THE SENATE

S.B. NO.

303

THIRTY-FIRST LEGISLATURE, 2021

 

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT

 

 

relating to procurement of contracts for vehicle rental.

 

 

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

 


SECTION 1. The legislature finds that Hawaii currently has over one million gasoline-powered vehicles on its roads, which emit nearly five million metric tons of climate-changing carbon pollution annually. Some of these vehicles are used by state and county government employees in the performance of their duties.

Electric vehicles will play an integral role in Hawaii's clean energy future and in meeting the goals set for the State in reducing its greenhouse gas emissions, particularly as electrical generation in Hawaii transitions more completely to renewable energy sources. Moreover, that transition to renewable energy sources for electricity will reduce costs of electric vehicle transportation below those for gasoline-powered vehicles. Finally, electric vehicles benefit air quality by eliminating the tailpipe emissions from combustion of gasoline or diesel fuel.

Therefore, the purpose of this Act is to require all state and county agencies to rent an electric or hybrid vehicle for those occasions when a vehicle must be rented for state or county employees conducting official government business. To this end, the legislature further finds that state procurement policy for contracts with car rental companies should be revised to place priority on having a larger pool of electric vehicles and hybrid vehicles available to rent for official government business.

SECTION 2. Chapter 103D, Hawaii Revised Statutes, is amended by designating sections 103D-1001 to 103D-1012, as subpart A and inserting a title before section 103D-1001, to read as follows:

"A. General Provisions"

SECTION 3. Chapter 103D, Hawaii Revised Statutes, is amended by adding a new subpart to part X to be appropriately designated and to read as follows:

"B. Vehicle Rental Contracts

103D-   Definitions. As used in this subpart:

"Available" means that the vehicle is physically present and not rented prior to the requested rental.

"Conventional vehicle" means a vehicle powered solely by an internal combustion engine.

"Electric vehicle" means a vehicle powered by an electric motor via electricity:

(1) Stored in a high capacity battery; or

(2) Generated from an onboard fuel cell.

"Hybrid vehicle" means a vehicle powered by a combination of an electric motor and a small internal combustion engine.

"Rental contractor" means an entity that rents, or proposes to rent, vehicles to state employees for purposes of official government business under a contract pursuant to this subpart. "Rent" or "rental" shall include any variation of the term "lease".

"State employee" means an employee of the State or a county, including all permanent and temporary employees of:

(1) The state judicial, executive, and legislative branches and their respective departments, offices and agencies, the state executive branch and its departments or agencies; and

(2) The county governments and their departments, agencies, and offices.

"Suitable" means the vehicle has the performance capabilities needed for the intended application, including payload and weight capacity for the job, or is capable of holding a charge for the time and mileage needed.

103D-   Preference for the rental of electric or hybrid vehicles. (a) All state and county entities, when renting a vehicle on behalf of a state employee in the discharge of official government business, shall rent a vehicle of one of the following types, listed in order of preference:

(1) Electric vehicle; or

(2) Hybrid vehicle;

provided that such a vehicle is suitable for the specific travel requirements and is available.

(b) The state or county entity may rent a conventional vehicle only if:

(1) An electric or hybrid vehicle is not suitable; or

(2) Neither an electric nor a hybrid vehicle is available.

(c) A state or county entity shall exercise the policy preference for rental of an electric or hybrid vehicle notwithstanding that there may be a higher cost associated with renting an electric or hybrid vehicle; provided that the cost premium is consistent with any budgetary constraints, and not contradicted by an existing state contract with the rental business entity from which the vehicle is rented.

(d) To the extent practicable, all state and county entities shall rent a vehicle pursuant to subsection (a) from a rental contractor.

103D-   State procurement of vehicle rental contracts; electric and hybrid vehicle preference. (a) The state procurement office shall promulgate preferred contract terms for contracts with rental contractors to implement the intent of this subpart to prioritize the rental of electric vehicles. These terms shall apply to all vehicle rental contracts for which invitations to bid are issued after the effective date of this section.

(b) All invitations to bid for vehicle rental contracts shall inform prospective bidders that:

(1) The State places highest priority on the rental of electric vehicles and secondary priority on rental of hybrid vehicles, with the exception of specialized uses for which electric vehicles are not yet available and suitable as of the date of a bid invitation; and

(2) Bids made in response to an invitation should provide for contract terms consistent with the criteria specified in subsection (c).

(c) Contractual terms for contracts with rental contractors shall be consistent with the following criteria:

(1) The contract shall contain an acknowledgement by the rental contractor of the State's priority of renting electric vehicles;

(2) The rental contractor shall have, on average, as determined on a monthly basis, a sufficient number of electric vehicles available and suitable for use within the rental contractor's service area to meet the following percentages of daily demand for vehicle rentals:

(A) For contracts executed in 2021 and 2022, twenty per cent of daily demand for rental vehicles;

(B) For contracts executed in 2023, 2024, and 2025, thirty-three per cent of daily demand for rentals;

(C) For contracts executed in 2026, 2027 and 2028, fifty per cent of daily demand for rentals;

(D) For contracts executed in 2029 through 2034, seventy-five per cent of daily demand for rental vehicles; and

(E) For contracts executed in 2035 and subsequent years, ninety per cent of daily demand for rental vehicles; and

(3) The cost premium for rental of an electric vehicle shall not exceed twenty-five per cent of the rental fee for a comparable conventional vehicle.

(d) The procurement office may accept a contract from a prospective rental contractor who fails to meet the minimum vehicle availability and cost premium criteria of subsection (c) if:

(1) No acceptable bidder on the relevant invitation to bid submitted proposed contract terms compliant with the criteria of subsection (c);

(2) The prospective rental contractor demonstrates an inability to acquire a sufficient number of electric vehicles to satisfy the vehicle availability criterion of subsection (c) due to the demand for such vehicles exceeding the production output by vehicle manufacturers or another compelling justification;

(3) The cost premium for electric vehicles does not exceed fifty percent of the rental fee for a comparable conventional vehicle and does not exceed the budgeted amount for vehicle rental; or

(4) The prospective rental contractor can meet the criteria of subsection (c) or this subsection with a combination of electric and hybrid vehicles."

SECTION 4. New statutory material is underscored.

SECTION 5. This Act shall take effect on July 1, 2021.

 

INTRODUCED BY:

_____________________________

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 


 

Report Title:

State Procurement Office; Rental Vehicles; Preferences; Electric or Hybrid Vehicles

 

Description:

Requires all state and county entities, when renting a vehicle on behalf of a state employee in the discharge of official government business, to rent electric or hybrid vehicles, in order of preference, provided that such a vehicle is suitable for the specific travel requirements and available when needed. Requires the State Procurement Office to promulgate rules and execute future contracts consistent with specified terms.

 

 

 

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