BILL ANALYSIS
SB 1170
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Date of Hearing: July 16, 2001
ASSEMBLY COMMITTEE ON TRANSPORTATION
John Dutra, Chair
SB 1170 (Sher) - As Amended: July 23, 2001
SENATE VOTE : 30-8
SUBJECT : State vehicle fleet
SUMMARY : Creates a state policy to minimize the use of
petroleum-based fuels by requiring specified state agencies to
adopt energy, air pollution, and fuel efficiency standards for
the state vehicle fleet. Specifically, this bill :
1)Declares that it is the policy of the state to minimize the
use of petroleum-based fuels by state agencies and to purchase
the cleanest and most efficient automobiles and replacement
tires.
1)Requires the California Energy Commission (CEC), the
Department of General Services (DGS), and the State Air
Resources Board (ARB), by January 31, 2003, to adopt
fuel-efficiency standards governing the purchase by the state
of new vehicles and replacement tires.
2)Requires CEC and DGS to conduct a study analyzing the costs
and benefits of a 10% reduction in state fleet energy
consumption by January 1, 2005.
1)Requires CEC, DGS, and ARB, by January 31, 2003, and annually
thereafter, to develop and adopt air pollution emission
specifications governing the purchase of passenger cars and
light-duty trucks that meet or exceed the state's ultra-low
emission vehicle (ULEV) standards for exhaust emissions.
2)Directs the state, upon discovering lower cost measures to
reduce petroleum dependency, to pursue a waiver from federal
requirements governing the state purchase of specified
vehicles.
3)Requires CEC, by January 31, 2003, to develop and adopt
recommendations for consideration by the Governor and
Legislature of a California State Fuel-Efficient Tire Program.
SB 1170
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EXISTING LAW :
1)Finds and declares that petroleum use as an energy resource
contributes substantially to specified public health and
environmental problems.
2)Requires CEC to acquire and analyze information to determine
future energy problems and uncertainties, including impacts of
petroleum price increases and projected conservation measures
on the demand for energy.
3)Provides that it is the policy of the state to evaluate the
economic and environmental costs of petroleum use and to
establish a state transportation energy policy that results in
the least environmental and economic cost to the state.
4)Requires DGS, under the California Integrated Waste Management
Act, to use retreaded tires as replacements in support of the
state's recycling efforts.
FISCAL EFFECT : According to the Senate Appropriations
Committee, one-time cost to CEC of approximately $500,000 and
one personnel year ($100,000 including benefits). Minor costs
to the DGS.
COMMENTS : According to the author, the purpose of SB 1170 is
to demonstrate "state leadership" in reducing petroleum
consumption over the next several years when CEC and other
experts "expect greater price volatility in the gasoline markets
due to a significant shortfall in refinery supply capacity."
The Natural Resources Defense Council (NRDC), supporters of the
bill, state that California's rising gasoline consumption will
increase by 40% over the next two decades, resulting in
increased air pollution, air toxics, water contamination, and,
as gasoline supplies decrease, higher consumer prices. They
contend that the best way to address this problem is to "reduce
demand through fuel efficiency, alternative fuels, and smarter
growth."
SB 1170 requires DGS and CEC to create fuel-efficiency standards
and apply those standards to its bid specifications for cars and
tires. Federal law requires that 75% of state fleet purchases
have the capability to use alternative fuels, such as
electricity and natural gas. The author notes that this bill
SB 1170
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only affects the remaining 25% of the state fleet, which are
currently not required to be alternative-fueled. For these 25%
gasoline vehicle purchases, DGS has a current policy to buy only
low-pollution vehicles, such as ULEVs. The author states that
this bill will apply the same policy to fuel economy.
The specifications for car and tire purchases will be based on
the results of two studies required by this bill. The first
study, conducted by CEC and DGS, examines state purchasing
patterns and analyzes the benefits of reducing the energy
consumption of the state fleet. The second study requires CEC
to develop and adopt recommendations for a program that promotes
the purchase of fuel-efficient replacement tires.
According to NRDC, most purchasers are "unaware that original
equipment tires provided with new automobiles are more
fuel-efficient than typical replacement tires. Requiring
replacement tires to be at least as fuel-efficient as the
original equipment could result in a 3 to 4% improvement in fuel
economy."
In deciding future product decisions, NRDC claims that
automakers closely monitor the successes and failures of new
fuel-efficient technologies in California. They contend that
"state policies designed to demonstrate leadership and provide
consumers with incentives, both monetary and non-monetary, can
be a critical determining factor in the success of new
technologies."
The American Lung Association claims that almost 70% of the
state's air pollution is generated by motor vehicles, and that
this bill "provides an important opportunity for the State to
take a leadership role in promoting cleaner cars and reduced
petroleum consumption, setting an example for other public and
private fleets, and increasing market demand for clean and
efficient vehicles."
While the author admits that a more comprehensive solution is
necessary to sufficiently address transportation energy and
pollution matters, he believes "the first step is for the state
[government] to lead by example."
Similar legislation: As approved by the Assembly Transportation
by vote of 10-2, AB 1390 (Firebaugh) allowed automobile
manufacturers to fund air pollution control programs in lieu of
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selling zero-emission vehicles. The bill was recently amended
to require the state to expend not less than 50% of the moneys
appropriated until January 1, 2007, for the Carl Moyer program,
programs to fund the purchase of reduced emission schoolbuses,
and diesel mitigation, to reduce air contaminants or the public
health risks associated with air contaminants in communities
that are disproportionately impacted by localized air
contaminants.
AB 1058 (Pavley) requires the Air Resources Board (ARB) to adopt
regulations to reduce the emissions of carbon dioxide (CO2) by
motor vehicles. This measure passed the Assembly Transportation
Committee by 10-7 vote.
Prior legislation: AB 2076 (Shelley), Chapter 936, Statutes of
2000, required CEC to study the feasibility of a strategic fuel
reserve and to develop and adopt recommendations on a California
Strategy to Reduce Petroleum Dependence.
REGISTERED SUPPORT / OPPOSITION :
Support
American Lung Association
Clean Power Campaign
Natural Resources Defense Council
Sierra Club California
Opposition
None received
Analysis Prepared by : Ryan Spencer / TRANS. / (916) 319-2093