Bill Text

Bill Information


Bill PDF |Add To My Favorites | print page

AB-1579 Vehicles: batteries.(2023-2024)

SHARE THIS: share this bill in Facebook share this bill in Twitter
Date Published: 04/25/2023 09:00 PM
AB1579:v97#DOCUMENT

Amended  IN  Assembly  April 25, 2023
Amended  IN  Assembly  March 23, 2023

CALIFORNIA LEGISLATURE— 2023–2024 REGULAR SESSION

Assembly Bill
No. 1579


Introduced by Assembly Member Garcia
(Principal coauthor: Senator Padilla)

February 17, 2023


An act to amend Section 10326 of the Public Contract Code, add Section 14637 to the Government Code, relating to vehicles.


LEGISLATIVE COUNSEL'S DIGEST


AB 1579, as amended, Garcia. Vehicles: batteries.
Existing law establishes several programs pertaining to vehicles and reducing pollution, such as the Clean Transportation Program, and various zero-emission vehicle programs administered by the State Air Resources Board, including the Medium- and Heavy-Duty Zero-Emission Vehicle Fleet Purchasing Assistance Program.

Existing law sets forth requirements for the acquisition of goods and services by state agencies and sets forth the various responsibilities of the Department of General Services and other state agencies in overseeing and implementing state contracting procedures and policies. Existing law authorizes the state, in establishing bid specifications for the acquisition of motor vehicles and in determining the lowest responsible bidder, to consider the probable resale value of the vehicles, as specified.

This bill would require the state, beginning on January 1, 2035, in establishing bid specifications for the acquisition of motor vehicles and determining the lowest responsible bidder, to consider whether the vehicles are equipped with lithium-ion batteries that contain lithium produced with the least environmental impact. The bill would make related legislative findings and declarations.

With regard to zero-emission vehicles or plug-in hybrid electric vehicles, existing law requires the Department of General Services to develop prescribed criteria to evaluate bidders when awarding contracts for commercial rental car services.
By January 1, 2025, this bill would require the Department of General Services to report to the Legislature on a specified study regarding the supply chain for lithium batteries in electric vehicles, and recommendations for any legislation or policy related to this supply chain to advance state environmental and economic development goals.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 Section 14637 is added to the Government Code, to read:

14637.
 By January 1, 2025, the Department of General Services shall report to the Legislature on both of the following:
(a) The results of a study of the supply chain for lithium batteries in electric vehicles purchased by the state to meet the goals of Executive Order No. N-79-20.
(b) Recommendations for any legislation or policy related to this supply chain to advance state environmental and economic development goals.

SECTION 1.

This act shall be known, and may be cited, as the California Lithium Economy Act.

SEC. 2.

(a)The Legislature finds and declares all of the following:

(1)The transportation sector is responsible for more than one-half of California’s carbon pollution, 80 percent of California’s smog-forming pollution, and 95 percent of California’s toxic diesel emissions, all while communities in the Los Angeles Basin and central valley experience some of the dirtiest and most toxic air in the country.

(2)Passenger rail, transit, bicycle, and pedestrian infrastructure and micromobility options are critical components to the state achieving carbon neutrality and connecting communities, requiring coordination of investments and work with all levels of government, including rail and transit agencies, to support these mobility options.

(3)Executive Order No. N-79-20 (2020) set goals for 100 percent of in-state sales of new passenger cars and trucks to be zero emission by 2035, and for 100 percent of medium- and heavy-duty vehicles in the state to be zero emission by 2045 for all operations where feasible, and, by 2035, for drayage trucks.

(4)As California transitions to a clean transportation economy, its heavy reliance on importing lithium from foreign countries robs the state of the opportunity to pair its transportation goals with the creation of high-quality, green jobs.

(5)The Salton Sea Known Geothermal Resource Area is home to the largest deposits of lithium in North America.

(6)Accelerating lithium development at the Salton Sea Known Geothermal Resource Area could anchor a domestic battery supply chain that will not only create thousands of middle-class-sustaining union jobs, but would also inject billions of dollars into a high-need community while also moving the United States and California closer to its climate, energy, and transportation goals.

(7)Developing lithium from the Salton Sea Known Geothermal Resource Area could also enable the creation of numerous revenue streams from California’s enormous purchasing power, part of which could be used to offset the state’s legal obligation to restore the Salton Sea.

(b)It is the intent of the Legislature to accelerate its greenhouse gas and energy goals, protect the public health and the environment, and build a sustainable domestic battery supply chain.

(c)It is the intent of the Legislature that this act, the California Lithium Economy Act, would support, beginning in 2035, the Legislature’s effort to ensure that the state’s zero emission vehicle fleet includes lithium-ion batteries that contain lithium produced with the least environmental impact.

SEC. 3.Section 10326 of the Public Contract Code is amended to read:
10326.

(a)In establishing bid specifications for the acquisition of motor vehicles and in determining the lowest responsible bidder, consideration may be given by the state to the probable resale value of the vehicles as determined by recognized published used car marketing guides and other established historical evidence of future used motor vehicle value or, in lieu thereof, by contractual guarantee of the apparent low bidder that the resale value of the vehicle will be no less in proportion to bid price than any other comparable vehicle complying with specifications for which a bid was received.

(b)On and after January 1, 2035, in establishing bid specifications for the acquisition of motor vehicles and determining the lowest responsible bidder, consideration shall be given by the state to whether the vehicles are equipped with lithium-ion batteries that contain lithium produced with the least environmental impact.