BILL ANALYSIS
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THIRD READING
Bill No: AB 1340
Author: Kehoe (D)
Amended: 8/19/03 in Senate
Vote: 21
SENATE ENERGY, U.&C. COMMITTEE : 5-2, 6/24/03
AYES: Bowen, Alarcon, Dunn, Murray, Vasconcellos
NOES: Battin, McClintock
NO VOTE RECORDED: Morrow, Sher
SENATE APPROPRIATIONS COMMITTEE : 7-5, 8/29/03
AYES: Alpert, Bowen, Burton, Escutia, Karnette, Machado,
Murray
NOES: Battin, Aanestad, Ashburn, Johnson, Poochigian
NO VOTE RECORDED: Speier
ASSEMBLY FLOOR : 74-0, 5/22/03 (Passed on Consent) - See
last page for vote
SUBJECT : Petroleum: information reports
SOURCE : Author
DIGEST : This bill requires oil refiners, producers,
transporters, marketers, pipeline operators, and terminal
operators, as specified, to submit weekly, rather than
monthly, reports to the California Energy Commission (CEC)
relating to inventory levels, gasoline imports and exports,
and other specified information.
ANALYSIS : Current law (SB 1962, Costa, Chapter 288,
CONTINUED
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Statutes of 2000) requires oil producers, refiners,
pipeline operators, transporters, storage facilities and
marketers, to submit monthly information on petroleum
supplies to the CEC.
Under current regulations, the CEC requires those entities
noted above to provide information including:
1.Receipts and inventory levels of crude oil and petroleum
products at each refinery and terminal location.
2.The amount of gasoline, diesel, jet fuel, blending
components, and other petroleum products imported and
exported.
3.The amount of gasoline, diesel, jet fuel, blending
components, and other petroleum products transported
intrastate by marine vessel.
4.The amount of crude oil imported, including information
identifying the source of the crude oil.
5.Dealer tank wagon prices, also called net dealer buying
prices.
This bill statutorily requires those same entities to
submit the information noted above on a weekly instead of a
monthly basis.
This bill permits any person required to submit this
information to request that specific information be held in
confidence.
Comments
Note:Please refer to the Senate Energy, Utilities and
Communications
Committee analysis for a detailed discussion of the
increases in
gasoline prices.
In its March 28, 2003, report on gasoline and diesel price
spikes, the CEC concluded it needs the information it's now
getting on a monthly basis on a weekly basis instead. It
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believes the information is necessary to more accurately
track inventories, imports, and exports, all of which will
help the CEC more precisely determine the causes of price
spikes. The CEC recommended that the petroleum industry
change its current practice of submitting information on a
monthly basis and begin voluntarily submitting reports to
the CEC weekly. This bill turns that recommendation into a
requirement.
The CEC is currently conducting regulatory proceedings to
modify reporting requirements for the petroleum industry
and is considering requiring weekly reporting from the
industry as part of those proceedings.
Currently, the CEC collects reports from 40-50 entities,
some of which is in aggregate form. Under the new
regulations, they expect to collect information from
150-175 entities.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
CEC staff indicate that (1) one additional personnel year
would be required to process the weekly reports, (2) when
SB 1962 was enacted, no funding for analytical or data
entry staff was provided, and (3) electronic filing
capability, at a cost of $150,000, would expedite the
processing of weekly reports.
Because the CEC is in the process of promulgating similar
regulations, it is difficult to determine to what extent
the increased costs may be associated with the regulations,
this bill, or SB 1962. Costs could be in the range of
$150,000 annually.
SUPPORT : (Verified 8/28/03)
California Service Station and Automotive Repair
Association
Utility Consumers' Action Network
ASSEMBLY FLOOR :
AYES: Aghazarian, Bates, Benoit, Berg, Bermudez, Bogh,
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Calderon, Campbell, Canciamilla, Chan, Chavez, Chu,
Cogdill, Corbett, Correa, Cox, Diaz, Dutra, Dutton,
Dymally, Firebaugh, Frommer, Garcia, Hancock, Harman,
Haynes, Jerome Horton, Shirley Horton, Houston, Jackson,
Keene, Kehoe, Koretz, La Malfa, La Suer, Laird, Leno,
Leslie, Levine, Lieber, Liu, Longville, Lowenthal,
Maddox, Maldonado, Matthews, Maze, McCarthy, Montanez,
Mountjoy, Mullin, Nakanishi, Nakano, Nation, Negrete
McLeod, Oropeza, Pacheco, Parra, Pavley, Plescia, Reyes,
Richman, Ridley-Thomas, Runner, Salinas, Samuelian,
Spitzer, Steinberg, Strickland, Vargas, Wiggins, Wolk,
Wyland, Yee
NC:nl 9/2/03 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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