BILL ANALYSIS �
SB 1265
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Date of Hearing: June 18, 2014
ASSEMBLY COMMITTEE ON ACCOUNTABILITY AND ADMINISTRATIVE REVIEW
Jim Frazier, Chair
SB 1265 (Hueso) - As Amended: April 21, 2014
SENATE VOTE : 35-0
SUBJECT : State vehicle fleet purchases: minimum fuel economy
standard
SUMMARY : Subjects 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 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.
3)Requires the state fleet to reduce or displace petroleum
consumption by 20 percent by January 1, 2020.
FISCAL EFFECT : According to the Senate Appropriations
Committee:
1)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
SB 1265
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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.
2)Minor and absorbable costs to DGS and the Commission to update
the minimum fuel economy standards to include hybrid vehicles.
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 hybrid vehicles cannot be included in this average
calculation.
This bill would subject vehicles that are powered by more than
one source, including hybrid 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.
REGISTERED SUPPORT / OPPOSITION :
Support
DGS (sponsor)
Alliance of Automobile Manufacturers
Department of Finance
South Coast Air Quality Management District
Opposition
None on file
SB 1265
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Analysis Prepared by : Scott Herbstman / A. & A.R. / (916)
319-3600