BILL ANALYSIS                                                                                                                                                                                                                   1
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             SENATE ENERGY, UTILITIES AND COMMUNICATIONS COMMITTEE
                            DEBRA BOWEN, CHAIRWOMAN
          

          SB 1170 -  Sher                                   Hearing  
          Date:  April 24, 2001                S
          As Proposed to be Amended               FISCAL           B

                                                                       
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                                   DESCRIPTION
           
           This bill  declares as policies of the state: 

          1.Minimizing the use of petroleum-based fuels by state  
            agencies, 
          2.Purchasing the cleanest and most efficient automobiles  
            and replacement tires,
          3.Maximizing the use of alternative fuels, and 
          4.Implementing all other practicable and cost-effective  
            conservation measures.

           The bill  requires the California Energy Commission (CEC)  
          and the Department of General Services (DGS) to adopt  
          fuel-efficiency standards for new state vehicles and  
          replacement tires that result in annual reductions in  
          petroleum consumption.

           The bill  requires the CEC to adopt, by January 1, 2003,  
          recommendations for developing fuel-efficiency ratings for  
          tires.

                                    BACKGROUND
           
          The State of California, through DGS, purchases about 1,500  
          fleet vehicles every year.  This figure includes passenger  











               vehicles, but does not include patrol cars and other  
               special purpose vehicles.

               Under federal law, 75 percent of state fleet purchases must  
               be alternative fuel capable.  There is no requirement for  
               these vehicles to actually run on alternative fuels, and,  
               due to limited alternative fueling infrastructure and  
               availability, most run on gasoline.

               Current DGS policy is to buy Ultra Low Emission Vehicles  
               (ULEV) for the 25 percent of its fleet not required to be  
               alternative-fueled.  The ULEV designation relates to  
               emissions, not fuel efficiency.  

               This bill is intended to reduce petroleum consumption from  
               state vehicles in two ways.  First, to meet the bill's  
               goal, DGS would be compelled to purchase more  
               fuel-efficient petroleum-fueled cars and/or ensure that  
               alternative-fueled vehicles actually use alternative fuels.  
                Second, DGS would purchase fuel-efficient replacement  
               tires.

































          According to supporters, original equipment tires are three  
          to four percent more efficient than typical replacement  
          tires.  Supporters suggest that requiring more efficient  
          replacement tires is a cost-effective method to reduce fuel  
          consumption.

          On the issue of replacement tires, this bill further  
          requires the preparation of recommendations, which if  
          adopted, could result in fuel-efficiency standards for all  
          replacement tires sold in the state.

                                     COMMENTS  

           1)Requirements may need more definition to ensure intent is  
            achieved.   While the intent of this bill is clearly to  
            reduce petroleum consumption from state vehicles, the  
            bill's requirements may not be sufficiently definitive to  
            ensure that goal is diligently pursued.  For example, the  
            bill could require that new state vehicles exceed, on  
            average, Corporate Average Fuel Economy standards by a  
            specified percentage.

           2)"Implement all other practicable and cost-effective  
            conservation measures."   In particular, the scope of this  
            policy is enormous.  It is unclear how it would be  
            implemented, evaluated or enforced.  Although it is a  
            positive statement, as a policy, it may have little  
            practical value.

                                    POSITIONS
           
           Sponsor:
           
          Author

           Support:
           
          Clean Power Campaign
          Natural Resources Defense Council
          Planning and Conservation League
          Sierra Club California

           Oppose:
           










               None on file




               Lawrence Lingbloom 
               SB 1170 Analysis
               Hearing Date:  April 24, 2001