BILL ANALYSIS Ó
Bill No: SB
1265
SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION
Senator Lou Correa, Chair
2013-2014 Regular Session
Staff Analysis
SB 1265 Author: Hueso
As Amended: April 21, 2014
Hearing Date: April 22, 2014
Consultant: Paul Donahue
SUBJECT
State vehicle fleet purchases: Minimum fuel economy
standard
DESCRIPTION
Requires the Department of General Services (DGS) to
include hybrid vehicles within the minimum fuel economy
standard for the state fleet. Specifically, this bill :
1)Requires DGS, in consultation with the Energy Commission,
to include vehicles that are powered by more than one
source, such as hybrid vehicles, but not to include
plug-in electric vehicles.
2)Specifies that all new state vehicle purchases by DGS and
any other state entities of passenger vehicles and light
duty trucks that are powered solely by internal
combustion engines utilizing fossil fuels, or that are
powered by more than one source, such as hybrid vehicles,
shall meet the minimum fuel economy standard. This
standard would not apply to plug-in electric vehicles.
EXISTING LAW
1)Requires DGS, in consultation with the State Energy
Resources Conservation and Development Commission, to
establish a minimum fuel economy standard for the
purchase of passenger vehicles and light duty trucks for
SB 1265 (Hueso) continued
PageB
the state fleet that are powered solely by internal
combustion engines utilizing fossil fuels.
2)Requires all new state fleet purchases of those vehicle
types to meet that standard, with certain exemptions.
BACKGROUND
1)Statement of the issue : This bill is sponsored by DGS,
which states that existing law requires DGS, in
consultation with the Energy Commission, to establish
minimum fuel economy standards for the purchase of
passenger vehicles and light duty trucks for the state
fleet.<1> State law further specifies, however, that the
standards shall be applied only to vehicles that "are
powered solely by internal combustion engines utilizing
fossil fuels." This limited application statutorily
precludes DGS from factoring hybrid vehicles (electric
and fossil fuel technology) into its analysis of the
state's minimum fuel economy standards. The exclusion of
the more fuel efficient hybrid vehicle technology from
these standards limits the state's ability to raise the
standards and promote the acquisition of more fuel
efficient vehicles within the state fleet. The changes to
existing law set forth in SB 1265 will allow DGS to
include hybrid vehicles into its analysis and future
development of the state's minimum fuel economy
standards.
2)Background: DGS and the Energy Commission have developed
and put in place the state's current minimum fuel economy
standards, which are 27.5 MPG for passenger vehicles and
22.2 MPG for light-duty trucks. These standards apply in
all state agency light-duty fleet acquisitions.
In 2012, DGS released its 2012 Progress Report for
Reducing or Displacing the Consumption of Petroleum
Products by the State Fleet. The report concluded that,
as of 2011, the state fleet was using 13 percent less
petroleum than in 2003. The report attributed the
reductions to several factors including recent executive
orders by Governors Schwarzenegger and Brown which called
for reducing the state's fleet size.
-------------------------
<1> Public Resources Code § 25722.7
SB 1265 (Hueso) continued
PageC
DGS states that, although there will be continued
opportunities to reduce unneeded fleet vehicles, this
strategy is largely exhausted given the significant
reductions that have occurred within the state fleet over
the last five years. Consequently, it will require the
state to maximize other strategies, such as purchasing
higher efficiency vehicles, to meet the 20 percent
petroleum reduction goal by 2020. Through the
establishment of an increased fuel economy standard,
state entities would essentially be required to purchase
higher efficiency vehicles such as hybrid vehicles to
meet compliance.
PRIOR/RELATED LEGISLATION
AB 236 (Lieu), Chapter 593, Statutes of 2007. Requires
state agencies to reduce or displace the state fleet's
consumption of petroleum products (based on a 2003
baseline) according to specified timelines.
AB 2264 (Pavley), Chapter 767, Statutes of 2006. Requires
DGS to establish a minimum fuel economy standard by June 1,
2007. The standard applies to the purchase of passenger
vehicles and light duty trucks for the state fleet that are
powered solely by internal combustion engines utilizing
fossil fuels.
AB 1660 (Pavley), Chapter 580, Statutes of 2005. Created
the California Energy-Efficient Vehicle Group Purchase
Program in the DGS to encourage the purchase of
energy-efficient vehicles by local and state agencies
through a group purchasing program.
SB 552 (Burton), Chapter 737, Statutes of 2003. Requires
DGS to develop standards and guidelines for the state
procurement of low-emissions vehicles.
SB 1170 (Sher), Chapter 912, Statutes of 2001. Required a
study on reducing energy consumption of the state's vehicle
fleet by 10% in four years, and states a policy of reducing
the use of petroleum fuels to the maximum extent.
SUPPORT:
Department of General Services (sponsor)
SB 1265 (Hueso) continued
PageD
OPPOSE:
None on file
FISCAL COMMITTEE: Senate Appropriations Committee
**********