HB 2901 Summary

• Transfers state motor vehicle fleet operations from the Department of Administration to the Department of Transportation, establishing new funds (state fleet operations fund and state vehicle replacement fund) to recover costs from agencies using fleet services.

• Excludes eight specific agencies from mandatory fleet participation (DPS, DES, Department of Corrections, universities, community colleges, schools for deaf and blind, Cotton research council, Commerce Authority, Department of Child Safety), though they may voluntarily participate.

• Requires neighborhood electric vehicles be assigned to agencies requesting new vehicles unless the vehicle's use exceeds 35 mph speed limits, 1,500-pound load capacity, or transports more than six persons.

• Establishes a statewide alternative fuels plan requiring all state vehicles to meet EPA low-emission standards and demonstrate high fuel economy, with exemptions for law enforcement, motorcycles, ATVs, ambulances, and fire apparatus.

• Redirects revenue from nonresident vehicle registration, limited registration, single trip permits, and fuel tax permits from a repealed safety enforcement fund (55% to state highway fund, 45% to Arizona highway patrol fund).

• Transfers all state agency motor vehicles to Department of Transportation control as of June 30, 2021, except those purchased with restricted or committed federal/state funds.