SB 2

Bill Subjects

Abstract

Existing law requires operators of refineries in the state that produce gasoline meeting California specifications, within 30 days of the end of each calendar month, to submit a report to the State Energy Resources Conservation and Development Commission containing certain information regarding its refining activities related to the production of gasoline in that month, including the gross gasoline refining margin of gasoline sold in that month. Existing law requires the commission within 45 days of the end of each calendar month to post certain information on its internet website. This bill would authorize the commission to set a maximum gross gasoline refining margin, as provided. The bill would require the commission, if the commission establishes the maximum gross gasoline refining margin, to establish a penalty for exceeding the maximum gross gasoline refining margin, as provided. The bill would authorize the commission to petition the court to enjoin a refiner from exceeding the maximum gross gasoline refining margin. The bill would also authorize the commission to impose an administrative civil penalty on a refiner for exceeding the maximum gross gasoline refining margin, as provided. The bill would require the commission to consider a refiner's request for an exemption from the maximum gross gasoline refining margin, as provided. The bill would require a refiner seeking an exemption to file a statement under the penalty of perjury setting forth the facts that form the basis for the request for exemption. By requiring the statement to be filed under the penalty of perjury, the bill would expand the scope of the crime of perjury, thereby imposing a state-mandated local program. The bill would require the penalties collected to be deposited into the Price Gouging Penalty Fund, which the bill would create in the State Treasury. The bill would require moneys in the fund, upon appropriation by the Legislature, to be used to address any consequences of price gouging on Californians. The bill would require the California State Auditor, no later than March 1, 2033, to complete an audit and performance review of the maximum gross gasoline refining margin and penalty, if set by the commission. The bill would require the California State Auditor to make a determination in a report to the Legislature and the commission, by no later than June 1, 2033, as to whether the maximum gross gasoline refining margin and penalty is achieving the intended goal to reduce gasoline price spikes and stabilize the gasoline fuel supply market. If the California State Auditor concludes that the maximum gross gasoline refining margin and penalty should be terminated, the bill would require the commission, within 180 days after the issuance of the report, to cease implementing the maximum gross gasoline refining margin and penalty, except as provided. This bill would require the commission, in cooperation with the California Department of Tax and Fee Administration, to submit a report to the Legislature, on or before March 1 of each year, that includes a review of the price of gasoline in California and its impact on state revenues for the previous calendar year, as provided. The bill would authorize the department to request from any person certain records required to be maintained and any records in the person's possession, custody, or control that the department deems necessary to facilitate the report or to assist the commission. This bill would require the commission, on or before January 1, 2024, and every 3 years thereafter, to submit an assessment to the Governor and the Legislature that, among other things, identifies methods to ensure a reliable supply of affordable and safe transportation fuels in California, as provided. The bill would require the commission to use reasonable means necessary and available to seek and obtain information from any sources for purposes of preparing the assessment and would authorize the commission to impose a civil penalty if a person fails to timely provide information necessary for preparing the assessment. The bill would require the commission and the State Air Resources Board, on or before December 31, 2024, and taking into account the assessment, to prepare a Transportation Fuels Transition Plan, as provided. This bill would establish the Division of Petroleum Market Oversight in the commission that is led by a director appointed by the Governor and subject to Senate confirmation. The bill would specify that the division operates with authority independent of the commission's authority. The bill would specify the duties of the division, including, among other duties, the duty to provide guidance and recommendations to the Governor and the commission on any issues related to transportation fuels pricing and transportation decarbonization in California. The bill would establish the Independent Consumer Fuels Advisory Committee, consisting of specified members, within the commission, and would require the committee to advise the commission and the division. This bill would require operators of refineries to report additional information, including the net gasoline refining margin per barrel of gasoline sold in that month. The bill would require the commission to post on its internet website certain information related to the net gasoline refining margin. Existing law requires major oil producers, refiners, marketers, oil transporters, and oil storers to annually submit certain information to the commission, as provided. This bill would revise and recast the above reporting requirement to, among other things, require pipeline operators and operators of ports through which refined gasoline is imported to annually report their capacities for all pipelines and ports used to transport refined gasoline, require all importers of refined products and renewable fuels via marine vessel to submit reports to the commission, as specified, require nonrefiners that commercially trade in gasoline, gasoline blending components, diesel fuel, or renewable fuel inventory to submit weekly reports to the commission, as provided, require refiners and nonrefiners that consummate spot market transactions to submit a daily report to the commission containing certain information for each transaction occurring in the preceding day, as provided, and require refiners to report maintenance activities, both planned and unplanned, to the commission, as provided. Existing law subjects a person who fails to provide information to the commission after being notified of the failure to civil penalties in specified amounts. This bill would increase the amount of civil penalties that may be imposed. Existing constitutional provisions require that a statute that limits the right of access to the meetings of public bodies or the writings of public officials and agencies be adopted with findings demonstrating the interest protected by the limitation and the need for protecting that interest. This bill would make legislative findings to that effect. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason.