial activity 
          on any fringe or transportation corridor parking facility.








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          (b) This section will not apply to alternatively fueled 
          infrastructure programs in park and ride lots owned and operated 
          by Department of Transportation.