Bill Text: CA SB448 | 2013-2014 | Regular Session | Enrolled
Bill Title: Energy: petroleum supply and pricing.
Sponsorship: Partisan Bill (Democrat 2)
Status: (Vetoed) 2014-02-27 - Consideration of Governor's veto stricken from file. [SB448 Detail]
Download: California-2013-SB448-Enrolled.html
BILL NUMBER: SB 448 ENROLLED
BILL TEXT
PASSED THE SENATE SEPTEMBER 12, 2013
PASSED THE ASSEMBLY SEPTEMBER 11, 2013
AMENDED IN ASSEMBLY SEPTEMBER 3, 2013
AMENDED IN ASSEMBLY AUGUST 5, 2013
AMENDED IN SENATE MAY 24, 2013
AMENDED IN SENATE MAY 6, 2013
AMENDED IN SENATE APRIL 23, 2013
AMENDED IN SENATE APRIL 1, 2013
INTRODUCED BY Senator Leno
(Coauthor: Assembly Member Nazarian)
FEBRUARY 21, 2013
An act to add Section 25351 to, and to add and repeal Section
25356.5 of, the Public Resources Code, relating to energy.
LEGISLATIVE COUNSEL'S DIGEST
SB 448, Leno. Energy: petroleum supply and pricing.
Existing law establishes the State Energy Resources Conservation
and Development Commission in the Natural Resources Agency, and
specifies the powers and duties of the commission with respect to
energy resources in the state. Under existing law, various provisions
regulate petroleum supply and pricing. Existing law requires the
commission to obtain and analyze monthly production reports prepared
by the State Oil and Gas Supervisor under a specific provision.
Existing law authorizes the State Lands Commission to enter into oil
and gas leases for the extraction and removal of oil and gas deposits
on state lands. Existing law requires the leases to include a
royalty provision.
This bill would, until January 1, 2018, require the State Energy
Resources Conservation and Development Commission, or the commission,
upon appropriation by the Legislature of moneys generated by the
collection of royalty payments from the oil and gas leases, to
identify data currently collected or developed by the commission and
to establish a methodology to analyze whether fuel price manipulation
has occurred or is occurring. The bill would require the commission
to establish a Motor Vehicle Fuel Market Advisory Committee, as
specified, to review specific data and provide ongoing comments,
insight, and recommendations about fuel market behavior and
transactions related to potential market manipulation and methods to
deter those activities. The bill would require the commission, in
consultation with the State Air Resources Board and other relevant
state agencies, to include in its integrated energy policy report a
one-time report on further legislative recommendations to limit the
amount of price volatility and comparative price increase in the
California fuel market.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 25351 is added to the Public Resources Code, to
read:
25351. The Legislature finds and declares all of the following:
(a) California is in the process of creating investments in, and
deployment of, lower carbon and more sustainable fuel options for
consumers.
(b) California's transition to a lower carbon and lower cost
transportation fuel mix can be threatened by illegal actions that
manipulate prices and make it difficult to understand the real impact
of new standards and regulations.
(c) It is the intent of the Legislature to implement policies that
diversify the state's motor vehicle fuel mix and reduce its carbon
intensity while protecting consumers against market manipulation in
the wholesale markets for finished gasoline and diesel fuel and their
refining feedstocks.
(d) Fully detecting and deterring illegal market price
manipulation for motor vehicle fuels is a complex effort that may be
beyond the existing data collection and analysis capabilities of the
state.
(e) It is the intent of the Legislature to use existing resources
at the State Energy Resources Conservation and Development Commission
and develop additional expertise to identify circumstances and
segments of the transportation fuels sector vulnerable to market
manipulation and recommend actions to deter those activities using
existing data, while also understanding the limitations of the data
that the state already collects.
(f) It is the intent of the Legislature that the authority under
this act be complementary to the authority of other state and federal
agencies.
(g) It is the intent of the Legislature that the State Energy
Resources Conservation and Development Commission work and
communicate with other state and federal agencies to identify
activities that may indicate manipulation in markets for wholesale
finished gasoline and diesel fuels and their refining feedstocks.
SEC. 2. Section 25356.5 is added to the Public Resources Code, to
read:
25356.5. (a) In addition to the requirements of Section 25356,
and in consultation with relevant state and federal agencies, the
commission shall do all of the following:
(1) Identify data currently collected or developed by the
commission that is important to determine whether improper fuel price
manipulation has occurred or is occurring. The data may include all
of the following:
(A) Individual fuel producer data and importer and bulk trader
data, including all of the following:
(i) Production or throughput data.
(ii) Emission data or operational data.
(iii) Sales, storage, and transfer volumes.
(iv) Price.
(B) Observed and forecasted wholesale market prices.
(2) Analyze, in an ongoing manner, the data under paragraph (1)
that is in the possession of the commission and identify
transportation fuel market segments and circumstances vulnerable to
fuel price manipulation at both of the following levels:
(A) Individual business level.
(B) Marketwide producer level, taking into account the actions of
multiple producers.
(3) Identify data that is not in the possession of the commission
and is considered important to determine whether fuel pricing
manipulation has occurred or is occurring. The commission shall
furnish a list of the data to the Legislature upon request.
(b) (1) The commission shall establish a Motor Vehicle Fuel Market
Advisory Committee to review the data gathered and analyzed pursuant
to subdivision (a) and to provide ongoing comments, insight, and
recommendations about fuel market behavior and transactions related
to potential market manipulation and methods to deter those
activities.
(2) The committee, pursuant to paragraph (1), shall include at
least five members with relevant professional or academic expertise,
to the extent feasible, in accordance with the following:
(A) A motor vehicle fuel market analyst.
(B) A representative from the wholesale gasoline and diesel fuel
industry.
(C) A representative from the retail gasoline and diesel fuel
industry.
(D) A representative from the alternative fuel industry.
(E) A representative from an environmental, public interest, or
consumer protection organization.
(c) (1) The commission, in consultation with the State Air
Resources Board and other relevant state agencies, shall include as
part of the first feasible integrated energy policy report pursuant
to Section 25302 that is made following an appropriation pursuant to
subdivision (e) of this section, a one-time report on further
legislative recommendations to limit the amount of price volatility
and comparative price increase in the California fuel market. The
report shall include an evaluation of all of the following
strategies:
(A) Increasing storage of fuels produced in the state.
(B) Leveraging the state's purchasing power related to the state's
motor vehicle fleet.
(C) Increasing timely imports of motor vehicle fuels that meet
existing fuel specifications, as established by the State Air
Resources Board, during emergency conditions and rapid price
volatility.
(D) Coordinating the timing of maintenance and shutdown activities
at in-state fuel production facilities.
(E) Identifying circumstances and segments of markets for gasoline
and diesel fuels and their refining feedstocks that are vulnerable
to price changes and potential market manipulation.
(2) The strategies evaluated pursuant to paragraph (1) shall not
do any of the following:
(A) Be outside of the state's jurisdiction.
(B) Cause backsliding or noncompliance with applicable federal,
state, or local laws or regulations, including state air and water
quality requirements, and other requirements for protecting public
health or the environment.
(C) Disproportionately impact disadvantaged communities.
(3) The report pursuant to paragraph (1) shall also include
comments, insights, and recommendations from the Motor Vehicle Fuel
Market Advisory Committee.
(d) For purposes of this section, "fuel" means finished gasoline
and diesel and their refining feedstocks derived from petroleum.
(e) The commission shall implement this section only upon
appropriation by the Legislature of moneys generated by the
collection of royalty payments from oil and gas leases entered into
pursuant to Article 2 (commencing with Section 6826) of Chapter 3 of
Part 2 of Division 6.
(f) Nothing in this section shall require the commission to do
either of the following:
(1) Make final findings or determinations that market manipulation
has occurred or is occurring.
(2) Release or disclose information deemed to be confidential
under the Petroleum Industry Information Reporting Act of 1980.
(g) Nothing in this section shall prevent the commission from
reporting any information to state or federal agencies pursuant to
existing law.
(h) This section shall remain in effect only until January 1,
2018, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2018, deletes or extends
that date.
