BILL ANALYSIS                                                                                                                                                                                                    



                                                                       


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                                 THIRD READING


          Bill No:  SB 1170
          Author:   Sher (D)
          Amended:  4/23/01
          Vote:     21

           
           SENATE ENERGY, U.&C. COMMITTEE  :  6-0, 4/24/01
          AYES:  Bowen, Alarcon, Battin, Murray, Speier, Vincent

           SENATE APPROPRIATIONS COMMITTEE  :  0-0, 5/31/01
          AYES:  Alpert, Battin, Bowen, Escutia, Johannessen,  
            Karnette, McPherson, Murray, Perata, Speier


           SUBJECT  :    State vehicle fleet

           SOURCE  :     Author


           DIGEST  :    This bill (1) requires the California Energy  
          Commission and the State Department of General Services to  
          conduct a study and develop, by January 1, 2003,  
          fuel-efficiency standards for new state vehicles and  
          replacement tires in order to annually reduce petroleum  
          consumption, as specified, (2) requires the California  
          Energy Commission to develop, by January 1, 2003,  
          recommendations for consideration by the Governor and the  
          Legislature for a fuel-efficient tire program, as  
          specified, and (3) makes related legislative findings.

           ANALYSIS  :    The State of California, through the State  
          Department of General Services (DGS), purchases about 1,500  
          fleet vehicles every year.  This figure includes passenger  
          vehicles, but does not include patrol cars and other  
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          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 that is not required  
          to be alternative-fueled.  The ULEV designation relates to  
          emissions, not fuel efficiency.

          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.

          4.Implementing all other practicable and cost-effective  
            conservation measures.

          The bill requires the California Energy Commission (CEC)  
          and 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.

           Comments

           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.







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          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.  
           
           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  No

          CEC staff estimate one-time costs of approximately $500,000  
          and one personnel year ($100,000 including benefits).  DGS  
          staff indicate probably minor costs.

          To the extent that the state purchases vehicles and tires  
          that are more fuel-efficient, there are potential long-term  
          cost savings.

           SUPPORT  :   (Verified  5/31/01)

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


          NC:cm  6/1/01   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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