BILL ANALYSIS
SB 1170
Page 1
SENATE THIRD READING
SB 1170 (Sher)
As Amended September 10, 2001
Majority vote
SENATE VOTE :30-8
BUSINESS AND PROFESSIONS 10-2 TRANSPORTATION 12-5
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|Ayes:|Correa, John Campbell, |Ayes:|Dutra, Firebaugh, Florez, |
| |Cedillo, Chavez, Corbett, | |Havice, Kehoe, Liu, |
| |Kelley, Koretz, Matthews, | |Longville, Nakano, |
| |Nation, Wesson | |Oropeza, Simitian, |
| | | |Strom-Martin, Vargas |
|-----+--------------------------+-----+--------------------------|
|Nays:|Bogh, Leach |Nays:|Bates, Hollingsworth, La |
| | | |Suer, Leach, Mountjoy |
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APPROPRIATIONS 14-5
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|Ayes:|Migden, Alquist, Aroner, |Ayes:| |
| |Washington, Corbett, | | |
| |Correa, Goldberg, Papan, | | |
| |Pavley, Simitian, | | |
| |Thomson, Wesson, Wiggins, | | |
| |Wright | | |
| | | | |
|-----+--------------------------+-----+--------------------------|
|Nays:|Bates, Ashburn, Daucher, |Nays:| |
| |Robert Pacheco, Runner | | |
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SUMMARY : Requires various state agencies to develop and adopt
fuel-efficiency and air pollution emission standards and
recommendations governing the purchase of new state vehicles and
replacement tires that will result in reduced petroleum
consumption. Specifically, this bill :
1)Declares that it is the policy of the state to minimize the
economic and environmental costs of using petroleum-based and
other transportation fuels by state agencies and to implement
a least-cost economic and environmental strategy for state
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fleets.
2)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 and air pollution emission
specifications governing the state purchase of replacement
tires and new vehicles, including those that meet or exceed
the state's Ultra-Low Emission Vehicle (ULEV) standards for
exhaust emissions.
3)Requires CEC, by January 31, 2003, to develop and adopt
recommendations for producing fuel-efficiency ratings for
tires.
4)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, and directs the state to
pursue a waiver from federal requirements governing the state
purchase of vehicles in specified circumstances.
EXISTING LAW 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. Also requires DGS to use retreaded tires as replacements
in support of the state's recycling efforts.
FISCAL EFFECT : Moderate costs of about $400,000, mainly in
fiscal year (FY) 2002-03, to study the costs and benefits of
reducing the state fleet's energy consumption and to adopt
fuel-efficiency and air pollution emission specifications.
Major cost pressures, in the range of $2 million annually
starting in FY 2003-04, to purchase more fuel-efficient and
lower emission vehicles at potentially higher prices than
comparable conventional vehicles to satisfy the new
specifications and energy consumption reduction goals.
Potentially major savings, in the range of $2 million annually
starting in FY 2004-05, through the use of more fuel-efficient
vehicles and replacement tires, resulting in a long-term
significant reduction in the state's purchase of petroleum-based
fuels.
COMMENTS : According to supporters, this bill is intended to put
California at the forefront of efforts to reduce fuel
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consumption, largely through the purchase of fuel-efficient
vehicles and replacement tires. California's rising gasoline
consumption threatens not only our environment, but also our
economic well being as greater volatility in gasoline markets is
expected in the coming years.
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% 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 purchase certified Ultra Low Emission
Vehicles (ULEV) or Super Ultra Low Emission Vehicles (SULEV) for
the 25% of its fleet not required to be alternative-fueled. The
ULEV and SULEV designations relate to emissions, not fuel
efficiency. However, it could be argued that the conversion of
the state fleet into low and zero emission vehicles would have
the additional benefit of significantly increasing fuel
efficiency.
The specifications for vehicle 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 supporters, original equipment tires are three to
four percent more fuel-efficient than typical replacement tires.
Supporters suggest that requiring more fuel-efficient
replacement tires is a cost-effective method of reducing fuel
consumption.
Analysis Prepared by : Mark McKenzie / B. & P. / (916) 319-3301
FN: 0003348