BILL ANALYSIS �
-----------------------------------------------------------------
|SENATE RULES COMMITTEE | SB 1265|
|Office of Senate Floor Analyses | |
|1020 N Street, Suite 524 | |
|(916) 651-1520 Fax: (916) | |
|327-4478 | |
-----------------------------------------------------------------
THIRD READING
Bill No: SB 1265
Author: Hueso (D)
Amended: 4/21/14
Vote: 21
SENATE GOVERNMENTAL ORGANIZATION COMMITTEE : 10-0, 4/22/14
AYES: Correa, Berryhill, Cannella, De Le�n, Galgiani,
Hernandez, Lieu, Padilla, Torres, Vidak
SENATE APPROPRIATIONS COMMITTEE : 7-0, 5/23/14
AYES: De Le�n, Walters, Gaines, Hill, Lara, Padilla, Steinberg
SUBJECT : State vehicle fleet purchases: minimum fuel economy
standard
SOURCE : Department of General Services
DIGEST : This bill requires the Department of General Services
(DGS) to include hybrid vehicles within the minimum fuel economy
standard for the state fleet.
ANALYSIS :
Existing law:
1.Requires DGS, in consultation with the State Energy Resources
Conservation and Development Commission (CEC), to establish a
minimum fuel economy standard for the purchase of passenger
vehicles and light duty trucks for the state fleet that are
powered solely by internal combustion engines utilizing fossil
CONTINUED
SB 1265
Page
2
fuels.
2.Requires all new state fleet purchases of those vehicle types
to meet that standard, with certain exemptions.
This bill:
1.Requires DGS, in consultation with the CEC, to include
vehicles that are powered by more than one source, such as
hybrid vehicles, but not to include plug-in electric vehicles,
within the minimum fuel economy standard for the state fleet.
2.Requires 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, to meet the minimum fuel
economy standard. This standard will not apply to plug-in
electric vehicles.
Background
DGS and the CEC 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% 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.
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% petroleum
reduction goal by 2020. Through the establishment of an
increased fuel economy standard, state entities would
CONTINUED
SB 1265
Page
3
essentially be required to purchase higher efficiency vehicles
such as hybrid vehicles to meet compliance.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
According to the Senate Appropriations Committee:
Unknown, significant cost pressures, likely in the hundreds of
thousands to low millions, to the extent that fuel economy
standards are raised to a level that necessitates the purchase
of more hybrid vehicles in the state fleet. The initial
higher contract cost of hybrid vehicles may be almost totally
mitigated over a seven-year lifecycle cost analysis that
includes fuel, maintenance, and repair costs. Actual
increased purchase costs would vary for individual
departments, depending on the mix of demand for particular
vehicle classes, and whether a department is able to absorb
the cost in existing budgets for vehicle purchases.
Minor and absorbable costs to DGS and CEC to update the
minimum fuel economy standards to include hybrid vehicles.
SUPPORT : (Verified 5/23/14)
Department of General Services (source)
Department of Finance
ARGUMENTS IN SUPPORT : The bill's sponsor, DGS, states that
the changes to existing law set forth in this bill will allow
DGS to include hybrid vehicles into its analysis and future
development of the state's minimum fuel economy standards.
The Department of Finance supports this bill because it is in
compliance with state policy to green the state fleet and the
Governor's goal to transform transportation through the use of
cleaner vehicle technologies.
MW:nk 5/23/14 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
**** END ****
CONTINUED
SB 1265
Page
4
CONTINUED