BILL NUMBER: AB 2076 CHAPTERED
BILL TEXT
CHAPTER 936
FILED WITH SECRETARY OF STATE SEPTEMBER 30, 2000
APPROVED BY GOVERNOR SEPTEMBER 29, 2000
PASSED THE ASSEMBLY AUGUST 29, 2000
PASSED THE SENATE AUGUST 28, 2000
AMENDED IN SENATE AUGUST 7, 2000
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, 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 fuel reserve and to examine and recommend an
appropriate level of reserves. 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.
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 January 31, 2002, the commission shall examine the
feasibility, including possible costs and benefits to consumers and
impacts on fuel prices for the general public, of operating a
strategic 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 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 fuel, but in no event may the reserve be less
than the amount of refined 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 fuel from
the reserve that permits any customer to contract at any time for
the delivery of fuel from the reserve in exchange for an equal amount
of 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 fuel,
and is selected through competitive bidding.
(f) (1) Not later than January 31, 2002, 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 January 31, 2002. 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 request specific statutory
authority and funding for establishment of a reserve.