BILL ANALYSIS                                                                                                                                                                                                    



                                                                       


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                              UNFINISHED BUSINESS


          Bill No:  SB 1170
          Author:   Sher (D)
          Amended:  9/10/01
          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

           SENATE FLOOR  :  30-8, 6/4/01
          AYES:  Alarcon, Alpert, Battin, Bowen, Burton, Chesbro,  
            Costa, Dunn, Escutia, Figueroa, Johannessen, Karnette,  
            Kuehl, Machado, Margett, McPherson, Murray, O'Connell,  
            Ortiz, Peace, Perata, Polanco, Romero, Scott, Sher, Soto,  
            Speier, Torlakson, Vasconcellos, Vincent
          NOES:  Ackerman, Brulte, Haynes, Knight, McClintock,  
            Monteith, Oller, Poochigian

           ASSEMBLY FLOOR  :  Not available


           SUBJECT  :    State vehicle fleet

           SOURCE  :     Author


           DIGEST  :    This bill establishes a structure to minimize  
          the use of petroleum-based fuels and other transportation  
          fuels by state agencies to encourage the purchase of  
          ultra-low emission vehicles and zero emission vehicles and  
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          fuel-efficient replacement tires for the state fleet.

           Assembly Amendments  (1) add language requiring the Air  
          Resources Board to participate in developing the required  
          specifications, (2) add language requiring the development  
          of air pollution emission specifications governing the  
          purchase of passenger cars and light-duty trucks, as  
          specified, (3) make changes in the declarations of the  
          policy of the State, and (4) add coauthors.

           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  
          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 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 fleets.

          2.Requires the California Energy Commission (CEC), DGS, and  
            the State Air Resources Board, 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  







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            meet or exceed the State's ULEV standards for exhaust  
            emissions.

          3.Requires the CEC, by January 11, 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 percent 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. 

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

          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.

           SUPPORT  :   (Verified  5/31/01) (Unable to reverify at time  
          of writing)

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


          NC:cm  9/12/01   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE







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