HB 7205

Version: File+No.+427+R000427+FC
Author: Transportation Committee

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House of Representatives

January Session, 2019

Substitute House Bill No. 7205

House of Representatives, April 4, 2019

The Committee on Transportation reported through REP. LEMAR of the 96th Dist., Chairperson of the Committee on the part of the House, that the substitute bill ought to pass.

AN ACT CONCERNING THE ACCESSIBILITY OF ELECTRIC VEHICLES IN CONNECTICUT.

Be it enacted by the Senate and House of Representatives in General Assembly convened:

1Section 1. Section 4a-67d of the general statutes is repealed and the

2following is substituted in lieu thereof (Effective October 1, 2019):

3(a) The fleet average for cars or light duty trucks purchased by the

4state shall: (1) On and after October 1, 2001, have a United States

5Environmental Protection Agency estimated highway gasoline mileage

6rating of at least thirty-five miles per gallon and on and after January 1,

72003, have a United States Environmental Protection Agency estimated

8highway gasoline mileage rating of at least forty miles per gallon, (2)

9comply with the requirements set forth in 10 CFR 490 concerning the

10percentage of alternative-fueled vehicles required in the state motor

11vehicle fleet, and (3) obtain the best achievable mileage per pound of

12carbon dioxide emitted in its class. The alternative-fueled vehicles

13purchased by the state to comply with said requirements shall be

14capable of operating on natural gas or electricity or any other system

15acceptable to the United States Department of Energy that operates on

16fuel that is available in the state.

17(b) Notwithstanding any other provisions of this section, (1) on and

18after January 1, 2008: (A) At least fifty per cent of all cars and light

19duty trucks purchased or leased by the state shall be alternative-fueled,

20hybrid electric or plug-in electric vehicles, (B) all alternative-fueled

21vehicles purchased or leased by the state shall be certified to the

22California Air Resources Board's Low Emission Vehicle II Ultra Low

23Emission Vehicle Standard, and (C) all gasoline-powered light duty

24and hybrid vehicles purchased or leased by the state shall, at a

25minimum, be certified to the California Air Resource Board's Low

26Emission Vehicle II Ultra Low Emission Vehicle Standard, [and] (2) on

27and after January 1, 2012, one hundred per cent of such cars and light

28duty trucks shall be alternative-fueled, hybrid electric or plug-in

29electric vehicles, and (3) on and after January 1, 2030, at least fifty per

30cent of such cars and light duty trucks shall be zero-emission vehicles.

31(c) On and after January 1, 2030, at least thirty per cent of all buses

32purchased or leased by the state shall be zero-emission buses.

33(d) If the Commissioner of Administrative Services determines that

34the vehicles required by the provisions of [this subsection] subsections

35(b) and (c) of this section are not available for purchase or lease, the

36Commissioner of Administrative Services shall include an explanation

37of such determination in the annual report described in subsection [(e)]

38(g) of this section.

39[(c)] (e) The provisions of subsections (a) [and (b)] to (c), inclusive,

40of this section shall not apply to any emergency vehicle.

41[(d)] (f) As used in this section, (1) the terms "car" and "light duty

42truck" have the same meaning as provided in the United States

43Department of Energy Publication DOE/CE-0019/8, or any successor

44publication, (2) "emergency vehicle" means a vehicle used by the

45Department of Motor Vehicles, Department of Emergency Services and

46Public Protection, Department of Energy and Environmental

47 Protection, Department of Correction, State Capitol Police, Department

48 of Mental Health and Addiction Services, Department of

49 Developmental Services, Department of Social Services, Department of

50 Children and Families, Department of Transportation, Judicial

51Department, Board of Pardons and Paroles, Board of Regents for

52Higher Education, The University of Connecticut or The University of

53Connecticut Health Center for law enforcement or emergency response

54purposes, [and] (3) "hybrid" means a passenger car that draws

55acceleration energy from two on-board sources of stored energy that

56consists of either an internal combustion or heat engine which uses

57combustible fuel and a rechargeable energy storage system, and, for

58any passenger car or light duty truck with a model year of 2004 or

59newer, that is certified to meet or exceed the California LEV (Low

60Emission Vehicle) II LEV Standard, and (4) "zero-emission vehicle"

61means a battery electric vehicle, hybrid electric vehicle, range-extended

62electric vehicle and any vehicle that meets the requirements of section

6322a-174-36 of the regulations of Connecticut state agencies.

64[(e)] (g) On or before January 1, 2008, and annually thereafter, the

65Commissioner of Administrative Services, in consultation with the

66Commissioner of Transportation, shall file a report with the joint

67standing committees of the General Assembly having cognizance of

68matters relating to government administration, the environment and

69energy that includes: (1) Details on the composition of the state fleet,

70including, but not limited to, a listing of all vehicles owned, leased or

71used by the Departments of Transportation and Emergency Services

72and Public Protection, the make, model and fuel type of vehicles that

73compose the state fleet and the amount of fuel, including alternative

74fuels, that each vehicle uses, (2) any changes to the determination

75made by the Commissioner of Energy and Environmental Protection

76pursuant to subsection (a) of section 35 of public act 07-4 of the June

77special session or any update concerning the waiver application

78submitted pursuant to subsection (a) of section 35 of public act 07-4 of

79the June special session, as applicable, (3) any changes or amendments

80to the plan required by subsection (b) of section 35 of public act 07-4 of

81the June special session, [and] (4) any changes or amendments to the

82plan required by subsection (c) of section 35 of public act 07-4 of the

83June special session, (5) a vehicle purchasing and procurement three-

84year plan that aligns with the requirements of subdivision (3) of

85subsection (b) of this section and subsection (c) of this section, and (6)

86an assessment of the availability of zero-emission medium and heavy

87duty trucks and the feasibility of the state purchasing or leasing zero-

88emission medium and heavy duty trucks. The Departments of

89Transportation and Emergency Services and Public Protection shall

90submit all data requested of said departments by the Department of

91Administrative Services in connection with the preparation of such

92report.

93[(f)] (h) The Commissioner of Administrative Services may enter

94into any agreement necessary to carry out the provisions of subsection

95[(e)] (g) of this section.

99possible, consider the use of and impact on Connecticut-based

100companies.

101(j) The Commissioner of Administrative Services, in consultation

102with the Commissioner of Transportation, shall study the feasibility of

103creating a competitive bid process for the aggregate procurement of

104zero-emission vehicles and zero-emission buses and determine

105whether such aggregate procurement would achieve a cost savings on

106the purchase of such vehicles and buses and related administrative

107 costs. On or before January 1, 2020, the Commissioner of

108Administrative Services shall report, in accordance with the provisions

109of section 11-4a, on the results of such study to the joint standing

110committees of the General Assembly having cognizance of matters

111relating to government administration and transportation. The

112Commissioner of Administrative Services may proceed with such

113aggregate procurement if the commissioner determines such aggregate

114procurement would achieve a cost savings.

115Sec. 2. (NEW) (Effective October 1, 2019) (a) There is established a

116Connecticut Hydrogen and Electric Automobile Purchase Rebate

117Board, which shall be within the Department of Energy and

118Environmental Protection for administrative purposes only. The board

119shall consist of the Commissioner of Energy and Environmental

120Protection or the commissioner's designee, the Commissioner of

121Consumer Protection or the commissioner's designee, the president of

122the Connecticut Green Bank or the president's designee and three

126representative of an organization that represents the interests of an

127environmental justice community, as defined in subsection (a) of

128section 22a-20a of the general statutes, appointed by the minority

129leader of the House of Representatives, and one representative of an

130association representing automotive retailers in the state, appointed by

131the speaker of the House of Representatives. The Commissioner of

132Energy and Environmental Protection may appoint to the board

133additional representatives from other industrial fleet or transportation

134companies. The Commissioner of Energy and Environmental

135Protection shall serve as chairperson of the board. The board shall

136meet at such times at it deems necessary.

137(b) On and after January 1, 2020, until December 31, 2025, the board

138shall, from resources available through state appropriated funds,

139establish and administer a program to provide rebates that total at

140least three million dollars annually to residents of this state who (1)

141purchase or lease a battery electric vehicle, plug-in hybrid electric

142vehicle or fuel cell electric vehicle, or (2) purchase a used hydrogen

143vehicle or electric vehicle. The board shall establish and revise, as

144necessary, appropriate rebate levels and maximum income eligibility

145for rebates for used hydrogen vehicles or electric vehicles. The board

146shall evaluate such program on an annual basis.

147(c) There is established an account to be known as the "Connecticut

148hydrogen and electric automobile purchase rebate program account"

149which shall be a separate, nonlapsing account within the General

150Fund. The account shall contain any moneys required by law to be

151deposited in the account. Moneys in the account shall be expended by

152the Connecticut Hydrogen and Electric Automobile Purchase Rebate

153Board for the purposes of administering the program established

154pursuant to subsection (b) of this section.

155Sec. 3. Section 22a-201c of the general statutes is repealed and the

156following is substituted in lieu thereof (Effective January 1, 2020):

157(a) As used in this section, "motor vehicle" means a motor vehicle, as

158defined in section 14-1, with a gross vehicle weight rating, as defined

159in section 14-1, of ten thousand pounds or less, except for a motorcycle.

160(b) On and after January 1, [2007] 2020, the Commissioner of Motor

161Vehicles shall charge a fee of [five] ten dollars, in addition to any other

162fees required for registration, for each new motor vehicle. Said fee may

163be identified as the "greenhouse gas reduction fee" on any registration

164form, or combined with the fee specified by subdivision (3) of

165subsection (k) of section 14-164c. All receipts from the payment of such

166fee shall be deposited into the [General Fund] Connecticut hydrogen

167and electric automobile purchase rebate program account established

168pursuant to subsection (c) of section 2 of this act.

169Sec. 4. (Effective October 1, 2019) The sum of three million dollars is

170appropriated to the Department of Energy and Environmental

171Protection, from the General Fund, for the fiscal years ending June 30,

1722020, and June 30, 2021, for deposit in the Connecticut hydrogen and

173electric automobile purchase rebate program account established

174pursuant to subsection (c) of section 2 of this act.

This act shall take effect as follows and shall amend the following sections:

Statement of Legislative Commissioners:

In Section 2(b), "and" was changed to "or" for accuracy.

TRA Joint Favorable Subst. -LCO

The following Fiscal Impact Statement and Bill Analysis are prepared for the benefit of the members of the General Assembly, solely for purposes of information, summarization and explanation and do not represent the intent of the General Assembly or either chamber thereof for any purpose. In general, fiscal impacts are based upon a variety of informational sources, including the analyst's professional knowledge. Whenever applicable, agency data is consulted as part of the analysis, however final products do not necessarily reflect an assessment from any specific department.

OFA Fiscal Note

State Impact:

Municipal Impact: None

Explanation

Section 1 of the bill requires the Department of Administrative Services (DAS), with the Department of Transportation (DOT), to study the feasibility of creating a competitive bid process for procurement of zero-emission vehicles and buses. It also authorizes DAS to: (1) proceed with the bid if it achieves savings and (2) issue an annual report to the Government Administration and Elections, Environment, and Energy and Technology committees. These requirements have no fiscal impact.

Section 2 establishes the Connecticut Hydrogen and Electric Automobile Purchase Rebate (CHEAPR) program to provide rebates in the amount of $3.0 million annually for the purchase or lease of new or used hydrogen or electric vehicles.

Section 3 increases the greenhouse gas reduction fee, from $5 to $10, that is required for the registration of new motor vehicles and directs

its revenue to the CHEAPR account. The fee increase is anticipated to result in an annual revenue gain of approximately $8.5 million into the newly established account. 1

Section 4, the bill appropriates $3 million in both FY 20 and FY 21 from the General Fund to the Department of Energy and Environmental Protection for deposit in the CHEAPR program account established in Section 2.

In summary, the annualized revenue gain in both FY 20 and FY 21 to the CHEAPR program's account is estimated to be $11.5 million.

The Out Years

The annualized ongoing fiscal impact identified above would continue into the future subject to the number of motor vehicle registrations.

1This is based on the current number of registrations, which was approximately 1.7 million in 2017 and 2018.

OLR Bill Analysis sHB 7205

AN ACT CONCERNING THE ACCESSIBILITY OF ELECTRIC VEHICLES IN CONNECTICUT.

SUMMARY

This bill establishes standards and requires agency studies to assist the state with increasing the number of zero-emission vehicles in its fleet. It also creates a state funded rebate program to incentivize state residents to purchase such vehicles.

Regarding state vehicles, it:

1.requires, beginning January 1, 2030, minimum percentages of cars, light duty trucks, and buses purchased or leased for the state fleet to be "zero-emission;"

2.expands the Department of Administrative Services (DAS) commissioner's annual legislative reporting requirements to include a procurement plan that aligns with these state fleet requirements and a feasibility assessment for the state's purchase or lease of zero-emission medium and heavy duty trucks; and

3.requires the DAS commissioner to study the feasibility of creating a competitive bid process for procurement of zero- emission vehicles and buses, and authorizes the commissioner to proceed if it would achieve cost savings.

Regarding resident vehicles, the bill:

1.establishes the Connecticut Hydrogen and Electric Automobile Purchase Rebate (CHEAPR) program to provide rebates for the purchase or lease of new or used hydrogen or electric vehicles, based on an existing pilot program (see BACKGROUND); and

2.creates an administrative board to oversee the CHEAPR program and establishes a General Fund account with state appropriations and a revenue stream to fund it.

The bill also makes conforming and technical changes.

EFFECTIVE DATE: October 1, 2019, except that the changes to the greenhouse gas reduction fee are effective January 1, 2020.

INCREASING PERCENTAGE OF ZERO-EMISSION VEHICLES IN THE STATE FLEET

Starting on January 1, 2030, the bill requires that at least 50% of the cars and light duty trucks and at least 30% of the buses purchased or leased by the state be zero-emission vehicles and zero-emission buses, respectively. The bill defines a "zero-emission vehicle" as a battery, hybrid, or range-extended electric vehicle, and any vehicle permitted under specified state regulations concerning low-emission vehicles. (The bill does not define "zero-emission bus.") These requirements do not apply to vehicles used for law enforcement or emergency response purposes by the following state agencies and entities:

1.the Motor Vehicles, Emergency Services and Public Protection, Energy and Environmental Protection, Correction, Mental Health and Addiction Services, Developmental Services, Social Services, Children and Families, Transportation, and Judicial departments;

2.the Board of Pardons and Paroles and State Capitol Police; and

3.the Board of Regents for Higher Education, the University of Connecticut, and the University of Connecticut Health Center.

DAS ANNUAL REPORTING

The bill adds two topics to DAS's existing annual reporting requirements to the legislature. First, the DAS commissioner must produce a three-year vehicle procurement plan that aligns with the bill's requirements for increasing the percentage of zero-emission vehicles and buses in the state fleet. Secondly, the commissioner must

assess the availability of zero-emission medium and heavy duty trucks and the feasibility of the state purchasing or leasing those types of trucks. The DAS commissioner must work in consultation with the Department of Transportation (DOT) commissioner on these reporting requirements as well as those already existing in statute. By law, DAS must file this annual report with the Government Administration and Elections, Environment, and Energy and Technology committees.

PROCUREMENT STUDY

The bill requires the DAS commissioner, in consultation with the DOT commissioner, to study the feasibility of creating a competitive bid process for the aggregate procurement of zero-emission vehicles and buses and determine if the process would achieve cost savings. The DAS commissioner must report the study's results to the Government Administration and Elections and Transportation committees by January 1, 2020. The bill also authorizes the DAS commissioner to proceed with the aggregate procurement upon determining it would achieve a cost savings.

STATE RESIDENT REBATE PROGRAM

Program Creation

The bill establishes the Connecticut Hydrogen and Electric Automobile Purchase Rebate Board within the Department of Energy and Environmental Protection (DEEP) and requires it to create and administer the CHEAPR program, from January 1, 2020 until December 31, 2025. Under the bill, the program must provide rebates of at least $3 million annually to residents who (1) purchase or lease a battery, plug-in hybrid, or fuel cell electric vehicle, or (2) purchase a used hydrogen or electric vehicle. The board must (1) establish and revise rebate levels and income eligibility for rebates for such vehicles and (2) evaluate the program annually.

Administrative Board Membership

Under the bill, the CHEAPR board must consist of:

1. the DEEP and Consumer Protection commissioners and the

Connecticut Green Bank president, or their respective designees;

2.a member from an environmental organization knowledgeable in electric vehicle policy, appointed by the Senate president;

3.a member from an organization representing environmental justice community interests, appointed by the House minority leader; and

4.a member from an association representing Connecticut automotive retailers, appointed by the House speaker.

The bill authorizes the DEEP commissioner to appoint additional members to the board from other industrial fleet or transportation companies. The DEEP commissioner will serve as the board chairperson, and the board may meet as it deems necessary.

Program Funding

The bill establishes a CHEAPR program account as a separate, nonlapsing account within the General Fund and requires its funding be used towards administering the CHEAPR program. It also increases the greenhouse gas reduction fee that is required for the registration of new motor vehicles from $5 to $10 and directs its revenue to the CHEAPR program's account, instead of the General Fund as under current law. Additionally, the bill appropriates $3 million in fiscal years 2020 and 2021 from the General Fund to DEEP for deposit in the CHEAPR program account.

BACKGROUND

CHEAPR Pilot

CHEAPR was created administratively in 2015 as a pilot program. It was developed by DEEP in partnership with Eversource Energy, Avangrid (i.e., the United Illuminating Company), and the Connecticut Automotive Retailers Association. The program is managed on a day- to-day basis by the Center for Sustainable Energy.

COMMITTEE ACTION

Transportation Committee

Joint Favorable

Yea 33 Nay 3 (03/20/2019)