BILL ANALYSIS Ó
SB 1265
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SENATE THIRD READING
SB 1265 (Hueso)
As Amended August 19, 2014
Majority vote
SENATE VOTE :35-0
ADMINISTRATIVE REVIEW 13-0APPROPRIATIONS 16-1
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|Ayes:|Frazier, Achadjian, |Ayes:|Gatto, Bigelow, |
| |Buchanan, Ian | |Bocanegra, Bradford, Ian |
| |Calderon, Cooley, Gorell, | |Calderon, Campos, Eggman, |
| |Hagman, Lowenthal, | |Gomez, Holden, Jones, |
| |Mansoor, Medina, Olsen, | |Linder, Pan, Quirk, |
| |Quirk-Silva, Salas | |Ridley-Thomas, Wagner, |
| | | |Weber |
| | | | |
|-----+--------------------------+-----+--------------------------|
| | |Nays:|Donnelly |
| | | | |
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SUMMARY : Subjects nonplug-in hybrid vehicles to the state
fleet's minimum fuel economy standards. Specifically, this
bill :
1)Adds vehicles that are powered by more than one source,
including hybrid vehicles, to the standards.
2)Clarifies that the standards do not apply to plug-in hybrid
electric vehicles or battery electric vehicles.
EXISTING LAW :
1)Requires the Department of General Services (DGS), in
consultation with the State Energy Resources Conservation and
Development Commission (Commission), to establish minimum fuel
economy standards for state fleet purchases of passenger
vehicles and light-duty trucks that are powered solely by
internal combustion engines utilizing fossil fuels.
2)Requires new state fleet purchases of those vehicle types to
meet those standards, with certain exemptions.
SB 1265
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3)Requires the state fleet to reduce or displace petroleum
consumption by 20 percent by January 1, 2020.
FISCAL EFFECT : According to the Assembly Appropriations
Committee, potential significant increased annual cost - in the
hundreds of thousands of dollars - to the extent more hybrid
vehicles would be purchased in lieu of gasoline-powered
vehicles. (The initial purchase price of hybrids exceeds that
for gasoline-powered vehicles by about $6,500 on average.)
These higher costs would be borne by the General Fund and
numerous special funds depending on purchases by various state
agencies. The higher initial costs, however, would essentially
be offset over the life of the vehicles due to lower operations
and maintenance costs for hybrids.
COMMENTS : DGS and the Commission currently sets standards for
the purchase of passenger vehicles and light-duty trucks that
are powered solely by internal combustion engines that use
fossil fuels. Those standards are 27.5 miles per gallon (MPG)
for passenger vehicles and 22.2 MPG for light-duty trucks.
When agencies purchase new vehicles, DGS calculates the average
of these purchases by agency to ensure the minimum fuel economy
standards are being met as a whole. Under current law, the
purchase of nonplug-in hybrid electric vehicles cannot be
included in this average calculation.
This bill would subject vehicles that are powered by more than
one source, including nonplug-in hybrid electric vehicles, to
the fuel economy standards. According to the sponsor, DGS, this
change will likely encourage agencies to purchase more hybrid
vehicles and therefore reduce fuel use for the state fleet. The
state currently uses about 1,000 hybrid vehicles.
In addition to meeting fuel economy standards when purchasing,
state law also requires a 20% reduction or displacement of
petroleum products for the state fleet from 2003 levels by
January 1, 2020. According to the author, this bill will help
the state meet that requirement.
Analysis Prepared by : Scott Herbstman / A. & A.R. / (916)
319-3600
SB 1265
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