BILL NUMBER: AB 2076	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Shelley
   (Principal coauthor: Assembly Member Honda)

                        FEBRUARY 22, 2000

   An act to add Chapter 8.2 (commencing with Section 25720) to
Division 15 of the Public Resources Code, relating to fuel resources:
  fuel supply.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 2076, as introduced, Shelley.  State Energy Resources
Conservation and Development Commission:  fuel supply.
   Existing law requires the State Energy Resources and Conservation
and Development Commission to develop contingency plans to deal with
possible shortages of electrical energy or fuel supplies to protect
public health, safety, and welfare.
   This bill would require the commission, after determining certain
facts concerning an appropriate level of reserves, to establish and
administer a strategic fuel reserve.
   Vote:  majority.  Appropriation:  no.  Fiscal committee:  yes.
State-mandated local program:  no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Chapter 8.2 (commencing with Section 25720) is added to
Division 15 of the Public Resources Code, to read:

      CHAPTER 8.2.  STRATEGIC FUEL RESERVE

   25720.  In order to insulate California consumers and businesses
from dramatic price increases arising from supply interruptions, it
is the intent of the Legislature to establish a strategic fuel
reserve to be administered by the commission.
   25721.  The commission shall determine an appropriate level of
reserves of fuels or fuel components to insulate California consumers
and businesses from substantial, short-term price increases arising
from refinery outages or other similar supply interruptions.  In
making this determination, the commission shall take into account all
of the following:
   (a) Inventories of California-quality fuels or fuel components
reasonably available to the California market.
   (b) Current and historic levels of inventory of fuels.
   (c) The availability and cost of storage of fuels.
   (d) The potential for future supply interruptions, price spikes,
and the costs thereof to California consumers and businesses.
   25722.  (a) Not later than July 1, 2002, the commission shall
establish the California Strategic Fuel Reserve.
   (b) The commission shall establish, by regulation, a triggering
mechanism for the release, by order of the Governor, of fuel or fuel
components from the strategic fuel reserve to the California market
to reduce substantial, short-term price increases.
   (c) In releasing fuel or fuel components from the strategic fuel
reserve, the commission may give preference to firms that will use
those products to reduce prices to California consumers and
businesses.