Specifies that commerce must convene an advisory committee to develop the rules. The rules adopted by Commerce must include the authority for local government subdivisions to elect to exempt police, fire, and other emergency response vehicles, including utility vehicles used for emergency response, from the fuel usage requirement. If a local government subdivision elects to exempt emergency response vehicles, a local government subdivision must provide notice to Commerce. Engine retrofits that would void warranties are exempt from the requirement that, by the year 2018, cities and counties satisfy 100 percent of their fuel needs for all vessels, vehicles, and construction equipment from electricity or biofuels. A local government subdivision purchasing vessels, vehicles, and construction equipment using biodiesel must request warranty protection for the highest level of biodiesel that can be used, up to 100 percent biodiesel, as long as the costs are reasonably equal to a vessel, vehicle, or construction equipment item that is not warranted to use up to 100 percent biodiesel.