BILL NUMBER: AB 2076 AMENDED
BILL TEXT
AMENDED IN SENATE JULY 5, 2000
AMENDED IN ASSEMBLY MAY 18, 2000
AMENDED IN ASSEMBLY MAY 10, 2000
AMENDED IN ASSEMBLY MAY 8, 2000
AMENDED IN ASSEMBLY APRIL 13, 2000
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.
LEGISLATIVE COUNSEL'S DIGEST
AB 2076, as amended, 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 to examine the feasibility
of operating a strategic gasoline fuel
reserve and to examine and recommend an appropriate level of
reserves. Upon a finding by If the
commission finds that it would be feasible to operate such
a reserve, the bill would require the commission to report this
finding to the Legislature and request specific statutory authority
and funding for establishment of a reserve. The bill would also
require the commission to develop and adopt recommendations on a
California Strategy to Reduce Petroleum Dependence.
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. (a) By July 1, 2001, the commission shall examine the
feasibility, including possible costs and benefits to consumers and
impacts on gasoline fuel prices for the
general public, of operating a strategic gasoline
fuel reserve to insulate California consumers and
businesses from substantial short-term price increases arising from
refinery outages and other similar supply interruptions. In
evaluating the potential operation of a strategic gasoline
fuel reserve, the commission shall consult with
other state agencies, including, but not limited to, the State Air
Resources Board.
(b) The commission shall examine and recommend an appropriate
level of reserves of gasoline fuel ,
but in no event may the reserve be less than the amount of refined
gasoline fuel that the commission
estimates could be produced by the largest California refiner over a
two week period. In making this examination and recommendation, the
commission shall take into account all of the following:
(1) Inventories of California-quality fuels or fuel components
reasonably available to the California market.
(2) Current and historic levels of inventory of fuels.
(3) The availability and cost of storage of fuels.
(4) The potential for future supply interruptions, price spikes,
and the costs thereof to California consumers and businesses.
(c) The commission shall evaluate a mechanism to release
gasoline fuel from the reserve that permits any
customer to contract at any time for the delivery of
gasoline fuel from the reserve in exchange for
an equal amount of gasoline fuel that
meets California specifications and is produced from a source outside
of California that the customer agrees to deliver back to the
reserve within a time period to be established by the commission, but
not longer than six weeks.
(d) The commission shall evaluate reserve storage space from
existing facilities.
(e) The commission shall evaluate a reserve operated by an
independent operator that specializes in purchasing and storing
gasoline fuel , and is selected through
competitive bidding.
25721. Upon a finding by the commission that it would
(f) (1) Not later than July 1, 2001, the commission and the State
Air Resources Board, in consultation with the other state and local
agencies the commission deems necessary, shall develop and adopt
recommendations for the Governor and Legislature on a California
Strategy to Reduce Petroleum Dependence.
(2) The strategy shall include a base case forecast by the
commission of gasoline, diesel, and petroleum consumption in years
2010 and 2020 based on current best estimates of economic and
population growth, petroleum base fuel supply and availability,
vehicle efficiency, and utilization of alternative fuels and advanced
transportation technologies.
(3) The strategy shall include recommended statewide goals for
reductions in the rate of growth of gasoline and diesel fuel
consumption and increased transportation energy efficiency and
utilization of nonpetroleum based fuels and advanced transportation
technologies, including alternative fueled vehicles, hybrid vehicles,
and high fuel efficiency vehicles.
(g) The studies required by this section shall be conducted in
conjunction with any other studies required by acts enacted during
the 2000 portion of the 1999-2000 Regular Session dealing with
gasoline prices.
25721. The commission shall report its findings and
recommendations to the Governor, the Legislature, and the Attorney
General by July 1, 2001. If the commission finds that it would
be feasible to operate a strategic gas reserve to insulate
California consumers and businesses from substantial, short-term
price increases arising from refinery outages or other similar supply
interruptions, the commission shall report this finding to
the Legislature and request specific statutory authority
and funding for establishment of a reserve.