BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 1170
                                                                  Page  1

          Date of Hearing:   August 22, 2001

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                              Carole Migden, Chairwoman

                     SB 1170 (Sher) - As Amended:  July 23, 2001 

          Policy Committee:                             Business &  
          Professions  Vote:                            10-2
                       Transportation                         12-5

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:               

           SUMMARY  

          This bill establishes a structure to minimize the use of  
          petroleum-based fuels by state agencies and to encourage the  
          purchase of ultra-low emission vehicles (ULEVs) and zero  
          emission vehicles (ZEVs) and fuel efficient replacement tires  
          for the state fleet.  Specifically, this bill:

          1)Requires, by January 31, 2003,  the California Energy  
            Commission (CEC), the Department of General Services (DGS) and  
            the Air Resources Board (ARB) to adopt fuel-efficiency  
            specifications for state fleet vehicle and replacement tire  
            purchases that reduce petroleum consumption to the maximum  
            extent practicable and cost-effective.

          2)Requires the CEC and the DGS to jointly study the state's  
            vehicle/tire purchasing patterns and determine the costs and  
            benefits of reducing energy consumption of the fleet by at  
            least 10% by January 1, 2005.

          3)Requires, annually by January 31st starting in 2003, the CEC,  
            the DGS, and the ARB to adopt air pollution emission  
            specifications for the purchase of passenger vehicles and  
            light trucks that meet or surpass the ULEV exhaust standards.

          4)Requires, by January 31, 2003, the CEC to adopt  
            recommendations for a California State Fuel-Efficient Tire  
            Program to encourage consumer purchase and use of  
            fuel-efficient tires for non-state-owned motor vehicles.

           FISCAL EFFECT  








                                                                  SB 1170
                                                                  Page  2


          1)Moderate costs, about $400,000 mainly in FY 2002-03, primarily  
            to the CEC to study the costs and benefits of reducing energy  
            consumption of the state fleet and to adopt fuel-efficiency  
            and air pollution emission specifications.  (Energy Resources  
            Programs Account (ERPA).)

          2)Major cost pressures, in the range of $2 million annually  
            starting in FY 2003-04, to the DGS to purchase more ULEVs and  
            ZEVs at potentially higher prices than comparable conventional  
            vehicles to satisfy the new specifications and energy  
            consumption reduction goal.  (General Fund.)

          3)Potentially major savings, in the range of $2 million annually  
            starting in FY 2004-05, to the DGS to the extent use of more  
            ULEVs and ZEVs and fuel-efficient replacement tires results in  
            a long-term significant reduction in the state's purchase of  
            petroleum-based fuels. (GF and various special funds.)

           COMMENTS
           
          Rationale  .  The author believes the dependence on  
          petroleum-based fuels to power the over 25 million motor  
          vehicles in California poses a threat to the energy security of  
          the state and contributes substantially to public health and  
          environmental problems associated with air pollution, acid rain,  
          global warming and the degradation of fisheries and the general  
          marine environment.  He believes state agencies that maintain  
          vehicle fleets should lead the way in reducing this dependency  
          and take actions to significantly reduce the state's vehicle  
          fleet's consumption of petroleum-based fuels.  In addition, the  
          state should ensure that replacement tires purchased for its  
          vehicles are fuel-efficient compared to other tires available on  
          the market.

           Analysis Prepared by  :    Steve Archibald / APPR. / (916)  
          319-2081