House of Representatives Staff Analysis: PCS for HB 1025 Government Vehicles (2023)

Summary

A Florida House of Representatives staff analysis of PCS for HB 1025, Government Vehicles, sponsored by the Energy, Communications & Cybersecurity Subcommittee and dated 3/19/2023. It describes current procurement law, including competitive solicitation for purchases over $35,000, and the climate-friendly public business requirements of s. 286.29, F.S. The analysis states that the bill would require governmental entities buying under the state purchasing plan to select vehicles by lowest lifetime ownership costs rather than greatest fuel efficiency, and would strike the ethanol, biodiesel and biofuel requirements. It would require DMS to make recommendations on electric and natural gas vehicles before July 1, 2024, and takes effect July 1, 2023. The fiscal analysis reports no impact on state or local government revenues or expenditures.

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                                  HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #:     PCS for HB 1025 Government Vehicles
SPONSOR(S): Energy, Communications & Cybersecurity Subcommittee
TIED BILLS:       IDEN./SIM. BILLS: CS/CS/SB 284

  REFERENCE                                                   ACTION                  ANALYST            STAFF DIRECTOR or
                                                                                                         BUDGET/POLICY CHIEF

  Orig. Comm.: Energy, Communications &                                               Walsh              Keating
     Cybersecurity Subcommittee

                                             SUMMARY ANALYSIS
Current law requires state agencies that wish to procure commodities or contractual services in excess of
$35,000 to use a competitive solicitation process. A competitive solicitation is the process of requesting and
receiving two or more sealed bids, proposals, or replies submitted by responsive vendors in accordance with
the terms of a competitive process.

State agencies, in many circumstances, are required to take specified actions to promote energy efficiency and
other environmental benefits when conducting public business. When procuring new vehicles, state agencies,
state universities, community colleges, and local governments under a state purchasing plan must first define
the intended purpose for the vehicle and determine which statutorily listed use class applies. Vehicles must be
selected for the greatest fuel efficiency available for the determined class when fuel economy data is available.

Under the bill, any governmental entity that purchases under the state purchasing plan must select vehicles
based on the lowest lifetime ownership costs, including costs for fuel, operations, and maintenance.

The bill strikes the requirement under current law that state agencies use ethanol and biodiesel fuel when
available, and the bill removes the requirement that state agencies that administer central fueling operations
for state-owned vehicles procure biofuels for fleet needs to the greatest extent practicable.

The bill requires DMS to make recommendations before July 1, 2024, to state agencies and local governments
regarding the procurement of electric vehicles and natural gas fuel vehicles.

The bill has no impact state or local government revenues or expenditures.

The bill provides an effective date of July 1, 2023.




This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives .
STORAGE NAME: pcs1025.ECC
DATE: 3/19/2023
                                                    FULL ANALYSIS

                                             I. SUBSTANTIVE ANALYSIS

    A. EFFECT OF PROPOSED CHANGES:
        Present Situation

        Procurement of Commodities or Contractual Services

        Current law specifies the procedures for procurement of commodities or contractual services. 1 The
        Department of Management Services (DMS) provides uniform commodity and contractual service
        procurement policies, rules, procedures, and forms for use by agencies and eligible users, 2 and
        establishes purchasing agreements and procures state term contracts for commodities and contractual
        services.3

        DMS is required to consider the life-cycle cost of commodities purchased by the state, when applicable
        and feasible.4 When calculating the life-cycle cost, the agency may consider the acquisition cost of the
        product; the energy consumption and the projected cost of energy over the useful life of the product;
        and the anticipated trade-in, resale, or salvage value of the product.5 The agency is authorized to
        establish by rule energy-efficiency standards for major energy-consuming products.6

        Florida law requires state agencies that wish to procure commodities or contractual services in excess
        of $35,0007 to use a competitive solicitation process.8 Competitive solicitation is the process of
        requesting and receiving two or more sealed bids, proposals, or replies submitted by responsive
        vendors in accordance with the terms of a competitive process, regardless of procurement method. 9

        Commodities or contractual services available only from a single source may be exempt from the
        competitive solicitation requirement.10 Current law specifies the processes an agency must follow in this
        circumstance.11

        Climate-friendly Public Business

        Current law requires state agencies, in many circumstances, to take specified actions to promote
        energy efficiency and other environmental benefits when conducting public business. 12 These actions
        include:
             Consulting the Florida Climate-Friendly Preferred Products List13 when procuring products from
               state term contracts 14 and procuring such products if the price is comparable;15
             Contracting for meeting and conference space only with facilities that have received a special
               designation from the Department of Environmental Protection for best practices in water,

1 Ch. 287, F.S.
2 S. 287.032,   F.S.
3 S. 287.042(2)(a),  F.S.
4 S. 287.083(1),  F.S.
5 S. 287.083(5), F.S.
6 S. 287.083(3)(a), F.S.
7 S. 287.017(2), F.S.
8 S. 287.057(1), F.S.
9 S. 287.012(6), F.S.
10 S. 287.057(3)(c), F.S.
11 Id.
12 S. 286.29, F.S.
13 The Florida Climate-Friendly Preferred Products List is developed by DMS, which works with the Department of

Environmental Protection to continually assess the list. The list identifies specific products and vendors that offer energy
efficiency or other environmental benefits over competing products. See s. 286.29(1), F.S.
14 A state term contract is a contract for commodities or contractual services that is competitively procured by DMS and is

used by agencies and other eligible users. See ss. 287.012(28), F.S. and 287.042(2)(a), F.S.
15 S. 286.29(1), F.S.
STORAGE NAME: pcs1025.ECC                                                                                            PAGE: 2
DATE: 3/19/2023
                   energy, and waste efficiency standards, absent a determination from the agency head no other
                   viable alternative exists;16
                  Ensuring all maintained vehicles meet minimum maintenance schedules shown to reduce fuel
                   consumption and reporting compliance to DMS; 17 and
                  Using ethanol and biodiesel blended fuels when available. State agencies administering central
                   fueling operations for state-owned vehicles shall procure biofuels for fleet needs to the greatest
                   extent practicable.18

        Additionally, state agencies, state universities, community colleges, and local governments that
        purchase vehicles under a state purchasing plan must first define the intended purpose for the vehicle
        and determine which statutorily listed use class 19 the vehicle is being procured for.20 These vehicles
        must be selected for the greatest fuel efficiency available for the determined use class when fuel
        economy data is available.21 Exceptions may be made for emergency response vehicles in certain
        circumstances.22

        Effect of the Bill

        The bill requires any governmental entity that purchases under the state purchasing plan to select
        vehicles for each use class based on the lowest lifetime ownership costs, including costs for fuel,
        operations, and maintenance, rather than based on the greatest fuel efficiency.

        The bill strikes the requirement under current law that state agencies use ethanol and biodiesel fuel
        when available. It also removes the requirement that state agencies that administer central fueling
        operations for state-owned vehicles procure biofuels for fleet needs to the greatest extent practicable.

        The bill requires DMS to make recommendations before July 1, 2024, to state agencies, state colleges
        and universities, and local governments regarding the procurement of electric vehicles and natural gas
        fuel vehicles and the best practices for integrating those vehicles into existing fleets.

        The bill provides an effective date of July 1, 2023.

    B. SECTION DIRECTORY:
        Section 1: Amends s. 286.29, F.S., relating to climate-friendly public business.

        Section 2: Requires DMS to make specified recommendations.

        Section 3: Provides an effective date of July 1, 2023.


                            II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT

    A. FISCAL IMPACT ON STATE GOVERNMENT:

        1. Revenues:
             None.


16 S. 286.29(2), F.S.
17 S. 286.29(3), F.S.
18 S. 286.29(5), F.S.
19 Listed vehicle use classes are the following: state business travel, designated operator; state business travel, pool

operators; construction, agricultural, or maintenance work; conveyance of passengers; conveyance of building or
maintenance materials and supplies; off-road vehicle, motorcycle, or all-terrain vehicle; emergency response; or other.
See s. 286.29(4), F.S.
20 S. 286.29(4), F.S.
21 Id.
22 Id.
STORAGE NAME: pcs1025.ECC                                                                                            PAGE: 3
DATE: 3/19/2023
       2. Expenditures:
           None.

   B. FISCAL IMPACT ON LOCAL GOVERNMENTS:

       1. Revenues:
           None.

       2. Expenditures:
           None.

   C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
       None.

   D. FISCAL COMMENTS:
       None.


                                               III. COMMENTS

   A. CONSTITUTIONAL ISSUES:

       1. Applicability of Municipality/County Mandates Provision:
          Not applicable. This bill does not appear to require counties or municipalities to spend funds or take
          action requiring the expenditures of funds; reduce the authority that counties or municipalities have
          to raise revenues in the aggregate; or reduce the percentage of state tax shared with counties or
          municipalities.

       2. Other:
          None.

   B. RULE-MAKING AUTHORITY:
       None.

   C. DRAFTING ISSUES OR OTHER COMMENTS:
       None.


                            IV. AMENDMENTS/COMMITTEE SUBSTITUTE CHANGES




STORAGE NAME: pcs1025.ECC                                                                                  PAGE: 4
DATE: 3/19/2023


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