A BILL TO BE ENTITLED
AN ACT to support energy SECURITY and establish goals for ALTERNATIVE fuel and advanced technology vehicle use by motor vehicles in the state fleet in order to gain energy independence and improve air quality.
The General Assembly of North Carolina enacts:
SECTION 1.  Article 3 of Chapter 143 of the General Statutes is amended by adding a new section to read:
"§ 143‑58.4.  Alternative fuel use credits program. 
(a)	Goal. – The State fleet shall accrue a total of 2,000,000 alternative fuel use credits during each calendar year 2006 and 2007. The State fleet shall accrue a total of 5,000,000 alternative fuel use credits during each calendar year 2008 and 2009. The State fleet shall accrue a total of 10,000,000 alternative fuel use credits during the calendar year 2010 and each calendar year thereafter.
(b)	Planning. – The State Energy Office, the Division of Motor Fleet Management of the Department of Administration, the Department of Transportation, and representatives of each State department, institution, and agency that has a State fleet shall meet annually to develop a plan for meeting the alternative fuel use credit requirements under subsection (a) of this section. The State Energy Office shall set the dates of these annual meetings. 
(c)	Report. – No later than March 1 of each year, the State Energy Office shall submit an annual status report to the General Assembly covering participation in and compliance with the goals under subsection (a) of this section by each State department, institution, and agency.
(d)	Monitoring. – In 2010, the General Assembly shall examine the program under this section for cost and effectiveness. At such time that the State Energy Office determines by rule that the prices of alternative fuels exceed the cost of gasoline and diesel fuel to a degree that renders the program under this section impracticable and unreasonable, the requirements of this section shall be suspended until such time that the State Energy Office determines by rule that the prices of alternative fuels no longer render the program impracticable and unreasonable.
(e)	Formulas for Calculating Credits. – Alternative fuel use credits are calculated as follows:
(1)	Subject to subdivision (2) of this subsection, one alternative fuel credit accrues for each one gallon of one hundred percent (100%) alternative fuel utilized by a State fleet vehicle. When alternative fuel is blended with petroleum‑based fuel, the alternative fuel credit accrues for each one gallon of alternative fuel utilized by a State vehicle at a rate that is based on the percentage of alternative fuel that is utilized by a State fleet vehicle. (For example, one alternative fuel use credit accrues for every five gallons of B20 that is utilized by a State fleet vehicle.)
(2)	One and one‑half alternative fuel credits accrue for each one gallon of alternative fuel produced in North Carolina that is utilized by a State fleet vehicle.
(3)	Six thousand alternative fuel credits accrue for each advanced technology vehicle that is purchased for a State fleet.
(f)	The Department of Administration may adopt rules necessary to implement the program under this section.
(g)	Definitions. – The following definitions apply to this section:
(1)	'Alternative fuel' means any of the following:
a.	Biodiesel (B100).
b.	B20, which is a blend of twenty percent (20%) biodiesel with eighty percent (80%) petroleum diesel fuel.
c.	Ethanol (E100).
d.	E10, which is a blend of ten percent (10%) ethanol with ninety percent (90%) unleaded gasoline.
e.	E85, which is a blend of eighty‑five percent (85%) ethanol with fifteen percent (15%) gasoline.
f.	Compressed natural gas.
g.	Propane.
h.	Hydrogen.
(2)	'Advanced technology vehicle' means:
a.	A hybrid electric vehicle operating on gasoline or another alternative fuel that has an emissions certification level of Ultra Low Emission Vehicle (ULEV) or greater.
b.	A low speed electric vehicle that replaces a gasoline powered vehicle and that is legal to operate on streets rated for vehicular traffic less than 30 MPH.
(3)	'State fleet' means those motor vehicles that are operated by a State department, institution, or agency that purchases fuel for these vehicles under a State purchasing contract."
SECTION 2.  Article 2 of Chapter 136 of the General Statutes is amended by adding a new section:
"§ 136‑28.13.  Participation in alternative fuel use credits program. 
The Department of Transportation shall participate in the alternative fuel use credits program under G.S. 143‑58.4. The Department of Transportation may adopt rules to implement this section."
SECTION 3.  G.S. 143‑341(8)i. reads as rewritten: 
"i.	To establish and operate a central motor pool and such subsidiary related facilities as the Secretary may deem necessary, and to that end:
1.	To establish and operate central facilities for the maintenance, repair, and storage of state‑owned passenger motor vehicles for the use of State agencies; to utilize any available State facilities for that purpose; and to establish such subsidiary facilities as the Secretary may deem necessary.
2.	To acquire passenger motor vehicles by transfer from other State agencies and by purchase. All motor vehicles transferred to or purchased by the Department shall become part of a central motor pool.
3.	To participate in the alternative fuel use credits program under G.S. 143‑58.4."
SECTION 4.  This act becomes effective January 1, 2006.