BILL NUMBER: SB 1962	INTRODUCED
	BILL TEXT


INTRODUCED BY   Senator Costa

                        FEBRUARY 25, 2000

   An act to amend Sections 25000.5, 25350, 25354, and 25356 of, and
to add Section 25141 to, the Public Resources Code, relating to
petroleum fuel.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 1962, as introduced, Costa.  Petroleum products: reports.
   Existing law requires each refiner of petroleum products to submit
monthly information to the State Energy Resources Conservation and
Development Commission, including information on feedstock inputs,
origin of petroleum receipts, refinery outputs, refinery stocks, and
finished product supply and distribution, and each major marketer of
petroleum products to report on petroleum and petroleum product
receipts, inventories, and distributions.
   This bill would require refiners to additionally report on imports
and exports of petroleum products, including the sale of gasoline
sold "unbranded" by the refiner, blender or importer.  The bill would
also require marketers to report on receipts of finished petroleum
products and blendstocks through branded and unbranded distribution
networks, and exports of unfinished petroleum products and
blendstocks.  The bill would define "unbranded" for these purposes.
   Existing law requires the commission to gather, analyze, and
interpret the information submitted to it pursuant to the foregoing
provisions concerning, among other things, motor fuel prices, and any
significant changes in prices charged by the petroleum industry for
petroleum or petroleum products sold in California and the reasons
for those changes.
   This bill would additionally require the commission to gather,
analyze, and interpret information submitted to it concerning sales
of fuel to unbranded retail markets.
   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.  Section 25000.5 of the Public Resources Code is amended
to read:
   25000.5.  (a) The Legislature finds and declares that
overdependence on the production, marketing, and consumption of
petroleum based fuels as an energy resource in the transportation
sector is a threat to the energy security of the state due to
continuing market and supply uncertainties.  In addition, petroleum
use as an energy resource contributes substantially to the following
public health and environmental problems:  air pollution, acid rain,
global warming, and the degradation of California's marine
environment and fisheries.
   (b) Therefore, it is the policy of this state to fully evaluate
the economic and environmental costs of petroleum use, and the
economic and environmental costs of other transportation fuels,
including the costs and values of environmental 
externalities   impacts  , and to establish a state
transportation energy policy that results in the least environmental
and economic cost to the state.  In pursuing the "least
environmental and economic cost" strategy, it is the policy of the
state to exploit all practicable and cost-effective conservation and
improvements in the efficiency of energy use and distribution, and to
achieve energy security, diversity of supply sources, and
competitiveness of transportation energy markets based on the least
environmental and economic cost.   It is also the policy of the
state to ensure that emergency service agencies, state and local
government agencies, agricultural consumers, and business consumers
of petroleum products have adequate and economic supplies of fuel.

   (c) For the purposes of this section, "petroleum based fuels"
means fuels derived from liquid unrefined crude oil, including
natural gas liquids,  liquified   liquefied
 petroleum gas, or the energy fraction of
methyltertiarybutylether (MTBE) or other ethers that is not
attributed to natural gas.
  SEC. 2.  Section 25141 is added to the Public Resources Code, to
read:
   25141.  "Unbranded," as applied to fuel, means gasoline and diesel
fuel sold for wholesale or retail distribution to consumers without
proprietary additives or marketing under a brand name or trademark
owned or controlled by an independent refiner or an integrated
refining and marketing company.
  SEC. 3.  Section 25350 of the Public Resources Code is amended to
read:
   25350.  (a) The Legislature finds and declares that the petroleum
industry is an essential element of the California economy and is
therefore of vital importance to the health and welfare of all
Californians.
   (b) The Legislature further finds and declares that a complete and
thorough understanding of the operations of the petroleum industry
is required by state government at all times to enable it to respond
to possible shortages, oversupplies, or other disruptions.
   (c) The Legislature further finds and declares that information
and data concerning all aspects of the petroleum industry, including,
but not limited to, crude oil production,  production and 
supplies  of finished branded and unbranded gasoline, supplies of
diesel fuel and other distillates, supplies of blendstocks used to
make gasoline and other refined products  , refining, product
output,  exports of finished gasoline, diesel fuel, and
blendstocks,  prices, distribution, demand, and investment
choices and decisions are essential for the state to develop and
administer energy policies  which   that 
are in the interest of the state's economy and the public's
well-being.
  SEC. 4.  Section 25354 of the Public Resources Code is amended to
read:
   25354.  (a)  Beginning the first month after the effective
date of this chapter  and each month thereafter, each  
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.  The information
shall be submitted within 30 days after the end of each monthly
reporting period and shall include the following:
   (1) Refiners shall report, for each of their refineries, feedstock
inputs, origin of petroleum receipts,  imports of finished
petroleum products and blendstocks, including the source of those
imports, exports of finished petroleum products and blendstocks,
including the destination of those exports,  refinery outputs,
refinery stocks, and finished product supply and distribution ,
including all gasoline sold unbranded by the refiner, blender, or
importer  .
   (2) Major marketers shall report on  petroleum and
 petroleum product receipts  and the sources of these
receipts  , inventories  , and   of
finished petroleum products and blendstocks,  distributions 
through branded and unbranded distribution networks, and exports of
finished petroleum products and blendstocks from the state  .
   (b)  Beginning the first month after the effective date of
this chapter and annually thereafter, each   Each 
major oil producer, refiner, marketer, oil transporter, and oil
storer shall  annually  submit information to the commission
in such form and extent as the commission prescribes pursuant to
this section.  The information shall be submitted within 30 days
after the end of each reporting period, and shall include the
following:
   (1) Major oil transporters shall report on petroleum by reporting
the capacities of each major transportation system, the amount
transported by each system, and inventories thereof.  The commission
may prescribe rules and regulations  which  
that  exclude pipeline and transportation modes operated
entirely on property owned by major oil transporters from the
reporting requirements of this section  where  
if  the data or information is not needed to fulfill the
purposes of this chapter.  The provision of the information shall not
be construed to increase or decrease any authority the Public
Utilities Commission may otherwise have.
   (2) Major oil storers shall report on storage capacity,
inventories, receipts and distributions, and methods of
transportation of receipts and distributions.
   (3) Major oil producers shall, with respect to thermally enhanced
oil recovery operations, report annually by designated oil field, the
monthly use, as fuel, of crude oil and natural gas.
   (4) Refiners shall report on facility capacity, and utilization
and method of transportation of refinery receipts and distributions.

   (5) Major oil marketers shall report on facility capacity and
methods of transportation of receipts and distributions.
   (c) Each person required to report pursuant to subdivision (a)
shall submit a projection each month of the information to be
submitted pursuant to subdivision (a) for the quarter following the
month in which the information is submitted to the commission.
   (d) In addition to the data required under subdivision (a), each
integrated oil refiner (produces, refines, transports, and markets in
interstate commerce) who supplies more than 500 branded retail
outlets in California shall submit to the commission an annual
industry forecast for Petroleum Administration for Defense, District
V (covering Arizona, Nevada, Washington, Oregon, California, Alaska,
and Hawaii).  The forecast shall include the information to be
submitted under subdivision (a), and shall be submitted by March 15
of each year.  The commission may require California-specific
forecasts.  However, those forecasts shall be required only if the
commission finds them necessary to carry out its responsibilities.
   (e) The commission may by order or regulation modify the reporting
period as to any individual item of information setting forth in the
order or regulation its reason for so doing.
   (f) The commission may request additional information as necessary
to perform its responsibilities under this chapter.
   (g) Any person required to submit information or data under this
chapter  may  , in lieu thereof,  may 
submit a report made to any other governmental agency, 
provided, that   if  :
   (1) The alternate report or reports contain all of the information
or data required by specific request under this chapter.
   (2) The person clearly identifies the specific request to which
the alternate report is responsive.
   (h)  Beginning January 1, 1985, and each month thereafter,
each   Each  refiner shall submit to the
commission, within 30 days after the end of each monthly reporting
period, all of the following information in such form and extent as
the commission prescribes:
   (1) Monthly California weighted average prices and sales volumes
of finished leaded regular, unleaded regular, and premium motor
gasoline sold through company-operated retail outlets, to other
end-users, and to wholesale customers.
   (2) Monthly California weighted average prices and sales volumes
for residential sales, commercial and institutional sales, industrial
sales, sales through company-operated retail outlets, sales to other
end-users, and wholesale sales of No. 2 diesel fuel and No. 2 fuel
oil.
   (3) Monthly California weighted average prices and sales volumes
for retail sales and wholesale sales of No. 1 distillate, kerosene,
finished aviation gasoline, kerosene-type jet fuel, No. 4 fuel oil,
residual fuel oil with 1 percent or less sulfur, residual fuel oil
with greater than 1 percent sulfur and consumer grade propane.

   (i) Refiners that submit form EIA-800 reports to the United States
Department of Energy shall provide to the commission copies of their
weekly reports, or equivalent data, for the period from January 1,
1983, to January 1, 1985, and thereafter provide to the commission
copies of weekly EIA-800 reports, or equivalent data, once each month
through December 31, 1985. 
  SEC. 5.  Section 25356 of the Public Resources Code is amended to
read:
   25356.  (a) The commission  shall  , utilizing
its own staff and other support staff having expertise and experience
in, or with, the petroleum industry,  shall  gather,
analyze, and interpret the information submitted to it pursuant to
Section 25354 and other information relating to the supply and price
of petroleum products, with particular emphasis on motor vehicle
fuels, including, but not limited to, all of the following:
   (1) The nature, cause, and extent of any petroleum or petroleum
products shortage or condition affecting supply.
   (2) The economic and environmental impacts of any petroleum and
petroleum product shortage or condition affecting supply.
   (3) Petroleum or petroleum product demand and supply forecasting
methodologies utilized by the petroleum industry in California.
   (4) The prices, with particular emphasis on retail motor fuel
prices,  including sales to unbranded retail markets,  and
any significant changes in prices charged by the petroleum industry
for petroleum or petroleum products sold in California and the
reasons for those changes.
   (5) The profits, both before and after taxes, of the industry as a
whole and of major firms within it, including a comparison with
other major industry groups and major firms within them as to
profits, return on equity and capital, and price-earnings ratio.
   (6) The emerging trends relating to supply, demand, and
conservation of petroleum and petroleum products.
   (7) The nature and extent of efforts of the petroleum industry to
expand refinery capacity and to make acquisitions of additional
supplies of petroleum and petroleum products, including activities
relative to the exploration, development, and extraction of resources
within the state.
   (8) The development of a petroleum and petroleum products
information system in a manner  which   that
 will enable the state to take action to meet and mitigate any
petroleum or petroleum products shortage or condition affecting
supply.
   (b) The commission shall analyze the impacts of state and federal
policies and regulations upon the supply and pricing of petroleum
products.