(a) The Department of Transportation may make loans to other state agencies for the purpose of purchasing vanpool vehicles, as defined by subdivision (b) of Section 2570, for state employee vanpooling. The purchased vehicles, to the extent practicable, shall be either “low-emission vehicles,” as defined by Section 39037.05 of the Health and Safety Code, or “alternative fuel vehicles,” which are either of the following:

1. (1) An original equipment manufactured vehicle capable of operating on a nonpetroleum-based alternative fuel such as electricity, ethanol, hydrogen, liquefied petroleum gas, methanol, or natural gas and that has demonstrated to the satisfaction of the State Air Resources Board the ability to meet applicable California emission standards.
2. (2) A vehicle that has been converted to use a nonpetroleum-based alternative fuel such as electricity, ethanol, hydrogen, liquefied petroleum gas, methanol, or natural gas through the installation of an alternative fuel retrofit system that has been certified by the State Air Resources Board.

(b) The department shall establish criteria and adopt guidelines for making the loans and for the purchase of vanpool vehicles, including, but not limited to, requirements on the type of vehicles authorized for purchase, areas within the state eligible for the vehicles’ operation, types of routes for the vehicles’ operation, and agencies which are authorized to participate in the program. State agencies may submit loan applications to the department for approval. State agencies receiving loans and purchasing vehicles pursuant to this section shall be responsible for all of the following:

1. (1) Operational responsibilities for the vehicles, including, but not limited to, vehicle maintenance and repair.
2. (2) Administration of departmental rideshare programs, including, but not limited to, ridership development and retention.
3. (3) Compliance with applicable state and federal laws and regulations, including driver and vehicle certification, licenses, and vehicle registration.
4. (4) Retaining title to vanpool vehicles purchased.
5. (5) Repayment of the loan for the purchase of the vanpool vehicle.