BILL NUMBER: AB 638 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY MARCH 9, 2011
INTRODUCED BY Assembly Member Skinner
FEBRUARY 16, 2011
An act to amend Section 25720 of the Public Resources Code,
relating to fuel resources.
LEGISLATIVE COUNSEL'S DIGEST
AB 638, as amended, Skinner. Fuel resources: State Energy
Resources Conservation and Development Commission.
Existing law requires the State Energy Resources Conservation and
Development Commission (Energy Commission) to examine the feasibility
of operating a strategic fuel reserve and recommend an appropriate
level of reserves. Existing law also requires the Energy Commission
and the State Air Resources Board, in consultation with other state
and local agencies the commission deems necessary, to develop and
adopt recommendations for the Governor and Legislature on a
California Strategy to Reduce Petroleum Dependence.
This bill would require the commission and the board to, among
other things, attain the targets set forth in the strategy as
efficiently as possible, coordinate the attainment of the targets
with provisions regulating alternative fuels, and require all future
regulations and guidelines to maximize the attainment of targets. The
bill would also require the commission and the board, on or before
January 1, 2013, in consultation with other state and local agencies
the commission deems necessary, to adopt a series of interim actions
to reduce petroleum fuel consumption by 15% below the 2003 levels by
2020 and increase alternative fuel consumption by
to 26% by 2022.
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 25720 of the Public Resources Code is amended
to read:
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 reserve, 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 a 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 other state and local
agencies that 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.
(4) The commission and the State Air Resources Board shall do all
of the following:
(A) Attain the targets set forth in the strategy as efficiently as
possible.
(B) Coordinate the attainment of the targets with Article 6.5
(commencing with Section 43865) of Chapter 4 of Part 5 of Division 26
of the Health and Safety Code.
(C) Modify existing programs to maximize the attainment of the
targets.
(D) Require all future regulations and guidelines to maximize the
attainment of the targets.
(E) On or before July 1, 2012, report to the relevant legislative
policy committees on the progress in
implementing this section.
(i) The requirement for submitting a report imposed under this
subparagraph is inoperative on July 1, 2016, pursuant to Section
10231.5 of the Government Code.
(ii) A report to be submitted pursuant to this subparagraph shall
be submitted in compliance with Section 9795 of the Government Code.
(5) On or before January 1, 2013, the commission and the board, in
consultation with other state and local agencies the commission
deems necessary, shall adopt a series of interim actions to reduce
petroleum fuel consumption by 15 percent below the 2003 level by 2020
and increase alternative fuel consumption by
to 26 percent by 2022, consistent with this subdivision and
Section 43866 of the Health and Safety Code.
(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.