BILL ANALYSIS
SB 1962
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Date of Hearing: June 26, 2000
ASSEMBLY COMMITTEE ON TRANSPORTATION
Tom Torlakson, Chair
SB 1962 (Costa) - As Amended: May 2, 2000
SENATE VOTE : 39 - 0
SUBJECT : Petroleum products: reports
SUMMARY : Requires oil refiners and major marketers to report
more specific information to the California Energy Commission
(CEC). Specifically, this bill :
1)Requires oil refiners to include in their monthly reports to
CEC (see existing law #1 below) data on:
a) Imports of finished petroleum products and blendstocks;
b) Exports of finished petroleum products and blendstocks;
and
c) Distribution of gasoline sold unbranded.
2)Requires major marketers of petroleum products, as defined, to
include in their monthly reports to CEC (see existing law #2
below) data on:
a) Sources of product receipts;
b) Inventories of finished petroleum products and
blendstocks;
c) Distributions through both branded and unbranded
distribution networks; and
d) Exports of finished petroleum products and blendstocks.
3)Defines "unbranded" fuel as gasoline or diesel fuel that is
sold for retail or wholesale distribution without being
marketed under a brand name or trademark of either an
independent refiner or an integrated refining and marketing
company, or that is sold without proprietary additives.
4)Requires CEC to include in its analysis of prices in the
petroleum industry (as described in existing law #3) the price
to unbranded retail markets.
EXISTING LAW :
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1)Requires oil refiners to report each month to CEC on the
feedstock inputs, origin of petroleum receipts, refinery
outputs, refinery stocks, and finished supply and distribution
for each of their refineries.
2)Requires major marketers of petroleum products, as defined, to
report each month to the CEC on petroleum and petroleum
product receipts.
3)Requires CEC to gather, analyze, and interpret the information
submitted in the reports (described in #1 and #2 above) from
refiners and major marketers, with particular emphasis on
retail motor fuel prices, among other matters.
4)Charges CEC with preparing a plan specifying actions to be
taken in the event of an impending serious shortage of energy
and with developing contingency plans to deal with possible
shortages of fuel supplies to protect public health, safety,
and welfare. In an emergency, CEC, pursuant to an executive
order, can order that fuel be made available to relieve a
shortage. For purposes of this provision of law, high prices
do not constitute an emergency.
FISCAL EFFECT : No or minimal costs to state.
COMMENTS : This bill gives CEC more data to better analyze the
market for petroleum products in California, and in particular
to be able to track the amount of gasoline produced in
California and exported to other states. The bill also enables
CEC to track the sale of unbranded gasoline in California.
The sponsor of this bill, the California Independent Oil
Marketers Association (CIOMA), notes that while CEC tracks
branded gasoline prices and supplies, it lacks the authority to
track supplies and distribution of unbranded gasoline. COIMA
further notes that CEC also has no authority to track imports of
gasoline and diesel fuel, nor can it require refiners to
disclose how much gasoline, diesel fuel, or blend stocks they
are shipping out of state. COIMA is sponsoring this bill to
give CEC the ability to track all of this information, and to
base its contingency planning for fuel shortages on this
information.
Existing law directs CEC to prepare "an integrated plan
specifying actions to be taken in the event of an impending
SB 1962
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serious shortage of energy, or a clear threat to public health,
safety, or welfare." Among these actions is the issuance of an
executive order by the Governor to direct fuel where necessary
to respond to an emergency. The last time such an executive
order was issued was under Governor Jerry Brown during the
1979-80 energy crisis.
The author believes giving CEC the authority to track unbranded
gasoline supplies, imports, and exports is critical to helping
CEC develop a full, complete, and effective contingency plan to
ensure sufficient supplies of gasoline and diesel are available
in an emergency.
Double-referral : The Assembly Rules Committee referred this
bill first to the Transportation Committee and second to the
Utilities and Commerce Committee.
REGISTERED SUPPORT / OPPOSITION :
Support
California Independent Oil Marketers Association (sponsor)
SB 1962
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Opposition
None received.
Analysis Prepared by : Carrie Cornwell / TRANS. / (916)
319-2093