Bill Text - SB275 (2019)

Requiring that all of the state's motor vehicles will be zero emissions vehicles by the year 2039.

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Revision: Dec. 2, 2019, 10:21 a.m.

SB 275-FN - FINAL VERSION

 

03/14/2019   0830s

03/14/2019   0992s

 

2019 SESSION

19-0854

08/05

 

SENATE BILL 275-FN

 

AN ACT requiring that all of the state's motor vehicles will be zero emissions vehicles by the year 2039.

 

SPONSORS: Sen. Watters, Dist 4; Sen. Dietsch, Dist 9; Sen. Feltes, Dist 15; Sen. Fuller Clark, Dist 21

 

COMMITTEE: Transportation

 

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ANALYSIS

 

This bill requires that all of the state's motor vehicles be zero emission vehicles by the year 2039.

 

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Explanation: Matter added to current law appears in bold italics.

Matter removed from current law appears [in brackets and struckthrough.]

Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

03/14/2019   0830s

03/14/2019   0992s 19-0854

08/05

 

STATE OF NEW HAMPSHIRE

 

In the Year of Our Lord Two Thousand Nineteen

 

AN ACT requiring that all of the state's motor vehicles will be zero emissions vehicles by the year 2039.

 

Be it Enacted by the Senate and House of Representatives in General Court convened:

 

1  Findings.  The general court finds that:

I.  Transportation emissions contribute approximately 40 percent of the greenhouse gas emissions in the mid-Atlantic and northeastern regions of the United States.  There is a compelling economic and environmental need to make a significant reduction in greenhouse gas emissions.  It is therefore in the public interest to minimize our transportation system's reliance on high-carbon fuels, promote sustainable growth, and help build the clean energy economy.

II.  Eleven mid-Atlantic and northeast states and the District of Columbia have been working collaboratively in the Transportation and Climate Initiative of the Northeast and Mid-Atlantic States to explore and develop policies and programs that can result in greater energy efficiency of regional transportation systems, deployment of clean cars and clean fuels, and yield significant reductions of regional greenhouse gas emissions in the transportation sector.

III.  New Hampshire's participation in the Transportation and Climate Initiative of the Northeast and Mid-Atlantic States provides the opportunity to expand safe and reliable transportation options, attract federal investment, lower transportation costs, improve overall air quality and public health, further collaborate on the research and development of advanced transportation technologies, and mitigate the transportation sector's impact on climate change.  

IV.  The department of environmental services and the department of transportation shall engage in the Transportation and Climate Initiative of the Northeast and Mid-Atlantic States on behalf of the state of New Hampshire.

V.  The department of environmental and the department of transportation services shall report annually to the speaker of the house of representatives and the president of the senate recommendations on policy action resulting from participation in the Transportation and Climate Initiative.

2  State Facility Energy Cost Reduction; Vehicle Definitions.  RSA 21-I:19-g, III-a is repealed and reenacted to read as follows:

III-a.  In this section:

(a)  "Light duty truck" means a land vehicle which has a gross vehicle weight rating of up to 10,000 pounds and which does not fall within the definition of a passenger vehicle as defined in subparagraph (b).

(b)  "Passenger vehicle" means a land vehicle that is defined by the department of administrative services' fleet manager as a passenger sedan, sports activity vehicle, sports utility vehicle, or station wagon.

3  Fleet Efficiency and Redistribution; Definition of Motor Vehicle.  RSA 21-I:19-i, II(b) is repealed and reenacted to read as follows:

(b)  "Motor vehicle" means a passenger vehicle or light duty truck as defined by RSA 21-I:19-g.

4  New Section; Zero Emissions Vehicles.  Amend RSA 21-I by inserting after section 19-j the following new section:

21-I:19-k  Zero Emissions.

I.  The intent of this section is that all state purchased and leased vehicles shall be the lowest emission vehicles available, to the extent feasible and practicable, and that all purchased or leased vehicles shall be zero emission vehicles by 2041, to the extent feasible and practicable.

II.  In this section, the term "zero emissions vehicle" or ZEV means a vehicle that emits no exhaust gas from the on-board source of power, such as an electric vehicle powered solely by a battery or by the use of a hydrogen fuel cell.

III.  Notwithstanding any provision in RSA 21-I:19-i, the department of administrative services shall establish procedures intended to ensure that to the maximum extent feasible, and consistent with the ability of vehicles to perform their intended functions, all the state's motor vehicles will be ZEVs by the year 2041.  The procedures shall be subject to the approval of the ZEV 2041 committee established in paragraph VI.  These procedures shall not be subject to the rulemaking requirements of RSA 541-A, but shall be binding on all state officials and state agencies.

IV.  By 2026, all new leases or purchases of light duty trucks or passenger vehicles as defined in RSA 21-I:19-g shall be ZEVs and by 2031 any new leases or purchase of trucks and other vehicles in excess for 10,000 pounds in weight shall be ZEVs.

V.  Any agency or department of the state that purchases, leases, or otherwise acquires or currently operates a motor vehicle shall develop a plan to transition its vehicles entirely to ZEVs, to the extent feasible for particular vehicles and vehicle classes by 2041.  Agencies and departments shall consult with the ZEV 2041 committee established in paragraph VI in developing such feasibility plans and such plans shall only be adopted with the approval of the committee.  Transition plans shall be developed by all state agencies and departments for submission to the office of strategic initiatives by June 30, 2020 and revised and submitted every 2 years thereafter until all of the state's motor vehicles are ZEVs.  Such plans shall be predicated upon the adequacy of funding and shall take the existence of adequate funding into account.  If ZEV vehicles are not determined to be a feasible option for a particular vehicle acquisition, or for a class of vehicles intended for use by emergency response agencies, then the lowest emission vehicle available that is suitable for that purpose may be considered.  Agencies and departments shall include funding for this program each biennium in requests for funding in the general court and the capital budget.

VI.(a)  There is established the ZEV 2041 committee which shall consult with any agency or department of state that purchase, leases, or otherwise acquires or currently operates motor vehicles in order to transition such vehicles entirely to ZEVs by 2041.

(b)  Membership of the committee shall be as follows:

(1)  The commissioner of the department of administrative services.

(2)  The director of the division of procurement and support services of the department of administrative services.

(3)  The commissioner of the department of transportation, or designee.

(4)  The commissioner of the department of safety, or designee.

(5)  The commissioner of the department of environmental services, or designee.

(c)(1)  The committee shall consult with agencies and departments in developing plans to transition such agency or department's vehicles entirely to ZEVs to the extent feasible for particular vehicles and classes by 2041.

(2)  Within 90 days of receiving an agency or department's plan to transition the committee shall review and may approve such plans if they comply with this section prior to their adoption by a department or agency.  If such plans are not approved the submitting agency or department may revise and resubmit such plan to the committee for approval within 30 days of denial of the initial approval.

5  Participation in Low Carbon Fuel Standards Programs.  Amend RSA 21-O:23 to read as follows:

21-O:23  Low Carbon Fuel Standards Programs; State Participation.  

I.  The state of New Hampshire shall not[ join,] implement[, or participate in] any state, regional, or national low carbon fuel standards program or any similar program that requires quotas, caps, or mandates on any fuels used for transportation, industrial purposes, or home heating without seeking and receiving prior legislative approval.

II.  The department of environmental services and the department of transportation may engage in regional and national discussions of such programs.

[III.  The department of environmental services shall report all expenses resulting from its discussions to the fiscal committee of the general court on a semi-annual basis.]

 

 

6  Effective Date.  This act shall take effect 60 days after its passage.

 

VETOED June 25, 2019

Veto Sustained September 19, 2019

 

 

LBAO

19-0854

Amended 4/3/19

 

SB 275-FN- FISCAL NOTE

AS AMENDED BY THE SENATE  (AMENDMENTS #2019-0830s and #2019-0992s)

 

AN ACT requiring that all of the state's motor vehicles will be zero emissions vehicles by the year 2039.

 

FISCAL IMPACT:      [ X ] State              [    ] County               [    ] Local              [    ] None

	Estimated Increase / (Decrease)
STATE:	FY 2020	FY 2021	FY 2022	FY 2023
Appropriation	$0	$0	$0	$0
Revenue	$0	$0	$0	$0
Expenditures	Indeterminable Increase	Indeterminable Increase	Indeterminable Increase	Indeterminable Increase
Funding Source:	[ X ] General            [    ] Education            [    ] Highway           [ X ] Other - Various Government Funds

METHODOLOGY:

This bill requires that, to the extent feasible and practicable, all vehicles purchased and leased by the State be zero emission vehicles by the year 2041.  The Department of Administrative Services (DAS) would be required to establish procedures for converting, to the maximum extent feasible, the State motor vehicle fleet to zero emissions vehicles (ZEVs) over a 22-year period ending in 2041.  All new passenger vehicles or light duty trucks would be required to be ZEVs by 2026 and all new vehicles with a gross vehicle weight exceeding 10,000 pounds would be required to be ZEVs by 2031.  State agencies would be required to consult with the Zero Emissions Vehicle 2041 (ZEV) Committee, to develop and submit plans to convert all vehicles to the Office of Strategic Initiatives by June 30, 2020.  The plans shall be revised and submitted every 2 years.  ZEVs include those powered by electricity or hydrogen fuel cells.  The bill would not apply to municipal or county government motor vehicles.  The Department makes the following assumptions concerning implementation of the bill and its fiscal impact:

• "Motor vehicles" includes automobiles, trucks, vans, and buses but not heavy construction equipment, boats, ATVs, snow machines, or other motor vehicles not primarily operated for travel on roads and highways.
• State agencies would submit plans by June 30, 2020 and will be able to do so at no additional cost, using existing staffing and resources and most agency budgets would not be impacted until FY 2022.
• Capital expenditures could arise in FY 2021 as plans for the first new EV charging sites are developed, and the first agency EV purchases or lease could occur in FY 2022.
• All new ZEVs will be electric vehicles (EVs), because there is currently insufficient hydrogen fuel cell vehicle inventory or refueling infrastructure pricing available from which we can derive projected cost estimates, and the United States fuel cell vehicle market is still in its early infancy.  The Department does not believe that fuel cell vehicles are a viable option for meeting the ZEV requirements by 2041.

 

Additional State expenditures will fall into the following categories:

• Cost to replace existing vehicles with ZEVs;
• EV charging infrastructure site development and installation;
• EV maintenance equipment/tools and training to update the capabilities of the in-house motor vehicle maintenance shops within seven State agencies;
• EV charging equipment upgrade and replacement costs;
• EV replacement costs.  EVs and EV charging equipment are evolving at a very fast pace, resulting in a much more rapid rate of obsolescence than internal combustion engine vehicles and fueling technology.  The Department assumes this would necessitate more frequent upgrades or replacement of EVs and EV charging equipment.

 

The Department expects no impact to State revenues. County and local revenues and expenditures would also be unaffected.  State expenditures cannot be projected because:

• It is not possible to predict how agencies will allocate appropriations to convert their fleets over the next 20 years, and it is unknown how many EV charging sites would be developed and at what pace to support the growing State EV fleet.  
• Currently, there is no pricing information available for most of the classes of EVs needed to convert the State's entire fleet of vehicles. (most classes are not yet in commercial production)
• Available EV charging site development and equipment cost figures are from 2015 and likely have continued to fluctuate since then.
• EV maintenance equipment/tools and training cost information is not readily available.
• The Department has insufficient information from which to predict the frequency at which EVs and EV charging equipment will need to be upgraded or replaced.

 

The following table provides estimates of the total incremental acquisition costs to replace all existing State motor vehicles with ZEVs.

 

Vehicle Type / Class	Quantity	FY 2019 Average State Contract Price	Estimated EV* Equivalent Cost	Difference	Incremental Cost to Convert
Passenger Autos	760	$17,149	$22,808	$5,659	$4,300,969
Extra Heavy Duty Trucks	95	$125,000	$166,250	$41,250	$3,918,750
HeavyDuty Trucks	322	$85,000	$113,050	$28,050	$9,032,100
Light Duty Trucks 1	634	$25,999	$34,579	$8,580	$5,439,511
Light Duty Trucks 2	393	$26,702	$35,514	$8,812	$3,462,982
Medium Duty Trucks	173	$33,510	$44,568	$11,058	$1,913,086
Vans & Buses	19	$26,319	$35,004	$8,685	$165,020
Totals:	2,396				$28,232,418

*Assumes an average EV cost 33% higher than the prices of internal combustion vehicles comparable to those in the existing State fleet. Current EV pricing data for most of the vehicle classes listed in the table above is not available.  33% average is based on a comparison of Nissan Leaf pricing for each model year from 2016 to 2019 with pricing for the lowest cost midsize gasoline fuel sedan for the same year.

 

Regarding cost estimates for EV charging site development and infrastructure costs, the Department relied on 2015 U.S. Department of Energy data.  The Department expects the State would install charging infrastructure at 50 locations.  The State fleet consists of 30 different agencies, some with multiple locations and others with shared locations such as office parks.  The Department assumes the following costs for charging site development and infrastructure:

• Site preparation costs will range from $1,500 to $51,000 depending on the site and the type of charger installed.  Most sites will require electrical upgrades, trenching, and parking lot upgrades in order to install the charging equipment, so the higher end of the range is probably more accurate.  

 

There are currently two types of chargers that should be considered, level 2 chargers and level 3 chargers.  

• Level 2 Charger - can charge an EV battery to 80% between 4 - 5 hours.  We assume that a Level 2 charger can charge 3 vehicles per day.  Therefore, 799 Level 2 chargers would be needed to service the entire fleet (2,396 units/3 units per charger).
  • A " Dumb Charger" is  a charging mechanism  with no way of tracking who is using it, how often it is in use, or billing for usage.  This would be useful for locations with single agency utilization.  The low end cost is estimated at $400.  A Level 2 charger can charge 3 vehicles per day.  This would not be  recommended for the shared locations due to the lack of universal application and inability to bill back usage to individual agencies or divisions/ bureaus as needed.
  • "Smart Charger" is a charger that has the ability to communicate with a battery management system, which allows for use reporting.  It can track activity   through  PIN  identification entries and some allow for  payment  using  credit  cards (additional  fees  not  included  in  these  estimates).   This would  be useful in shared locations.  The cost is estimated at $2,500.  
• Level 3 Charger - can charge an EV battery to 80% between 30 minutes to l hour. It is assumed these would work for the heavy duty EV fleet as well as the light fleet.  The cost is estimated at $25,000.  A Level 3 charger can charge 10 vehicles per day. Therefore, 240 Level 3 chargers would service the entire fleet. (2,396 units/10 units per charger).

 

Based on the information above, the Department estimated the cost for chargers as follows:

• Assuming all Level 2 Smart chargers it would cost a total of approximately $2.1 million to purchase and install the charging infrastructure, assuming minimal site development costs of $1,500 per site (excluding new electrical panels, e.g.).  
• Assuming all Level 3 chargers it would cost a total of approximately $8.5 million to purchase and install the charging  infrastructure,  assuming site development costs of $51,000 per site (due to the higher anticipated cost of electrical and other infrastructure improvements or upgrades needed to accommodate the Level 3 charger technology.

 

The Department of Transportation states this bill would require it to provide an employee, along with a representative from the Department of Environmental Services, to engage in the Transportation and Climate Initiative of the Northeast and Mid-atlantic states and to report to the Speaker of the House and the Senate President on an annual basis.  In addition, the Department would be required to develop a plan, updated every 2 years, to transition it's vehicle fleet to zero emission vehicles.  The Department assumes this effort would require 0.10 full time staff equivalent and would increase travel costs if it was necessary for the Department's representative to attend meetings out of state.   The Department estimates the replacement value of its fleet is $96 million, and the existing fuel system has a replacement value of roughly $50 million.  The Department assumes some of the transition to zero emission vehicles (ZEVs) would be included in its vehicle replacement plan, there would be an increase in costs for the purchase of vehicles and retooling of the mechanical services operation which maintains a fleet of approximately 1,237 large and medium trucks, passenger vehicles and construction equipment.

 

The Department of Environmental Services (NHDES) indicates there would be no additional cost to the Department for participation in the ZEV 2041 committee, or engagement in the Transportation and Climate Initiative of the Northeast and Mid-Atlantic States.  The Department states any costs to convert it's fleet to zero emission vehicles have been identified in the information provided by the Department of Administrative Services.  Regarding the repeal of the requirement for the NHDES to produce semi-annual reports of expenditures resulting from regional or national discussions concerning implementation of a low carbon fuel standard, the NHDES assumes the repeal will reduce annual expenditures by approximately $800.

 

AGENCIES CONTACTED:

Departments of Administrative Services, Transportation and Environmental Services