Bill Text: CA SBX12 | 2023-2024 | Regular Session | Amended
Bill Title: Energy: transportation fuels: supply and pricing: maximum gross gasoline refining margin.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Passed) 2023-03-28 - Chaptered by Secretary of State. Chapter 1, Statutes of 2023-24 First Extraordinary Session. [SBX12 Detail]
Download: California-2023-SBX12-Amended.html
Amended
IN
Senate
March 20, 2023 |
Introduced by Senator Skinner |
December 05, 2022 |
LEGISLATIVE COUNSEL'S DIGEST
This bill would state the intent of the Legislature to enact subsequent legislation relating to transportation fuels, as described, including requiring the commission to conduct regular assessments of the supply and price of transportation fuels in the state, and of the impacts on production of refinery maintenance and turnarounds on fuel supply and price.
Existing law establishes the California Department of Tax and Fee Administration and provides that the department is the successor to, and is vested with, the duties, powers, and responsibilities of the State Board of Equalization.
This bill would state the intent of the
Legislature to enact subsequent legislation that would direct the department, in collaboration with the commission, to investigate and report on aspects of the gasoline market, as specified.
Digest Key
Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: YESBill Text
The people of the State of California do enact as follows:
SECTION 1.
The Legislature finds and declares all of the following:It is the intent of the Legislature to enact subsequent legislation that would do all of the following:
(a)Require that the State Energy Resources Conservation and Development Commission (Energy Commission) conduct regular assessments of the supply and price of transportation fuels in the state, and of the impacts on production of refinery maintenance and turnarounds on fuel supply and price.
(b)Expand the Energy Commission’s authority to investigate and obtain necessary information, including information regarding pricing, supply contracts, and inventory management, from participants in the market for transportation fuels.
(c)Expand the Energy Commission’s authority to order that refinery maintenance and turnarounds be rescheduled in specified circumstances, when consistent with employee and public safety and necessary to avoid supply shocks in the market for transportation fuels.
(d)Establish an advisory committee of fuels market experts to provide the Energy Commission with independent advice and insights.
(e)Require the Energy Commission and the State Air Resources Board, in consultation with the state’s fuel producers and refiners, to plan for and monitor progress toward the state’s reliable, safe, equitable, and affordable transition away from petroleum fuels, and to issue periodic reports to the Governor and the Legislature.
(f)Supplement existing refinery reporting requirements by requiring more detailed reports to the Energy Commission on transportation fuel imports, inventory levels, and transactions, and on refinery maintenance and turnarounds.
It is the intent of the Legislature to enact subsequent legislation that would direct the California Department of Tax and Fee Administration, in collaboration with the State Energy Resources Conservation and Development Commission, to investigate and report on the drivers of and factors affecting the price of gasoline in the refining, distribution, and retail segments of the gasoline market; to uncover pricing irregularities in the California gasoline market and their effect on tax revenue; and to report its findings to the Governor and the Legislature.
SEC. 2.
Section 25354 of the Public Resources Code is amended to read:25354.
(a) Each refiner and major marketer shall submit information each month to the commission in such form and extent as the commission prescribes pursuant to this section. For purposes of this section, the term “refiner” and “refinery” shall include refiners and refineries as defined in Sections 25127 and 25128, and also those persons and facilities that process renewable feedstocks instead of crude oil feedstocks and otherwise meet the definitions in Sections 25127 and 25128. The information shall be submitted within 30 days after the end of each monthly reporting period and shall include the following:SEC. 3.
Section 25354.2 is added to the Public Resources Code, to read:25354.2.
The commission, in consultation with the Labor and Workforce Development Agency and labor and industry stakeholders, shall consider ways to manage necessary refinery turnarounds and maintenance that would protect the health and safety of employees and the public, and minimize the impact of maintenance-related production losses on fuel prices. The commission may, by regulation, impose requirements governing the timing of turnaround and maintenance developed through consultations under this section.SEC. 4.
Section 25355 of the Public Resources Code is amended to read:25355.
(a) For purposes of this section,(3)
(4)
(5)
(3)
SEC. 4.SEC. 5.
Section 25355.5 is added to the Public Resources Code, to read:25355.5.
(a) For purposes of this section, the following definitions apply:(b)Reports required under subdivision (b) of Section 25355 shall also include the volume weighted average cost of any refined gasoline acquired by a refiner during the calendar month, and the volume in barrels of refined gasoline acquired.
(c)(1)(A)On and after the effective date of this section, the maximum gross gasoline refining margin shall be ____ cents per gallon.
(B)On July 1, 2024, and on July 1 of each year thereafter, the maximum gross gasoline refining margin shall automatically be adjusted annually to reflect the changes in the Consumer Price Index.
(2)Beginning ____, the commission may, at a publicly noticed meeting, adjust the maximum gross gasoline refining margin based on market data as necessary to fulfill the intent and purposes of the section and to ensure that a full and affordable supply of gasoline is available to Californians.
(3)Within 15 days of an adjustment to the maximum gross gasoline refining margin pursuant to subparagraph (B) of paragraph (1) or paragraph (2), the commission shall notify refiners of the new maximum gross gasoline refining margin by a means determined by the commission that may include, but is not limited to, mail, email, or internet website postings.
(4)Adjustments to the maximum gross gasoline refining margin pursuant to this subdivision shall be effective on the first day of the calendar month at least 15 days after the commission gives public notice of the adjustment, unless the commission orders otherwise.
(d)On and after ____, it is a violation of this section for a refiner to exceed the maximum gross gasoline refining margin.
(e)The commission may petition a court to enjoin a refiner from violating subdivision (d).
(f)The commission may impose an administrative civil penalty for a violation of subdivision (d). The amount of the penalty shall presumptively be set based on the amount by which the refiner’s gross
gasoline refining margin excluding state program costs exceeds the maximum gross gasoline refining margin, converted from barrels to gallons and multiplied by the number of gallons sold by the refiner during the calendar month through all transactions described in paragraph (4) of subdivision (b) of Section 25355, as follows:
(1)____ percent on amounts earned by a refiner that exceed the maximum gross gasoline refining margin by less than ____ cents per gallon.
(2)____ percent on amounts earned by a refiner that exceed the maximum gross gasoline refining margin between ____ and ____ cents, inclusive, per gallon.
(3)____ percent on amounts earned by a refiner that exceed the maximum gross gasoline refining margin by more than ____ cents per gallon.
(g)
(3)The commission shall by regulation develop procedures for considering and adjudicating requests made pursuant to this subdivision.
(h)(1)The
commission shall identify, on a quarterly basis, the name and address of each refiner that has exceeded the maximum gross gasoline refining margin for any month during the previous quarter, and the amount of administrative civil penalty to be assessed.
(2)
(4)
SEC. 6.
Section 25355.7 is added to the Public Resources Code, to read:25355.7.
(a) Notwithstanding Section 10231.5 of the Government Code, on or before March 1, 2024, and March 1 of each year thereafter, the commission, in cooperation with the California Department of Tax and Fee Administration, shall submit a report to the Legislature, in accordance with Section 9795 of the Government Code, that includes a review of the price of gasoline in California and its impact on state revenues for the previous calendar year.SEC. 7.
Section 25362 of the Public Resources Code is amended to read:25362.
(a) The commission shall notify those persons who have failed to timely provide the information specified in Section 25354 or 25355. If, within five days after being notified of the failure to provide the specified information, the person fails to supply the specified information, the person shall be subject to a civil penalty of not less than five(c)
SEC. 8.
Section 25364 of the Public Resources Code is amended to read:25364.
(a) A person required to present information to the commission pursuant to Section 25354 or 25355 or a person making a request for exemption pursuant to Section 25355.5 may request that specific information be held in confidence. Information requested to be held in confidence shall be presumed to be confidential.(h)