BILL ANALYSIS �
Bill No: AB
2583
SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION
Senator Roderick D. Wright, Chair
2011-2012 Regular Session
Staff Analysis
AB 2583 Author: Blumenfield
As Amended: April 9, 2012
Hearing Date: June 26, 2012
Consultant: Paul Donahue
SUBJECT
Alternatively fueled vehicles: state fleet and state
parking
DESCRIPTION
Requires the Department of General Services (DGS) to
purchase alternatively fueled 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
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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 with 50 spaces or more, and
CalTrans-operated park and ride lots to incentivize the
purchase and use of AFVs in the state.
6)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.
7)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 emissions limit and to reduce
emissions to 1990 levels.
2)Authorizes DGS to procure vehicle fleet purchases for
state and local entities.
3)Requires all new state fleet purchases of passenger
vehicles and light duty trucks, powered solely by
internal combustion engines utilizing fossil fuels, to
meet the fuel economy standard established by DGS and
California Energy Commission (CEC) on or after January 1,
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2008.
4)Requires the Secretary of State and Consumer Services, in
consultation with DGS and other appropriate agencies that
maintain or purchase vehicles, to develop and implement a
plan with the goal of improving use of alternative fuels,
synthetic lubricants, and fuel-efficient vehicles by
reducing or displacing the consumption of petroleum
products by the state fleet when compared to 2003
consumption levels.
5)Requires DGS to provide the Department of Finance (DOF)
and the Legislature a progress report on their efforts to
meet the overall goals of the Plan beginning on April 1,
2010, and annually thereafter and that the progress
report be published on the DGS website.
BACKGROUND
1)Purpose : 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 greenhouse gas (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
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.
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"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."
2)Hybrid issue : DGS procures vehicle fleet purchases on
behalf of state agencies. There are several existing
federal and state laws, and state executive orders (EO),
directing DGS to "green" the state fleet. DGS has
already met or exceeded those requirements.
The Federal Energy Policy Act (EPAct) requires state
governments to purchase alternatively fueled vehicles for
75% of their fleet. Hybrids are not considered AFVs
under EPAct, so DGS can't just go out and buy hybrids
without regard to controlling federal law.
Although this bill would include hybrid and plug-in
hybrid vehicles in the definition of an AFV for purposes
of state law, the federal law controls. The author and
the committee should consider eliminating this definition
because it conflicts with federal law.
3)100% purchase requirement : This bill requires 100% of
the new vehicles purchased, beginning January 1, 2015 to
be alternatively fueled vehicles. At a minimum, this
provision needs to be modified to be restricted to
passenger vehicles. The bill does provide an exception
of sorts to the 100% requirement, in that vehicles for
which there is no AFV available are exempt. However, this
leaves open the possibility that state agencies would be
required to purchase heavy duty industrial vehicles that
are AFVs, but this type of modification to the vehicle
could cost the state several thousands of dollars per
vehicle that is converted to become an AFV.
The author and the committee may wish to limit the
percentage requirements to passenger vehicles.
4)DGS already in compliance : California has already taken
measures to reduce GhG emissions from state vehicles and
encourage the use of AFVs. In 2005, the Governor issued
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EO S-3-05 which 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) enacted the Global Warming Solutions Act of 2006,
which requires ARB to establish a statewide GhG emissions
limit and reduce GhG emissions to 1990 levels.
In 2007, AB 236 (Lieu) established the goal of reducing
or displacing the consumption of petroleum products by
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 provision as well.
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) 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 offering 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%
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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 budget deficit, EO B-2-11
directed state agencies to relinquish non-essential and
cost-inefficient vehicles and ordered DGS to assist
departments in carrying out the fleet reduction plan, in
order to realize cost savings.
PRIOR/RELATED LEGISLATION
AB 236 (Lieu) Chapter 593, Statues of 2007 requires DGS, in
conjunction with the ARB and the Energy Commission (CEC),
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
vehicle ranking containing specified criteria.
AB 2264 (Pavley) Chapter 767, Statutes of 2006 requires
DGS, in consultation with the CEC, to establish a minimum
fuel economy standard for the purchase of passenger
vehicles and light duty trucks for the state fleet. This
new standard would minimize the economic and environmental
costs due to the use of petroleum-based fuels and other
transportation fuels by state agencies.
AB 1811 (Laird) Chapter 48, Statutes of 2006 provides $25
million for clean alternative fuels including, among other
items, infrastructure funding for E-85 fueling stations.
DGS was directed to work with state agencies to develop
concept proposals to the ARB who will decide where to make
use of the funds. ARB distributed most of the funds to
local Air Boards.
AB 1007 (Pavley) Chapter 371, Statutes of 2005 requires DGS
to assist with the development of a government wide plan to
increase use of alternative fuels. This statute optimizes
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the environmental and public health benefits of alternative
fuels, including, but not limited to, reductions in
criteria air pollutants and greenhouse gases
AB 1660 (Pavley) Chapter 580, Statutes of 2005 creates the
California Energy-Efficient Vehicle Group Purchase Program
in DGS to encourage the purchase of energy-efficient
vehicles by state and local agencies through a group
purchasing program.
SB 552 (Burton) Chapter 737, Statutes of 2003 requires DGS,
CEC, and ARB to formulate fuel efficiency standards and
life-cycle costing for the state fleet. This statute also
directs all state agencies to reduce higher-polluting,
fuel-inefficient gasoline powered sport utility vehicles
and four-wheel drive trucks from the fleet. DGS is charged
with the collection of statewide fleet data and the
preparation of annual reports.
SUPPORT:
American Lung Association
California Natural Gas Vehicle Coalition
CALSTART
Clean Energy
South Coast Air Quality Management District
OPPOSE:
None on file
DUAL REFERRAL: Senate Transportation and Housing Committee
FISCAL COMMITTEE: Senate Appropriations Committee
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