Report Title:

State Fleet Motor Vehicles; Natural Gas

Description:

Requires the purchase or lease of new fleet motor vehicles that are owned or controlled by the State to use liquefied or compressed natural gas. Establishes deadlines for use of natural gas in fleet motor vehicles from 25% of vehicles by 7/1/05 to 100% by 7/1/11. Provides exceptions.

HOUSE OF REPRESENTATIVES

H.B. NO.

74

TWENTY-SECOND LEGISLATURE, 2003

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

RELATING TO ALTERNATIVE FUEL VEHICLES.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. The legislature finds that:

(1) Burning fossil fuels such as coal, oil, gas, and diesel results in significant emissions being released into the atmosphere. These emissions include carbon dioxide (the largest contributor to greenhouse gases), particulate matter, carbon monoxide, hydrocarbons, volatile organic compounds, and nitrogen oxides;

(2) The environmental consequences associated with these gases are linked to global warming, climate change, and the degradation of water and air quality. Human health risks are also associated with fossil fuel emissions and include asthma, chronic bronchitis, pneumonia, cancer, heart disease, and premature death;

(3) Vehicle emissions are rapidly becoming the largest source of air pollution in Hawaii. For Hawaii to be a leader in the alternative energy industry, the State needs to look at progressive measures to incorporate clean burning fuels and renewable energy sources into its infrastructure. California is already setting standards in this arena by, for example, mandating that by 2003 ten per cent of new cars being sold are to produce near zero or zero emissions;

(4) Vehicular natural gas is proving to be an efficient, clean burning fuel that is more environmentally sensitive than conventional petroleum based fuels. Due to recent technological innovations, natural gas engines are comparable in power and range to diesel engines, but offer significantly reduced levels of emissions;

(5) With the rising cost of petroleum-based fuel, tougher emission standards, and the growing public demand for better environmental policies, natural gas vehicles provide an attractive alternative with a number of advantages. Natural gas vehicles are less expensive to operate than traditional gasoline-powered vehicles. Because natural gas burns cleaner than most other fuels, parts can stay cleaner and maintenance costs are often less. Moreover, filling up with natural gas is virtually the same as filling up with petroleum-based gasoline; and

(6) The State's fleet vehicles such as buses, trucks, taxis, and airport vehicles could be replaced with new or leased vehicles that use natural gas relatively inexpensively. This is due to federal funding aimed at increasing alternative fuel vehicle programs.

Accordingly, the purpose of this Act is to require the purchase or lease of state trucks, vans, taxicabs, buses, airport vehicles, and other fleet motor vehicles to use liquefied or compressed natural gas as an alternative fuel.

SECTION 2. Chapter 105, Hawaii Revised Statutes, is amended as follows:

1. By designating sections 105-1 to 105-11 as part I and inserting a title before section 105-1 to read:

"Part . general provisions"

2. By adding a new part to be appropriately designated and to read as follows:

"Part . State FLEET MOTOR VEHICLES

§105-A Definitions. As used in this part, unless the context clearly requires otherwise:

"Fleet motor vehicle" means a truck, bus, van, taxicab, airport motor vehicle, or other motor vehicle that is owned or controlled by the State and registered in this State, whether or not that vehicle bears an inscription pursuant to section 105-6; provided that this term does not apply to vehicles owned or operated by the state department of defense.

§105-B Fleet motor vehicles to use liquefied or compressed natural gas; exceptions. (a) After the effective date of this section, no state agency shall purchase or lease any fleet motor vehicle for use by that agency unless that vehicle is capable of and equipped for using liquefied or compressed natural gas as a fuel that results in lower emissions of oxides of nitrogen, volatile organic compounds, carbon monoxide, or particulates, or any combination thereof which meet or exceed federal Clean Air Act standards, than petroleum-based fuel.

(b) A state agency may acquire or be provided equipment or refueling facilities necessary to operate fleet motor vehicles using liquefied or compressed natural gas by any of the following methods:

(1) Purchase or lease new fleet motor vehicles; provided that:

(A) The State shall recoup its actual costs, including finance charges, through reduced costs of operating the fleet motor vehicles within forty-eight months of the purchase or lease;

(B) Any newly purchased or leased fleet motor vehicle shall be designed for the use of liquefied or compressed natural gas and shall contain original equipment manufacturer certified parts and not aftermarket parts. As used in this subparagraph, "aftermarket parts" means parts not made for or by the manufacturer of the motor vehicle; and

(C) The State may not meet the requirements of this section by providing for the conversion of a gasoline fleet motor vehicle to use only natural gas or both gasoline and natural gas; or

(2) Gift or loan of the equipment or facilities.

(c) The state comptroller shall achieve the following percentages of fleet motor vehicles capable of using liquefied or compressed natural gas by the dates specified:

(1) The percentage shall be not less than twenty-five per cent of the number of fleet motor vehicles operated by July 1, 2005;

(2) The percentage shall be not less than fifty per cent of the number of fleet motor vehicles operated by July 1, 2007;

(3) The percentage shall be not less than seventy-five per cent of the number of fleet motor vehicles operated by July 1, 2009; and

(4) The percentage shall be equal to one hundred per cent of the number of fleet motor vehicles operated by July 1, 2011.

(d) The department of accounting and general services shall report annually to the legislature showing its progress in achieving the percentage requirements specified in subsection (c) by itemizing purchases and leases of fleet motor vehicles and the usage of liquefied or compressed natural gas.

(e) The state comptroller, in the conversion of fleet motor vehicles to use liquefied or compressed natural gas under this section, shall consult with state agency fleet operators, vehicle manufacturers, fuel distributors, and others to delineate the fleet motor vehicles to be covered, taking into consideration range, specialty uses, fuel availability, vehicle manufacturing capability, safety, resale values, and other relevant factors. In order to maximize the savings to the State, the comptroller shall attempt to the greatest extent possible to first convert those fleet motor vehicles that are used the most often for the most miles. The comptroller may meet the percentage requirements of this section through the purchase or lease of new fleet motor vehicles in accordance with federal and state requirements and applicable safety laws and standards to use liquefied or compressed natural gas.

(f) The state comptroller may reduce any percentage specified or waive the requirements of subsection (d) for any state agency upon receipt of certification supported by evidence acceptable to the comptroller that either of the following situations apply:

(1) The agency's fleet motor vehicles will be operating primarily in an area in which neither the agency nor a supplier has or can reasonably be expected to establish a central refueling station for liquefied or compressed natural gas; or

(2) The agency is unable to acquire or be provided equipment or refueling facilities necessary to operate fleet motor vehicles using liquefied or compressed natural gas at a projected cost that is reasonably expected to result in no greater net costs than the continued use of traditional gasoline or diesel fuels measured over the expected useful life of the equipment or facilities supplied.

§105-C Liquefied or compressed natural gas used in fleet motor vehicles. (a) The department of business, economic development, and tourism may adopt and enforce rules pursuant to chapter 91 with respect to fuel containers and fuel systems on fleet motor vehicles using liquefied or compressed natural gas to ensure the safety of the equipment and vehicles and of persons and property using the highways.

(b) All fleet motor vehicles with compressed natural gas fuel systems used for propulsion shall comply either with the rules adopted pursuant to subsection (a) or with National Fire Protection Administration Standard NFPA 52, "Compressed Natural Gas (CNG) Vehicular Fuel Systems" in effect at the time of manufacture, until standards for those fuel systems have been incorporated into the Federal Motor Vehicle Safety Standards by the United States Department of Transportation. Whenever those Federal Motor Vehicle Safety Standards include requirements for compressed natural gas fuel systems, all fleet motor vehicles with compressed natural gas fuel systems which are manufactured after the effective date of those requirements shall comply with those requirements.

(c) The operator of every facility for filling portable liquefied natural gas containers having a capacity of four pounds or more but not more than two hundred pounds of gas shall post in a conspicuous place the rules applicable to that filling procedure.

(d) Any fleet motor vehicle that carries liquefied or compressed natural gas in a tank attached to the vehicle, or in any concealed area, including trunks, compartments, or under the vehicle, shall display on the exterior of the vehicle the letters "LNG" or "CNG", corresponding to liquefied natural gas or compressed natural gas, respectively, whichever type of fuel is utilized, in block letters at least one inch high. The letters shall be of contrasting color and shall be placed as near as possible to the area of the location of the tank. Any fleet motor vehicle fueled by liquefied or compressed natural gas may also comply with this section by displaying on each side of the vehicle words or letters at least one-half inch high indicating that the vehicle is fueled by liquefied or compressed natural gas. It is unlawful to dispense liquefied or compressed natural gas into any tank in a concealed area of any fleet motor vehicle, unless that vehicle complies with the requirements of this section.

(e) Any person who violates this section or any rule adopted by the department pursuant to this chapter shall be fined not more than $ for each separate offense. Each date of violation shall constitute a separate offense. Any action taken to impose or collect the penalty provided for in this subsection shall be considered a civil action.

§105-D Rulemaking. The department of business, economic development, and tourism shall adopt rules pursuant to chapter 91 as may be necessary to implement this part."

SECTION 3. In codifying the new sections added by section 2 of this Act, the revisor of statutes shall substitute appropriate section numbers for the letters used in designating the new sections in this Act.

SECTION 4. New statutory material is underscored.

SECTION 5. This Act shall take effect upon its approval.

INTRODUCED BY:

_____________________________