BILL ANALYSIS �
SB 1265
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Date of Hearing: July 2, 2014
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Mike Gatto, Chair
SB 1265 (Hueso) - As Amended: April 21, 2014
Policy Committee:
AccountabilityVote:13-0
Urgency: No State Mandated Local Program:
No Reimbursable:
SUMMARY
This bill includes hybrid passenger vehicles and light duty
trucks within the minimum fuel economy standards for the state's
fleet.
FISCAL EFFECT
Potential significant increased annual cost-in the hundreds of
thousands to low millions 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
1)Background . Current law requires the Department of General
Services (DGS) and the California Energy Commission to set
standards for the purchase of passenger vehicles and
light-duty trucks powered solely by internal combustion
engines using 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
SB 1265
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current law, the purchase of hybrid vehicles cannot be
included in this average calculation.
Current law enacted in 2007 also requires the state fleet to
reduce or displace petroleum consumption by 10% by 2012 and by
20% by January 1, 2020, from baseline consumption in 2003.
2)Purpose . DGS indicates that the recent reduction of the state
fleet size and the purchase of more fuel efficient and
zero-emission vehicles has enabled the state to meet the 2012
goal, but that additional strategies are needed to meet the
2020 target. By factoring hybrid vehicles into the fuel
economy standards, DGS intends to raise the average standard,
thus reducing petroleum usage for the state fleet. By raising
the standards, many state entities will only be able to meet
the standards by purchasing higher efficiency vehicles such as
hybrids.
Analysis Prepared by : Chuck Nicol / APPR. / (916) 319-2081