BILL ANALYSIS 1
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SENATE ENERGY, UTILITIES AND COMMUNICATIONS COMMITTEE
MARTHA M. ESCUTIA, CHAIRWOMAN
SB 698 - Poochigian Hearing Date:
April 26, 2005 S
As Amended: March 29, 2005 FISCAL B
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DESCRIPTION
Current law requires the California Energy Commission (CEC) to
implement a program, known as the Katz Safe School bus Clean
Fuel Efficiency Demonstration Program, for replacing older
school buses.
This bill finds that, 1) California's public schools operate at
least 1000 school buses manufactured before 1977 and an
additional 5000 manufactured before 1987, 2) school buses
manufactured before 1977 do not meet state air quality standards
nor federal or state safety standards, 3) it is the intent of
the Legislature to create a program to purchase new school buses
that meet federal and state safety standards.
This bill requires the Controller to annually transfer $50
million from the Proposition 98 reversion account to the extent
funds are available starting with the 2006-07 fiscal year and
ending with the 2010-2011 fiscal year.
BACKGROUND
The Katz Safe School bus Clean Fuel Efficiency Demonstration
Program was created in the mid-1990's to replace older, highly
polluting school buses with modern alternative fueled buses.
Funding came from fines against oil companies pursuant to
settlements established in the Petroleum Violation Escrow
Account. The Katz program ended in the 2002-03 fiscal year. A
similar program was funded through the California Air Resources
Board, with funding for that program ending in the current
fiscal year. Together these programs cost $135 million,
replaced 800 buses and established alternative fuel refueling
infrastructure.
Pre-1977 buses are less safe and much dirtier than modern buses
because federal safety and emission standards had not yet been
established when they were manufactured. The program created by
this bill continues that replacement effort. Under this program
the state will pay 100% of the capital cost of the bus. The
local school district pays operating costs.
COMMENTS
New buses are expensive. Natural gas powered buses cost about
$135,000, clean diesel buses cost about $110,000, and standard
school buses cost about $94,000. The Katz program replacement
buses were alternative fuel buses because of funding
restrictions. This bill does not contain any such restrictions.
The author and committee may wish to specify whether the
replacement bus must be an alternative fuel bus.
Unlike the Katz program, this bill does not allow for funding of
refueling infrastructure. To the extent that this bill is
intended to encourage use of natural gas vehicles, the bill
should authorize funding of natural gas refueling
infrastructure.
This bill does not specify the mechanism for purchasing the
school buses. Presumably this would be by competitive bid by
the local school district. But it may be possible to obtain a
better deal if the state runs a competitive procurement which
the local school districts can take advantage of. The author
and committee may wish to consider requiring the Department of
General Services to solicit competitive bids for replacement
school buses.
This bill passed the Senate Education Committee on an 11-0 vote.
POSITIONS
Sponsor:
Author
Support:
None on file
Oppose:
None on file
Randy Chinn
SB 698 Analysis
Hearing Date: April 26, 2005