Purchase of vehicles by state entities., the official text

First Regular Session of the 124th General Assembly (2025)

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  HOUSE ENROLLED ACT No. 1518

   AN ACT to amend the Indiana Code concerning state and local
administration.

   Be it enacted by the General Assembly of the State of Indiana:

   SECTION 1. IC 5-22-5-8.5, AS AMENDED BY P.L.144-2024,
SECTION 12, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 8.5. (a) As used in this section, "clean energy
vehicle" means any of the following:

      (1) A vehicle that operates on one (1) or more of the following
      energy sources:

         (A) A rechargeable energy storage system.
         (B) Hydrogen.
         (C) Compressed air.
         (D) Compressed or liquid natural gas.
         (E) Solar energy.
         (F) Liquefied petroleum gas.
         (G) Methanol, denatured ethanol, and other alcohols.
         (H) Mixtures containing eighty-five percent (85%) or more by
         volume of methanol, denatured ethanol, and other alcohols
         with gasoline or other fuel.
         (I) Natural gas.
         (J) Coal-derived liquid fuels.
         (K) Non-alcohol fuels derived from biological material.
         (L) P-Series fuels.
         (M) Electricity.

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         (N) Biodiesel or ultra low sulfur diesel fuel.
      (2) A vehicle that operates on gasoline and one (1) or more of the
      energy sources listed in subdivision (1).
      (3) A vehicle that operates on diesel fuel and one (1) or more of
      the energy sources listed in subdivision (1).
   (b) As used in this section, "state entity" means the following:
      (1) A state agency.
      (2) Any other authority, board, branch, commission, committee,
      department, division, or other instrumentality of the executive
      (including the administrative), legislative, or judicial department
      of state government.
The term includes a state elected official's office and excludes a state
educational institution.
   (c) As used in this section, "total cost of ownership" means the total
cost of the following for a vehicle:
      (1) Energy.
      (2) Operations.
      (3) Maintenance.
      (4) Support infrastructure.
   (d) As used in this section, "vehicle" includes the following:
      (1) An automobile.
      (2) A truck.
      (3) A tractor.
   (e) Except as provided in subsection subsections (f) and (k), if a
state entity purchases or leases a vehicle, it must purchase or lease a
clean energy vehicle unless the Indiana department of administration
determines that the:
      (1) purchase or lease of a clean energy vehicle is inappropriate
      because of the purposes for which the vehicle will be used; or
      (2) total cost of ownership of a clean energy vehicle is
      substantially more than the cost of a vehicle that is not a clean
      energy vehicle.
The vehicle must be a government model, base model, or standard
model vehicle and may not be from a luxury or semi-luxury brand
if a nonluxury brand alternative exists that uses the same
underlying vehicle platform.
   (f) The requirements of subsection (e) do not apply to the:
      (1) purchase or lease of vehicles by or for the state police
      department or the governor; and
      (2) short term or temporary lease of vehicles.
   (g) The Indiana department of administration shall adopt rules or
guidelines to provide a preference for the purchase or lease by state

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entities of clean energy vehicles manufactured wholly or partially in
Indiana or containing parts manufactured in Indiana.

   (h) Before August 1, each state entity shall annually submit to the
Indiana department of administration information regarding the use of
clean energy vehicles by the state entity. The information must specify
the following for the preceding state fiscal year:

      (1) The amount of energy sources described in subsection (a)(1)
      purchased by the state entity.
      (2) The amount of conventional fuels purchased by the state
      entity.
      (3) The average price per gallon paid by the state entity for each
      type of fuel purchased by the state entity.
      (4) The total number of vehicles purchased or leased by the state
      agency that were clean energy vehicles and the total number of
      vehicles purchased or leased by the state agency that were not
      clean energy vehicles.
      (5) Any other information required by the Indiana department of
      administration.
   (i) Before September 1, the Indiana department of administration
shall annually submit to the general assembly in an electronic format
under IC 5-14-6 and to the governor a report that lists the information
required under subsection (h) for each state entity and for all state
agencies in the aggregate.
   (j) Before July 1, 2025, the Indiana department of administration
shall make recommendations to state entities regarding the
procurement of clean energy vehicles.
   (k) A state agency may submit a request to the Indiana
department of administration for an exception to the requirements
of subsection (e). The Indiana department of administration may
grant an exception if it finds the state agency's purchase or lease of
a vehicle that does not meet the requirements of subsection (e) is
necessary for the state agency's intended use of the vehicle.

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Speaker of the House of Representatives

President of the Senate

President Pro Tempore

Governor of the State of Indiana

Date:                             Time:

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