Bill Text: NH SB275 | 2019 | Regular Session | Introduced


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

Spectrum: Partisan Bill (Democrat 4-0)

Status: (Introduced) 2019-02-11 - Hearing: 02/19/2019, Room 103, Legislative Office Building, 02:05 pm; Senate Calendar 11 [SB275 Detail]

Download: New_Hampshire-2019-SB275-Introduced.html

SB 275-FN - AS INTRODUCED

 

 

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

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 an 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  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 Vehicles.  Notwithstanding any provision in RSA 21-I:19-i, the department of administrative services shall establish procedures to ensure that all of the state's motor vehicles will be zero emissions vehicles (ZEVs) by the year 2039.  By 2024, all new leases or purchases of light duty trucks and passenger vehicles shall be zero emissions vehicles, and by 2029 any new leases of trucks and other vehicles in excess of 10,000 pounds in weight shall be ZEVs.  Under the ZEV 2039 planning process, any state agency or department that purchases and operates a motor vehicle shall develop a plan to transition its vehicles entirely to ZEVs, as is deemed feasible for particular vehicles and vehicle classes by 2039.  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 the all of the state's motor vehicles are ZEVs.  Agencies and departments shall include funding for this program each biennium in requests for funding in the general fund and capital budgets.  In this section, 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 use of a hydrogen fuel cell.

3  Repeal.  RSA 21-O:23, relative to low carbon fuel standards programs, state participation, is repealed.

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

 

LBAO

19-0854

1/25/19

 

SB 275-FN- FISCAL NOTE

AS INTRODUCED

 

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 all of the state’s motor vehicles be zero emission vehicles by the year 2039.  The Department of Administrative Services would be required to establish procedures for converting the State motor vehicle fleet to zero emissions vehicles (ZEVs) over a 20-year period ending in 2039.  All new passenger vehicles or light duty trucks would be required to be ZEVs by 2024 and all new vehicles with a gross vehicle weight exceeding 10,000 pounds would be required to be ZEVs by 2029.  State agencies would be required 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 2039.

 

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.

 

AGENCIES CONTACTED:

Departments of Administrative Services and Transportation

 

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