BILL ANALYSIS �
AB 2583
Page 1
Date of Hearing: April 17, 2012
ASSEMBLY COMMITTEE ON BUSINESS, PROFESSIONS AND CONSUMER
PROTECTION
Mary Hayashi, 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) to
purchase alternative fuel vehicles (AFVs) to comprise 50% of new
vehicle purchases beginning January 1, 2013, and 100% of new
vehicle purchases beginning January 1, 2015. Specifically, this
bill :
1)Requires DGS to purchase new vehicles that are AFVs based on
the following schedule:
a) 50% of the new vehicles purchased, beginning January 1,
2013;
b) 100% of the new vehicles purchased, beginning January 1,
2015; and,
c) Exempts types of vehicles for which an AFV is
unavailable.
2)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.
3)Requires DGS to work with other public agencies to incentivize
and promote, to the extent feasible, state employee operation
of AFVs through preferential or reduced-cost parking, access
to charging, or other means.
4)Authorizes DGS to provide grants or enter into interagency
agreements to implement the provisions of this bill.
5)Requires DGS and the Department of Transportation (CalTrans)
to develop and implement advanced technology vehicle parking
incentive programs in DGS-operated public parking facilities
AB 2583
Page 2
with 50 spaces or more, and CalTrans-operated park and ride
lots to incentivize the purchase and use of AFVs in the state.
Requires these programs 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.
6)Defines "alternatively fueled vehicles" to mean 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, fuel cell vehicles, and
specified vehicles.
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)Authorizes DGS to procure vehicle fleet purchases for state
and local entities.
FISCAL EFFECT : Unknown
COMMENTS :
Purpose of this bill . 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 of, new
cars sold in California, which if achieved, is expected to
reduce vehicular GhG emissions by 80% by 2050. New clean
vehicles would emit 34% fewer global warming gases and 75% fewer
smog-forming emissions, and provide consumer savings on fuel
costs of an average $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% reduction by 2050. According to the ARB, 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
AB 2583
Page 3
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
AFVs through preferential or reduced-cost parking, access to
charging, or other means, the State will not only reduce
emissions from the state-owned fleet, but will also help reduce
barriers that currently restrict consumers from buying an AFV.
"State policies and investments in vehicle and fuel GhG
reduction projects improve air quality and public health,
support the state's emission-reduction and clean-energy targets,
bolster California's energy security and mitigate damage from
oil price shocks, grow the state's transportation technologies
industry and spur job growth."
Background . DGS procures vehicle fleet purchases on behalf of
state agencies. There are existing federal and state laws, and
state executive orders (EO), directing DGS to green the state
fleet. DGS has met or exceeded those requirements, which are
discussed below.
The Federal Energy Policy Act (EPAct) requires that 75% of new
vehicle purchases, with exemptions for law enforcement,
emergency response, etc., to be capable of running on
alternative fuels, such as ethanol or compressed natural gas.
DGS has been compliant with the EPAct since its enactment in
1992 and, in some years, already exceeded the 75% requirement.
According to DGS, in FY 2009-10, 99% of new vehicle purchases
were AFVs, but 106 vehicles were exempt from the EPAact
definition of AFV, which does not include hybrid or hybrid
electric vehicles. Based on the EPAct 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 following GhG reduction
targets: by 2010, reduce GhG emissions to 2000 levels, by 2020,
reduce GhG emissions to 1990 levels; and, by 2050, reduce GhG
emissions to 80% below 1990 levels. AB 32 (Nu�ez), Chapter 488,
Statutes of 2006, established the Global Warming Solutions Act
of 2006, which requires ARB 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
AB 2583
Page 4
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 provision. DGS was awarded
United States Department of Energy and California Energy
Commission 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
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 are
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.
Recently, due to the state's structural budget deficit, EO
B-2-11 directed state agencies to relinquish non-essential and
cost-inefficient vehicles and ordered DGS to assist departments
AB 2583
Page 5
in carrying out the fleet reduction plan, in order to realize
cost savings.
Support . According to CALSTART, "California's state fleet
should clearly reflect - and contribute to - the state's clean
air and advanced vehicle mandates. AB 2583 would ensure that
this is the case by both transitioning the state fleet toward
clean vehicles and ensuring 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
would be significant. In addition to directly reducing
emissions, 'walking the walk' would show real commitment on the
part of California to meet its climate and air quality targets.
Such a shift would also accelerate clean transportation
technologies by supporting crucial early markets for alternative
fuels, many of which are made in-state and thus create
California jobs. Moreover, in an era of high and volatile fuel
prices, reducing dependence on petroleum will yield direct fuel
cost savings for California.
"In 2011, the California Secure Transportation Energy
Partnership (CalSTEP) released an Action Plan for transportation
energy security in California. The CalSTEP partners, including
leaders from industry, academia, government, the military, and
the nonprofit sector, agreed on a set of consensus
recommendations for the state. One of the eight recommendations
called for California to 'implement a state fleet and facilities
leadership plan to set an example, reduce emissions from state
fleets, and support markets for clean vehicles.'"
Previous Legislation . 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 2003 consumption levels based on the following
schedule: 10% by January 1, 2012, and 20% by January 1, 2020.
AB 32 (Nu�ez), 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.
Double-referred . This bill is double-referred to Assembly
Transportation Committee.
AB 2583
Page 6
REGISTERED SUPPORT / OPPOSITION :
Support
CALSTART
Opposition
None on file.
Analysis Prepared by : Joanna Gin / B.,P. & C.P. / (916)
319-3301